<PAGE>
PAGE 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. ____
Post-Effective Amendment No. 27 (File No. 2-66868) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940
Amendment No. 28 (No. 811-3003) X
IDS TAX-FREE MONEY FUND, INC.
IDS Tower 10, Minneapolis, MN 55440-0534
Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810,
Minneapolis, MN 55402-3268
(612) 330-9283
Approximate Date of Proposed Public Offering:
It is proposed that this filing will become effective (check
appropriate box)
immediately upon filing pursuant to paragraph (b)
x on March 1, 1995 pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a)
on (date) pursuant to paragraph (a)(i) of rule 485
75 days after filing pursuant to paragraph (a)(ii)
on (date) pursuant to paragraph (a)(ii) 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 Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to Section
24-f of the Investment Company Act of 1940. Registrants' Rule
24f-2 Notice for its most recent fiscal year will be filed on or
about March 1, 1995.
<PAGE>
PAGE 2
Cross reference sheet showing location in the prospectus of the
information called for by the items enumerated in Part A and Part B
of Form N-1A.
Negative answers omitted from prospectus are so indicated.
PART A PART B
Page Number
Page Number in Statement of
Item No. in Prospectus Item No. Additional Information
1 3 10 25
2 4-6 11 26
3(a) 7 12 NA
(b)
(c) 13(a)
(d) (b)
(c)
4(a) 4-6,7-9,18 (d) 27-29,39-42
(b) 7-9 27-29
(c) 7-9 14(a) NA
(b) NA
5(a) 19 (c)
(b) 17,22-23 19-21*
(b) (i) 15(a)
(b) (ii) (b)
(b) (iii) (c)
(c) NA 19-21*
(d) 17 16(a)(i) 22*
(e) 18 (a)(ii)
(f) 22-23 (a)(iii) NA
(g) (b)
(c)
5A(a)* (d)
(b)* (e) NA
(f)
6(a) 18 (g) 22*
(b) NA (h)
(c) NA (i) 22-23*
(d) NA 36
(e) 3 17(a) NA
(f) 16 (b) None
(g) 16-17 (c) NA
(d) 37-38
7(a) 17-18 (e) NA
(b) 9,NA 38,38
(c) NA 18(a) 38,36-37
(d) 10 (b)
(e) NA 29
(f) 17-18 19(a) NA
(b) 29
8(a) (c)
(b) 12-13 NA
(c) NA 20 29
(d) 13
21(a)
9 13 (b) 18*
(c) NA
None
22(a) 31-32
(b) 30-31
NA
23
*Designates page number in the Prospectus which is hereby
incorporated by reference in the Statement of Additional
Information.
<PAGE>
PAGE 3
IDS Tax-Free Money Fund
Prospectus
March 1, 1995
The goal of IDS Tax-Free Money Fund, Inc. is to provide as high a
level of current income exempt from federal income tax as is
consistent with liquidity and stability of principal. The fund
invests primarily in short-term bonds and notes issued by or on
behalf of state or local governmental units.
An investment in the fund is neither insured nor guaranteed by the
U.S. government. There can be no assurance that the fund will be
able to maintain a stable net asset value of $1 per share.
This prospectus contains facts that can help you decide if the fund
is the right investment for you. Read it before you invest and
keep it for future reference.
Additional facts about the fund are in a Statement of Additional
Information (SAI), filed with the Securities and Exchange
Commission. The SAI, dated March 1, 1995 is incorporated here by
reference. For a free copy, contact American Express Shareholder
Service.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
SHARES IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY BANK, AND SHARES ARE NOT FEDERALLY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD, OR ANY OTHER AGENCY. INVESTMENTS IN THE FUND
INVOLVE INVESTMENT RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL.
American Express Shareholder Service
P.O. Box 534
Minneapolis, MN
55440-0534
612-671-3733
TTY: 800-846-4852
<PAGE>
PAGE 4
Table of contents
The fund in brief
Goal
Types of fund investments
Manager and distributor
Portfolio manager
Sales charge and fund expenses
Sales charge
Operating expenses
Performance
Financial highlights
Yield
Key terms
Investment policies and risks
Facts about investments and their risks
Valuing assets
How to buy, exchange or sell shares
How to buy shares
How to exchange shares
How to sell shares
Special shareholder services
Services
Quick telephone reference
Distributions and taxes
Dividend and capital gain distributions
Reinvestments
Taxes
How the fund is organized
Shares
Voting rights
Shareholder meetings
Directors and officers
Investment manager and transfer agent
Distributor
About American Express Financial Corporation
General information
Appendix
1994 Federal tax information
Tax-exempt vs. taxable income<PAGE>
PAGE 5
The fund in brief
Goal
IDS Tax-Free Money Fund seeks to provide shareholders with as high
a level of current income exempt from federal income tax as is
consistent with liquidity and stability of principal. Because any
investment involves risk, achieving this goal cannot be guaranteed.
Only shareholders can change the goal.
Types of fund investments
The fund is a diversified mutual fund that invests at least 80% of
its net assets in short-term debt obligations whose interest is
exempt from federal income tax. The fund invests only in high-
quality debt securities such as municipal bonds and notes that the
portfolio manager believes present minimal credit risk.
Manager and distributor
The fund is managed by American Express Financial Corporation, a
provider of financial services since 1894. American Express
Financial Corporation currently manages more than $37 billion in
assets for the IDS MUTUAL FUND GROUP. Shares of the fund are sold
through American Express Financial Advisors Inc., a wholly owned
subsidiary of American Express Financial Corporation.
Portfolio manager
Terry Fettig joined American Express Financial Corporation in 1986
and serves as portfolio manager. He has managed this fund since
April 1993. From 1986 to 1992 he was a fixed income securities
analyst. From 1992 to 1993 he was an associate portfolio manager.
He also serves as portfolio manager of IDS Cash Management Fund and
IDS Life Moneyshare Fund.
Sales charge and fund expenses
Sales charge
When you buy shares, you pay no sales charge.
The fund pays certain expenses out of its assets. The expenses are
reflected in the fund's daily share price and dividends, and are
not charged directly to shareholder accounts. The following chart
gives a projection of these expenses -- based on historical
expenses.
Shareholder transaction expenses
Maximum sales charge on purchases
(as a percent of offering price).................0%
Annual fund operating expenses
(% of average daily net assets):
Management fee 0.34%
12b-1 fee 0.05%
Other expenses 0.29%
Total 0.68%
<PAGE>
PAGE 6
Example: Suppose for each year for the next 10 years, fund
expenses are as above and annual return is 5%. If you sold your
shares at the end of the following years, for each $1,000 invested,
you would pay total expenses of:
1 year 3 years 5 years 10 years
$7 $22 $38 $85
This example does not represent actual expenses, past or future.
Actual expenses may be higher or lower than those shown. Expense
information in this table has been restated to reflect estimates on
fund expenses from anticipated changes in fees approved by
shareholders on Nov. 9, 1994, and therefore, is different from the
actual expense ratio noted in the financial highlights information
table. "Other expenses" include an administrative service fee, and
a transfer agent fee.
Performance
Financial highlights
<TABLE>
<CAPTION>
Year ended Dec. 31,
Per share income and capital changes*
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
beginning of year
Income from investment operations:
Net investment income .02 .02 .02 .04 .05 .05 .04 .04 .04 .05
Less distributions:
Dividends from net (.02) (.02) (.02) (.04) (.05) (.05) (.04) (.04) (.04) (.05)
investment income
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
end of year
Ratios/supplemental data
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
Net assets, end of year $133 $116 $137 $144 $153 $117 $131 $116 $107 $74
(in millions)
Ratio of expenses to .68% .68% .63% .70% .71% .67% .65% .69% .69% .69%
average daily net assets
Ratio of net income to 2.11% 1.63% 2.25% 3.78% 5.24% 5.47% 4.54% 3.80% 3.97% 4.76%
average daily net assets
Total return 2.1% 1.6% 2.2% 3.8% 5.2% 5.6% 4.6% 3.9% 4.0% 4.9%
*For a share outstanding throughout the year. Rounded to the nearest cent.
</TABLE>
The information in this table has been audited by KPMG Peat Marwick
LLP, independent auditors. The independent auditors' report and
additional information about the performance of the fund are
contained in the fund's annual report which, if not included with
this prospectus, may be obtained without charge.
<PAGE>
PAGE 7
Yield
The fund's annualized simple yield for the seven days ended Dec.
31, 1994, was 3.92% and its annualized compound yield was 4%. The
fund calculates annualized simple and compound yields based on a
seven-day period.
Past yields should not be considered an indicator of future yields.
Key terms
Net asset value (NAV)
Value of a single fund share. It is the total market value of all
of a fund's investments and other assets, less any liabilities,
divided by the number of shares outstanding.
The NAV is the price you receive when you sell your shares and is
calculated at the close of business, normally 3 p.m. Central time,
each business day (any day the New York Stock Exchange is open).
Constant net asset value
Although there is no guarantee, the fund will use its best efforts
to maintain a constant net asset value of $1 per share.
Investment income
Interest earned on securities held by the fund.
Capital gains or losses
Sometimes small short-term gains or losses are realized when
securities are sold.
Yield
Annualized simple and compound yield calculations are based on a
seven-day period.
Investment policies and risks
Under normal market conditions, the fund will invest at least 80%
of its net assets in short-term debt securities whose interest, in
the opinion of bond counsel to the issuer, is wholly exempt from
federal income tax. The fund does not intend to purchase bonds or
notes the interest from which is subject to the alternative minimum
tax. The fund will maintain a dollar-weighted average portfolio
maturity of 90 days or less and will not purchase any security with
a remaining maturity of more than 13 months.
The various types of investments the portfolio manager uses to
achieve investment performance are described in more detail in the
next section and in the SAI.
Facts about investments and their risks
Short-term debt securities: The fund invests only in short-term
debt securities the portfolio manager believes present minimal
credit risk. These securities must be rated in one of the two
highest categories by national rating services.
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PAGE 8
Short-term debt securities include variable rate instruments and
floating rate instruments, which provide for the periodic
adjustment of interest rates so that the market value approximates
the face amount, securities subject to puts to shorten maturities,
securities with a series of maturity dates, securities placed in
escrow to refund other issues when they become refundable and
municipal lease obligations. Under normal market conditions the
fund will not invest more than 65% of its assets in variable rate
instruments or floating rate instruments. Risks to investors in
municipal lease obligations are the likelihood a municipality may
discontinue funding of the leased property and general credit
quality of the issuing municipality. The fund does not intend to
invest more than 10% of its assets in municipal lease obligations.
The fund may invest up to 25% of its net assets in each of the
following: securities whose issuers are located in the same state;
securities paid from revenues of similar types of enterprises; and
industrial revenue bonds. In such circumstances, economic,
business, political or other changes affecting one bond also may
affect other bonds. This could increase market risk.
Securities that are illiquid: Illiquid means the security cannot
be sold quickly in the normal course of business. No more than 10%
of the fund's net assets will be held in illiquid securities.
Money market instruments: If suitable tax-exempt securities are
not available, the fund may invest up to 20% of its net assets in
certain taxable investments. They include short-term government
securities, bank obligations, commercial paper and repurchase
agreements. The interest earned on these investments is not exempt
from federal income taxes. There also may be occasions when, as a
result of maturities of portfolio securities, heavy sales of fund
shares, or anticipated redemption requests, the fund may hold cash
that is not invested.
The investment policies described above, except for the policies
concerning the type and amount of tax-free investments to be held
by the fund, may be changed by the board of directors.
Lending portfolio securities: The fund may lend its securities to
earn income so long as borrowers provide collateral equal to the
market value of the loans. The risks are that borrowers will not
provide collateral when required or return securities when due.
Unless shareholders approve otherwise, loans may not exceed 30% of
the fund's net assets.
Alternative investment option
In the future, the board of the fund may determine for operating
efficiencies to use a master/feeder structure. Under that
structure, the fund's investment portfolio would be managed by
another investment company with the same goal as the fund, rather
than investing directly in a portfolio of securities.
Valuing assets
The portfolio securities are valued at amortized cost, which
approximates market value, as explained in the SAI. Although the <PAGE>
PAGE 9
fund cannot guarantee it will always be able to maintain a constant
net asset value of $1 per share, it will use its best efforts to do
so.
How to buy, exchange or sell shares
How to buy shares
If you're investing in this fund for the first time, you'll need to
set up an account. Your financial advisor will help you fill out
and submit an application. Your application will be accepted only
when federal funds (funds of the Federal Reserve System) are
available to the fund, normally within three days of receipt of
your application. Once your account is set up, you can choose
among several convenient ways to invest.
Important: When opening an account, you must provide American
Express Financial Corporation with your correct Taxpayer
Identification Number (Social Security or Employer Identification
number). See "Distributions and taxes."
When you buy shares for a new or existing account, the price you
pay per share is determined at the close of business on the day
your investment is received and accepted at the Minneapolis
headquarters.
Combining investments: The fund shares are offered without a sales
charge. Unless they were exchanged from a fund subject to a sales
charge, the shares are not included for purposes of determining
reduced charges for purchases of shares of other funds. For more
information about reduced sales charges, see the prospectuses of
other publicly offered funds in the IDS MUTUAL FUND GROUP.
Purchase policies:
o Investments must be received and accepted in the Minneapolis
headquarters on a business day before 3 p.m. Central time to
be included in your account that day and to receive that day's
share price. Otherwise your purchase will be processed the
next business day and you will pay the next day's share price.
o The minimums allowed for investment may change from time to
time.
o Wire orders can be accepted only on days when your bank,
American Express Financial Corporation the fund and Norwest
Bank Minneapolis are open for business.
o Wire purchases are completed when wired payment is received
and the fund accepts the purchase.
o American Express Financial Corporation and the fund are not
responsible for any delays that occur in wiring funds,
including delays in processing by the bank.
o You must pay any fee the bank charges for wiring.
<PAGE>
PAGE 10
o The fund reserves the right to reject any application for any
reason.
Three ways to invest
<TABLE><CAPTION>
1
<S> <C> <C>
By regular account Send your check and application Minimum amounts
(or your name and account number Initial investment: $2,000
if you have an established account) Additional
to: investments: $ 100
American Express Financial Advisors Inc. Account balances: $1,000*
P.O. Box 74
Minneapolis, MN 55440-0074
Your financial advisor will help you
with this process.
2
By scheduled Contact your financial advisor Minimum amounts
investment plan to set up one of the following Initial investment: $2,000
scheduled plans: Additional
investments: $100/mo
o automatic payroll deduction Account balances: $1,000
o bank authorization
o direct deposit of
Social Security check
o other plan approved by the fund
3
By wire If you have an established account, If this information is not
you may wire money to: included, the order may be
rejected and all money
Norwest Bank Minneapolis received by the fund, less
Routing No. 091000019 any costs the fund or American
Minneapolis, MN Express Financial Corporation
Attn: Domestic Wire Dept. incurs, will be returned
promptly.
Give these instructions: Minimum amounts:
Credit IDS Account #00-30-015 Each wire investment: $1,000
for personal account # (your
account number) for (your name).
*If your account balance falls below $1,000, American Express Financial Corporation will ask you in writing to bring it up to
$1,000 or establish a scheduled investment plan. If you don't do so within 30 days, your shares can be redeemed and the
proceeds mailed to you.
</TABLE>
How to exchange shares
Shareholders of other funds in the IDS MUTUAL FUND GROUP approved a
proposal to permit their respective funds to sell multiple classes
of fund shares. When these classes of shares become available you
can exchange your shares of this fund for Class A shares of any
other publicly offered fund in the IDS MUTUAL FUND GROUP available
in your state. If your initial investment was in this fund, you
can exchange shares of this fund for Class B shares. For complete
information, including fees and expenses, read the prospectus
carefully before exchanging into a new fund.
If your initial investment was in this fund, and you exchange into
a non-money market fund, you will pay an initial sales charge if
you exchange into Class A and be subject to a contingent deferred
sales charge if you exchange into Class B. If your initial
investment was in Class A shares of a non-money market fund and you
exchange shares into this fund, you may exchange that amount, <PAGE>
PAGE 11
including dividends earned on that amount, without paying a sales
charge.
If your exchange request arrives at the Minneapolis headquarters
before the close of business, your shares will be redeemed at the
net asset value set for that day. The proceeds will be used to
purchase new fund shares the same day. Otherwise, your exchange
will take place the next business day at that day's net asset
value.
