IDS LIFE VARIABLE ACCOUNT 10, 485APOS, 2000-02-28

IDS LIFE VARIABLE ACCOUNT 10
485APOS, 2000-02-28

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-4

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

Pre-Effective Amendment No. [ ]

Post-Effective Amendment No. 1 (File No. 333-79311) [X]

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 3 (File No. 811-07355) [X]
---------

(Check appropriate box or boxes)

IDS LIFE VARIABLE ACCOUNT 10
- -------------------------------------------------------------------------------
(Exact Name of Registrant)

IDS Life Insurance Company
- -------------------------------------------------------------------------------
(Name of Depositor)

IDS Tower 10, Minneapolis, MN 55440-0010
- -------------------------------------------------------------------------------
(Address of Depositor's Principal Executive Offices) (Zip Code)

Depositor's Telephone Number, including Area Code (612) 671-3678
- -------------------------------------------------------------------------------

Mary Ellyn Minenko, IDS Tower 10, Minneapolis, MN 55440-0010
- -------------------------------------------------------------------------------
(Name and Address of Agent for Service)

It is proposed that this filing will become effective (check appropriate box)
[ ] immediately upon filing pursuant to paragraph (b) of Rule 485
[ ] on (date)pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a)(i) of Rule 485
[X] on May 1, 2000 pursuant to paragraph (a)(i) of Rule 485

If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.

The prospectuses and Statements of Additional Information filed electronically
herewith are not intended to supersede the prospectuses and Statements of
Additional Information filed with Pre-Effective Amendment No. 1 to Registration
Statement No. 333-79311, filed on or about August 10, 1999.

<PAGE>

Prospectus

May 1, 2000

American Express Retirement Advisor Variable Annuity

INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITY

IDS Life Variable Account 10

Issued by: IDS Life Insurance Company (IDS Life)

200 AXP Financial Center
Minneapolis, MN 55474

Telephone: 800-437-0602
http://www.americanexpress.com/advisors

This prospectus contains information that you should know before investing. You
also will receive the prospectuses for:

o American Express(R)Variable Portfolio Funds o MFS(R)Variable Insurance TrustSM
o AIM Variable Insurance Funds, Inc. o Putnam Variable Trust
o American Century Variable Portfolios, Inc. o Royce Capital Fund
o Fidelity Variable Insurance Products Funds - Service Class o Third Avenue Variable Series Trust
o Franklin Templeton Variable Insurance Products Trust - Class 2 o Wanger Advisors Trust
o Goldman Sachs Variable Insurance Trust (VIT) o Warburg Pincus Trust
o Janus Aspen Series: Service Shares o New Fund
o Lazard Retirement Series, Inc.

</TABLE>

Please read the prospectuses carefully and keep them for future reference.

The contract provides for purchase payment credits. Surrender charges from
contracts with purchase payment credits are higher than surrender charges for
contracts without such credits. The amount of the credit may be more than offset
by additional surrender charges associated with the credit.

The Securities and Exchange Commission (SEC) has not approved or disapproved
these securities or passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense.

An investment in this contract is not a deposit of a bank or financial
institution and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. An investment in this contract
involves investment risk including the possible loss of principal.

A Statement of Additional Information (SAI), dated the same date as this
prospectus, is incorporated by reference into this prospectus. It is filed with
the SEC and is available without charge by contacting IDS Life at the telephone
number above or by completing and sending the order form on the last page of
this prospectus. The table of contents of the SAI is on the last page of this
prospectus.

<PAGE>

Table of Contents

Key Terms..................................................................p
The Contract in Brief .....................................................p
Expense Summary............................................................p
Condensed Financial Information (Unaudited)................................p
Financial Statements.......................................................p
Performance Information....................................................p
The Variable Account and the Funds.........................................p
The Fixed Account..........................................................p
Buying Your Contract.......................................................p
Charges....................................................................p
Valuing Your Investment....................................................p
Making the Most of Your Contract...........................................p
Surrenders.................................................................p
TSA -- Special Surrender Provisions........................................p
Changing Ownership.........................................................p
Benefits in Case of Death..................................................p
The Annuity Payout Period..................................................p
Taxes......................................................................p
Voting Rights..............................................................p
Substitution of Investments................................................p
About the Service Providers................................................p
Year 2000..................................................................p
Table of Contents of the Statement of Additional Information...............p

<PAGE>

Key Terms

These terms can help you understand details about your contract.

Accumulation unit -- A measure of the value of each subaccount before annuity
payouts begin.

Annuitant -- The person on whose life or life expectancy the annuity payouts are
based.

Annuity payouts -- An amount paid at regular intervals under one of several
plans.

Beneficiary -- The person you designate to receive benefits in case of the
owner's or annuitant's death while the contract is in force and before annuity
payouts begin.

Close of business -- When the New York Stock Exchange (NYSE) closes, normally 4
p.m. Eastern time.

Contract -- A deferred annuity contract that permits you to accumulate money for
retirement by making one or more purchase payments. It provides for lifetime or
other forms of payouts beginning at a specified time in the future.

Contract value -- The total value of your contract before we deduct any
applicable charges.

Contract year -- A period of 12 months, starting on the effective date of your
contract and on each anniversary of the effective date.

Fixed account -- An account to which you may allocate purchase payments. Amounts
you allocate to this account earn interest at rates that we declare
periodically.

Funds -- Investment options under your contract. You may allocate your purchase
payments into subaccounts investing in shares of any or all of these funds.

Owner (you, your) -- The person who controls the contract (decides on investment
allocations, transfers, payout options, etc.). Usually, but not always, the
owner is also the annuitant. The owner is responsible for taxes, regardless of
whether he or she receives the contract's benefits.

Qualified annuity -- A contract that you purchase for one of the following
retirement plans that is subject to applicable federal law and any rules of the
plan itself:

o Individual Retirement Annuities (IRAs) under Section 408(b) of the
Internal Revenue Code of 1986, as amended (the Code)
o Roth IRAs* under Section 408 A of the Code
o SIMPLE IRAs* under Section 408(p) of the Code
o Simplified Employee Pension (SEP) plans under Section 408(k) of the
Code
o Section 401(k) plans under Section 401(k) of the Code
o Custodial and trusteed pension and profit sharing plans under
Section 401(a) of the Code
o Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code

A qualified annuity will not provide any necessary or additional tax deferral if
it is used to fund a retirement plan that is already tax deferred.

* These qualified annuities are not scheduled to be available until June 2000.
Please see your sales representative for more information.

<PAGE>

All other contracts are considered nonqualified annuities.

Settlement date -- The date when annuity payouts are scheduled to begin.

Surrender value -- The amount you are entitled to receive if you make a full
surrender from your contract. It is the contract value minus any applicable
charges.

Valuation date -- Any normal business day, Monday through Friday, that the NYSE
is open. Each valuation date ends at the close of business. We calculate the
value of each subaccount at the close of business on each valuation date.

Variable account -- Consists of separate subaccounts to which you may allocate
purchase payments; each invests in shares of one fund. The value of your
investment in each subaccount changes with the performance of the particular
fund.

<PAGE>

The Contract in Brief

Purpose: The purpose of the contract is to allow you to accumulate money for
retirement. You do this by making one or more purchase payments. You may
allocate your purchase payments to the fixed account and/or subaccounts under
the contract. These accounts, in turn, may earn returns that increase the value
of the contract. Beginning at a specified time in the future called the
settlement date, the contract provides lifetime or other forms of payouts of
your contract value (less any applicable premium tax). As in the case of other
annuities, it may not be advantageous for you to purchase this contract as a
replacement for, or in addition to, an existing annuity.

A qualified annuity will not provide any necessary or additional tax deferral if
it is used to fund a retirement plan that is tax-deferred. However, the contract
has features other than tax deferral that may make it an appropriate investment
for your retirement plan. You should compare these features and their costs with
other investment options before deciding to purchase this contract.

Free look period: You may return your contract to your sales representative or
to our office within the time stated on the first page of your contract and
receive a full refund of the contract value, less any purchase payment credits
up to the maximum surrender charge. (See "Valuing Your Investment - Purchase
payment credits.") We will not deduct any other charges. However, you bear the
investment risk from the time of purchase until you return the contract; the
refund amount may be more or less than the payment you made. (Exception: If the
law requires, we will refund all of your purchase payments.)

Accounts: Currently, you may allocate your purchase payments among any or all
of:

o the subaccounts, each of which invests in a fund with a particular
investment objective. The value of each subaccount varies with the
performance of the particular fund in which it invests. We cannot guarantee
that the value at the retirement date will equal or exceed the total
purchase payments you allocate to the subaccounts. (p. __)

o the fixed account, which earns interest at a rate that we adjust
periodically. (p. __)

Buying your contract: Your sales representative will help you complete and
submit an application. Applications are subject to acceptance at our office. You
may buy a nonqualified annuity or a qualified annuity. After your initial
purchase payment, you have the option of making additional purchase payments in
the future.* (p. __ )

o Minimum initial purchase payment - $2,000 ($1,000 for qualified annuities)
unless you pay in installments by means of a bank authorization or under a
group billing arrangement such as a payroll deduction.
o Minimum additional purchase payment - $50.
o Minimum installment purchase payment - $50 monthly; $23.08 biweekly
(scheduled payment plan billing).
o Maximum first-year purchase payments - $100,000 to $1,000,000 depending
on your age.
o Maximum purchase payment for each subsequent year - $50,000 to
$100,000 depending upon your age.

*Purchase payments are limited and may not be paid after the third contract
anniversary in Massachusetts, Washington and Oregon.

<PAGE>

Transfers: Subject to certain restrictions you currently may redistribute your
money among the accounts without charge at any time until annuity payouts begin,
and once per contract year among the subaccounts after annuity payouts begin.
You may establish automated transfers among the accounts. Fixed account
transfers are subject to special restrictions. (p.)

