Accumulation unit – Financial Terms

Accumulation units are the shares you own in variable annuity sub-accounts (also called investment portfolios or annuity funds) while you’re putting money into your annuity.

If your 401(k) plan includes an annuity, each time you make a pretax contribution, that amount is added to one or more sub-accounts to buy additional accumulation units. The value of your account is figured by multiplying the number of units you own by the dollar value of each unit. That value changes to reflect the changing performance of the underlying investments in the sub-account.