For tax purposes, an exchange represents a sale and purchase and
may result in a gain or loss. However, you cannot create a tax
loss (or reduce a taxable gain) by exchanging from the fund within
91 days of your purchase. For further explanation, see the SAI.
How to sell shares
You can sell (redeem) your shares at any time. American Express
Shareholder Service will mail payment within seven days after
receiving your request.
When you sell shares, the amount you receive may be more or less
than the amount you invested. Your shares will be redeemed at net
asset value at the close of business on the day your request is
accepted at the Minneapolis headquarters. If your request arrives
after the close of business, the price per share will be the net
asset value at the close of business on the next business day.
A redemption is a taxable transaction. Although the fund attempts
to maintain a stable $1 net asset value, you will have a gain or
loss if the fund's net asset value is more or less than the cost of
your shares. This could affect your tax liability.
<TABLE><CAPTION>
Three ways to request an exchange or sale of shares
<S> <C>
1
By letter Include in your letter:
o the name of the fund(s)
o your account number(s) (for exchanges, both funds must be registered in the same
ownership)
o your Taxpayer Identification Number (TIN)
o the dollar amount or number of shares you want to exchange or sell
o signature of all registered account owners
o for redemptions, indicate how you want your sales proceeds delivered to you
o any paper certificates of shares you hold
Regular mail:
American Express Shareholder Service
Attn: Redemptions
P.O. Box 534
Minneapolis, MN 55440-0534
Express mail:
American Express Shareholder Service
Attn: Redemptions
733 Marquette Ave.
Minneapolis, MN 55402
2
By phone
American Express Telephone o The fund and American Express Financial Corporation will honor any telephone exchange or
Transaction Service: redemption request believed to be authentic and will use reasonable procedures to confirm
800-437-3133 or that they are. This includes asking identifying questions and tape recording calls. So
612-671-3800 long as reasonable procedures are followed, neither the fund nor American Express Financial
Corporation will be liable for any loss resulting
from fraudulent requests.
<PAGE>
PAGE 12
o Phone exchange and redemption privileges automatically apply to all accounts except
custodial, corporate or qualified retirement accounts unless you request these privileges
NOT apply by writing American Express Shareholder Service. Each registered owner must sign
the request.
o American Express Financial Corporation answers phone requests promptly, but you may
experience delays when call volume is
high. If you are unable to get through, use mail procedure as an alternative.
o Phone privileges may be modified or discontinued at any time.
3
By draft
Free drafts are available and can be used just like a check to withdraw $100 or more from your account. The shares in your
account earn dividends until they are redeemed by the fund to cover your drafts. Most accounts will automatically receive
free drafts. However, to receive drafts on qualified or custodial business accounts, you must contact American Express
Shareholder Service. A request form will be supplied and must be signed by each registered owner. Your draft writing
privilege may be modified or discontinued at any time. If you request a photocopy of a paid draft you will be charged $5 per
copy.
Minimum amount
Redemption: $100
Maximum amount
Redemption: $50,000
</TABLE>
Exchange policies:
o You may make up to three exchanges within any 30-day period,
with each limited to $300,000. These limits do not apply to
certain employee benefit plans or other arrangements through which
one shareholder represents the interests of several. Exceptions
may be allowed with pre-approval of the fund.
o Exchanges of Class A shares of other funds in the IDS MUTUAL
FUND GROUP to this fund will be accepted. Exchanges of Class B
shares to this fund will not be accepted.
o If your exchange creates a new account, it must satisfy the
minimum investment amount for new purchases.
o Once we receive your exchange request, you cannot cancel it.
o Shares of the new fund may not be used on the same day for
another exchange.
o If your shares are pledged as collateral, the exchange will be
delayed until written approval is obtained from the secured party.
o American Express Financial Corporation and the fund reserve the
right to reject any exchange, limit the amount, or modify or
discontinue the exchange privilege, to prevent abuse or adverse
effects on the fund and its shareholders. For example, if
exchanges are too numerous or too large, they may disrupt the
fund's investment strategies or increase its costs.
Redemption policies:
o A telephone redemption request will not be allowed within 30
days of a phoned-in address change.
Important: If you request a redemption of shares you recently
purchased by a check or money order that is not guaranteed, the
fund will wait for your check to clear. Please expect a minimum of
<PAGE>
PAGE 13
10 days from the date of purchase before American Express Financial
Corporation mails a check to you. (A check may be mailed earlier
if your bank provides evidence satisfactory to the fund and
American Express Financial Corporation that your check has
cleared.)
<TABLE><CAPTION>
Three ways to receive payment when you sell shares
<S> <C>
1
By regular or express mail o Mailed to the address on record.
o Payable to names listed on the account.
NOTE: The express mail delivery charges
you pay will vary depending on the
courier you select.
2
By wire o Minimum wire redemption: $1,000.
o Request that money be wired to your bank.
o Bank account must be in the same
ownership as the IDS fund account.
NOTE: Pre-authorization required. For
instructions, contact your financial
advisor or American Express Shareholder Service.
3
By scheduled payout plan o Minimum payment: $50.
o Contact your financial advisor or American Express
Shareholder Service to set up regular
payments to you on a monthly, bimonthly,
quarterly, semiannual or annual basis.
o Buying new shares while under a payout
plan may be disadvantageous because of
the sales charges.
</TABLE>
Special shareholder services
Services
To help you track and evaluate the performance of your investments,
American Express Financial Corporation provides these services:
Quarterly statements listing all of your holdings and transactions
during the previous three months.
Yearly tax statements featuring average-cost-basis reporting of
capital gains or losses if you redeem your shares along with
distribution information - which simplifies tax calculations.
A personalized mutual fund progress report detailing returns on
your initial investment and cash-flow activity in your account. It
calculates a total return to reflect your individual history in
owning fund shares. This report is available from your financial
advisor.
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
<PAGE>
PAGE 14
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
Distributions and taxes
The fund distributes to shareholders investment income and any
short-term capital gains. It does so to qualify as a regulated
investment company and to avoid paying corporate income and excise
taxes. Dividend and capital gains distributions will have tax
consequences you should know about.
Dividend and capital gain distributions
The fund distributes its net investment income (dividends and
interest earned on securities held by the fund, less operating
expenses) to shareholders of record monthly. Short-term capital
gains distributed are included in net investment income. Net
realized capital gains, if any, from selling securities are
distributed at the end of the calendar year.
Reinvestments
Dividends are automatically reinvested in additional shares of the
fund, unless:
o you request the fund in writing or by phone to pay
distributions to you monthly in cash, or
o you direct the fund to invest your distributions monthly in
any publicly available IDS fund for which you've previously
opened an account. Your purchases may be subject to a sales
charge.
The reinvestment price is the net asset value at close of business
on the day the distribution is paid. (Your quarterly statement
will confirm the amount invested and the number of shares
purchased.)
If you choose cash distributions, you will receive only those
declared after your request has been processed.
If the U.S. Postal Service cannot deliver the checks for the cash
distributions, we will reinvest the checks into your account at the
<PAGE>
PAGE 15
then-current net asset value and make future distributions in the
form of additional shares.
Taxes
Distributions from interest earned on tax-exempt securities are
exempt from federal income tax. Distributions must be reported on
your income tax returns in the year the fund pays them regardless
of whether you take them in cash or reinvest them.
Because interest on municipal bonds and notes is tax-exempt for
federal income tax purposes, any interest on borrowed money used
directly or indirectly to purchase fund shares is not deductible on
your federal income tax return. You should consult a tax advisor
regarding its deductibility for state and local income tax
purposes.
Each January, American Express Financial Corporation sends you a
statement showing the kinds and total amount of all distributions
you received during the previous year. You must report all
distributions on your tax returns, even if they are reinvested in
additional shares.
Redemptions and exchanges subject you to a tax on any capital gain.
If you sell shares for more than their cost, the difference is a
capital gain. Your gain may be either short term (for shares held
for one year or less) or long term (for shares held for more than
one year).
Your Taxpayer Identification Number (TIN) is important. As with
any financial account you open, you must list your current and
correct Taxpayer Identification Number (TIN) -- either your Social
Security or Employer Identification number. The TIN must be
certified under penalties of perjury on your application when you
open an account at American Express Financial Corporation.
If you don't provide the TIN to American Express Financial
Corporation, or the TIN you report is incorrect, you could be
subject to backup withholding of 31% of taxable distributions and
proceeds from certain sales and exchanges. You also could be
subject to further penalties, such as:
o a $50 penalty for each failure to supply your correct TIN
o a civil penalty of $500 if you make a false statement that
results in no backup withholding
o criminal penalties for falsifying information
You also could be subject to backup withholding because you failed
to report interest or dividends on your tax return as required.
<PAGE>
PAGE 16
How to determine the correct TIN
Use the Social Security or
For this type of account: Employer Identification number
of:
Individual or joint account The individual or first person
listed on the account
Custodian account of a minor The minor
(Uniform Gifts/Transfers to Minors
Act)
A living trust The grantor-trustee (the person
who puts the money into the
trust)
An irrevocable trust, pension The legal entity (not the
trust or estate personal representative or
trustee, unless no legal entity
is designated in the account
title)
Sole proprietorship or The owner or partnership
partnership
Corporate The corporation
Association, club or The organization
tax-exempt organization
For details on TIN requirements, ask your financial advisor or
local American Express Financial Advisors office for Federal Form
W-9, "Request for Taxpayer Identification Number and
Certification."
Important: This information is a brief and selective summary of
certain federal tax rules that apply to this fund. Tax matters are
highly individual and complex, and you should consult a qualified
tax advisor about your personal situation.
How the fund is organized
The fund is a diversified, open-end management investment company,
as defined in the Investment Company Act of 1940. Originally
incorporated on Feb. 29, 1980 in Nevada, the fund changed its state
of incorporation on June 13, 1986 by merging into a Minnesota
corporation incorporated on April 7, 1986. The fund headquarters
are at 901 S. Marquette Ave., Suite 2810, Minneapolis, MN 55402-
3268.
Shares
The fund is owned by its shareholders. All shares issued by the
fund are of the same class -- capital stock. Par value is 1 cent
per share. Both full and fractional shares can be issued.
<PAGE>
PAGE 17
The fund no longer issues stock certificates.
Voting rights
As a shareholder, you have voting rights over the fund's management
and fundamental policies. You are entitled to one vote for each
share you own.
Shareholder meetings
The fund does not hold annual shareholder meetings. However, the
directors may call meetings at their discretion, or on demand by
holders of 10% or more of the outstanding shares, to elect or
remove directors.
Directors and officers
Shareholders elect a board of directors that oversees the
operations of the fund and chooses its officers. Its officers are
responsible for day-to-day business decisions based on policies set
by the board. The board has named an executive committee that has
authority to act on its behalf between meetings. The directors
also serve on the boards of all of the other funds in the IDS
MUTUAL FUND GROUP, except for Mr. Dudley, who is a director of all
publicly offered funds.
Directors and officers of the fund
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for Public
Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs, The
Reader's Digest Association, Inc.
<PAGE>
PAGE 18
Lewis W. Lehr
Former chairman and chief executive officer, Minnesota Mining and
Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar
Corporation.
Interested directors who are officers and/or employees of American
Express Financial Corporation
William H. Dudley
Executive vice president, American Express Financial Corporation.
David R. Hubers
President and chief executive officer, American Express Financial
Corporation.
John R. Thomas
Senior vice president, American Express Financial Corporation.
Other officer
Leslie L. Ogg
Vice president of all funds in the IDS MUTUAL FUND GROUP and
general counsel and treasurer of the publicly offered funds.
Refer to the SAI for the directors' and officers' biographies.
Investment manager and transfer agent
The fund pays American Express Financial Corporation for managing
its portfolio, providing administrative services and serving as
transfer agent (handling shareholder accounts).
Under its Investment Management Services Agreement, American
Express Financial Corporation determines which securities will be
purchased, held or sold (subject to the direction and control of
the fund's board of directors). Effective March 3, 1995, the fund
pays American Express Financial Corporation a fee for these
services based on the average daily net assets of the fund, as
follows:
Assets Annual rate
(billions) at each asset value
First $1.0 0.310%
Next 0.5 0.293
Next 0.5 0.275
Next 0.5 0.258
Over 2.5 0.240
<PAGE>
PAGE 19
For the year ended Dec. 31, 1994, under a prior agreement, the fund
paid American Express Financial Corporation a total investment
management fee of 0.34% of its average daily net assets. Under the
Agreement, the fund also pays taxes, brokerage commissions and
nonadvisory expenses.
Under an Administrative Services Agreement, the fund pays American
Express Financial Corporation for administration and accounting
services at an annual rate of 0.03% decreasing in gradual
percentages to 0.02% as assets increase.
In addition, under a separate Transfer Agency Agreement, American
Express Financial Corporation maintains shareholder accounts and
records. The fund pays American Express Financial Corporation an
annual fee of $20 per shareholder account for this service.
Distributor
The fund sells shares at net asset value through American Express
Financial Advisors Inc., a wholly owned subsidiary of American
Express Financial Corporation, under a Distribution Agreement.
Financial advisors representing American Express Financial Advisors
provide information to investors about individual investment
programs, the fund and its operations, new account applications,
exchange and redemption requests.
Total expenses paid by the fund in the year ended Dec. 31, 1994
were 0.68% of its average daily net assets.
Total fees and expenses (excluding taxes and brokerage commissions)
cannot exceed the most restrictive applicable state expense
limitation.
About American Express Financial Corporation
General information
The American Express Financial Corporation family of companies
offers not only mutual funds but also insurance, annuities,
investment certificates and a broad range of financial management
services.
Besides managing investments for all publicly offered funds in the
IDS MUTUAL FUND GROUP, American Express Financial Corporation also
manages investments for itself and its subsidiaries, IDS
Certificate Company and IDS Life Insurance Company. Total assets
under management on Dec.31, 1994 were more than $105 billion.
American Express Financial Advisors serves individuals and
businesses through its nationwide network of more than 175 offices
and more than 7800 advisors.
Other American Express Financial Corporation subsidiaries provide
investment management and related services for pension, profit
sharing, employee savings and endowment funds of businesses and
institutions.
<PAGE>
PAGE 20
American Express Financial Corporation is located at IDS Tower 10,
Minneapolis, MN 55440-0010. It is a wholly owned subsidiary of
American Express Company, a financial services company with
headquarters at American Express Tower, World Financial Center, New
York, NY 10285. The fund may pay brokerage commissions to broker-
dealer affiliates of American Express and American Express
Financial Corporation.
Appendix
1995 Federal Tax-Exempt and Taxable Equivalent Yield Calculation
These tables will help you determine your federal taxable yield
equivalents for given rates of tax-exempt income.
STEP 1: Calculating your marginal tax rate.
Using your Taxable Income and Adjusted Gross Income figures as
guides, you can locate your Marginal Tax Rate in the table below.
First locate your Taxable Income in a filing status and income
range in the left-hand column. Then, locate your Adjusted Gross
Income at the top of the chart. At the point where your Taxable
Income line meets your Adjusted Gross Income column the percentage
indicated is an approximation of your Marginal Tax Rate. For
example: Let's assume you are married filing jointly, your taxable
income is $138,000 and your adjustable gross income is $175,000.
Under Taxable Income married filing jointly status, $138,000 is in
the $94,250-$143,600 range. Under Adjusted Gross Income, $175,000
is in the $172,050 to $294,550 column. The Taxable Income line and
Adjusted Gross Income column meet at 33.17%. This is the rate
you'll use in Step 2.
<TABLE><CAPTION>
Adjusted gross income*
___________________________________________________________________________________________
<S> <C> <C> <C> <C>
Taxable income** $0 $114,700 $172,050 OVER
to to to
$114,700(1) $172,050(2) $294,550(3) $294,550(2)
___________________________________________________________________________________________
Married Filing Jointly
$ 0 - $ 39,000 15.00%
39,000 - 94,250 28.00 28.84%
94,250 - 143,600 31.00 31.93 33.17%
143,600 - 256,500 36.00 37.08 38.52 37.08%
256,500 + 39.60 42.37*** 40.79
___________________________________________________________________________________________
$0 $114,700 OVER
to to
$114,700(1) $237,200(3) $237,200(2)
___________________________________________________________________________________________
Single
$ 0 - $ 23,350 15.00%
23,350 - 56,550 28.00
56,550 - 117,950 31.00 32.55%
117,950 - 256,500 36.00 37.80 37.08%
256,500 + 39.60 41.58 40.79
____________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 21
*Gross income with certain adjustments before taking itemized
deductions and personal exemptions.