Surrenders: You may surrender all or part of your contract value at any time
before the settlement date. You also may establish automated partial surrenders.
Surrenders may be subject to charges and tax penalties (including a 10% IRS
penalty if you surrender prior to your reaching age 59 1/2) and may have other
tax consequences; also, certain restrictions apply. (p.)

Changing ownership: You may change ownership of a nonqualified annuity by
written instruction, but this may have federal income tax consequences.
Restrictions apply to changing ownership of a qualified annuity. (p.)

Benefits in case of death: If you or the annuitant die before annuity payouts
begin, we will pay the beneficiary an amount at least equal to the contract
value. (p.)

Annuity Payouts: You can apply your contract value to an annuity payout plan
that begins on the settlement date. You may choose from a variety of plans to
make sure that payouts continue as long as you like. If you purchased a
qualified annuity, the payout schedule must meet the requirements of the
qualified plan. We can make payouts on a fixed or variable basis, or both. Total
monthly payouts may include amounts from each subaccount and the fixed account.
During the annuity payout period, you cannot be invested in more than five
subaccounts at any one time unless we agree otherwise. (p.)

Taxes: Generally, your contract grows tax-deferred until you surrender it or
begin to receive payouts. (Under certain circumstances, IRS penalty taxes may
apply.) Even if you direct payouts to someone else, you will be taxed on the
income if you are the owner. (p.)

Charges

We assess certain charges in connection with your contract:

o $30 annual contract administrative charge;

o for nonqualified annuities a 0.95% mortality and expense risk fee (if
you allocate money to one or more subaccounts);
o for qualified annuities a 0.75% mortality and expense risk fee (if you
allocate money to one or more subaccounts);
o surrender charge;
o any premium taxes that may be imposed on us by state or local
governments (Currently, we deduct any applicable premium tax when
annuity payouts begin but we reserve the right to deduct this tax at
other times such as when you make purchase payments or when you
surrender your contract); and
o the operating expenses of the funds in which the subaccounts invest
(if you allocate money to one or more subaccounts).

Expense Summary

The purpose of the following information is to help you understand the various
costs and expenses associated with your contract.

You pay no sales charge when you purchase your contract. We show all costs that
we deduct directly from your contract or indirectly from the subaccounts and
funds below. Some expenses may vary as we explain under "Charges." Please see
the fund prospectuses for more information on the operating expenses for each
fund.

<PAGE>

Contract owner expenses:

Surrender charge: contingent deferred sales charge as a percentage of purchase
payment surrendered. The owner selects either a seven-year or ten-year surrender
charge schedule at the time of application.*

Seven-year schedule Ten-year schedule*
Years from purchase Surrender charge Years from purchase Surrender charge
payment receipt percentage payment receipt percentage
<S> <C> <C> <C>
1 7% 1 8%
2 7 2 8
3 7 3 8
4 6 4 7
5 5 5 7
6 4 6 6
7 2 7 5
Thereafter 0 8 4
9 3
10 2
Thereafter 0
</TABLE>

*Ten-year surrender charge schedule is not available in Oregon.

Surrender charge under Annuity Payout Plan E --Payouts for a specified period:
The amount equal to the difference in the present value of remaining payments
using the assumed investment rate and such present value using the assumed
investment rate plus 1.22% for qualified annuities and 1.42% for nonqualified
annuities. In no event would your surrender charge exceed 9% of the amount
available for payouts under the plan.

Annual contract administrative charge $30**

**We will waive this charge when your contract value, or total purchase payments
less any payments surrendered, is $50,000 or more on the current contract
anniversary.

Annual subaccount expenses (as a percentage of average subaccount value):

Mortality and expense risk fee 0.95% for nonqualified annuities

0.75% for qualified annuities

[Annual operating expenses of the fund and expense examples to be updated upon
amendment]

Condensed Financial Information (Unaudited)

The following tables give per-unit information about the financial history of
each subaccount.

[To be updated upon amendment]

Financial Statements

You can find our audited financial statements and the audited financial
statements of the subaccounts in the SAI.

<PAGE>

Performance Information

Performance information for the subaccounts may appear from time to time in
advertisements or sales literature. This information reflects the performance of
a hypothetical investment in a particular subaccount during a specified time
period. We show actual performance from the date the subaccounts began investing
in funds. For some subaccounts, we do not provide any performance information
because they are new and have not had any activity to date. We also show
performance from the commencement date of the funds as if the contract existed
at that time, which it did not. Although we base performance figures on
historical earnings, past performance does not guarantee future results.

We include non-recurring charges (such as surrender charges) in total return
figures, but not in yield quotations. Excluding non-recurring charges in yield
calculations increases the reported value.

Total return figures reflect deduction of all applicable charges, including:

o contract administrative charge,
o mortality and expense risk fee, and
o surrender charge (assuming a surrender at the end of the illustrated
period).

We also show optional total return quotations that do not reflect a surrender
charge deduction (assuming no surrender). We may show total return quotations by
means of schedules, charts or graphs.

Average annual total return is the average annual compounded rate of return of
the investment over a period of one, five and ten years (or up to the life of
the subaccount if it is less than ten years old).

Cumulative total return is the cumulative change in the value of an investment
over a specified time period. We assume that income earned by the investment is
reinvested. Cumulative total return generally will be higher than average annual
total return.

Annualized simple yield (for subaccounts investing in money market funds)
"annualizes" the income generated by the investment over a given seven-day
period. That is, we assume the amount of income generated by the investment
during the period will be generated each seven-day period for a year. We show
this as a percentage of the investment.

Annualized compound yield (for subaccounts investing in money market funds) is
calculated like simple yield except that we assume the income is reinvested when
we annualize it. Compound yield will be higher than the simple yield because of
the compounding effect of the assumed reinvestment.

Annualized yield (for subaccounts investing in income funds) divides the net
investment income (income less expenses) for each accumulation unit during a
given 30-day period by the value of the unit on the last day of the period. We
then convert the result to an annual percentage.

You should consider performance information in light of the investment
objectives, policies, characteristics and quality of the fund in which the
subaccount invests and the market conditions during the specified time period.
Advertised yields and total return figures include charges that reduce
advertised performance. Therefore, you should not compare subaccount performance
to that of mutual funds that sell their shares directly to the public. (See the
SAI for a further description of methods used to determine total return and
yield.)

If you would like additional information about actual performance, please
contact us at the address or telephone number on the first page of this
prospectus.

<PAGE>

The Variable Account and the Funds

You may allocate payments to any or all of the subaccounts of the variable
account that invest in shares of the following funds:
<TABLE>
<CAPTION>
Investment Advisor or
Subaccount Investing In Investment Objectives and Policies: Manager
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
BC1 AXPSM Variable Portfolio - Objective: long-term total return exceeding that IDS Life, investment
BC2 Blue Chip Advantage Fund of the U.S. stock market. Invests primarily in manager; American
common stocks of companies included in the Express Financial
unmanaged S&P 500 Index. Corporation (AEFC)
investment advisor.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
BD1 AXPSM Variable Portfolio - Objective: high level of current income while IDS Life, investment
BD2 Bond Fund conserving the value of the investment for the manager; AEFC
longest time period. Invests primarily in investment advisor.
investment-grade bonds.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
CR1 AXPSM Variable Portfolio - Objective: capital appreciation. Invests primarily IDS Life, investment
CR2 Capital Resource Fund in U.S. common stocks. manager; AEFC
investment advisor.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
CM1 AXPSM Variable Portfolio - Objective: maximum current income consistent with IDS Life, investment
CM2 Cash Management Fund liquidity and conservation of capital. Invests in manager; AEFC
money market securities. investment advisor.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
DE1 AXPSM Variable Portfolio - Objective: high level of current income and, as a IDS Life, investment
DE2 Diversified Equity Income secondary goal, steady growth of capital. Invests manager; AEFC
Fund primarily in dividend-paying common and preferred investment advisor.
stocks.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------

EM1 AXPSM Variable Portfolio - Objective: long-term capital growth. Invests IDS Life, investment
EM2 Emerging Markets Fund primarily in equity securities of companies in manager; AEFC
emerging markets. investment advisor;
American Express
Asset Management
International, Inc.,
a wholly-owned
subsidiary of AEFC,
is the
sub-investment
advisor.

<PAGE>

- -----------------------------------------------------------------------------------------------------------------------
GR1 AXPSM Variable Portfolio - Objective: long-term capital growth. Invests IDS Life, investment
GR2 Growth Fund primarily in common stocks and securities manager; AEFC
convertible into common stocks that appear to investment advisor.
offer growth opportunities.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
IE1 AXPSM Variable Portfolio - Objective: capital appreciation. Invests primarily IDS Life, investment
IE2 International Fund in common stock of foreign issuers. manager; AEFC
investment advisor.
American Express
Asset Management
International, Inc.,
a wholly-owned
subsidiary of AEFC,
is the
sub-investment
advisor.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
MF1 AXPSM Variable Portfolio - Objective: maximum total investment return through IDS Life, investment
MF2 Managed Fund a combination of capital growth and current manager; AEFC
income. Invests primarily in stocks, convertible investment advisor.
securities, bonds and money market instruments.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
ND1 AXPSM Variable Portfolio - Objective: long-term growth of capital. Invests IDS Life, investment
ND2 New Dimensions Fund primarily in common stocks of U.S. and foreign manager; AEFC
companies showing potential for significant growth. investment advisor.
- -----------------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------------
SP1 AXPSM Variable Portfolio - Objective: long-term capital appreciation. Invests IDS Life, investment
SP2 S&P 500 Index Fund primarily in securities that are expected to manager; AEFC
provide investment results that correspond to the investment advisor.
performance of the S&P 500 Index.

