Iterative demodulation and decoding (ID) seeks to extract useful information from decoders by performing multiple successive demodulation and decoding iterations. Multistage decoding with iterative demodulation and decoding (MSD-ID) unites MSD and ID, in order to improve error probability performance for multilevel codes. This article evaluates MSD-ID performance for multilevel LDPC codes and compares to a proposed MSD-ID modification called parity information aided iterative multistage decoding (PIA-MSD-ID), where parity-checking information obtained from the LDPC decoders is used to aid the whole decoding process. Rate distribution designs are made for MSD, MSD-ID and PIA-MSD-ID. The results show that PIA-MSD-ID achieves lower frame error rate, in comparison to multistage decoding (MSD) and similar to MSD average complexity, for higher SNR.