**Amount subject to federal income tax after itemized deductions
and personal exemptions.
***This rate is applicable only in the limited case where your
adjusted gross income is less than $294,550 and your taxable income
exceeds $256,500.
(1) No Phase-out -- Assumes no phase-out of itemized deductions or
personal exemptions.
(2) Itemized Deductions Phase-out -- Assumes a single taxpayer has
one personal exemption and joint
taxpayers have two personal exemptions.
(3) Itemized Deductions and Personal Exemption Phase-outs --
Assumes a single taxpayer has one personal exemption, joint
taxpayers have two personal exemptions and itemized deductions
continue to phase-out.
If these assumptions do not apply to you, it will be necessary to
construct your own personalized tax equivalency table.
STEP 2: Determing your federal taxable yield equivalents.
Using 33.17%, you may determine that a tax-exempt yield of 4% is
equivalent to earning a taxable 5.99% yield.
<TABLE><CAPTION>
For these Tax-Exempt Rates:
_________________________________________________________________________
4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50%
_________________________________________________________________________
Marginal Tax Rates Equal the Taxable Rates shown below:
______________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
15.00% 4.71% 5.29% 5.88% 6.47% 7.06% 7.65% 8.24% 8.82%
28.00 5.56 6.25 6.94 7.64 8.33 9.03 9.72 10.42
28.84 5.62 6.32 7.03 7.73 8.43 9.13 9.84 10.54
31.00 5.80 6.52 7.25 7.97 8.70 9.42 10.14 10.87
31.93 5.88 6.61 7.35 8.08 8.81 9.55 10.28 11.02
32.55 5.93 6.67 7.41 8.15 8.90 9.64 10.38 11.12
33.17 5.99 6.73 7.48 8.23 8.98 9.73 10.47 11.22
36.00 6.25 7.03 7.81 8.59 9.38 10.16 10.94 11.72
37.08 6.36 7.15 7.95 8.74 9.54 10.33 11.13 11.92
37.80 6.43 7.23 8.04 8.84 9.65 10.45 11.25 12.06
38.52 6.51 7.32 8.13 8.95 9.76 10.57 11.39 12.20
39.60 6.62 7.45 8.28 9.11 9.93 10.76 11.59 12.42
40.79 6.76 7.60 8.44 9.29 10.13 10.98 11.82 12.67
41.58 6.85 7.70 8.56 9.41 10.27 11.13 11.98 12.84
42.37 6.94 7.81 8.68 9.54 10.41 11.28 12.15 13.01
_____________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 22
STATEMENT OF ADDITIONAL INFORMATION
FOR
IDS TAX-FREE MONEY FUND
March 1, 1995
This Statement of Additional Information (SAI) is not a prospectus.
It should be read together with the prospectus and the financial
statements contained in the Annual Report which may be obtained
from your American Express Financial Advisors personal financial
advisor or by writing to American Express Shareholder Service, P.O.
Box 534, Minneapolis, MN 55440-0534.
This SAI is dated March 1, 1995, and it is to be used with the
prospectus dated March 1, 1995, and the Annual Report for the
fiscal year ended Dec. 31, 1994.
<PAGE>
PAGE 23
TABLE OF CONTENTS
Goal and Investment Policies.........................See Prospectus
Additional Investment Policies................................p. 3
Portfolio Transactions........................................p. 5
Brokerage Commissions Paid to Brokers Affiliated with AEFC....p. 6
Performance Information.......................................p. 6
Valuing Fund Shares...........................................p. 8
Investing in the Fund.........................................p. 9
Redeeming Shares..............................................p. 10
Pay-out Plans.................................................p. 11
Taxes.........................................................p. 12
Agreements....................................................p. 13
Directors and Officers........................................p. 15
Custodian.....................................................p. 18
Independent Auditors..........................................p. 18
Financial Statements..............................See Annual Report
Prospectus....................................................p. 18
Appendix A: Description of Bond and Note Ratings.............p. 19
Appendix B: Description of Short-Term Taxable Securities
and Repurchase Agreements........................p. 21
Appendix C: Dollar-Cost Averaging............................p. 23
<PAGE>
PAGE 24
ADDITIONAL INVESTMENT POLICIES
These are investment policies in addition to those presented in the
prospectus. Unless holders of a majority of the outstanding shares
agree to make the change the fund will not:
'Act as an underwriter (sell securities for others). However,
under the securities laws, the fund may be deemed to be an
underwriter when it purchases securities directly from the issuer
and later resells them.
'Borrow money or property, except as a temporary measure for
extraordinary or emergency purposes, in an amount not exceeding
one-third of the market value of its total assets (including
borrowings) less liabilities (other than borrowings) immediately
after the borrowing. The fund has not borrowed in the past and has
no present intention to borrow.
'Make cash loans. The fund, however, does make investments in debt
securities where the sellers agree to repurchase the securities at
cost plus an agreed-upon interest rate within a specified time.
'Invest in voting securities, securities of investment companies or
exploration or development programs, such as oil, gas or mineral
programs.
'Invest more than 5% of its total assets, at cost, in securities
whose issuer or guarantor of principal and interest has been in
operation for less than three years.
'Pledge or mortgage its assets beyond 15% of the cost of total
assets.
'Invest more than 5% of its total assets, at market value, in
securities of any one company, government or political subdivision
thereof, except the limitation will not apply to investments in
securities issued by the U.S. government, its agencies or
instrumentalities, and except that up to 25% of the fund's total
assets may be invested without regard to this 5% limitation. For
purposes of this policy, the terms of a municipal security
determine the issuer.
'Buy on margin or sell short.
'Invest in real estate, but the fund can invest in municipal bonds
and notes secured by real estate or interests therein.
'Invest in commodities or commodity contracts.
'Lend portfolio securities in excess of 30% of its net assets.
This policy may not be changed without shareholder approval. The
current policy of the fund's board of directors is to make these
loans, either long- or short-term, to broker-dealers. In making
such loans the fund gets the market price in cash, U.S. government
securities, letters of credit or such other collateral as may be
permitted by regulatory agencies and approved by the board of <PAGE>
PAGE 25
directors. If the market price of the loaned securities goes up,
the fund will get additional collateral on a daily basis. The
risks are that the borrower may not provide additional collateral
when required or return the securities when due. During the
existence of the loan, the fund receives cash payments equivalent
to all interest or other distributions paid on the loaned
securities. A loan will not be made unless the investment manager
believes the opportunity for additional income outweighs the risks.
Unless changed by the board of directors, the fund will not:
'Invest more than 10% of the fund's net assets in securities that
are illiquid. In determining the liquidity of municipal lease
obligations, the investment manager, under guidelines established
by the board of directors, will consider the essential nature of
the least property, the likelihood that the municipality will
continue appropriating funding for the leased property, and other
relevant factors related to the general credit quality of the
municipality and the marketability of the municipal lease
obligation.
In determining the liquidity of commercial paper issued in
transactions not involving a public offering under Section 4(2) of
the Securities Act of 1933, the investment manager, under
guidelines established by the board of directors, will evaluate
relevant factors such as the issuer and the size and nature of its
commercial paper programs, the willingness and ability of the
issuer or dealer to repurchase the paper, and the nature of the
clearance and settlement procedures for the paper.
The quality of tax-exempt securities in which the fund invests is
valued according to the amortized cost method (see "Valuing Fund
Shares"). If the fund should decide at some point it is no longer
appropriate to value its portfolio according to amortized cost,
then at least 80% of the value of the municipal bonds and municipal
notes in the fund's portfolio may be issues that have been rated at
the time of purchase not lower than Baa or MIG-3 (applicable to
municipal notes) by Moody's Investors Service, Inc. (Moody's), or
BBB by Standard & Poor's Corporation (S&P), or in the case of notes
that have not been rated, will have been issued by an issuer having
outstanding long-term debt securities rated not lower than Baa by
Moody's or BBB by S&P. The balance of the portfolio may be in
municipal bonds and notes that may be nonrated and may be issued by
issuers whose other debt securities have not been rated. Such
investments would be considered only when the fund believes the
financial condition of the issuers limited the risks to the fund to
a degree comparable to securities rated Baa or MIG-3 (or higher) by
Moody's or BBB (or higher) by S&P. Any municipal bond or note that
is guaranteed by the federal government will be regarded as having
a rating of Aaa (Moody's) or AAA (S&P). See Appendix A for a
description of bond and note ratings.
In addition to considering ratings assigned by the ratings services
in the selection of portfolio securities for the fund, the fund may
consider, among other things, information concerning the financial
history and condition of the issuer and its revenue and expense <PAGE>
PAGE 26
prospect and, in the case of revenue bonds, the financial history
and condition of the source of revenue to service the bonds.
After a municipal bond or note has been purchased by the fund, it
may be assigned a lower rating or cease to be rated. Such an event
would not require the elimination of the issue from the portfolio,
but the fund will consider such an event in determining whether the
fund should continue to hold the security in its portfolio.
Yields on municipal bonds and notes depend on a variety of factors,
including money market conditions, municipal bond market
conditions, the size of a particular offering, the maturity of the
obligation, and the rating of the issue. The market in municipal
bonds and notes is not comparable to the market in taxable money
market instruments in terms of liquidity and stability of
principal. This is because the market in municipal bonds and notes
is not as broad, does not offer as much choice in maturities, and
has fewer issuers.
Notwithstanding any of the fund's other investment policies, the
fund may invest its assets in an open-end management investment
company having substantially the same investment objectives,
policies and restrictions as the fund for the purpose of having
those assets managed as part of a combined pool.
For a description of bond and note ratings, see Appendix A. For a
description of short-term taxable securities and repurchase
agreements, see Appendix B. For a discussion on dollar-cost
averaging, see Appendix C.
PORTFOLIO TRANSACTIONS
Subject to policies set by the board of directors (the board), AEFC
is authorized to determine, consistent with the fund's investment
goal and policies, which securities will be purchased, held or
sold. In determining where the buy and sell orders are to be
placed, AEFC has been directed to use its best efforts to obtain
the best available price and most favorable execution except where
otherwise authorized by the board.
Normally, the fund's securities are traded on a "principal" rather
than an "agency" basis. In other words, AEFC will trade directly
with the issuer or with a dealer who buys or sells for its own
account, rather than acting on behalf of another client. AEFC does
not pay the dealer commissions. Instead, the dealer's profit, if
any, is the difference, or spread, between the dealer's purchase
and sale price for the security.
Each investment decision made for the fund is made independently
from any decision made for another fund in the IDS MUTUAL FUND
GROUP or other account advised by AEFC or any AEFC subsidiary.
When the fund buys or sells the same security as another fund or
account, AEFC carries out the purchase or sale in a way the fund
agrees in advance is fair. Although sharing in large transactions
may affect the price or volume purchased or sold by the fund <PAGE>
PAGE 27
adversely, the fund hopes to gain an overall advantage in
execution.
The fund acquired no securities of its regular brokers or dealers
or of the parents of those brokers or dealers that derived more
than 15% of gross revenue from securities related activities during
the year ended Dec. 31, 1994.
BROKERAGE COMMISSIONS PAID TO BROKERS AFFILIATED WITH AEFC
Affiliates of American Express Company (American Express) (of which
AEFC is a wholly owned subsidiary) may engage in brokerage and
other securities transactions on behalf of the fund according to
procedures adopted by the fund's board of directors and to the
extent consistent with applicable provisions of the federal
securities laws. AEFC will use an American Express affiliate only
if (i) AEFC determines that the fund will receive prices and
executions at least as favorable as those offered by qualified
independent brokers performing similar brokerage and other services
for the fund and (ii) the affiliate charges the fund commission
rates consistent with those the affiliate charges comparable
unaffiliated customers in similar transactions and if such use is
consistent with terms of the Investment Management Services
Agreement.
No brokerage commissions were paid to brokers affiliated with AEFC
for the three most recent fiscal years.
PERFORMANCE INFORMATION
The fund may quote various performance figures to illustrate past
performance. An explanation of the methods used by the fund to
compute performance follows below.
Average annual total return
The fund may calculate average annual total return for certain
periods by finding the average annual compounded rates of return
over the period that would equate the initial amount invested to
the ending redeemable value, according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1,000
payment, made at the beginning of a period, at the
end of the period (or fractional portion thereof)
Aggregate total return
The fund may calculate aggregate total return for certain periods
representing the cumulative change in the value of an investment in
<PAGE>
PAGE 28
the fund over a specified period of time according to the following
formula:
ERV - P
P
where: P = a hypothetical initial payment of $1,000
ERV = ending redeemable value of a hypothetical $1,000
payment, made at the beginning of a period, at the
end of the period (or fractional portion thereof)
Annualized yield
The fund calculates annualized simple and compound yields based on
a seven-day period.
The simple yield is calculated by determining the net change in the
value of a hypothetical account having a balance of one share at
the beginning of the seven-day period, dividing the net change in
account value by the value of the account at the beginning of the
period to obtain the return for the period, and multiplying that
return by 365/7 to obtain an annualized figure. The value of the
hypothetical account includes the amount of any declared dividends,
the value of any shares purchased with any dividend paid during the
period and any dividends declared for such shares. The fund's
yield does not include any realized or unrealized gains or losses.
The fund calculates its compound yield according to the following
formula:
Compound Yield = (return for seven-day period + 1) 365/7 - 1
The fund's simple annualized yield was 3.92% and its compound yield
was 4% on Dec. 30, 1994.
Yield, or rate of return, on fund shares may fluctuate daily and
does not provide a basis for determining future yields. However,
it may be used as one element in assessing how the fund is meeting
its goal. When comparing an investment in the fund with savings
accounts and similar investment alternatives, you must consider
that such alternatives often provide an agreed to or guaranteed
fixed yield for a stated period of time, whereas the fund's yield
fluctuates. In comparing the yield of one money market fund to
another, you should consider each fund's investment policies,
including the types of investments permitted.
In its sales material and other communications, the fund may quote,
compare or refer to rankings, yields or returns as published by
independent statistical services or publishers and publications
such as The Bank Rate Monitor National Index, Barron's, Business
Week, Donoghue's Money Market Fund Report, Financial Services Week,
Financial Times, Financial World, Forbes, Fortune, Global Investor,
Institutional Investor, Investor's Daily, Kiplinger's Personal
Finance, Lipper Analytical Services, Money, Mutual Fund Forecaster,
Newsweek, The New York Times, Personal Investor, Stanger Report,
Sylvia Porter's Personal Finance, USA Today, U.S. News and World <PAGE>
PAGE 29
Report, The Wall Street Journal and Wiesenberger Investment
Companies Service.
VALUING FUND SHARES
The fund values its securities as follows: All of the securities
in the fund's portfolio (including those readily marketable assets
designated to cover commitments to buy when-issued securities) are
valued at amortized cost. The amortized cost method of valuation
is an approximation of market value determined by systematically
increasing the carrying value of a security if acquired at a
discount, or reducing the carrying value if acquired at a premium,
so that the carrying value is equal to maturity value on the
maturity date. It does not take into consideration unrealized
capital gains or losses.
The board of directors has established procedures designed to
stabilize the fund's price per share for purposes of sales and
redemptions at $1, to the extent that it is reasonably possible to
do so. These procedures include review of the fund's portfolio
securities by the board, at intervals deemed appropriate by it, to
determine whether the fund's net asset value per share computed by
using available market quotations deviates from a share value of $1
as computed using the amortized cost method. The board must
consider any deviation that appears and if it exceeds 0.5% it must
determine what action, if any, needs to be taken. If the board
determines a deviation exists that may result in a material
dilution of the holdings of current shareholders or investors, or
in other unfair consequences for such persons, it must undertake
remedial action that it deems necessary and appropriate. Such
action may include withholding dividends, calculating net asset
value per share for purposes of sales and redemptions using
available market quotations, making redemptions in kind, and
selling portfolio securities before maturity in order to realize
capital gains or losses or to shorten average portfolio maturity.
While the amortized cost method provides certainty and consistency
in portfolio valuation, it may result in valuations of portfolio
securities that are either somewhat higher or lower than the prices
at which the securities could be sold. This means that during
times of declining interest rates the yield on the fund's shares
may be higher than if valuations of portfolio securities were made
based on actual market prices and estimates of market prices.