<PAGE>

- -----------------------------------------------------------------------------------------------------------------------
1GI Fidelity VIP III Growth & Objective: high total return through a combination Fidelity Management &
2GI Income Portfolio (Service of current income and capital appreciation. Research Company
Class) Invests primarily in common stocks with a focus on (FMR), investment
those that pay current dividends and show manager; FMR U.K. and
potential for capital appreciation. FMR Far East,
sub-investment
advisors.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
1MP Fidelity VIP III Mid Cap Objective: long-term growth of capital. Invests FMR, investment
2MP Portfolio (Service Class) primarily in medium market capitalization common manager; FMR U.K. and
stocks. FMR Far East,
sub-investment
advisors.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
1OS Fidelity VIP Overseas Objective: long-term growth of capital. Invests FMR, investment
2OS Portfolio (Service Class) primarily in common stocks of foreign securities. manager; FMR U.K.,
FMR Far East,
Fidelity
International
Investment
Advisors
(FIIA)and FIAA U.K.,
sub-investment
advisors.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
1RE FT VIP Franklin Real Estate Objective: capital appreciation with a Franklin Advisers,
2RE Securities Fund - Class 2 secondary goal to earn current income. Inc.
Invests primarily in securities of
companies operating in the real estate
industry, primarily equity real estate
investment trusts (REITS).
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
1SI FT VIP Franklin Value Objective: long-term total return. Invests Franklin Advisory
2SI Securities Fund - Class 2 primarily in equity securities of companies the Services, LLC
manager believes are significantly undervalued.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
1IS FT VIP Templeton Objective: long-term capital appreciation. Invests Templeton Investment
2IS International Smaller primarily in equity securities of smaller Counsel, Inc.
Companies Fund - Class 2 companies located outside the U.S., including in
emerging markets.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
1SE Goldman Sachs VIT CORESM Objective: long-term growth of capital. Invests Goldman Sachs Asset
2SE Small Cap Equity Fund primarily in a broadly diversified portfolio of Management
equity securities of U.S. issuers which are
included in the Russell 2000 Index at the time of
investment.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
1UE Goldman Sachs VIT CORESM Objective: long-term growth of capital and Goldman Sachs Asset
2UE U.S. Equity Fund dividend income. Invests primarily in a broadly Management
diversified portfolio of large-cap and blue chip
equity securities representing all major sectors
of the U.S. economy.
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
1MC Goldman Sachs VIT Mid Cap Objective: long-term capital appreciation. Goldman Sachs Asset
2MC Value Fund Invests primarily in mid-capitalization U.S. Management
stocks that are believed to be undervalued or
undiscovered by the marketplace.
- -----------------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------------
1AG Janus Aspen Series Objective: long-term growth of capital. Invests Janus Capital
2AG Aggressive Growth primarily in common stocks selected for their
Portfolio: Service Shares growth potential and normally invests at least 50%
of its equity assets in medium-sized companies.

- -----------------------------------------------------------------------------------------------------------------------

<PAGE>

- -----------------------------------------------------------------------------------------------------------------------

1GT Janus Aspen Series Global Objectives: Janus Capital
2GT Technology Portfolio:
Service Shares

- -----------------------------------------------------------------------------------------------------------------------
1MG MFS(R) VIT Growth Series - Objective MFS Investment
2MG Service Class Management(R)

</TABLE>

<PAGE>

The investment objectives and policies of some of the funds are similar to the
investment objectives and policies of other mutual funds that an investment
advisor or its affiliates manage. Although the objectives and policies may be
similar, each fund will have its own portfolio holdings and its own fees and
expenses. Accordingly, each fund will have its own investment results, and those
results may differ significantly from other funds with similar investment
objectives and policies.

The investment managers and advisors cannot guarantee that the funds will meet
their investment objectives. Please read the fund prospectuses for facts you
should know before investing. These prospectuses are also available by
contacting us at the address or telephone number on the first page of this
prospectus.

All funds are available to serve as the underlying investments for variable
annuities. Some funds also are available to serve as investment options for
variable life insurance policies and tax-deferred retirement plans. It is
possible that in the future, it may be disadvantageous for variable annuity
accounts and variable life insurance accounts and/or tax-deferred retirement
plans to invest in the available funds simultaneously.

Although the insurance company and the funds do not currently foresee any such
disadvantages, the boards of directors or trustees of the appropriate funds will
monitor events in order to identify any material conflicts between annuity
owners, policy owners and tax-deferred retirement plans and to determine what
action, if any, should be taken in response to a conflict. If a board were to
conclude that it should establish separate funds for the variable annuity,
variable life insurance and tax-deferred retirement plan accounts, you would not
bear any expenses associated with establishing separate funds. Please refer to
the fund prospectuses for risk disclosure regarding simultaneous investments by
variable annuity, variable life insurance and tax-deferred retirement plan
accounts.

The IRS issued final regulations relating to the diversification requirements
under Section 817(h) of the Code. Each fund intends to comply with these
requirements.

The variable account was established under Minnesota law on Aug. 23, 1995, and
the subaccounts are registered together as a single unit investment trust under
the Investment Company Act of 1940 (the 1940 Act). This registration does not
involve any supervision of our management or investment practices and policies
by the SEC. All obligations arising under the contracts are general obligations
of IDS Life.

The variable account meets the definition of a separate account under federal
securities laws. We credit or charge income, capital gains and capital losses of
each subaccount only to that subaccount. State insurance law prohibits us from
charging a subaccount with liabilities of any other subaccount or of our general
business. The variable account includes other subaccounts that are available
under contracts that are not described in this prospectus.

The U.S. Treasury and the Internal Revenue Service (IRS) indicated that they may
provide additional guidance on investment control. This concerns how many
variable subaccounts an insurance company may offer and how many exchanges among
subaccounts it may allow before the contract owner would be currently taxed on
income earned within subaccount assets. At this time, we do not know what the
additional guidance will be or when action will be taken. We reserve the right
to modify the contract, as necessary, so that the owner will not be subject to
current taxation as the owner of the subaccount assets.

We intend to comply with all federal tax laws so that the contract continues to
qualify as an annuity for federal income tax purposes. We reserve the right to
modify the contract as necessary to comply with any new tax laws.

<PAGE>

The Fixed Account

You also may allocate purchase payments to the fixed account. We back the
principal and interest guarantees relating to the fixed account. The value of
the fixed account increases as we credit interest to the account. Purchase
payments and transfers to the fixed account become part of our general account.
We credit interest daily and compound it annually. We will change the interest
rates from time to time at our discretion. Interest rates will be based on
various factors including, but not limited to, returns earned on investments
backing these contracts, interest rates on similar new annuities, interest rates
credited to existing annuities we offer and our profit.

Interests in the fixed account are not required to be registered with the SEC.
The SEC staff does not review the disclosures in this prospectus on the fixed
account. Disclosures regarding the fixed account, however, may be subject to
certain generally applicable provisions of the federal securities laws relating
to the accuracy and completeness of statements made in prospectuses. (See
"Making the Most of Your Contract -Transfer policies" for restrictions on
transfers involving the fixed account.)

Buying Your Contract

You can fill out an application and send it along with your initial purchase
payment to our office. As the owner, you have all rights and may receive all
benefits under the contract. You can own a nonqualified annuity in joint tenancy
with rights of survivorship only in spousal situations. You cannot own a
qualified annuity in joint tenancy. You can buy a contract or become an
annuitant if you are 90 or younger.

When you apply, you may select:

o the length of the surrender charge period (seven or ten years);*

o the fixed account and/or subaccounts in which you want to invest;
o how you want to make purchase payments; and
o a beneficiary.

*The ten-year surrender charge schedule is not available in Oregon.

The contract provides for allocation of purchase payments to the subaccounts of
the variable account and/or to the fixed account in even 1% increments.

If your application is complete, we will process it and apply your purchase
payment to the fixed account and subaccounts you selected within two business
days after we receive it at our office. If we accept your application, we will
send you a contract. If we cannot accept your application within five business
days, we will decline it and return your payment. We will credit additional
purchase payments you make to your accounts on the valuation date we receive
them. We will value the additional payments at the next accumulation unit value
calculated after we receive your payments at our office.

The settlement date
Annuity payouts are scheduled to begin on the settlement date. When we process
your application, we will establish the settlement date to the maximum age or
date described below. You can also select a date within the maximum limits. You
can align this date with your actual retirement from a job, or it can be a
different future date, depending on your needs and goals and on certain
restrictions. You also can change the date, provided you send us written
instructions at least 30 days before annuity payouts begin.

<PAGE>

For nonqualified annuities and Roth IRAs*, the settlement date must be:

o no earlier than the 60th day after the contract's effective date; and
o no later than the annuitant's 85th birthday or the tenth contract
anniversary, if purchased after age 75. (In Pennsylvania, the maximum
settlement date ranges from age 85 to 96 based on the annuitant's age when
we issue the contract. See contract for details.)

For qualified annuities except Roth IRAs, to avoid IRS penalty taxes, the
settlement date generally must be:

o on or after the date the annuitant reaches age 59 1/2; and

o for IRAs, SIMPLE IRAs* and SEPs, by April 1 of the year following the
calendar year when the annuitant reaches age 70 1/2; or

o for all other qualified annuities, by April 1 of the year following the
calendar year when the annuitant reaches age 70 1/2, or, if later, retires
(except that 5% business owners may not select a settlement date that is
later than April 1 of the year following the calendar year when they reach
age 70 1/2).

If you take the minimum IRA or TSA distributions as required by the Code from
another tax-qualified investment, or in the form of partial surrenders from this
contract, annuity payouts can start as late as the annuitant's 85th birthday or
the tenth contract anniversary, if later. (In Pennsylvania, the annuity payout
ranges from age 85 to 96 based on the annuitant's age when the contract is
issued. See contract for details.)

* These qualified annuities are not scheduled to be available until June 2000.
Please see your sales representative for more information.

Beneficiary

If death benefits become payable before the settlement date while the contract
is in force and before annuity payouts begin, we will pay your named beneficiary
all or part of the contract value. If there is no named beneficiary, then you or
your estate will be the beneficiary. (See "Benefits in Case of Death" for more
about beneficiaries.)

Purchase payments: Purchase payments are limited and may not be paid after the
third contract anniversary in Massachusetts, Washington and Oregon.

Minimum allowable purchase payments*
<S> <C>
If paying by installments under a scheduled payment If paying by any other method:
plan: $1,000 initial payment for qualified annuities
$23.08 biweekly, or $2,000 initial payment for nonqualified annuities
$50 per month $50 for any additional payments
</TABLE>

* Installments must total at least $600 in the first year. If you do not make
any purchase payments for 24 months, and your previous payments total $600 or
less, we have the right to give you 30 days' written notice and pay you the
total value of your contract in a lump sum. This right does not apply to
contracts sold to New Jersey residents.

Maximum allowable purchase payments** based on the age of you or the
annuitant, whoever is older, on the effective date of the contract:

For the first year: For each subsequent year:
$1,000,000 up to age 85 $100,000 up to age 85
$ 100,000 for ages 86 to 90 $ 50,000 for ages 86-90

** These limits apply in total to all IDS Life annuities you own. We reserve the
right to increase maximum limits. For qualified annuities the tax-deferred
retirement plan's limits on annual contributions also apply.

<PAGE>

We reserve the right to not accept purchase payments allocated to the fixed
account for twelve months following either:

1. a partial surrender from the fixed account; or
2. a lump sum transfer from the fixed account to a subaccount.

How to make purchase payments

1
By letter

Send your check along with your name and contract number to:

Regular mail:
IDS Life Insurance Company
Box 74
Minneapolis, MN 55440-0074

Express mail:
IDS Life Insurance Company
733 Marquette Avenue
Minneapolis, MN 55402

2
By scheduled payment plan

We can help you set up:

o an automatic payroll deduction, salary reduction or other group billing
arrangement; or

o a bank authorization.

Charges

Contract administrative charge
We charge this fee for establishing and maintaining your records. We deduct $30
from the contract value on your contract anniversary at the end of each contract
year. We prorate this charge among the subaccounts and the fixed account in the
same proportion your interest in each account bears to your total contract
value.

We will waive this charge when your contract value, or total purchase payments
less any payments surrendered, is $50,000 or more on the current contract
anniversary.

If you surrender your contract, we will deduct the charge at the time of
surrender regardless of the contract value or purchase payments made. We cannot
increase the annual contract administrative charge and it does not apply after
annuity payouts begin or when we pay death benefits.

Mortality and expense risk fee
We charge this fee daily to the subaccounts. The unit values of your subaccounts
reflect this fee. For nonqualified annuities the fee totals 0.95% of the average
daily net assets on an annual basis. For qualified annuities the fee totals
0.75% of the average daily net assets on an annual basis. This fee covers the
mortality and expense risk that we assume. Approximately two-thirds of this
amount is for our assumption of mortality risk, and one-third is for our
assumption of expense risk. This fee does not apply to the fixed account.

<PAGE>

Mortality risk arises because of our guarantee to pay a death benefit and our
guarantee to make annuity payouts according to the terms of the contract, no
matter how long a specific annuitant lives and no matter how long our entire
group of annuitants live. If, as a group, annuitants outlive the life expectancy
we assumed in our actuarial tables, then we must take money from our general
assets to meet our obligations. If, as a group, annuitants do not live as long
as expected, we could profit from the mortality risk fee.

Expense risk arises because we cannot increase the contract administrative
charge and this charge may not cover our expenses. We would have to make up any
deficit from our general assets.

The subaccounts pay us the mortality and expense risk fee they accrued as
follows:

o first, to the extent possible, the subaccounts pay this fee from any
dividends distributed from the funds in which they invest;
o then, if necessary, the funds redeem shares to cover any remaining
fees payable.

We may use any profits we realize from the subaccounts' payment to us of the
mortality and expense risk fee for any proper corporate purpose, including,
among others, payment of distribution (selling) expenses. We do not expect that
the surrender charge, discussed in the following paragraphs, will cover sales
and distribution expenses.

Surrender charge
If you surrender all or part of your contract, you may be subject to a surrender
charge. A surrender charge applies if all or part of the surrender amount is
from purchase payments we received within seven (7) or ten (10) years before
surrender. You select the surrender charge period at the time of your
application for the contract.* The surrender charge percentages that apply to
you are shown in your contract.

*The ten-year surrender charge schedule is not available in Oregon.

For purposes of calculating any surrender charge, we treat amounts surrendered
from your contract value in the following order:

1. First, we surrender any contract earnings (contract value less purchase
payments received and not previously surrendered). We do not assess a
surrender charge on contract earnings.

NOTE: We determine contract earnings by looking at the entire contract value,
not the earnings of any particular subaccount or the fixed account.

2. Next, in each contract year, we surrender amounts totaling up to 10% of
your prior contract anniversary contract value, but only to the extent not
included and surrendered in number one above. (Your initial purchase
payment is considered the prior contract anniversary contract value during
the first contract year.) We do not assess a surrender charge on this
amount.

3. Next we surrender purchase payments received prior to the surrender charge
period you selected and shown in your contract. We do not assess a
surrender charge on these purchase payments.

4. Finally, if necessary, we surrender purchase payments received that are
still within the surrender charge period you selected and shown in your
contract. We surrender these payments on a "first-in, first-out" (FIFO)
basis. We do assess a surrender charge on these payments.

<PAGE>

We determine your surrender charge by multiplying each of your payments
surrendered by the applicable surrender charge percentage, and then adding the
total surrender charges.

The surrender charge percentage depends on the number of years since you made
the payments that are surrendered, depending on the schedule you selected:

Seven-year schedule Ten-year schedule
<S> <C> <C> <C>
Years from purchase payment Surrender charge percentage Years from purchase Surrender charge percentage
receipt payment receipt
1 7% 1 8%
2 7 2 8
3 7 3 8
4 6 4 7
5 5 5 7
6 4 6 6
7 2 7 5
Thereafter 0 8 4
9 3
10 2
Thereafter 0
</TABLE>

For a partial surrender that is subject to a surrender charge, the amount we
actually surrender from your contract will be the amount you request plus any
applicable surrender charge. We apply the surrender charge to this total amount.
We pay you the amount you requested. If you make a full surrender of your
contract, we also will deduct the applicable contract administrative charge.

Surrender charge under Annuity Payout Plan E: Payouts for a specified period.
Under this payout plan, you can choose to take a surrender. The amount that you
can surrender is the present value of any remaining variable payouts. For
qualified contracts, the discount rate we use in the calculation will be 4.72%
if the assumed investment rate is 3.5% and 6.22% if the assumed investment rate
is 5%. For nonqualified contracts, the discount rate we use in the calculation
will be 4.92% if the assumed investment rate is 3.5% and 6.42% if the assumed
investment rate is 5%. The surrender charge is equal to the difference in
discount values using the above discount rates and the assumed investment rate.
In no event would your surrender charge exceed 9% of the amount available for
payouts under the plan.

Surrender charge calculation example

The following is an example of the calculation we would make to determine the
surrender charge on a contract that contains a seven-year surrender charge
schedule with this history:

o The contract date is July 1, 2000 with a contract year of July 1 through
June 30 and with an anniversary date of July 1 each year; and

o We received these payments:
-$10,000 July 1, 2000;
-$ 8,000 Dec.31, 2005
-$ 6,000 Feb. 20, 2008; and

o The owner surrenders the contract for its total surrender value of $26,500
on Aug. 5, 2009 and had not made any other surrenders during that contract
year; and

o The prior anniversary July 1, 2008 contract value was $28,000.

<PAGE>

Surrender charge Explanation
$ 0 $2,500 is contract earnings surrendered without
charge; and

0 $300 is 10% of the prior anniversary contract value
that is in excess of contract earnings surrendered
without charge (from above). 10% of $28,000= $2,800
minus $2,500 = $300

0 $10,000 July 1, 2000 payment was received eight or
more years before surrender and is
surrendered without surrender charge; and

400 $8,000 Dec. 31, 2005 payment is in its fifth year
from receipt, surrendered with a 5% surrender
charge; and

420 $6,000 Feb. 20, 2008 payment is in its third year
from receipt, surrendered
---
with a 7% surrender charge.
$820

Waiver of surrender charges

We do not assess surrender charges for:

o surrenders of any contract earnings;
o surrenders of amounts totaling up to 10% of your prior contract anniversary
contract value to the extent it exceeds contract earnings;

o amounts surrendered after the tenth contract anniversary in Massachusetts,
Washington and Oregon.

o required minimum distributions from a qualified annuity (for those amounts
required to be distributed from the contract described in this prospectus);
o contracts settled using an annuity payout plan;
o amounts we refund to you during the free look period*;
o death benefits*; and
o surrenders you make under your contract's "Waiver of Surrender Charges for
Nursing Home Confinement" provision*. To the extent permitted by state law,
this provision applies when you are under age 76 on the date that we issue
the contract. We will waive surrender charges that we normally assess upon
full or partial surrender if you provide proof satisfactory to us that, as
of the date you request the surrender, you or the annuitant are confined to
a nursing home and have been for the prior 90 days and the confinement
began after the contract date. (See your contract for additional conditions
and restrictions on this waiver.)

* However, we will reverse certain purchase payment credits up to the maximum
surrender charge. (See "Valuing Your Investment - Purchase payment credits.")

Other information on charges: AEFC makes certain custodial services available to
some custodial and trusteed pension and profit sharing plans and 401(k) plans
funded by our annuities. Fees for these services start at $30 per calendar year
per participant. AEFC will charge a termination fee for owners under age 591/2
(fee waived in case of death or disability).

<PAGE>

Possible group reductions: In some cases we may incur lower sales and
administrative expenses due to the size of the group, the average contribution
and the use of group enrollment procedures. In such cases, we may be able to
reduce or eliminate the contract administrative and surrender charges. However,
we expect this to occur infrequently.

Premium taxes

Certain state and local governments impose premium taxes (up to 3.5%). These
taxes depend upon your state of residence or the state in which the contract was
sold. Currently, we deduct any applicable premium tax when annuity payouts
begin, but we reserve the right to deduct this tax at other times such as when
you surrender your contract.