Accordingly, if using the amortized cost method were to result in a
lower portfolio value, a prospective investor in the fund would be
able to obtain a somewhat higher yield than he would get if
portfolio valuation were based on actual market values. Existing
shareholders, on the other hand, would receive a somewhat lower
yield than they would otherwise receive. The opposite would happen
during a period of rising interest rates.
The New York Stock Exchange, AEFC and the fund will be closed on
the following holidays: New Year's Day, Presidents' Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day.
<PAGE>
PAGE 30
INVESTING IN THE FUND
The minimum purchase for directors, officers and employees of the
fund or AEFC and AEFC financial advisors is $1000 (except payroll
deduction plans), with a minimum additional purchase of $25.
Systematic Investment Programs
After you make your initial investment of $2,000 or more, you can
arrange to make additional payments of $100 or more on a regular
basis. These minimums do not apply to all systematic investment
programs. You decide how often to make payments - monthly,
quarterly or semiannually. You are not obligated to make any
payments. You can omit payments, or discontinue the investment
program altogether. The fund also can change the program or end it
at any time. If there is no obligation, why do it? Putting money
aside is an important part of financial planning. With a
systematic investment program, you have a goal to work for.
How does this work? When you send in your payment, your money is
invested at the net asset value. Each purchase is a separate
transaction. After each purchase your new shares will be added to
your account. Shares bought through these programs are exactly the
same as any other fund shares. They can be bought and sold at any
time. A systematic investment program is not an option or an
absolute right to buy shares.
For a discussion on dollar-cost averaging see appendix C.
Automatic Directed Dividends
Dividends, including capital gain distributions, paid by another
fund in the IDS MUTUAL FUND GROUP may be used to automatically
purchase shares of a fund. Dividends may be directed to existing
accounts only. Dividends declared by a fund are exchanged to this
fund the following day. Dividends can be exchanged into one fund
but cannot be split to make purchases in two or more funds.
Automatic directed dividends are available between accounts of any
ownership except:
'Between a non-custodial account and an IRA, or 401(k) plan account
or other qualified retirement account of which American Express
Trust Company acts as custodian;
'Between two American Express Trust Company custodial accounts with
different owners (for example, you may not exchange dividends from
your IRA to the IRA of your spouse);
'Between different kinds of custodial accounts with the same
ownership (for example, you may not exchange dividends from your
IRA to your 401(k) plan account, although you may exchange
dividends from one IRA to another IRA).
Dividends may be directed from accounts established under the
Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors <PAGE>
PAGE 31
Act (UTMA) only into other UGMA or UTMA accounts with identical
ownership.
Each fund has a different investment goal described in its
prospectus along with other information, including fees and expense
ratios. Before exchanging dividends into another fund, you should
read its prospectus. You will receive a confirmation that the
automatic directed dividend service has been set up for your
account.
REDEEMING SHARES
You have a right to redeem your shares at any time. For an
explanation of redemption procedures, please see the prospectus.
Drafts: Drafts should be requested by registered owners only. The
number of signatures required for payment of a draft may vary by
account ownership. Drafts should be used like checks, but should
not be sent directly to the Minneapolis headquarters to be cashed.
When the draft is accepted by the fund through the banking system,
shares will be redeemed from your account. In order to qualify for
this service, all shares must be held in non-certificate form. If
the account is not large enough to cover a draft, it will be
dishonored and returned marked "insufficient funds." Drafts
written on purchases made with non-guaranteed funds less than 10
days old will not be honored in most cases. The draft writing
privilege may be modified or terminated at any time. It may not
always be possible to give all shareholders advance notification of
each change in the draft writing privilege.
Telephone Redemptions: Records maintained by AEFC will be binding
on all parties. Neither AEFC nor the fund will be liable for any
loss, expense or damage arising in connection with telephone
redemption requests. In order to qualify for this service, all
shares must be held in non-certificate form.
The requesting registered owner must be prepared to provide
sufficient information to enable AEFC to verify the authenticity of
the call and to process the redemption request. All telephone
calls will be recorded. Redemption requests received before the
close of business (normally 3 p.m. Central time) will be processed
the same day. For each redemption, a number of shares equal to the
amount of the requested redemption will be redeemed. The following
business day, the redemption proceeds will be mailed to the address
of record or transmitted by Federal Reserve Wire to the bank
account designated on the telephone authorization form, provided
AEFC, the fund, Norwest Bank Minneapolis and your bank are all
open. At the present time there is no additional fee charged for
the wire service, but if such a fee is imposed in the future, an
additional number of shares will be redeemed to cover it.
The telephone redemption privilege may be modified or discontinued
at any time. It may not always be possible to give all
shareholders advance notice of each change in the procedures for
telephone redemptions.
<PAGE>
PAGE 32
During an emergency, the board can suspend computation of the net
asset value, stop accepting payments for purchase of shares or
suspend the duty of the fund to redeem shares for more than seven
days. Such emergency situations would occur if:
'The New York Stock Exchange (the Exchange) closes for reasons
other than the usual weekend and holiday closings or trading on the
Exchange is restricted, or
'Disposal of the fund's securities is not reasonably practicable,
or it is not reasonably practicable for the fund to determine the
fair value of its net assets, or
'The SEC, under the provisions of the Investment Company Act of
1940, declares a period of emergency to exist.
Should the fund stop selling shares, the board may make a deduction
from the value of the assets held by the fund to cover the cost of
future liquidations of the assets so as to distribute fairly these
costs among all shareholders.
PAY-OUT PLANS
You can use any of several pay-out plans to redeem your investment
in regular installments. While the plans differ on how the pay-out
is figured, they all are based on redemption of your investment.
Net investment income dividends and any capital gain distributions
will automatically be reinvested, unless you elect to receive them
in cash.
To start any of these plans, please write or call American Express
Shareholder Service, P.O. Box 534, Minneapolis, MN 55440-0534, 612-
671-3733. Your authorization must be received in the Minneapolis
headquarters at least five days before the date you want your
payments to begin. The initial payment must be at least $50.
Payments will be made on a monthly, bimonthly, quarterly,
semiannual or annual basis. Your choice is effective until you
change or cancel it.
The following pay-out plans are designed to take care of the needs
of most shareholders in a way AEFC can handle efficiently and at a
reasonable cost. If you need a more irregular schedule of
payments, it may be necessary for you to make a series of
individual redemptions, in which case you'll have to send in a
separate redemption request for each pay-out. The fund reserves
the right to change or stop any pay-out plan and to stop making
such plans available.
Plan #1: Pay-out for a fixed period of time
If you choose this plan, a varying number of shares will be
redeemed at regular intervals during the time period you choose.
This plan is designed to end in complete redemption of all shares
in your account by the end of the fixed period.
<PAGE>
PAGE 33
Plan #2: Redemption of a fixed number of shares
If you choose this plan, a fixed number of shares will be redeemed
for each payment and that amount will be sent to you. The length
of time these payments continue is based on the number of shares in
your account.
Plan #3: Redemption of a fixed dollar amount
If you decide on a fixed dollar amount, whatever number of shares
is necessary to make the payment will be redeemed in regular
installments until the account is closed.
Plan #4: Redemption of a percentage of net asset value
Payments are made based on a fixed percentage of the net asset
value of the shares in your account computed on the day of each
payment. Percentages range from 0.25% to 0.75%. For example, if
you are on this plan and arrange to take 0.5% each month you will
get $50 if the value of your account is $10,000 on the payment
date.
TAXES
All distributions of net investment income during the year will
have the same percentage designated as tax-exempt. This annual
percentage is expected to be substantially the same as the
percentage of tax-exempt income actually earned during any
particular distribution period. For the year ended Dec. 31, 1994,
100% of the income distribution was designated as exempt from
federal income taxes.
If you are a "substantial user" (or related person) of facilities
financed by industrial development bonds, you should consult your
tax advisor before investing. The income from such bonds may not
be tax-exempt for you.
State law determines whether interest income on a particular
municipal bond or note is tax-exempt for state tax purposes. It
also determines the tax treatment of those bonds and notes when
earned by a mutual fund and paid to the fund's shareholders. The
fund will tell you the percentage of interest income from municipal
bonds and notes it received during the year on a state-by-state
basis. Your tax advisor should help you report this income for
state tax purposes.
Under federal tax law and an election made by the fund under
federal tax regulations, by the end of a calendar year the fund
must declare and pay dividends representing 98% of ordinary income
through Dec. 31 and 98% of net capital gains (both long-term and
short-term) for the 12-month period ending Dec. 31 of that calendar
year. The fund is subject to an excise tax equal to 4% of the
excess, if any, of the amount required to be distributed over the
amount actually distributed. The fund intends to comply with
federal tax law and avoid any excise tax.
<PAGE>
PAGE 34
This is a brief summary that relates to federal income taxation
only. Shareholders should consult their tax advisor for more
complete information as to the application of federal, state and
local income tax laws to fund distributions.
AGREEMENTS
Investment Management Services Agreement
The fund has an Investment Management Services Agreement with AEFC.
Effective March 20, 1995 AEFC is paid a fee based on the following
schedule:
Annual rate
Assets at each
(billions) asset level
First $1.0 0.310%
Next 0.5 0.293
Next 0.5 0.275
Next 0.5 0.258
Over 2.5 0.240
On Dec. 31, 1994 the daily rate applied to the fund's assets was
equal to approximately 0.34% on an annual basis. The fee is
calculated for each calendar day on the basis of the net assets of
the fund as of the close of business of the full business day,
which is two business days prior to the day for which the
calculation is being made. In the case of the suspension of the
computation of the net asset value, the fee for each day during the
suspension shall be computed as of the close of business on the
last full business day on which the net assets were computed.
The management fee is paid monthly. Under the prior agreement, the
amount paid was $400,146 for the year ended Dec. 31, 1994, $425,170
for 1993, and $506,236 for 1992.
Under the current Agreement, the fund also pays taxes, brokerage
commissions and nonadvisory expenses, that include custodian fees;
audit and certain legal fees; fidelity bond premiums; registration
fees for shares; fund office expenses; consultants' fees;
compensation of directors, officers and employees; corporate filing
fees; organizational expenses; expenses incurred in connection with
lending portfolio securities of the fund; and expenses properly
payable by the fund, approved by the board of directors. Under the
prior agreement, the fund paid nonadvisory expenses of $157,268 for
the year ended Dec. 31, 1994, $162,502 for 1993, and $152,446 for
1992.
Administrative Services Agreement
The fund has an Administrative Services Agreement with AEFC. Under
this agreement, the fund pays AEFC for providing administration and
accounting services. Effective March 3, 1995 the fee is calculated
as follows:
<PAGE>
PAGE 35
Assets Annual rate
(billions) each asset level
First $1.0 0.030%
Next 0.5 0.027
Next 0.5 0.025
Next 0.5 0.022
Over $2.5 0.020
Transfer Agency Agreement
The fund has a Transfer Agency Agreement with AEFC. This agreement
governs AEFC's responsibility for administering and/or performing
transfer agent functions, for acting as service agent in connection
with dividend and distribution functions and for performing
shareholder account administration agent functions in connection
with the issuance, exchange and redemption or repurchase of the
fund's shares. Under the agreement AEFC earns a fee from the fund
determined by multiplying the number of shareholder accounts at the
end of the day by a rate of $20 per year and dividing by the number
of days in the year. The fees paid to AEFC may be changed from
time to time upon agreement of the parties without shareholder
approval. The fund paid fees of $193,102 for the year ended Dec.
31, 1994.
Distribution Agreement
For an explanation of the fund's Distribution Agreement, please see
your prospectus.
Additional information about commissions and compensation for the
last year is contained in the following table:
<TABLE><CAPTION>
(1) (2) (3) (4) (5)
Net Compensation
Name of Underwriting on Redemption
Principal Discounts and and Brokerage Other
Underwriter Commissions Repurchases Commissions Compensation
<S> <C> <C> <C> <C>
American None None None* $53,322**
Express
Financial
Corporation
</TABLE>
*For further information see "Brokerage Commissions Paid to Brokers
Affiliated with AEFC.
**Distribution fees paid pursuant to the Plan and Agreement of
Distribution.
Total fees and nonadvisory expenses cannot exceed the most
restrictive applicable state limitation. Currently, the most
restrictive applicable state expense limitation, subject to
exclusion of certain expenses, is 2.5% of the first $30 million of
the fund's average daily net assets, 2% of the next $70 million and
1.5% of average daily net assets over $100 million, on an annual
basis. At the end of each month, if the fees and expenses of the <PAGE>
PAGE 36
fund exceed this limitation for the fund's fiscal year in progress,
AEFC will assume all expenses in excess of the limitation. AEFC
then may bill the fund for such expenses in subsequent months up to
the end of that fiscal year, but not after that date. No interest
charges are assessed by AEFC for expenses it assumes.
DIRECTORS AND OFFICERS
The following is a list of the fund's directors who, except for Mr.
Dudley, also are directors of all other funds in the IDS MUTUAL
FUND GROUP. Mr. Dudley is a director of all publicly offered
funds. All shares have cumulative voting rights when voting on the
election of directors.
Lynne V. Cheney+'
American Enterprise Institute
for Public Policy Research (AEI)
1150 17th St., N.W.
Washington, D.C.
Distinguished Fellow AEI. Former Chair of National Endowment of
the Humanities. Director, The Reader's Digest Association Inc.,
Lockheed Corp., and the Interpublic Group of Companies, Inc.
(advertising).
William H. Dudley+**
2900 IDS Tower
Minneapolis, MN
Executive vice president and director of AEFC.
Robert F. Froehlke+
1201 Yale Place
Minneapolis, MN
Former president of all funds in the IDS MUTUAL FUND GROUP.
Director, the ICI Mutual Insurance Co., Institute for Defense
Analyses, Marshall Erdman and Associates, Inc. (architectural
engineering) and Public Oversight Board of the American Institute
of Certified Public Accountants.
David R. Hubers**
2900 IDS Tower
Minneapolis, MN
President, chief executive officer and director of AEFC.
Previously, senior vice president, finance and chief financial
officer of AEFC.
Heinz F. Hutter+
P.O. Box 5724
Minneapolis, MN
President and chief operating officer, Cargill, Incorporated
(commodity merchants and processors) from February 1991 to <PAGE>
PAGE 37
September 1994. Executive vice president from 1981 to February
1991.
Anne P. Jones+
5716 Bent Branch Rd.
Bethesda, MD
Attorney and telecommunications consultant. Former partner, law
firm of Sutherland, Asbill & Brennan. Director, Motorola, Inc. and
C-Cor Electronics, Inc.
Donald M. Kendall'
PepsiCo, Inc.
Purchase, NY
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird+
Reader's Digest Association, Inc.
1730 Rhode Island Ave., N.W.
Washington, D.C.
Senior counsellor for national and international affairs, The
Reader's Digest Association, Inc. Chairman of the board, COMSAT
Corporation, former nine-term congressman, secretary of defense and
presidential counsellor. Director, Martin Marietta Corp.,
Metropolitan Life Insurance Co., The Reader's Digest Association,
Inc., Science Applications International Corp., Wallace Reader's
Digest Funds and Public Oversight Board (SEC Practice Section,
American Institute of Certified Public Accountants).
Lewis W. Lehr'
3050 Minnesota World Trade Center
30 E. Seventh St.
St. Paul, MN
Former chairman of the board and chief executive officer, Minnesota
Mining and Manufacturing Company (3M). Director, Jack Eckerd
Corporation (drugstores). Advisory Director, Peregrine Inc.
(microelectronics).
William R. Pearce+*
901 S. Marquette Ave.
Minneapolis, MN
President of all funds in the IDS MUTUAL FUND GROUP since June
1993. Former vice chairman of the board, Cargill, Incorporated
(commodity merchants and processors).
Edson W. Spencer
4900 IDS Center
80 S. 8th St.
Minneapolis, MN
President, Spencer Associates Inc. (consulting). Chairman of the
board, Mayo Foundation (healthcare). Former chairman of the board <PAGE>
PAGE 38
and chief executive officer, Honeywell Inc. Director, Boise
Cascade Corporation (forest products) and CBS Inc. Member of
International Advisory Councils, Robert Bosch (Germany) and NEC
(Japan).
John R. Thomas**
2900 IDS Tower
Minneapolis, MN
Senior vice president and director of AEFC.