Valuing Your Investment

We value your accounts as follows:

Fixed account

We value the amounts you allocated to the fixed account directly in dollars. The
fixed account value equals:

o the sum of your purchase payments and transfer amounts allocated to the
fixed account;
o plus any purchase payment credits allocated to the fixed account;
o plus interest credited;
o minus the sum of amounts surrendered (including any applicable surrender
charges) and amounts transferred out; and
o minus any prorated contract administrative charge.

Subaccounts

We convert amounts you allocated to the subaccounts into accumulation units.
Each time you make a purchase payment or transfer amounts into one of the
subaccounts or we apply any purchase payment credits to a subaccount, we credit
a certain number of accumulation units to your contract for that subaccount.
Conversely, each time you take a partial surrender, transfer amounts out of a
subaccount, or we assess a contract administrative charge, we subtract a certain
number of accumulation units from your contract.

The accumulation units are the true measure of investment value in each
subaccount during the accumulation period. They are related to, but not the same
as, the net asset value of the fund in which the subaccount invests. The dollar
value of each accumulation unit can rise or fall daily depending on the variable
account expenses, performance of the fund and on certain fund expenses. Here is
how we calculate accumulation unit values:

Number of units: to calculate the number of accumulation units for a particular
subaccount we divide your investment by the current accumulation unit value.

Accumulation unit value: the current accumulation unit value for each subaccount
equals the last value times the subaccount's current net investment factor.

<PAGE>

We determine the net investment factor by:

o adding the fund's current net asset value per share, plus the per share
amount of any accrued income or capital gain dividends to obtain a current
adjusted net asset value per share; then
o dividing that sum by the previous adjusted net asset value per share; and
o subtracting the percentage factor representing the mortality and expense
risk fee from the result.

Because the net asset value of the fund may fluctuate, the accumulation unit
value may increase or decrease. You bear all the investment risk in a
subaccount.

Factors that affect subaccount accumulation units: accumulation units may change
in two ways - in number and in value.

The number of accumulation units you own may fluctuate due to:

o additional purchase payments you allocate to the subaccounts;
o any purchase payment credits allocated to the subaccounts;
o transfers into or out of the subaccounts;
o partial surrenders;
o surrender charges; and/or
o prorated portions of the contract administrative charge.

Accumulation unit values will fluctuate due to:

o changes in funds' net asset value;
o dividends distributed to the subaccounts;
o capital gains or losses of funds;
o fund operating expenses; and/or
o mortality and expense risk fees.

Purchase payment credits

We add a credit* to your contract in the amount of:

o 1% of each purchase payment received:
- if you elect the ten-year surrender charge schedule for your
contract; or
- if you elect the seven-year surrender charge schedule for your
contract and your initial purchase payment to the contract is at
least $100,000.
o 2% of each purchase payment received if you elect the ten-year surrender
charge schedule for your contract and your initial purchase payment to the
contract is at least $100,000.

We fund the credit from our general account. We do not consider credits to be
"investments" for income tax purposes. (See "Taxes.")

We allocate each credit to your contract value when the applicable purchase
payment is applied to your contract value. We allocate such credits to your
contract value according to allocation instructions in effect for your purchase
payments.

<PAGE>

We will reverse credits from the contract value for any purchase payment that is
not honored.

To the extent a death benefit or surrender payment includes purchase payment
credits applied within twelve months preceding: (1) the date of death that
results in a lump sum death benefit under this contract; or (2) a request for
surrender charge waiver due to Nursing Home Confinement, we will assess a
charge, similar to a surrender charge, equal to the amount of the purchase
payment credits. The amount we pay to you under these circumstances will always
equal or exceed your surrender value. The amount returned to you under the free
look provision also will not include any credits applied to your contract.

Because of higher charges, there may be circumstances where you may be worse off
having received the credit than in other contracts. All things being equal (such
as fund performance and availability), this may occur if you select the ten-year
surrender charge and you make a full withdrawal in years five through ten. This
credit is available because of lower costs associated with larger sized
contracts and through revenue from a higher and longer withdrawal charge
schedule. In general, we do not profit from the higher charges assessed to cover
the cost of the purchase payment credits. We use all the revenue from these
lower costs and higher charges to pay for the cost of the credits. However, we
could profit if contract owners hold their contracts for less than the surrender
charge period. We reserve the right to increase the amount of the credit for
certain groups of contract owners. The increase will not be greater than 8% of
total net payments. Increases in credit amounts are funded by reduced expenses
expected from such groups.

*The ten-year surrender charge is not available in Oregon. Contracts purchased
in Oregon are only eligible for a 1% purchase payment credit if the initial
purchase payment is at least $100,000.

Making the Most of Your Contract

Automated dollar-cost averaging
Currently, you can use automated transfers to take advantage of dollar-cost
averaging (investing a fixed amount at regular intervals). For example, you
might transfer a set amount monthly from a relatively conservative subaccount to
a more aggressive one, or to several others, or from the fixed account to one or
more subaccounts. There is no charge for dollar-cost averaging.

This systematic approach can help you benefit from fluctuations in accumulation
unit values caused by fluctuations in the market values of the funds. Since you
invest the same amount each period, you automatically acquire more units when
the market value falls and fewer units when it rises. The potential effect is to
lower your average cost per unit.

How dollar-cost averaging works

Amount Accumulation Number of
Month invested unit value units purchased
<S> <C> <C> <C> <C>
----------- ------------- ----------------- -------------------

By investing an Jan $100 $20 5.00
equal number of
dollars each month... Feb 100 18 5.56

Mar 100 17 5.88

you automatically Apr 100 15 6.67
buy more units
when the per unit May 100 16 6.25
market price is low...
Jun 100 18 5.56

Jul 100 17 5.88

Aug 100 19 5.26

and fewer units Sept 100 21 4.76
when the per unit
market price is high. Oct 100 20 5.00

</TABLE>

You paid an average price of only $17.91 per unit over the 10 months, while the
average market price actually was $18.10.

Dollar-cost averaging does not guarantee that any subaccount will gain in value
nor will it protect against a decline in value if market prices fall. Because
dollar-cost averaging involves continuous investing, your success will depend
upon your willingness to continue to invest regularly through periods of low
price levels. Dollar-cost averaging can be an effective way to help meet your
long-term goals. For specific features contact your sales representative.

Transferring money between accounts
You may transfer money from any one subaccount, or the fixed account, to another
subaccount before annuity payouts begin. (Certain restrictions apply to
transfers involving the fixed account.) We will process your transfer on the
valuation date we receive your request. We will value your transfer at the next
accumulation unit value calculated after we receive your request. There is no
charge for transfers. Before making a transfer, you should consider the risks
involved in switching investments.

We may suspend or modify transfer privileges at any time. Excessive trading
activity can disrupt fund management strategy and increase expenses, which are
borne by all contract owners who allocated purchase payments to the fund
regardless of their transfer activity. We may apply modifications or
restrictions in any reasonable manner to prevent transfers we believe will
disadvantage other contract owners. These modifications could include, but not
be limited to:

o requiring a minimum time period between each transfer;
o not accepting transfer requests of an agent acting under power of attorney
on behalf of more than one contract owner; or
o limiting the dollar amount that a contract owner may transfer at any one
time.

For information on transfers after annuity payouts begin, see "Transfer
policies" below.

<PAGE>

Transfer policies
o Before annuity payouts begin, you may transfer contract values between the
subaccounts, or from the subaccounts to the fixed account at any time.
However, if you made a transfer from the fixed account to the subaccounts,
you may not make a transfer from any subaccount back to the fixed account
until the next contract anniversary.

o You may transfer contract values from the fixed account to the subaccounts
once a year during a 31-day transfer period starting on each contract
anniversary (except for automated transfers, which can be set up at any
time for certain transfer periods subject to certain minimums).

o If we receive your request within 30 days before the contract anniversary
date, the transfer from the fixed account to the subaccounts will be
effective on the anniversary.

o If we receive your request on or within 30 days after the contract
anniversary date, the transfer from the fixed account to the subaccounts
will be effective on the valuation date we receive it.

o We will not accept requests for transfers from the fixed account at any
other time.

o Once annuity payouts begin, you may not make transfers to or from the fixed
account, but you may make transfers once per contract year among the
subaccounts. During the annuity payout period, you cannot invest in more
than five subaccounts at any one time unless we agree otherwise.

How to request a transfer or surrender

1 By letter

Send your name, contract number, Social Security Number or Taxpayer
Identification Number and signed request for a transfer or surrender to:

Regular mail:
IDS Life Insurance Company

200 AXP Financial Center
Minneapolis, MN 55474

Express mail:
IDS Life Insurance Company
733 Marquette Avenue
Minneapolis, MN 55402

Transfers or surrenders: $250 or entire account balance

Maximum amount
Transfers or surrenders: Contract value

2 By automated transfers and automated partial surrenders

Your sales representative can help you set up automated transfers among your
subaccounts or fixed account or partial surrenders from the accounts.

<PAGE>

You can start or stop this service by written request or other method acceptable
to us. You must allow 30 days for us to change any instructions that are
currently in place.

o Automated transfers from the fixed account to any one of the subaccounts
may not exceed an amount that, if continued, would deplete the fixed
account within 12 months.

o Automated surrenders may be restricted by applicable law under some
contracts.

o You may not make additional purchase payments if automated partial
surrenders are in effect.

o Automated partial surrenders may result in IRS taxes and penalties on all
or part of the amount surrendered.

Minimum amount
Transfers or surrenders: $50

Maximum amount
Transfers or surrenders: None (except for automated transfers from the fixed
account)

3 By phone

Call between 7 a.m. and 6 p.m. Central time:

1-800-437-0602 (toll free)

TTY service for the hearing impaired:

1-800-285-8846 (toll free)

Minimum amount
Transfers or surrenders: $250 or entire account balance

Maximum amount
Transfers: Contract value
Surrenders: $50,000

We answer telephone requests promptly, but you may experience delays when the
call volume is unusually high. If you are unable to get through, use the mail
procedure as an alternative.

We will honor any telephone transfer or surrender requests that we believe are
authentic and we will use reasonable procedures to confirm that they are. This
includes asking identifying questions and tape recording calls. We will not
allow a telephone surrender within 30 days of a phoned-in address change. As
long as we follow the procedures, we (and our affiliates) will not be liable for
any loss resulting from fraudulent requests.

Telephone transfers or surrenders are automatically available. You may request
that telephone transfers or surrenders not be authorized from your account by
writing to us.

<PAGE>

Surrenders

You may surrender all or part of your contract at any time before annuity
payouts begin by sending us a written request or calling us. We will process
your surrender request on the valuation date we receive it. For total
surrenders, we will compute the value of your contract at the next accumulation
unit value calculated after we receive your request. We may ask you to return
the contract. You may have to pay surrender charges (see "Charges - Surrender
charge") and IRS taxes and penalties (see "Taxes"). You cannot make surrenders
after annuity payouts begin except under Plan E (see "The Annuity Payout Period
Annuity payout plans").

Surrender policies
If you have a balance in more than one account and you request a partial
surrender, we will withdraw money from all your subaccounts and/or the fixed
account in the same proportion as your value in each account correlates to your
total contract value, unless you request otherwise. The minimum contract value
after partial surrender is $600.

Receiving payment By regular or express mail:

o payable to you;
o mailed to address of record.

NOTE: We will charge you a fee if you request express mail delivery.

By wire:

o request that payment be wired to your bank;
o bank account must be in the same ownership as your contract; and
o pre-authorization required.

For instructions, contact your sales representative.

Normally, we will send the payment within seven days after receiving your
request. However, we may postpone the payment if:

- the surrender amount includes a purchase payment check that has not
cleared;
- the NYSE is closed, except for normal holiday and weekend closings;
- trading on the NYSE is restricted, according to SEC rules;
- an emergency, as defined by SEC rules, makes it impractical to sell
securities or value the net assets of the accounts; or
- the SEC permits us to delay payment for the protection of security
holders.

TSA -- Special Surrender Provisions

Participants in Tax-Sheltered Annuities

The Code imposes certain restrictions on your right to receive early
distributions from a TSA:

o Distributions attributable to salary reduction contributions (plus
earnings) made after Dec. 31, 1988, or to transfers or rollovers from other
contracts, may be made from the TSA only if:

-- you are at least age 59 1/2;
-- you are disabled as defined in the Code;
-- you separated from the service of the employer who purchased the
contract; or
-- the distribution is because of your death.

<PAGE>

o If you encounter a financial hardship (as defined by the Code), you may
receive a distribution of all contract values attributable to salary
reduction contributions made after Dec. 31, 1988, but not the earnings on
them.

o Even though a distribution may be permitted under the above rules, it may
be subject to IRS taxes and penalties (see "Taxes").

o The employer must comply with certain nondiscrimination requirements for
certain types of contributions under a TSA contract to be excluded from
taxable income. You should consult your employer to determine whether the
nondiscrimination rules apply to you.

o The above restrictions on distributions do not affect the availability of
the amount credited to the contract as of Dec. 31, 1988. The restrictions
also do not apply to transfers or exchanges of contract value within the
contract, or to another registered variable annuity contract or investment
vehicle available through the employer.

o If the contract has a loan provision, the right to receive a loan as
described in detail in your contract.

Changing Ownership

You may change ownership of your nonqualified annuity at any time by completing
a change of ownership form we approve and sending it to our office. The change
will become binding upon us when we receive and record it. We will honor any
change of ownership request that we believe is authentic and we will use
reasonable procedures to confirm authenticity. If we follow these procedures, we
will not take any responsibility for the validity of the change.

If you have a nonqualified annuity, you may incur income tax liability by
transferring, assigning or pledging any part of it. (See "Taxes.")

If you have a qualified annuity, you may not sell, assign, transfer, discount or
pledge your contract as collateral for a loan, or as security for the
performance of an obligation or for any other purpose except as required or
permitted by the Code. However, if the owner is a trust or custodian, or an
employer acting in similar capacity, ownership of the contract may be
transferred to the annuitant.

Benefits in Case of Death

We will pay the death benefit to your beneficiary upon the earlier of your death
or the annuitant's death. If a contract has more than one person as the owner,
we will pay benefits upon the first to die of any owner or the annuitant.

If you or the annuitant die before annuity payouts begin while this contract is
in force, we will pay the beneficiary as follows:

If both you and the annuitant are age 80 or younger on the date of death, the
beneficiary receives the greatest of:

o the contract value;
o purchase payments, minus any "adjusted partial surrenders"; or
o the contract value as of the most recent sixth contract anniversary, plus
any purchase payments paid and minus any "adjusted partial surrenders"
since that anniversary.

<PAGE>

If either you or the annuitant are age 81 or older on the date of death, the
beneficiary receives the greater of:

o the contract value; or
o purchase payments minus any "adjusted partial surrenders."

Adjusted partial surrenders: We calculate an "adjusted partial surrender" for
each partial surrender as the product of (a) times (b) where

(a) is the ratio of the amount of the partial surrender
(including any applicable surrender charge) to the contract
value on the date of (but prior to) the partial surrender; and

(b) is the death benefit on the date of (but prior to) the
partial surrender.

Example of death benefit calculation when the owner and annuitant are age 80 or
younger:

o You purchase the contract with a payment of $20,000 on Jan. 1, 2000.

o On Jan 1, 2006 (the 6th contract anniversary) the contract value grows
to $30,000.
o March 1, 2006 the contract value falls to $28,000 at which point you
take a $1,500 partial surrender, leaving a contract value of $26,500.

We calculate the death benefit on March 1, 2006 as follows:

<TABLE>
<CAPTION>
<S> <C>
The contract value on the most recent 6th contract anniversary: $30,000.00
plus any purchase payments paid since that anniversary: + 0.00
minus any "adjusted partial surrenders" taken since that anniversary calculated
as: $1,500 x $30,000 =
$28,000 - 1,607.14
------------
for a death benefit of: $ 28,392.86

</TABLE>

If your spouse is sole beneficiary under a nonqualified annuity and you die
before the settlement date, your spouse may keep the contract as owner. To do
this your spouse must, within 60 days after we receive proof of death, give us
written instructions to keep the contract in force.

Under a qualified annuity, if the annuitant dies before the Code requires
distributions to begin, and the spouse is the only beneficiary, the spouse may
keep the contract as owner until the date on which the annuitant would have
reached age 70 1/2 or any other date permitted by the Code. To do this, the
spouse must give us written instructions within 60 days after we receive proof
of death.

Payments: Under a nonqualified annuity we will pay the beneficiary in a single
sum unless you give us other written instructions. A death benefit paid in a
single sum will be reduced by the amount of any purchase payment credits applied
to the contract within 12 months of the date of death. (See "Valuing Your
Investment - Purchase Payment credits.") We must fully distribute the death
benefit within five years of your death. However, the beneficiary may receive
payouts under any annuity payout plan available under this contract if:

o the beneficiary asks us in writing within 60 days after we receive proof
of death; and
o payouts begin no later than one year after your death, or other date as
permitted by the Code; and
o the payout period does not extend beyond the beneficiary's life or
life expectancy.

<PAGE>

When paying the beneficiary, we will process the death claim on the valuation
date our death claim requirements are fulfilled. We will determine the
contract's value at the next accumulation unit value calculated after our death
claim requirements are fulfilled. We pay interest, if any, from the date of
death at a rate no less than required by law. We will mail payment to the
beneficiary within seven days after our death claim requirements are fulfilled.

Other rules may apply to qualified annuities. (See "Taxes.")

The Annuity Payout Period

As owner of the contract, you have the right to decide how and to whom annuity
payouts will be made starting at the settlement date. You may select one of the
annuity payout plans outlined below, or we may mutually agree on other payout
arrangements. We do not deduct any surrender charges under the payout plans
listed below.

You also decide whether we will make annuity payouts on a fixed or variable
basis, or a combination of fixed and variable. The amounts available to purchase
payouts under the plan you select is the contract value on your settlement date
(less any applicable premium tax). You may reallocate this contract value to the
fixed account to provide fixed dollar payouts and/or among the subaccounts to
provide variable annuity payouts. During the annuity payout period, you cannot
invest in more than five subaccounts at any one time unless we agree otherwise.

Amounts of fixed and variable payouts depend on:

o the annuity payout plan you select;
o the annuitant's age and, in most cases, sex;
o the annuity table in the contract; and
o the amounts you allocated to the accounts at settlement.

In addition, for variable payouts only, amounts depend on the investment
performance of the subaccounts you select. These payouts will vary from month to
month because the performance of the funds will fluctuate. (In the case of fixed
annuities, payouts remain the same from month to month.)

For information with respect to transfers between accounts after annuity payouts
begin, see "Making the Most of Your Contract -- Transfer policies."

Annuity table
The annuity table in your contract shows the amount of the first monthly payment
for each $1,000 of contract value according to the age and, when applicable, the
sex of the annuitant. (Where required by law, we will use a unisex table of
settlement rates.) The table assumes that the contract value is invested at the
beginning of the annuity payout period and earns a 5% rate of return, which is
reinvested and helps to support future payouts.

Substitution of 3.5% table
If you ask us at least 30 days before the retirement date, we will substitute an
annuity table based on an assumed 3.5% investment rate for the 5% table in the
contract. The assumed investment rate affects both the amount of the first
payout and the extent to which subsequent payouts increase or decrease. Using
the 5% table results in a higher initial payment, but later payouts will
increase more slowly when annuity unit values rise and decrease more rapidly
when they decline.