Wheelock Whitney+
1900 Foshay Tower
821 Marquette Ave.
Minneapolis, MN
Chairman, Whitney Management Company (manages family assets).
C. Angus Wurtele
1101 S. 3rd St.
Minneapolis, MN
Chairman of the board and chief executive officer, The Valspar
Corporation (paints). Director, Bemis Corporation (packaging),
Donaldson Company (air cleaners & mufflers) and General Mills, Inc.
(consumer foods).
+ Member of executive committee.
' Member of joint audit committee.
* Interested person by reason of being an officer and employee of
the fund.
**Interested person by reason of being an officer, director,
employee and/or shareholder of AEFC or American Express.
The board also has appointed officers who are responsible for day-
to-day business decisions based on policies it has established.
Besides Mr. Pearce, who is president, the fund's other officer is:
Leslie L. Ogg
901 S. Marquette Ave.
Minneapolis, MN
Vice president of all funds in the IDS MUTUAL FUND GROUP and
general counsel and treasurer of the publicly offered funds.
On Dec. 31, 1994, the fund's directors and officers as a group
owned less than 1% of the outstanding shares. During the year
ended Dec. 31, 1994, no director or officer earned more than
$60,000 from this fund. All directors and officers as a group
earned $4,251, including $309 of retirement plan expense, from this
fund.
<PAGE>
PAGE 39
CUSTODIAN
The fund's securities and cash are held by First Bank National
Association, 180 E. Fifth St., St. Paul, MN 55101-1631, through a
custodian agreement. The custodian is permitted to deposit some or
all of its securities in central depository systems as allowed by
federal law.
INDEPENDENT AUDITORS
The financial statements contained in the Annual Report to
shareholders, for the year ended Dec. 31, 1994, were audited by
independent auditors, KPMG Peat Marwick LLP, 4200 Norwest Center,
90 S. Seventh St., Minneapolis, MN 55402-3900. The independent
auditors also provide other accounting and tax-related services as
requested by the fund.
FINANCIAL STATEMENTS
The Independent Auditors' Report and the Financial Statements,
including Notes to the Financial Statements and the Schedule of
Investments in Securities, contained in the 1994 Annual Report to
shareholders, pursuant to Section 30(d) of the Investment Company
Act of 1940, as amended, are hereby incorporated in this SAI by
reference. No other portion of the Annual Report however, is
incorporated by reference.
PROSPECTUS
The prospectus for IDS Tax-Free Money Fund dated March 1, 1995, is
hereby incorporated in this SAI by reference.
<PAGE>
PAGE 40
APPENDIX A
DESCRIPTION OF BOND AND NOTE RATINGS
The ratings concern the quality of the issuing corporation. They
are not an opinion of the market value of the security. Such
ratings are opinions on whether the principal and interest will be
repaid when due. A security's rating may change which could affect
its price. The four highest ratings by Moody's Investors Service,
Inc. are Aaa, Aa, A and Baa. The four highest by Standard & Poor's
Corporation are AAA, AA, A and BBB.
Bonds rated Aaa or AAA are judged to be of the best quality.
Capacity to pay interest and repay principal is extremely strong.
Prices are responsive only to interest rate fluctuations.
Bonds rated Aa or AA are also judged to be high-grade although
margins of protection for interest and principal may not be quite
as good as Aaa- or AAA-rated securities. Long-term risk may appear
greater than the Aaa or AAA group. Prices are primarily responsive
to interest rate fluctuations.
Bonds rated A are considered upper-medium grade. Protection for
interest and principal is deemed adequate but susceptible to future
impairment. The market prices of such obligations move primarily
with interest rate fluctuations but also with changing economic or
trade conditions.
Bonds rated Baa and BBB are considered medium-grade obligations.
Protection for interest and principal is adequate over the short-
term; however, these obligations have certain speculative
characteristics. They are susceptible to changing economic
conditions and require constant review. Such bonds are more
responsive to business and trade conditions than to interest rate
fluctuations.
Moody's rating for tax-exempt notes are designated "MIG" (Moody's
Investment Grade.) Notes rated MIG-1 are of the best quality,
enjoying strong protection from established cash flows or funds for
their servicing or from established and broad-based access to the
market for refinancing, or both.
Notes rated MIG-2 are of high quality, with margins of protection
ample, although not so large as in the preceding group.
Notes rated MIG-3 are of favorable quality, with all security
elements accounted for but lacking the undeniable strength of the
preceding grades. Market access for refinancing, in particular, is
likely to be less well established.
Standard & Poor's rating SP-1 on tax-exempt notes indicates very
strong or strong capacity to pay principal and interest. Those
issues determined to possess overwhelming safety characteristics
will be given a plus (+) designation.
<PAGE>
PAGE 41
Standard & Poor's rating SP-2 indicates satisfactory capacity to
pay principal and interest.
Standard & Poor's rating SP-3 indicates speculative capacity to pay
principal and interest.
<PAGE>
PAGE 42
APPENDIX B
DESCRIPTION OF SHORT-TERM TAXABLE SECURITIES AND REPURCHASE
AGREEMENTS
Depending on market conditions, a portion of the fund's investments
may be invested in short-term taxable securities. These include:
(1) Obligations of the U.S. government, its agencies and
instrumentalities which result principally from lending programs of
the U.S. government;
(2) U.S. Treasury bills with maturities up to one year. The
difference between the purchase price and the maturity value or
resale price is the interest income to the fund;
(3) Certificates of deposit or receipts with fixed interest rates
issued by banks in exchange for deposit of funds;
(4) Banker's acceptances arising from short-term credit
arrangements designed to enable businesses to obtain funds to
finance commercial transactions;
(5) Letters of credit, which are short-term notes issued in bearer
form with a bank letter of credit obligating the bank to pay the
bearer the amount of the note;
(6) Commercial paper rated in the two highest grades by Standard &
Poor's or Moody's. Commercial paper is generally defined as
unsecured short-term notes issued in bearer form by large well-
known corporations and finance companies. These ratings reflect a
review of management, economic evaluation of the industry
competition, liquidity, long-term debt and ten-year earning trends;
Standard & Poor's Rating A-1 indicates that the degree of safety
regarding timely repayment is either overwhelming or very strong.
Standard & Poor's Rating A-2 indicates that capacity for timely
payment on issues with this designation is strong.
Moody's Rating Prime-1 (P-1) indicates a superior capacity for
repayment of short-term promissory obligations.
Moody's Rating Prime-2 (P-2) indicates a strong capacity for
repayment of short-term promissory obligations.
(7) Repurchase agreements involving acquisition of securities by
the fund with a concurrent agreement by the seller, usually a bank
or securities dealer, to reacquire the securities at cost plus
interest within a specified time. From this investment, the fund
receives a fixed rate of return that is insulated from market rate
changes while it holds the security.
(8) Variable rate demand notes (VRDNs), whose terms provide (1)
the fund is unconditionally entitled to obtain the amount due upon
notice of seven days or less or at specified intervals not <PAGE>
PAGE 43
exceeding one year upon no more than seven days' notice, and (2)
the interest rate provisions will be such that the instrument will
have a current market value approximately equal to its face amount.
The fund will invest only in VRDNs that are in the top two ratings
by a major rating service or are of comparable quality as
determined by the board of directors. The required liquidity may
be provided by a bank letter of credit, in which event the quality
and liquidity of the issue may be determined by reference to the
bank's creditworthiness.
<PAGE>
PAGE 44
APPENDIX C
DOLLAR-COST AVERAGING
A technique that works well for many investors is one that
eliminates random buy and sell decisions. One such system is
dollar-cost averaging. Dollar-cost averaging involves building a
portfolio through the investment of fixed amounts of money on a
regular basis regardless of the price or market condition. This
may enable an investor to smooth out the effects of the volatility
of the financial markets. By using this strategy, more shares will
be purchased when the price is low and less when the price is high.
As the accompanying chart illustrates, dollar-cost averaging tends
to keep the average price paid for the shares lower than the
average market price of shares purchased, although there is no
guarantee.
While this does not ensure a profit and does not protect against a
loss if the market declines, it is an effective way for many
shareholders who can continue investing through changing market
conditions to accumulate shares in a fund to meet long term goals.
Dollar-cost averaging
Regular Market Price Shares
Investment of a Share Acquired
$100 $ 6.00 16.7
100 4.00 25.0
100 4.00 25.0
100 6.00 16.7
100 5.00 20.0
$500 $25.00 103.4
Average market price of a share over 5 periods:
$5.00 ($25.00 divided by 5).
The average price you paid for each share:
$4.84 ($500 divided by 103.4).
<PAGE>
PAGE 45
Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS Tax-Free Money Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS Tax-Free Money Fund, Inc. as of December 31, 1994, and the
related statement of operations for the year then ended and the
statements of changes in net assets for each of the years in the
two-year period ended December 31, 1994, and the financial
highlights for each of the years in the ten-year period ended
December 31, 1994. These financial statements and the financial
highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Tax-Free Money Fund, Inc. at December 31, 1994, and the results of
its operations for the year then ended and the changes in its net
assets for each of the years in the two-year period ended
December 31, 1994, and the financial highlights for the periods
stated in the first paragraph above, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
February 3, 1995
<PAGE>
PAGE 46
<TABLE><CAPTION>
Financial statements
Statement of assets and liabilities
IDS Tax-Free Money Fund, Inc.
Dec. 31, 1994
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $130,513,540) $130,513,540
Cash in bank on demand deposit 1,407,495
Accrued interest receivable 864,519
_____________________________________________________________________________________________________________
Total assets 132,785,554
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Dividends payable to shareholders 29,937
Accrued investment management and services fee 34,506
Accrued distribution fee 4,251
Accrued transfer agency fee 13,814
Other accrued expenses 66,598
_____________________________________________________________________________________________________________
Total liabilities 149,106
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $132,636,448
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 132,646,785 shares $ 1,326,468
Additional paid-in capital 131,321,151
Undistributed net investment income 1,952
Accumulated net realized loss (13,123)
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $132,636,448
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 1.00
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 47
Financial statements
Statement of operations
IDS Tax-Free Money Fund, Inc.
Year ended Dec. 31, 1994
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income:
Interest $3,291,207
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 400,146
Distribution fee 53,322
Transfer agency fee 193,102
Compensation of directors 2,754
Compensation of officers 1,497
Custodian fees 9,924
Postage 29,309
Registration fees 71,537
Reports to shareholders 13,054
Audit fees 18,000
Administrative 4,305
Other 6,888
_____________________________________________________________________________________________________________
Total expenses 803,838
_____________________________________________________________________________________________________________
Investment income -- net 2,487,369
_____________________________________________________________________________________________________________
Realized gain on investments -- net
_____________________________________________________________________________________________________________
Net realized gain on investments (Note 3) 8,363
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $2,495,732
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 48
<TABLE><CAPTION>
Financial statements
Statements of changes in net assets
IDS Tax-Free Money Fund, Inc.
Year ended Dec. 31,
_____________________________________________________________________________________________________________
Operations and distributions 1994 1993
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 2,487,369 $ 2,038,716
Net realized gain (loss) on investments 8,363 (16,772)
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 2,495,732 2,021,944
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (2,485,462) (2,038,709)
_____________________________________________________________________________________________________________
Capital share transactions at constant $1 net asset value
_____________________________________________________________________________________________________________
Proceeds from sales of shares 246,600,213 210,478,473
Net asset value of shares
issued in reinvestment of distributions 2,400,582 1,959,174
Payments for redemptions of shares (231,967,181) (233,790,673)
_____________________________________________________________________________________________________________
Increase (decrease) in net assets from capital share transactions 17,033,614 (21,353,026)
_____________________________________________________________________________________________________________
Total increase (decrease) in net assets 17,043,884 (21,369,791)
Net assets at beginning of year 115,592,564 136,962,355
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$1,952 and $45) $132,636,448 $115,592,564
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 49
Notes to financial statements
IDS Tax-Free Money Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
The fund is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company.
Significant accounting policies followed by the fund are summarized
below:
Valuation of securities
Pursuant to Rule 2a-7 of the 1940 Act, all securities are valued
daily at amortized cost, which approximates market value, in order
to maintain a constant net asset value of $1 per share.
Federal taxes
Since the fund's policy is to comply with all sections of the
Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income to shareholders, no
provision for income or excise taxes is required.
Dividends to shareholders
Dividends from net investment income, declared daily and payable
monthly, are reinvested in additional shares of the fund at net
asset value or payable in cash.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Interest income including level-yield
amortization of premium and discount, is accrued daily.
___________________________________________________________________
2. Expenses
Under terms of an agreement dated Nov. 14, 1991, the fund pays
American Express Financial Corporation a fee for managing its
investments, recordkeeping and other specified services. The fee is
a percentage of the fund's average daily net assets consisting of
an annual asset charge in reducing percentages from 0.34% to 0.26%
annually.
The fund also pays American Express Financial Corporation a
distribution fee at an annual rate of $6 per shareholder account
and a transfer agency fee at an annual rate of $24 per shareholder
account. The transfer agency fee is reduced by earnings on monies
pending shareholder redemptions.
American Express Financial Corporation will assume and pay any
expenses (except taxes and brokerage commissions) that exceed the
most restrictive applicable state expense limitation.
The fund has a retirement plan for its independent directors. Upon
retirement, directors receive monthly payments equal to one-half of
<PAGE>
PAGE 50
the retainer fee for as many months as they served as directors up
to 120 months. There are no death benefits. The plan is not funded
but the fund recognizes the cost of payments during the time the
directors serve on the board. The retirement plan expense amounted
to $309 for the year ended Dec. 31, 1994.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities aggregated
$310,331,235 and $294,285,444, respectively, for the year ended
Dec. 31, 1994. Realized gains and losses are determined on an
identified cost basis.
___________________________________________________________________
4. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on page 5 of the prospectus.
<PAGE>
PAGE 51
<TABLE>
<CAPTION>
Investments in securities
IDS Tax-Free Money Fund, Inc. (Percentages represent value of
Dec. 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Name of issuer and title of issue (b)
____________________________________________________________________________________________________________________________
Issuer Principal Value(a)
amount
____________________________________________________________________________________________________________________________
<S> <C> <C>
Alaska (0.8%)
Valdez Marine Terminal Refunding Revenue Bonds Alaska Pipeline (Mobil)
5.50% 11-1-03 $1,000,000 (c,d) $ 1,000,000
____________________________________________________________________________________________________________________________
Arizona (3.1%)
Maricopa County Pollution Control Revenue Bonds T.E.C.P.
Series E (Southern California Edison)
3.60% 1-11-95 1,120,000 1,120,000
3.90% 1-9-95 1,000,000 1,000,000
Salt River Agricultural Improvement & Power District T.E.C.P.
3.50% 1-31-95 1,000,000 1,000,000
3.85% 1-4-95 1,000,000 1,000,000
____________
Total 4,120,000
_____________________________________________________________________________________________________________________________
California (2.9%)
Los Angeles County T.R.A.N. Series 1994-95
4.50% 6-30-95 2,840,000 2,848,812
State Contra Costa Transportation Authority Series 1993A (FGIC Insured)
5.65% 3-1-09 1,000,000 (c,d,e) 1,000,000
____________
Total 3,848,812
_____________________________________________________________________________________________________________________________
Colorado (2.5%)
Moffat County Pollution Control Revenue Bonds Series 1994 (Pacificorp)
6.15% 5-1-13 1,300,000 (c,d) 1,300,000
State General Fund T.R.A.N. Series 1994
4.50% 6-27-95 2,000,000 2,006,580
_____________
Total 3,306,580
_____________________________________________________________________________________________________________________________
Connecticut (5.4%)
Development Authority Pollution Control Bonds Series 1993A (Connecticut
Power & Light)
5.40% 9-1-28 5,000,000 (c,d) 5,000,000
Development Authority Pollution Control Bonds Series 1993A (Western Massachusetts
Gas & Electric)
5.50% 9-1-28 2,200,000 (c,d) 2,200,000
____________
Total 7,200,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE 52
_____________________________________________________________________________________________________________________________
Florida (5.7%)
Jacksonville Electric Authority Electric System T.E.C.P Series D-1
3.50% 2-8-95 2,000,000 2,000,000
State Municipal Power Agency Revenue Bonds T.E.C.P. Series A
3.50% 1-24-95 4,000,000 4,000,000
3.75% 1-6-95 1,500,000 1,500,000
____________
Total 7,500,000
_____________________________________________________________________________________________________________________________
Georgia (3.6%)
Burke County Pollution Control Revenue Bonds Series 1994 (Georgia Power & Light)
5.00% 7-1-14 4,800,000 (c,d) 4,800,000
_____________________________________________________________________________________________________________________________
Idaho (4.5%)
State T.A.N. Series 1994
4.50% 6-29-95 6,000,000 6,002,279
_____________________________________________________________________________________________________________________________
Indiana (5.7%)
Jasper County Pollution Control Refunding Revenue Bonds
Series 1994A (North Indiana Public Service)
6.15% 4-1-10 800,000 (c,d) 800,000
6.15% 6-1-10 400,000 (c,d) 400,000
Jasper County Pollution Control Refunding Revenue Bonds
Series 1994B (North Indiana Public Service)
6.15% 4-1-13 1,100,000 (c,d) 1,100,000
6.15% 6-1-13 2,400,000 (c,d) 2,400,000
Jasper County Pollution Control Refunding Revenue Bonds
Series 1994C (North Indiana Public Service)
6.15% 4-1-19 900,000 (c,d) 900,000
State Bond Bank Advancement Fund Program Series 1994A-2
3.03% 1-17-95 2,000,000 2,000,253
_____________
Total 7,600,253
_____________________________________________________________________________________________________________________________
Kentucky (0.8%)
Jefferson County Pollution Control Revenue Bonds T.E.C.P Series 1993
3.50% 1-30-95 1,000,000 1,000,000
_____________________________________________________________________________________________________________________________
Maine (2.3%)
State General Obligation T.A.N.