<PAGE>

Annuity payout plans
You may choose any one of these annuity payout plans by giving us written
instructions at least 30 days before contract values are used to purchase the
payout plan:

o Plan A - Life annuity - no refund: We make monthly payouts until the
annuitant's death. Payouts end with the last payout before the annuitant's
death. We will not make any further payouts. This means that if the
annuitant dies after we made only one monthly payout, we will not make any
more payouts.

o Plan B - Life annuity with five, ten or 15 years certain: We make monthly
payouts for a guaranteed payout period of five, ten or 15 years that you
elect. This election will determine the length of the payout period to the
beneficiary if the annuitant should die before the elected period expires.
We calculate the guaranteed payout period from the settlement date. If the
annuitant outlives the elected guaranteed payout period, we will continue
to make payouts until the annuitant's death.

o Plan C - Life annuity - installment refund: We make monthly payouts until
the annuitant's death, with our guarantee that payouts will continue for
some period of time. We will make payouts for at least the number of months
determined by dividing the amount applied under this option by the first
monthly payout, whether or not the annuitant is living.

o Plan D - Joint and last survivor life annuity - no refund: We make monthly
payouts while both the annuitant and a joint annuitant are living. If
either annuitant dies, we will continue to make monthly payouts at the full
amount until the death of the surviving annuitant. Payouts end with the
death of the second annuitant.

o Plan E - Payouts for a specified period: We make monthly payouts for a
specific payout period of ten to 30 years that you elect. We will make
payouts only for the number of years specified whether the annuitant is
living or not. Depending on the selected time period, it is foreseeable
that an annuitant can outlive the payout period selected. During the payout
period, you can elect to have us determine the present value of any
remaining variable payouts and pay it to you in a lump sum. We determine
the present value of the remaining annuity payouts which are assumed to
remain level at the initial payment. For qualified contracts, the discount
rate we use in the calculation will vary between 4.72% and 6.22%, depending
on the applicable assumed investment rate. For nonqualified contracts, the
discount rate we use in the calculation will vary between 4.92% and 6.42%,
depending on the applicable assumed investment rate. (See "Charges -
Surrender charge under Annuity Payout Plan E.") You can also take a portion
of the discounted value once a year. If you do so, your monthly payouts
will be reduced by the proportion of your surrender to the full discounted
value. A 10% IRS penalty tax could apply if you take a surrender. (See
"Taxes.")

Restrictions for some tax-deferred retirement plans: If you purchased a
qualified annuity, you may be required to select a payout plan that provides for
payouts:

o over the life of the annuitant;
o over the joint lives of the annuitant and a designated beneficiary;
o for a period not exceeding the life expectancy of the annuitant; or
o for a period not exceeding the joint life expectancies of the
annuitant and a designated beneficiary.

You have the responsibility for electing a payout plan that complies with your
contract and with applicable law.

If we do not receive instructions: You must give us written instructions for the
annuity payouts at least 30 days before the annuitant's retirement date. If you
do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed.
Contract values that you allocated to the fixed account will provide fixed
dollar payouts and contract values that you allocated among the subaccounts will
provide variable annuity payouts.

<PAGE>

If monthly payouts would be less than $20: We will calculate the amount of
monthly payouts at the time the contract value is used to purchase a payout
plan. If the calculations show that monthly payouts would be less than $20, we
have the right to pay the contract value to the owner in a lump sum or to change
the frequency of the payouts.

Death after annuity payouts begin
If you or the annuitant die after annuity payouts begin, we will pay any amount
payable to the beneficiary as provided in the annuity payout plan in effect.

Taxes

Generally, under current law, your contract has a tax-deferral feature. That is,
any increase in the value of the fixed account and/or subaccounts in which you
invest is taxable to you only when you receive a payout or surrender (see
detailed discussion below). Any portion of the annuity payouts and any
surrenders you request that represent ordinary income are normally taxable. We
will send you a tax information reporting form for any year in which we made a
taxable distribution according to our records. Roth IRAs* may grow and be
distributed tax-free if you meet certain distribution requirements.

Annuity payouts under nonqualified annuities: A portion of each payout will be
ordinary income and subject to tax, and a portion of each payout will be
considered a return of part of your investment and will not be taxed. All
amounts you receive after your investment in the contract is fully recovered
will be subject to tax.

Tax law requires that all nonqualified deferred annuities issued by the same
company (and possibly its affiliates) to the same owner during a calendar year
be taxed as a single, unified contract when you take distributions from any one
of those contracts.

Qualified annuities: Your contract may be used to fund a tax-deferred retirement
plan that is already tax-deferred under the Code. The contract will not provide
any necessary or additional tax deferral if it is used to fund a retirement plan
that is tax deferred. Special rules apply to these retirement plans. Your rights
to benefits may be subject to the terms and conditions of these retirement plans
regardless of the terms of the contract.

Adverse tax consequences may result if you do not ensure that contributions,
distributions and other transactions under the contract comply with the law.
Qualified annuities have minimum distribution rules that govern the timing and
amount of distributions during your life (except for Roth IRAs*) and after your
death. You should refer to your retirement plan or adoption agreement or consult
a tax advisor for more information about your distribution rules.

Annuity payouts under qualified annuities (except Roth IRAs): Under a qualified
annuity, the entire payout generally is includable as ordinary income and is
subject to tax except to the extent that contributions were made with after-tax
dollars. If you or your employer invested in your contract with deductible or
pre-tax dollars as part of a tax-deferred retirement plan, such amounts are not
considered to be part of your investment in the contract and will be taxed when
paid to you.

Purchase payment credits: These are considered earnings and are taxed
accordingly.

Surrenders: If you surrender part or all of your contract before your annuity
payouts begin, your surrender payment will be taxed to the extent that the value
of your contract immediately before the surrender exceeds your investment. You
also may have to pay a 10% IRS penalty for surrenders you make before reaching
age 59 1/2 unless certain exceptions apply. For qualified annuities, other
penalties may apply if you surrender your contract before your plan specifies
that you can receive payouts.

<PAGE>

Death benefits to beneficiaries: The death benefit under a contract (except a
Roth IRA) is not tax-exempt. Any amount your beneficiary receives that
represents previously deferred earnings within the contract is taxable as
ordinary income to the beneficiary in the years he or she receives the payments.
The death benefit under a Roth IRA generally is not taxable as ordinary income
to the beneficiary if certain distribution requirements are met.

Annuities owned by corporations, partnerships or trusts: For nonqualified
annuities any annual increase in the value of annuities held by such entities
generally will be treated as ordinary income received during that year. This
provision is effective for purchase payments made after Feb. 28, 1986. However,
if the trust was set up for the benefit of a natural person only, the income
will remain tax-deferred.

Penalties: If you receive amounts from your contract before reaching age 59 1/2,
you may have to pay a 10% IRS penalty on the amount includable in your ordinary
income. If you receive amounts from your SIMPLE IRA* before reaching age 59 1/2,
generally the IRS penalty provisions apply. However, if you receive these
amounts before age 59 1/2, and within the first two years of your participation
in the SIMPLE IRA plan, the IRS penalty will be assessed at a rate of 25%
instead of 10%. However, this penalty will not apply to any amount received by
you or your beneficiary:

o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal periodic
payments, made at least annually, over your life or life expectancy (or
joint lives or life expectancies of you and your beneficiary); or
o if it is allocable to an investment before Aug. 14, 1982 (except for
qualified annuities).

For a qualified annuity, other penalties or exceptions may apply if you
surrender your contract before your plan specifies that payouts can be made.

* These qualified annuities are not scheduled to be available until June 2000.
Please see your sales representative for more information.

Withholding, generally: If you receive all or part of the contract value, we may
deduct withholding against the taxable income portion of the payment. Any
withholding represents a prepayment of your tax due for the year. You take
credit for these amounts on your annual tax return.

If the payment is part of an annuity payout plan, we generally compute the
amount of withholding using payroll tables. You may provide us with a statement
of how many exemptions to use in calculating the withholding. As long as you've
provided us with a valid Social Security Number or Taxpayer Identification
Number, you can elect not to have any withholding occur.

If the distribution is any other type of payment (such as a partial or full
surrender), we compute withholding using 10% of the taxable portion. Similar to
above, as long as you have provided us with a valid Social Security Number or
Taxpayer Identification Number, you can elect not to have this withholding
occur.

Some states also impose withholding requirements similar to the federal
withholding described above. If this should be the case, we may deduct state
withholding from any payment from which we deduct federal withholding. The
withholding requirements may differ if we are making payment to a non-U.S.
citizen or if we deliver the payment outside the United States.

<PAGE>

Withholding from qualified annuities: If you receive directly all or part of the
contract value from a qualified annuity (except an IRA, Roth IRA, SIMPLE IRA or
SEP), mandatory 20% federal income tax withholding (and possibly state income
tax withholding) generally will be imposed at the time we make payout. This
mandatory withholding is in place of the elective withholding discussed above.
This mandatory withholding will not be imposed if:

o instead of receiving the distribution check, you elect to have the
distribution rolled over directly to an IRA or another eligible plan;
o the payout is one in a series of substantially equal periodic payouts, made
at least annually, over your life or life expectancy (or the joint lives or
life expectancies of you and your designated beneficiary) or over a
specified period of 10 years or more; or
o the payout is a minimum distribution required under the Code.

Payments we make to a surviving spouse instead of being directly rolled over to
an IRA also may be subject to mandatory 20% income tax withholding.

State withholding also may be imposed on taxable distributions.

Transfer of ownership of a nonqualified annuity: If you transfer a nonqualified
annuity without receiving adequate consideration, the transfer is a gift and
also may be a surrender for federal income tax purposes. If the gift is a
currently taxable event for income tax purposes, the original owner will be
taxed on the amount of deferred earnings at the time of the transfer and also
may be subject to the 10% IRS penalty discussed earlier. In this case, the new
owner's investment in the contract will be the value of the contract at the time
of the transfer.

Collateral assignment of a nonqualified annuity: If you collaterally assign or
pledge your contract, earnings on purchase payments you made after Aug. 13, 1982
will be taxed to you like a surrender.

Important: Our discussion of federal tax laws is based upon our understanding of
current interpretations of these laws. Federal tax laws or current
interpretations of them may change. For this reason and because tax consequences
are complex and highly individual and cannot always be anticipated, you should
consult a tax advisor if you have any questions about taxation of your contract.