4.50% 6-30-95 3,000,000 3,011,471
_____________________________________________________________________________________________________________________________
Massachusetts (1.5%)
State Option Revenue Bonds Harvard University Series I
5.00% 2-1-16 2,000,000 (c,d) 2,000,000
______________________________________________________________________________________________________________________________
Michigan (4.8%)
Regents of the University Hospital Refunding Revenue Bonds Series 1992A
6.15% 12-1-19 6,400,000 (c,d) 6,400,000
______________________________________________________________________________________________________________________________
<PAGE>
PAGE 53
______________________________________________________________________________________________________________________________
Minnesota (7.5%)
Becker T.E.C.P. Series 1993B (Northern States Power)
3.60% 1-12-95 3,000,000 3,000,000
Bloomington Port Authority Special Tax Refunding Revenue Bonds Mall of America
(FSA Insured)
5.55% 2-1-09 3,000,000 (c,d,e) 3,000,000
Regents of the University T.E.C.P. Series 1985H
3.60% 1-10-95 2,000,000 2,000,000
Regents of the University T.E.C.P. Series I
3.60% 1-13-95 1,000,000 1,000,000
3.75% 1-5-95 1,000,000 1,000,000
____________
Total 10,000,000
_____________________________________________________________________________________________________________________________
Mississippi (5.8%)
Jackson County Port Bonds (Chevron)
5.20% 6-1-23 6,800,000 (c,d) 6,800,000
6.15% 12-1-16 900,000 (c,d) 900,000
_____________
Total 7,700,000
_____________________________________________________________________________________________________________________________
New York (5.5%)
New York City Municipal Water Financial Authority Series 1992C (FGIC Insured)
6.00% 6-15-22 3,000,000 (c,d,e) 3,000,000
New York City Municipal Water Financial Authority Series 1994C (FGIC Insured)
6.00% 6-15-23 3,300,000 (c,d,e) 3,300,000
Triborough Bridge & Tunnel Authority Special Obligation Bonds Series 1994
(FGIC Insured)
4.85% 1-1-24 1,000,000 (c,d,e) 1,000,000
____________
Total 7,300,000
_____________________________________________________________________________________________________________________________
North Carolina (4.5%)
Medical Care Community Hospital Revenue Bonds Duke University Hospital
Series 1985B
5.45% 6-1-15 3,000,000 (c,d) 3,000,000
Medical Care Community Hospital Revenue Bonds Duke University Hospital
Series 1985C
5.45% 6-1-15 2,000,000 (c,d) 2,000,000
Municipal Power Agency #1 Catawba T.E.C.P.
3.60% 1-17-95 1,000,000 1,000,000
____________
Total 6,000,000
_____________________________________________________________________________________________________________________________
Pennsylvania (4.1%)
Delaware County Industrial Development Authority Airport Facility
Revenue Bonds Series 1985 (United Parcel Service)
5.85% 12-1-05 5,500,000 (c,d) 5,500,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 54
_____________________________________________________________________________________________________________________________
Texas (14.0%)
Gulf Coast (Amoco)
6.15% 10-12-17 7,800,000 (c,d) 7,800,000
Harris County Industrial Development Pollution Control Revenue Bonds
Series 1984A (Exxon)
6.00% 3-1-24 1,200,000 (c,d) 1,200,000
Harris County Industrial Development Pollution Control Revenue Bonds
Series 1984B (Exxon)
6.00% 3-1-24 2,000,000 (c,d) 2,000,000
San Antonio Electric & Gas System T.E.C.P. Series A
3.40% 2-1-95 2,500,000 2,500,000
State Municipal Power Agency T.E.C.P.
3.60% 1-12-95 2,600,000 2,600,000
3.75% 1-5-95 500,000 500,000
State T.R.A.N.
5.00% 8-31-95 2,000,000 2,012,283
____________
Total 18,612,283
_____________________________________________________________________________________________________________________________
Virginia (5.7%)
Peninsula Port Authority Series 1987 (Shell Oil)
6.15% 12-1-05 7,500,000 (c,d) 7,500,000
_____________________________________________________________________________________________________________________________
Washington (2.2%)
Washington Public Power Supply System Electric Refunding Revenue Bonds
Project #3
5.60% 7-1-18 2,900,000 (c,d) 2,900,000
_____________________________________________________________________________________________________________________________
Wisconsin (2.3%)
State Operating Notes Series 1994
4.50% 6-15-95 3,000,000 3,011,862
_____________________________________________________________________________________________________________________________
Wyoming (3.2%)
Kemmerer Pollution Control Revenue Bonds Series 1984 (Exxon)
6.00% 11-1-14 3,400,000 (c,d) 3,400,000
Lincoln County Pollution Control Revenue Bonds Series 1984B (Exxon)
6.00 11-1-14 800,000 (c,d) 800,000
_____________
Total 4,200,000
_____________________________________________________________________________________________________________________________
Total investments in securities (98.4%)
(Cost: $130,513,540)(f) $130,513,540
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) The following abbreviations are used in portfolio descriptions:
T.A.N. -- Tax Anticipation Note
T.E.C.P. -- Tax-Exempt Commercial Paper
T.R.A.N. -- Tax & Revenue Anticipation Note
(c) Interest rate varies to reflect current market conditions; rate shown is the effective rate on Dec. 31, 1994.
(d) Holder entitled to receive principal amount from issuer or corporate guarantor, if indicated in parenthesis, after a day
or a week's notice. The maturity date disclosed represents the final maturity. However, for purposes of Rule 2a-7, maturity is
the later of the next put or interest rate reset date.
(e) The following abbreviations are used in the portfolio descriptions to identify the insurer of the issue:
FGIC -- Financial Guarantee Insurance Corporation
FSA -- Financial Security Assurance
(f) At Dec. 31, 1994, also represents the cost of securities for federal income tax purposes.
</TABLE>
<PAGE>
PAGE 55
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits.
(a) FINANCIAL STATEMENTS:
Financial Statements filed as part of this post-effective
amendment and included in Part B.
-Independent Auditors' Report dated Feb. 3, 1995
-Statement of Assets and Liabilities, Dec. 31, 1994
-Statement of Operations for the fiscal year ended Dec. 31,
1994
-Statement of Changes in Net Assets for the years ended Dec.
31, 1994 and Dec. 31, 1993
-Notes to Financial Statements
-Investments in Securities, Dec. 31, 1994
-Notes to Investments in Securities
(b) EXHIBITS
1. Copy of Articles of Incorporation as amended October 17, 1988,
filed electronically as Exhibit 1 to Post-Effective Amendment
No. 14 to Registration Statement No. 2-66868, is incorporated
herein by reference.
2. Copy of By-laws as amended January 12, 1989, filed
electronically as Exhibit 2 to Post-Effective Amendment No. 16
to Registration Statement No. 2-66868, is incorporated herein
by reference.
3. Not Applicable.
4. Copy of Stock certificate, filed as Exhibit 4 to Registrant's
Registration Statement No. 2-66868, is incorporated herein by
reference.
5. Copy of Investment Management Services Agreement between
Registrant and IDS Financial Corporation dated Nov. 14, 1991,
filed electronically as Exhibit 5 to Post-Effective Amendment
No. 18 to Registration Statement No. 2-66868, is incorporated
herein by reference.
6. Copy of Distribution Agreement between Registrant and IDS
Financial Services Inc. dated January 1, 1987, filed
electronically as Exhibit 6 to Post-Effective Amendment No. 13
to Registration Statement No. 2-66868, is incorporated herein
by reference.
7. All employees are eligible to participate in a profit sharing
plan. Entry into the plan is Jan. 1 or July 1. The
Registrant contributes each year an amount up to 15 percent of
their annual salaries, the maximum deductible amount permitted
under Section 404(a) of the Internal Revenue Code.
8. Copy of Custodian Agreement, dated November 1, 1988, filed
electronically as Exhibit 8 to Post-Effective Amendment No. 15
to Registration Statement No. 2-66868, is incorporated herein
by reference.
<PAGE>
PAGE 56
9. (a) Copy of Plan and Agreement of Merger, dated April 10,
1986, filed electronically as Exhibit 9(a) to Post-Effective
Amendment No. 14 to Registration Statement No. 2-66868, is
incorporated herein by reference.
(b) Copy of Supplemental Transfer Agency Agreement between
Registrant and IDS Financial Corporation, date October 14,
1988, filed electronically as Exhibit 9(b) to Post-Effective
Amendment No. 14 to Registration Statement No. 2-66868, is
incorporated herein by reference.
(c) Copy of License Agreement, dated January 25, 1988, between
the Registrant and IDS Financial Corporation, filed
electronically as Exhibit 9(c) to Post-Effective Amendment No.
16 to Registration Statement No. 2-66868, is incorporated
herein by reference.
(d) Copy of Transfer Agency Agreement between Registrant and
IDS Financial Corporation dated Nov. 14, 1991, filed
electronically as Exhibit 9(d) to Post-Effective Amendment No.
18 to Registration Statement No. 2-66868, is incorporated
herein by reference.
10. Not Applicable.
11. Consent of Independent Auditor filed electronically.
12. None.
13. Not Applicable.
14. Forms of Keogh, IRA and other retirement plans, filed as
Exhibits 14(a) through 14(n) to IDS Growth Fund, Inc., Post-
Effective Amendment No. 34 to Registration Statement No. 2-
38355, are incorporated herein by reference.
15. Copy of Plan and Supplemental Agreement of Distribution
between Registrant and IDS Financial Corporation dated January
1, 1987, filed electronically as Exhibit 15 to Post-Effective
Amendment No. 13 to Registration Statement No. 2-66868, is
incorporated herein by reference.
16. Not applicable.
17. Financial Data Schedule filed electronically.
18. (a) Directors' Power of Attorney to sign amendments to this
Registration Statement dated November 10, 1994 filed
electronically as Exhibit 18(a) to Post-Effective Amendment
No. 27 to Registration Statement No. 2-66868, is incorporated
herein by reference.
(b) Officers' Power of Attorney to sign amendments to this
Registration Statement dated June 1, 1993 filed electronically
as Exhibit 17(b) to Post-Effective Amendment No. 23 to
Registration Statement No. 2-66868 is incorporated herein by
reference.
<PAGE>
PAGE 57
Item 25. Persons Controlled by or Under Common Control with
Registrant
None
Item 26. Number of Holders of Securities
(1) (2)
Number of Record
Holders as of
Title of Class Feb. 10, 1995
Common Stock 8,776
<PAGE>
PAGE 58
<PAGE>
PAGE 1
<TABLE><CAPTION>
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)
Directors and officers of American Express Financial Corporation who are directors and/or
officers of one or more other companies:
<S> <C> <C>
Ronald G. Abrahamson, Vice President--Service Quality and Reengineering
American Express Financial Advisors IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Service Quality
and Reengineering
American Express Service Corporation Vice President
Douglas A. Alger, Vice President--Total Compensation
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Total Compensation
Jerome R. Amundson, Vice President and Controller--Investment Accounting
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Controller-Investment
Accounting
Peter J. Anderson, Director and Senior Vice President--Investments
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Investments
IDS Advisory Group Inc. Director and Chairman
of the Board
IDS Capital Holdings Inc. Director and President
IDS Fund Management Limited Director
IDS International, Inc. Director, Chairman of the
Board and Executive Vice
President
IDS Securities Corporation Executive Vice President-
Investments
NCM Capital Management Group, Inc. 2 Mutual Plaza Director
501 Willard Street
Durham, NC 27701
Ward D. Armstrong, Vice President-Sales and Marketing, American Express Institutional Services
American Express Financial Advisors IDS Tower 10 Vice President-Sales and
Minneapolis, MN 55440 Marketing, American
Express Institutional
Services
Kent L. Ashton, Vice President--Financial Education Services
American Express Financial Advisors IDS Tower 10 Vice President-Financial
Minneapolis, MN 55440 Education Services
<PAGE>
PAGE 2
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Joseph M. Barsky III, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-Senior
Minneapolis, MN 55440 Portfolio Manager
IDS Advisory Group Inc. Vice President
Robert C. Basten, Vice President--Tax and Business Services
American Express Financial Advisors IDS Tower 10 Vice President-Tax
Minneapolis, MN 55440 and Business Services
American Express Tax & Business Director, President and
Services Inc. Chief Executive Officer
Timothy V. Bechtold, Vice President--Insurance Product Development
American Express Financial Advisors IDS Tower 10 Vice President-Insurance
Minneapolis, MN 55440 Product Development
IDS Life Insurance Company Vice President-Insurance
Product Development
Carl E. Beihl, Vice President--Strategic Technology Planning
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Strategic Technology
Planning
Alan F. Bignall, Vice President--Financial Planning Systems
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Financial Planning
Systems
American Express Service Corporation Vice President
John C. Boeder, Vice President--Mature Market Group
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Mature Market Group
IDS Life Insurance Company of New York Box 5144 Director
Albany, NY 12205
Karl J. Breyer, Director and Senior Vice President--Corporate Affairs and General Counsel
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Corporate Affairs and
Special Counsel
American Express Minnesota Foundation Director
IDS Aircraft Services Corporation Director and President
<PAGE>
PAGE 3
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Harold E. Burke, Vice President and Assistant General Counsel
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
American Express Service Corporation Vice President
Daniel J. Candura, Vice President--Marketing Support
American Express Financial Advisors IDS Tower 10 Vice President-Marketing
Minneapolis, MN 55440 Support
Cynthia M. Carlson, Vice President--American Express Securities Services
American Enterprise Investment IDS Tower 10 Director, President and
Services Inc. Minneapolis, MN 55440 Chief Executive Officer
American Express Financial Advisors Vice President-IDS
Securities Services
Orison Y. Chaffee III, Vice President--Field Real Estate
American Express Financial Advisors IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Real Estate
James E. Choat, Director and Senior Vice President--Field Management
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Field Management
American Express Minnesota Foundation Director
American Express Service Corporation Vice President
IDS Insurance Agency of Alabama Inc. Vice President--North
Central Region
IDS Insurance Agency of Arkansas Inc. Vice President--North
Central Region
IDS Insurance Agency of Massachusetts Inc. Vice President--North
Central Region
IDS Insurance Agency of Nevada Inc. Vice President--North
Central Region
IDS Insurance Agency of New Mexico Inc. Vice President--North
Central Region
IDS Insurance Agency of North Carolina Inc. Vice President--North
Central Region
IDS Insurance Agency of Ohio Inc. Vice President--North
Central Region
IDS Insurance Agency of Wyoming Inc. Vice President-- North
Central Region
IDS Property Casualty Insurance Co. Director
<PAGE>
PAGE 4
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Kenneth J. Ciak, Vice President and General Manager--IDS Property Casualty
American Express Financial Advisors IDS Tower 10 Vice President and General
Minneapolis, MN 55440 Manager-IDS Property
Casualty
IDS Property Casualty Insurance Co. I WEG Blvd. Director and President
DePere, Wisconsin 54115
Alan R. Dakay, Vice President--Institutional Insurance Marketing
American Enterprise Life Insurance Co. IDS Tower 10 Director and President
Minneapolis, MN 55440
American Express Financial Advisors Vice President -
Institutional Insurance
Marketing
American Partners Life Insurance Co. Director and President
IDS Life Insurance Company Vice President -
Institutional Insurance
Marketing
Regenia David, Vice President--Systems Services
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Systems Services
William H. Dudley, Director and Executive Vice President--Investment Operations
American Express Financial Advisors IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Investment Operations
IDS Advisory Group Inc. Director
IDS Capital Holdings Inc. Director
IDS Futures Corporation Director
IDS Futures III Corporation Director
IDS International, Inc. Director
IDS Securities Corporation Director, Chairman of the
Board, President and
Chief Executive Officer
Roger S. Edgar, Director and Senior Vice President--Information Systems
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Information Systems
<PAGE>
PAGE 5
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Gordon L. Eid, Director, Senior Vice President and Deputy General Counsel
American Express Financial Advisors IDS Tower 10 Senior Vice President and
Minneapolis, MN 55440 General Counsel
IDS Insurance Agency of Alabama Inc. Director and Vice President
IDS Insurance Agency of Arkansas Inc. Director and Vice President
IDS Insurance Agency of Massachusetts Inc. Director and Vice President
IDS Insurance Agency of Nevada Inc. Director and Vice President
IDS Insurance Agency of New Mexico Inc. Director and Vice President
IDS Insurance Agency of North Carolina Inc. Director and Vice President
IDS Insurance Agency of Ohio Inc. Director and Vice President
IDS Insurance Agency of Wyoming Inc. Director and Vice President
IDS Real Estate Services, Inc. Vice President
Investors Syndicate Development Corp. Director
Robert M. Elconin, Vice President--Government Relations
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Government Relations
IDS Life Insurance Company Vice President
Mark A. Ernst, Vice President--Retail Services
American Enterprise Investment IDS Tower 10 Director
Services Inc. Minneapolis, MN 55440
American Express Financial Advisors Vice President-
Retail Services
American Express Tax & Business Director and Chairman of
Services Inc. the Board
Gordon M. Fines, Vice President--Mutual Fund Equity Investments
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Mutual Fund Equity
Investments
IDS Advisory Group Inc. Executive Vice President
IDS International, Inc. Vice President and
Portfolio Manager
<PAGE>
PAGE 6
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Louis C. Fornetti, Director, Senior Vice President and Chief Financial Officer
American Enterprise Investment IDS Tower 10 Vice President
Services Inc. Minneapolis, MN 55440
American Express Financial Advisors Senior Vice President and
Chief Financial Officer
American Express Tax & Business Director
Services Inc.
American Express Trust Company Director
IDS Cable Corporation Director
IDS Cable II Corporation Director
IDS Capital Holdings Inc. Senior Vice President
IDS Certificate Company Vice President
IDS Insurance Agency of Alabama Inc. Vice President
IDS Insurance Agency of Arkansas Inc. Vice President
IDS Insurance Agency of Massachusetts Inc. Vice President
IDS Insurance Agency of Nevada Inc. Vice President
IDS Insurance Agency of New Mexico Inc. Vice President
IDS Insurance Agency of North Carolina Inc. Vice President
IDS Insurance Agency of Ohio Inc. Vice President
IDS Insurance Agency of Wyoming Inc. Vice President
IDS Life Insurance Company Director
IDS Life Series Fund, Inc. Vice President
IDS Life Variable Annuity Funds A&B Vice President
IDS Property Casualty Insurance Co. Director and Vice President
IDS Real Estate Services, Inc. Vice President
IDS Sales Support Inc. Director
IDS Securities Corporation Vice President
Investors Syndicate Development Corp. Vice President
Robert G. Gilbert, Vice President--Real Estate
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Real Estate
John J. Golden, Vice President--Field Compensation Development
American Express Financial Advisors IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Compensation Development
Harvey Golub, Director
American Express Company American Express Tower Chairman and Chief
World Financial Center Executive Officer
New York, New York 10285
American Express Travel Chairman and Chief
Related Services Company, Inc. Executive Officer
National Computer Systems, Inc. 11000 Prairie Lakes Drive Director
Minneapolis, MN 55440
<PAGE>
PAGE 7
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Morris Goodwin Jr., Vice President and Corporate Treasurer
American Enterprise Investment IDS Tower 10 Vice President and
Services Inc. Minneapolis, MN 55440 Treasurer
American Enterprise Life Insurance Vice President and
Company Treasurer
American Express Financial Advisors Vice President and
Corporate Treasurer
American Express Minnesota Foundation Director, Vice President
and Treasurer
American Express Service Corporation Vice President and
Treasurer
American Express Tax & Business Vice President and
Services Inc. Treasurer
IDS Advisory Group Inc. Vice President and
Treasurer
IDS Aircraft Services Corporation Vice President and
Treasurer
IDS Cable Corporation Vice President and
Treasurer
IDS Cable II Corporation Vice President and
Treasurer
IDS Capital Holdings Inc. Vice President and
Treasurer
IDS Certificate Company Vice President and
Treasurer
IDS Deposit Corp. Director, President
and Treasurer
IDS Insurance Agency of Alabama Inc. Vice President and
Treasurer
IDS Insurance Agency of Arkansas Inc. Vice President and
Treasurer
IDS Insurance Agency of Massachusetts Inc. Vice President and
Treasurer
IDS Insurance Agency of Nevada Inc. Vice President and
Treasurer
IDS Insurance Agency of New Mexico Inc. Vice President and
Treasurer
IDS Insurance Agency of North Carolina Inc. Vice President and
Treasurer
IDS Insurance Agency of Ohio Inc. Vice President and
Treasurer
IDS Insurance Agency of Wyoming Inc. Vice President and
Treasurer
IDS International, Inc. Vice President and
Treasurer
IDS Life Insurance Company Vice President and
Treasurer
IDS Life Series Fund, Inc. Vice President and
Treasurer
<PAGE>
PAGE 8
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
IDS Life Variable Annuity Funds A&B Vice President and
Treasurer
IDS Management Corporation Vice President and
Treasurer
IDS Partnership Services Corporation Vice President and
Treasurer
IDS Plan Services of California, Inc. Vice President and
Treasurer
IDS Property Casualty Insurance Co. Vice President and
Treasurer
IDS Real Estate Services, Inc Vice President and
Treasurer
IDS Realty Corporation Vice President and
Treasurer
IDS Sales Support Inc. Director, Vice President
and Treasurer
IDS Securities Corporation Vice President and
Treasurer
Investors Syndicate Development Corp. Vice President and
Treasurer
NCM Capital Management Group, Inc. 2 Mutual Plaza Director
501 Willard Street
Durham, NC 27701
Sloan Financial Group, Inc. Director
Suzanne Graf, Vice President--Systems Services
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Systems Services
David A. Hammer, Vice President and Marketing Controller
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Marketing Controller
IDS Plan Services of California, Inc. Director and Vice President
Lorraine R. Hart, Vice President--Insurance Investments
American Enterprise Life IDS Tower 10 Vice President-Investments
Insurance Company Minneapolis, MN 55440
American Express Financial Advisors Vice President-Insurance
Investments
American Partners Life Insurance Co. Director and Vice
President-Investments
IDS Certificate Company Vice President-Investments
IDS Life Insurance Company Vice President-Investments
IDS Property Casualty Insurance Company Vice President-Investment
Officer
Investors Syndicate Development Corp. Vice President-Investments
<PAGE>
PAGE 9
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Scott A. Hawkinson, Vice President--Assured Assets Product Development and Management
American Express Financial Advisors IDS Tower 10 Vice President-Assured
Minneapolis, MN 55440 Assets Product
Development & Management
Raymond E. Hirsch, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-Senior
Minneapolis, MN 55440 Portfolio Manager
IDS Advisory Group Inc. Vice President
James G. Hirsh, Vice President and Assistant General Counsel
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
IDS Securities Corporation Director, Vice President
and General Counsel
Darryl G. Horsman, Vice President--Product Development and Technology, American Express
Institutional Services
American Express Trust Company IDS Tower 10 Vice President
Minneapolis, MN 55440
Kevin P. Howe, Vice President--Government and Customer Relations and Chief Compliance Officer
American Enterprise Investment IDS Tower 10 Vice President and
Services Inc. Minneapolis, MN 55440 Compliance Officer
American Express Financial Advisors Vice President-
Government and
Customer Relations
American Express Service Corporation Vice President
IDS Securities Corporation Vice President and Chief
Compliance Officer
David R. Hubers, Director, President and Chief Executive Officer
American Express Financial Advisors IDS Tower 10 Chairman, Chief Executive
Minneapolis, MN 55440 Officer and President
American Express Service Corporation Director and President
IDS Aircraft Services Corporation Director
IDS Certificate Company Director
IDS Life Insurance Company Director
IDS Plan Services of California, Inc. Director and President
IDS Property Casualty Insurance Co. Director
Marietta L. Johns, Director and Senior Vice President--Field Management
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Field Management
<PAGE>
PAGE 10
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Douglas R. Jordal, Vice President--Taxes
American Express Financial Advisors IDS Tower 10 Vice President-Taxes
Minneapolis, MN 55440
IDS Aircraft Services Corporation Vice President
Craig A. Junkins, Vice President--IDS 1994 Implementation Planning and Financial Planning
Development
American Express Financial Advisors IDS Tower 10 Vice President-IDS 1994
Minneapolis, MN 55440 Implementation Planning
and Financial Planning
Development
American Express Service Corporation Vice President
James E. Kaarre, Vice President--Marketing Information
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Marketing Information
Linda B. Keene, Vice President--Market Development
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Market Development
G. Michael Kennedy, Vice President--Investment Services and Investment Research
American Express Financial Advisors IDS Tower 10 Vice President-Investment
Minneapolis, MN 55440 Services and Investment
Research
Susan D. Kinder, Director and Senior Vice President--Human Resources
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Human Resources
American Express Minnesota Foundation Director
American Express Service Corporation Vice President
<PAGE>
PAGE 11
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Richard W. Kling, Director and Senior Vice President--Risk Management Products
American Enterprise Life Insurance Co. IDS Tower 10 Director and Chairman of
Minneapolis, MN 55440 the Board
American Express Financial Advisors Senior Vice President-
Risk Management Products
American Partners Life Insurance Co. Director and Chairman of
the Board
IDS Insurance Agency of Alabama Inc. Director and President
IDS Insurance Agency of Arkansas Inc. Director and President
IDS Insurance Agency of Massachusetts Inc. Director and President
IDS Insurance Agency of Nevada Inc. Director and President
IDS Insurance Agency of New Mexico Inc. Director and President
IDS Insurance Agency of North Carolina Inc. Director and President
IDS Insurance Agency of Ohio Inc. Director and President
IDS Insurance Agency of Wyoming Inc. Director and President
IDS Life Insurance Company Director and President
IDS Life Series Fund, Inc. Director and President
IDS Life Variable Annuity Funds A&B Member of Board of
Managers, Chairman of the
Board and President
IDS Property Casualty Insurance Co. Director and Chairman of
the Board
IDS Life Insurance Company P.O. Box 5144 Director, Chairman of the
of New York Albany, NY 12205 Board and President
Harold D. Knutson, Vice President--System Services
American Express Financial Advisors IDS Tower 10 Vice President--
Minneapolis, MN 55440 System Services
Paul F. Kolkman, Vice President--Actuarial Finance
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Actuarial Finance
IDS Life Insurance Company Director and Executive
Vice President
IDS Life Series Fund, Inc. Vice President and Chief
Actuary
Claire Kolmodin, Vice President--Service Quality
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Service Quality
Steven C. Kumagai, Director and Senior Vice President--Field Management and Business Systems
American Express Financial Advisors IDS Tower 10 Director and Senior Vice
Minneapolis, MN 55440 President-Field
Management and Business
Systems
American Express Service Corporation Vice President
<PAGE>
PAGE 12
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Edward Labenski, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Senior Portfolio
Manager
IDS Advisory Group Inc. Senior Vice President
Kurt A. Larson, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Senior Portfolio Manager
Lori J. Larson, Vice President--Variable Assets Product Development
American Express Financial Advisors IDS Tower 10 Vice President-Variable
Minneapolis, MN 55440 Assets Product
Development
IDS Cable Corporation Director and Vice President
IDS Cable II Corporation Director and Vice President
IDS Futures Brokerage Group Assistant Vice President-
General Manager/Director
IDS Futures Corporation Director and Vice President
IDS Futures III Corporation Director and Vice President
IDS Management Corporation Director and Vice President
IDS Partnership Services Corporation Director and Vice President
IDS Realty Corporation Director and Vice President
Ryan R. Larson, Vice President--IPG Product Development
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 IPG Product Development
IDS Life Insurance Company Vice President-
Annuity Product
Development
Daniel E. Laufenberg, Vice President and Chief U.S. Economist
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Chief U.S. Economist
Richard J. Lazarchic, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-Senior
Minneapolis, MN 55440 Portfolio Manager
<PAGE>
PAGE 13
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Peter A. Lefferts, Director, Senior Vice President and Chief Marketing Officer
American Express Financial Advisors IDS Tower 10 Senior Vice President and
Minneapolis, MN 55440 Chief Marketing Officer
American Express Trust Company Director and Chairman of
the Board
IDS Life Insurance Company Director and Executive
Vice President-Marketing
IDS Plan Services of California, Inc. Director
Investors Syndicate Development Corp. Director
Douglas A. Lennick, Director and Executive Vice President--Private Client Group
American Express Financial Advisors IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-Private
Client Group
American Express Service Corporation Vice President
Mary J. Malevich, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Senior Portfolio
Manager
IDS International, Inc. Vice President and
Portfolio Manager
Fred A. Mandell, Vice President--Field Marketing Readiness
American Express Financial Advisors IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Marketing Readiness
William J. McKinney, Vice President--Field Management Support
American Express Financial Advisors IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Management Support
Thomas W. Medcalf, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-Senior
Minneapolis, MN 55440 Portfolio Manager
William C. Melton, Vice President-International Research and Chief International Economist
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 International Research
and Chief International
Economist
<PAGE>
PAGE 14
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Janis E. Miller, Vice President--Variable Assets
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Variable Assets
IDS Cable Corporation Director and President
IDS Cable II Corporation Director and President
IDS Futures Corporation Director and President
IDS Futures III Corporation Director and President
IDS Life Insurance Company Director and Executive
Vice President-Variable
Assets
IDS Life Series Fund, Inc. Director
IDS Life Variable Annuity Funds A&B Director
IDS Management Corporation Director and President
IDS Partnership Services Corporation Director and President
IDS Realty Corporation Director and President
IDS Life Insurance Company of New York Box 5144 Executive Vice President
Albany, NY 12205
James A. Mitchell, Director and Executive Vice President--Marketing and Products
American Enterprise Investment IDS Tower 10 Director
Services Inc. Minneapolis, MN 55440
American Express Financial Advisors Executive Vice President-
Marketing and Products
IDS Certificate Company Director and Chairman of
the Board
IDS Life Insurance Company Director, Chairman of
the Board and Chief
Executive Officer
IDS Plan Services of California, Inc. Director
IDS Property Casualty Insurance Co. Director
Pamela J. Moret, Vice President--Corporate Communications
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Corporate Communications
American Express Minnesota Foundation Director and President
Barry J. Murphy, Director and Senior Vice President--Client Service
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Client Service
IDS Life Insurance Company Director and Executive
Vice President-Client
Service
<PAGE>
PAGE 15
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Robert J. Neis, Vice President--Information Systems Operations
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Information Systems
Operations
James R. Palmer, Vice President--Insurance Operations
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Insurance Operations
IDS Life Insurance Company Vice President-Taxes
Carla P. Pavone, Vice President--Specialty Service Teams and Emerging Business
American Express Financial Advisors IDS Tower 10 Vice President-Specialty
Minneapolis, MN 55440 Service Teams and
Emerging Business
Judith A. Pennington, Vice President--Field Technology
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Field Technology
George M. Perry, Vice President--Corporate Strategy and Development
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Corporate Strategy
and Development
IDS Property Casualty Insurance Co. Director
Susan B. Plimpton, Vice President--Segmentation Development and Support
American Express Financial Advisors IDS Tower 10 Vice President--
Minneapolis, MN 55440 Segmentation Development
and Support
Ronald W. Powell, Vice President and Assistant General Counsel
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
IDS Cable Corporation Vice President and
Assistant Secretary
IDS Cable II Corporation Vice President and
Assistant Secretary
IDS Management Corporation Vice President and
Assistant Secretary
IDS Partnership Services Corporation Vice President and