Tax qualification: We intend that the contract qualify as an annuity for federal
income tax purposes. To that end, the provisions of the contract are to be
interpreted to ensure or maintain such tax qualification, in spite of any other
provisions of the contract. We reserve the right to amend the contract to
reflect any clarifications that may be needed or are appropriate to maintain
such qualification or to conform the contract to any applicable changes in the
tax qualification requirements. We will send you a copy of any amendments.

Voting Rights

As a contract owner with investments in the subaccounts, you may vote on
important fund policies until annuity payouts begin. Once they begin, the person
receiving them has voting rights. We will vote fund shares according to the
instructions of the person with voting rights.

Before annuity payouts begin, the number of votes you have is determined by
applying your percentage interest in each subaccount to the total number of
votes allowed to the subaccount.

<PAGE>

After annuity payouts begin, the number of votes you have is equal to:

o the reserve held in each subaccount for your contract; divided by
o the net asset value of one share of the applicable fund.

As we make annuity payouts, the reserve for the contract decreases; therefore,
the number of votes also will decrease.

We calculate votes separately for each subaccount. We will send notice of
shareholders' meetings, proxy materials and a statement of the number of votes
to which the voter is entitled. We will vote shares for which we have not
received instructions in the same proportion as the votes for which we received
instructions. We also will vote the shares for which we have voting rights in
the same proportion as the votes for which we received instructions.

Substitution of Investments

We may substitute the funds in which the subaccounts invest if:
o laws or regulations change;
o the existing funds become unavailable; or
o in our judgment, the funds no longer are suitable for the
subaccounts.

If any of these situations occur, and if we believe it is in the best interest
of persons having voting rights under the contract, we have the right to
substitute the funds currently listed in this prospectus for other funds.

We may also:
o add new subaccounts;
o combine any two or more subaccounts;
o make additional subaccounts investing in additional funds;
o transfer assets to and from the subaccounts or the variable
account; and
o eliminate or close any subaccounts.

In the event of substitution or any of these changes, we may amend the contract
and take whatever action is necessary and appropriate without your consent or
approval. However, we will not make any substitution or change without the
necessary approval of the SEC and state insurance departments. We will notify
you of any substitution or change.

About the Service Providers

Issuer and principal underwriter
IDS Life issues and is the principal underwriter for the contracts. IDS Life is
a stock life insurance company organized in 1957 under the laws of the State of
Minnesota and is located at 200 AXP Financial Center, Minneapolis, MN 55474. IDS
Life conducts a conventional life insurance business.

IDS Life is a wholly-owned subsidiary of AEFC, which itself is a wholly-owned
subsidiary of American Express Company, a financial services company
headquartered in New York City. The AEFC family of companies offers not only
insurance and annuities, but also mutual funds, investment certificates, and a
broad range of financial management services. American Express Financial
Advisors Inc. (AEFA) serves individuals and businesses through its nationwide
network of more than _____ offices and _____ advisors.

IDS Life will pay commissions for sales of the contracts of up to 7% of the
total purchase payments to AEFA. This revenue is used to cover distribution
costs that include compensation to advisors and field leadership for the selling
advisors. These commissions consist of a combination of time of sale and
on-going service/trail commissions (which, when totaled, could exceed 7% of
purchase payments). From time to time, IDS Life will pay or permit other
promotional incentives, in cash or credit or other compensation

<PAGE>

Legal proceedings
A number of lawsuits have been filed against life and health insurers in
jurisdictions in which IDS Life and AEFC do business involving insurers' sales
practices, alleged agent misconduct, failure to properly supervise agents and
other matters. IDS Life and AEFC, like other life and health insurers, from time
to time are involved in such litigation. On December 13, 1996, an action
entitled Lesa Benacquisto and Daniel Benacquisto vs. IDS Life Insurance Company
and American Express Financial Corporation was commenced in Minnesota state
court. The action was brought by individuals who replaced an existing IDS Life
insurance policy with a new IDS Life policy. The plaintiffs purport to represent
a class consisting of all persons who replaced existing IDS Life policies with
new policies from and after January 1, 1985. The complaint put at issue various
alleged sales practices and misrepresentations, alleged breaches of fiduciary
duties and alleged violations of consumer fraud statutes. IDS Life and AEFC
filed an answer to the complaint on February 18, 1997, denying the allegations.
A second action, entitled Arnold Mork, Isabella Mork, Ronald Melchart and Susan
Melchart vs. IDS Life Insurance Company and American Express Financial
Corporation was commenced in the same court on March 21,1997. In addition to
claims that were included in the Benacquisto lawsuit, the second action include
an allegation of improper replacement of an existing IDS Life annuity contract.
A subsequent class action, Richard Thoresen and Elizabeth Thoresen vs. AEFC,
American Partners Life Insurance Company, American Enterprise Life Insurance
Company, American Centurion Life Assurance Company, IDS Life Insurance Company
and IDS Life Insurance Company of New York, was filed in the same court on
October 13, 1998 alleging that the sale of annuities in tax-deferred
contributory retirement investment plans (e.g. IRAs) was done through deceptive
marketing practices, which IDS Life denies. Plaintiffs in each of the above
actions seek damages in an unspecified amount and also seek to establish a
claims resolution facility for the determination of individual issues.

IDS Life is included as a party to a preliminary settlement of all three class
action lawsuits. We believe this approach will put these cases behind us and
provide a fair outcome for our clients. Our decision to settle does not include
any admission of wrong doing. We do not anticipate that this proposed settlement
or any other lawsuits in which IDS Life is a defendant, will have a material
adverse effect on our financial condition.

Year 2000

The Year 2000 issue is the result of computer programs having been written using
two digits rather than four to define a year. Any programs that have
time-sensitive software may recognize a date using "00" as the year 1900 rather
than 2000. This could result in the failure of major systems or miscalculations,
which could have a material impact on the operations of IDS Life and the
variable account. All of the major systems used by IDS Life and the variable
account are maintained by AEFC and are utilized by multiple subsidiaries and
affiliates of AEFC. IDS Life's and the variable account's businesses are heavily
dependent upon AEFC's computer systems and have significant interaction with
systems of third parties.

A comprehensive review of AEFC's computer systems and business processes,
including those specific to IDS Life and the variable account, was conducted to
identify the major systems that could be affected by the Year 2000 issue. Steps
were taken to resolve potential problems including modification to existing
software and the purchase of new software. As of Dec. 31, 1999, AEFC had
completed its program of corrective measures on its internal systems and
applications, including Year 2000 compliance testing. As of Dec. 31, 1999, AEFC
had also completed an evaluation of the Year 2000 readiness of other third
parties whose system failures could have an impact on IDS Life's and the
variable account's operations.

<PAGE>

AEFC's Year 2000 project also included establishing Year 2000 contingency plans
for all key business units. Business continuation plans, which address business
continuation in the event of a system disruption, are in place for all key
business units. As of Dec. 31, 1999, these plans had been amended to include
specific Year 2000 considerations.

In assessing its Year 2000 initiatives and the results of actual production
since Jan. 1, 2000, management believes no material adverse consequences were
experienced, and there was no material effect on IDS Life's and the variable
account's business, results of operations, or financial condition as a result of
the Year 2000 issue.

<PAGE>

Table of Contents of the Statement of Additional Information

Performance Information.......................................
Calculating Annuity Payouts...................................
Rating Agencies...............................................
Principal Underwriter.........................................
Independent Auditors..........................................
Financial Statements..........................................

<PAGE>

Please check the appropriate box to receive a copy of the Statement of
Additional Information for:

[ ] American Express Retirement Advisor Variable AnnuitySM
[ ] American Express Variable Portfolio Funds
[ ] AIM Variable Insurance Funds, Inc.
[ ] American Century Variable Portfolios, Inc.
[ ] Fidelity Variable Insurance Products Funds - Service Class
[ ] Franklin Templeton Variable Insurance Products Trust - Class 2
[ ] Goldman Sachs Variable Insurance Trust (VIT)

[ ] Janus Aspen Series: Service Shares

[ ] Lazard Retirement Series, Inc.

[ ] MFS(R)Variable Insurance Trust SM

[ ] Putnam Variable Trust
[ ] Royce Capital Fund
[ ] Third Avenue Variable Series Trust
[ ] Wanger Advisors Trust
[ ] Warburg Pincus Trust

[ ] New Fund

Mail your request to:

IDS Life Insurance Company

200 AXP Financial Center
Minneapolis, MN 55474

We will mail your request to:

Your name______________________________________________________________________

Address________________________________________________________________________

City___________________________________________ State_______________ Zip_______

<PAGE>

Prospectus

May 1, 2000

American Express Retirement Advisor Variable Annuity - Band 3

INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITY FOR:

o current or retired employees of American Express Financial Corporation or
its subsidiaries and their spouses (employees),

o current or retired American Express financial advisors and their spouses
(advisors), and

o individuals investing an initial payment of $1 million (other individuals).

IDS Life Variable Account 10

Issued by: IDS Life Insurance Company (IDS Life)

200 AXP Financial Center
Minneapolis, MN 55474

Telephone: 800-437-0602
http://www.americanexpress.com/advisors

This prospectus contains information that you should know before investing. You
also will receive the prospectuses for:

</TABLE>

Please read the prospectuses carefully and keep them for future reference.

<PAGE>

Table of Contents

Key Terms....................................................................p
The Contract in Brief........................................................p
Expense Summary..............................................................p
Condensed Financial Information (Unaudited)..................................p
Financial Statements.........................................................p
Performance Information......................................................p
The Variable Account and the Funds...........................................p
The Fixed Account............................................................p
Buying Your Contract.........................................................p
Charges......................................................................p
Valuing Your Investment......................................................p
Making the Most of Your Contract.............................................p
Surrenders...................................................................p
TSA -- Special Surrender Provisions..........................................p
Changing Ownership...........................................................p
Benefits in Case of Death....................................................p
The Annuity Payout Period....................................................p
Taxes........................................................................p
Voting Rights................................................................p
Substitution of Investments..................................................p
About the Service Providers..................................................p
Year 2000....................................................................p
Table of Contents of the Statement of Additional Information.................p