Assistant Secretary
IDS Plan Services of California, Inc. Vice President and
Assistant Secretary
IDS Realty Corporation Vice President and
Assistant Secretary
<PAGE>
PAGE 16
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
James M. Punch, Vice President--TransAction Services
American Express Financial Advisors IDS Tower 10 Vice President-Trans
Minneapolis, MN 55440 Action Services
Frederick C. Quirsfeld, Vice President--Taxable Mutual Fund Investments
American Express Financial Advisors IDS Tower 10 Vice President--
Minneapolis, MN 55440 Taxable Mutual Fund
Investments
IDS Advisory Group Inc. Vice President
ReBecca K. Roloff, Vice President--1994 Program Director
American Express Financial Advisors IDS Tower 10 Vice President-1994
Minneapolis, MN 55440 Program Director
Stephen W. Roszell, Vice President--Advisory Institutional Marketing
American Express Financial Advisors IDS Tower 10 Vice President-Advisory
Minneapolis, MN 55440 Institutional Marketing
IDS Advisory Group Inc. President and Chief
Executive Officer
Robert A. Rudell, Vice President--American Express Institutional Services
American Express Financial Advisors IDS Tower 10 Vice President-American
Minneapolis, MN 55440 Express Institutional
Services
American Express Trust Company Director
IDS Sales Support Inc. Director and President
John P. Ryan, Vice President and General Auditor
American Express Financial Advisors IDS Tower 10 Vice President and General
Minneapolis, MN 55440 Auditor
<PAGE>
PAGE 17
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Erven A. Samsel, Director and Senior Vice President--Field Management
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Field Management
American Express Service Corporation Vice President
IDS Insurance Agency of Alabama Inc. Vice President-
New England Region
IDS Insurance Agency of Arkansas Inc. Vice President-
New England Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
New England Region
IDS Insurance Agency of Nevada Inc. Vice President-
New England Region
IDS Insurance Agency of New Mexico Inc. Vice President-
New England Region
IDS Insurance Agency of North Carolina Inc. Vice President-
New England Region
IDS Insurance Agency of Ohio Inc. Vice President-
New England Region
IDS Insurance Agency of Wyoming Inc. Vice President-
New England Region
Stuart A. Sedlacek, Vice President--Assured Assets
American Enterprise Life Insurance Co. IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President, Assured
Assets
American Express Financial Advisors Vice President-
Assured Assets
IDS Certificate Company Director and President
IDS Life Insurance Company Director and Executive
Vice President, Assured
Assets
Investors Syndicate Development Corp. Chairman of the Board
and President
Donald K. Shanks, Vice President--Property Casualty
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Property Casualty
IDS Property Casualty Insurance Co. Senior Vice President
<PAGE>
PAGE 18
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
F. Dale Simmons, Vice President--Senior Portfolio Manager, Insurance Investments
American Enterprise Life Insurance Co. IDS Tower 10 Vice President-Real
Minneapolis, MN 55440 Estate Loan Management
American Express Financial Advisors Vice President-Senior
Portfolio Manager
Insurance Investments
American Partners Life Insurance Co. Vice President-Real
Estate Loan Management
IDS Certificate Company Vice President-Real
Estate Loan Management
IDS Life Insurance Company Vice President-Real
Estate Loan Management
IDS Partnership Services Corporation Vice President
IDS Real Estate Services Inc. Director and Vice President
IDS Realty Corporation Vice President
IDS Life Insurance Company of New York Box 5144 Vice President and
Albany, NY 12205 Assistant Treasurer
Judy P. Skoglund, Vice President--Human Resources and Organization Development
American Express Financial Advisors IDS Tower 10 Vice President-Human
Minneapolis, MN 55440 Resources and
Organization Development
Ben C. Smith, Vice President--Workplace Marketing
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Workplace Marketing
William A. Smith, Vice President and Controller--Private Client Group
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Controller-Private
Client Group
Bridget Sperl, Vice President--Human Resources Management Services
American Express Financial Advisors IDS Tower 10 Vice President-Human
Minneapolis, MN 55440 Resources Management
Services
Jeffrey E. Stiefler, Director
American Express Company American Express Tower Director and President
World Financial Center
New York, NY 10285
<PAGE>
PAGE 19
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
William A. Stoltzmann, Vice President and Assistant General Counsel
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
American Partners Life Insurance Co. Director, Vice President,
General Counsel and
Secretary
IDS Life Insurance Company Vice President, General
Counsel and Secretary
IDS Life Series Fund, Inc. General Counsel and
Assistant Secretary
IDS Life Variable Annuity Funds A&B General Counsel and
Assistant Secretary
American Enterprise Life Insurance P.O. Box 534 Director, Vice President,
Company Minneapolis, MN 55440 General Counsel
and Secretary
James J. Strauss, Vice President--Corporate Planning and Analysis
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Corporate Planning and
Analysis
Jeffrey J. Stremcha, Vice President--Information Resource Management/ISD
American Express Financial Advisors IDS Tower 10 Vice President-Information
Minneapolis, MN 55440 Resource Management/ISD
Fenton R. Talbott, Director
ACUMA Ltd. ACUMA House President and Chief
The Glanty, Egham Executive Officer
Surrey TW 20 9 AT
UK
<PAGE>
PAGE 20
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
John R. Thomas, Director and Senior Vice President--Information and Technology
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Information and
Technology
IDS Bond Fund, Inc. Director
IDS California Tax-Exempt Trust Trustee
IDS Discovery Fund, Inc. Director
IDS Equity Select Fund, Inc. Director
IDS Extra Income Fund, Inc. Director
IDS Federal Income Fund, Inc. Director
IDS Global Series, Inc. Director
IDS Growth Fund, Inc. Director
IDS High Yield Tax-Exempt Fund, Inc. Director
IDS Investment Series, Inc. Director
IDS Managed Retirement Fund, Inc. Director
IDS Market Advantage Series, Inc. Director
IDS Money Market Series, Inc. Director
IDS New Dimensions Fund, Inc. Director
IDS Precious Metals Fund, Inc. Director
IDS Progressive Fund, Inc. Director
IDS Selective Fund, Inc. Director
IDS Special Tax-Exempt Series Trust Trustee
IDS Stock Fund, Inc. Director
IDS Strategy Fund, Inc. Director
IDS Tax-Exempt Bond Fund, Inc. Director
IDS Tax-Free Money Fund, Inc. Director
IDS Utilities Income Fund, Inc. Director
Melinda S. Urion, Vice President and Corporate Controller
American Enterprise Life IDS Tower 10 Vice President and
Insurance Company Minneapolis, MN 55440 Controller
American Express Financial Advisors Vice President and
Corporate Controller
American Partners Life Insurance Co. Director, Vice President,
Controller and Treasurer
IDS Life Insurance Company Director, Executive Vice
President and Controller
IDS Life Series Fund, Inc. Vice President and
Controller
Wesley W. Wadman, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Senior Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS Fund Management Limited Director and Chairman
IDS International, Inc. Senior Vice President
<PAGE>
PAGE 21
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Norman Weaver, Jr., Director and Senior Vice President--Field Management
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Field Management
American Express Service Corporation Vice President
IDS Insurance Agency of Alabama Inc. Vice President-
Pacific Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Pacific Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
Pacific Region
IDS Insurance Agency of Nevada Inc. Vice President-
Pacific Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Pacific Region
IDS Insurance Agency of North Carolina Inc. Vice President-
Pacific Region
IDS Insurance Agency of Ohio Inc. Vice President-
Pacific Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Pacific Region
Michael L. Weiner, Vice President--Corporate Tax Operations
American Express Financial Advisors IDS Tower 10 Vice President-Corporate
Minneapolis, MN 55440 Tax Operations
IDS Capital Holdings Inc. Vice President
IDS Futures Brokerage Group Vice President
IDS Futures Corporation Vice President, Treasurer
and Secretary
IDS Futures III Corporation Vice President, Treasurer
and Secretary
Lawrence J. Welte, Vice President--Investment Administration
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Investment Administration
IDS Securities Corporation Director, Executive Vice
President and Chief
Operating Officer
Jeffry F. Welter, Vice President--Equity and Fixed Income Trading
American Express Financial Advisors IDS Tower 10 Vice President-Equity
Minneapolis, MN 55440 and Fixed Income Trading
<PAGE>
PAGE 22
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
William N. Westhoff, Director, Senior Vice President and Global Chief Investment Officer
American Enterprise Life Insurance IDS Tower 10 Director
Company Minneapolis, MN 55440
American Express Financial Advisors Senior Vice President and
Global Chief Investment
Officer
IDS International, Inc. Director
IDS Partnership Services Corporation Director and Vice President
IDS Real Estate Services Inc. Director, Chairman of the
Board and President
IDS Realty Corporation Director and Vice President
Investors Syndicate Development Corp. Director
Edwin M. Wistrand, Vice President and Assistant General Counsel
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
Michael R. Woodward, Director and Senior Vice President--Field Management
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Field Management
American Express Service Corporation Vice President
IDS Insurance Agency of Alabama Inc. Vice President-
North Region
IDS Insurance Agency of Arkansas Inc. Vice President-
North Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
North Region
IDS Insurance Agency of Nevada Inc. Vice President-
North Region
IDS Insurance Agency of New Mexico Inc. Vice President-
North Region
IDS Insurance Agency of North Carolina Inc. Vice President-
North Region
IDS Insurance Agency of Ohio Inc. Vice President-
North Region
IDS Insurance Agency of Wyoming Inc. Vice President-
North Region
IDS Life Insurance Company Box 5144 Director
of New York Albany, NY 12205
</TABLE>
<PAGE>
PAGE 23
Item 29. Principal Underwriters.
(a) American Express Financial Advisors acts as principal
underwriter for the following investment companies:
IDS Bond Fund, Inc.; IDS California Tax-Exempt Trust; IDS
Discovery Fund, Inc.; IDS Equity Select Fund, Inc.; IDS Extra
Income Fund, Inc.; IDS Federal Income Fund, Inc.; IDS Global
Series, Inc.; IDS Growth Fund, Inc.; IDS High Yield Tax-Exempt
Fund, Inc.; IDS International Fund, Inc.; IDS Investment
Series, Inc.; IDS Managed Retirement Fund, Inc.; IDS Market
Advantage Series, Inc.; IDS Money Market Series, Inc.; IDS New
Dimensions Fund, Inc.; IDS Precious Metals Fund, Inc.; IDS
Progressive Fund, Inc.; IDS Selective Fund, Inc.; IDS Special
Tax-Exempt Series Trust; IDS Stock Fund, Inc.; IDS Strategy
Fund, Inc.; IDS Tax-Exempt Bond Fund, Inc.; IDS Tax-Free Money
Fund, Inc.; IDS Utilities Income Fund, Inc. and IDS
Certificate Company.
(b) As to each director, officer or partner of the principal
underwriter:
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald G. Abrahamson Vice President- None
IDS Tower 10 Service Quality and
Minneapolis, MN 55440 Reengineering
Douglas A. Alger Vice President-Total None
IDS Tower 10 Compensation
Minneapolis, MN 55440
Jerome R. Amundson Vice President and None
IDS Tower 10 Controller-Investment
Minneapolis, MN 55440 Accounting
Peter J. Anderson Senior Vice President- None
IDS Tower 10 Investments
Minneapolis, MN 55440
Ward D. Armstrong Vice President- None
IDS Tower 10 Sales and Marketing,
Minneapolis, MN 55440 American Express
Institutional Services
Alvan D. Arthur Group Vice President- None
IDS Tower 10 Central California/
Minneapolis, MN 55440 Western Nevada
Kent L. Ashton Vice President- None
IDS Tower 10 Financial Education
Minneapolis, MN 55440 Services
<PAGE>
PAGE 24
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Joseph M. Barsky III Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
Robert C. Basten Vice President-Tax None
IDS Tower 10 and Business Services
Minneapolis, MN 55440
Timothy V. Bechtold Vice President-Insurance None
IDS Tower 10 Product Development
Minneapolis, MN 55440
John D. Begley Group Vice Presdient- None
Olentangy Valley Center Ohio/Indiana
Suite 300
7870 Olentangy River Rd.
Columbus, OH 43235
Carl E. Beihl Vice President- None
IDS Tower 10 Strategic Technology
Minneapolis, MN 55440 Planning
Jack A. Benjamin Group Vice President- None
Greater Pennsylvania
Alan F. Bignall Vice President- None
IDS Tower 10 Financial Planning
Minneapolis, MN 55440 Systems
Brent L. Bisson Group Vice President- None
Seafirst Financial Los Angeles Metro
Center, Suite 1730
601 W. Riverside Ave.
Spokane, WA 99201
John C. Boeder Vice President- None
IDS Tower 10 Mature Market Group
Minneapolis, MN 55440
Bruce J. Bordelon Group Vice President- None
Gulf States
Charles R. Branch Group Vice President- None
Northwest
Karl J. Breyer Senior Vice President- None
IDS Tower 10 Corporate Affairs and
Minneapolis, MN 55440 Special Counsel
Harold E. Burke Vice President None
IDS Tower 10 and Assistant
Minneapolis, MN 55440 General Counsel<PAGE>
PAGE 25
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Daniel J. Candura Vice President- None
IDS Tower 10 Marketing Support
Minneapolis, MN 55440
Cynthia M. Carlson Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Securities Services
Orison Y. Chaffee III Vice President-Field None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James E. Choat Senior Vice President- None
Suite 124 Field Management
6210 Campbell Rd.
Dallas, TX 75248
Kenneth J. Ciak Vice President and None
IDS Property Casualty General Manager-
1400 Lombardi Avenue IDS Property Casualty
Green Bay, WI 54304
Roger C. Corea Group Vice President- None
345 Woodcliff Drive Upstate New York
Fairport, NY 14450
Henry J. Cormier Group Vice President- None
Connecticut
John M. Crawford Group Vice President- None
Arkansas/Springfield/Memphis
Kevin F. Crowe Group Vice President- None
IDS Tower 10 Carolinas/Eastern Georgia
Minneapolis, MN 55440
Alan R. Dakay Vice President- None
IDS Tower 10 Institutional Insurance
Minneapolis, MN 55440 Marketing
Regenia David Vice President- None
Systems Services
Scott M. Digiammarino Group Vice President- None
Washington/Baltimore
Bradford L. Drew Group Vice President- None
Eastern Florida
<PAGE>
PAGE 26
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
William H. Dudley Director and Executive Director/
IDS Tower 10 Vice President- Trustee
Minneapolis MN 55440 Investment Operations
Roger S. Edgar Senior Vice President- None
IDS Tower 10 Information Systems
Minneapolis, MN 55440
Gordon L. Eid Senior Vice President None
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Robert M. Elconin Vice President- None
IDS Tower 10 Government Relations
Minneapolis, MN 55440
Mark A. Ernst Vice President- None
IDS Tower 10 Retail Services
Minneapolis, MN 55440
Joseph Evanovich Jr. Group Vice President- None
Nebraska/Iowa/Dakotas
Louise P. Evenson Group Vice President- None
San Francisco Bay Area
Gordon M. Fines Vice President- None
IDS Tower 10 Mutual Fund Equity
Minneapolis MN 55440 Investments
Louis C. Fornetti Senior Vice President None
IDS Tower 10 and Chief Financial
Minneapolis, MN 55440 Officer
Douglas L. Forsberg Group Vice President- None
IDS Tower 10 Portland/Eugene
Minneapolis, MN 55440
William P. Fritz Group Vice President- None
Northern Missouri
Carl W. Gans Group Vice President- None
IDS Tower 10 Twin City Metro
Minneapolis, MN 55440
Bruce M. Gaurino Group Vice President- None
Hawaii
<PAGE>
PAGE 27
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Robert G. Gilbert Vice President- None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
John J. Golden Vice President- None
IDS Tower 10 Field Compensation
Minneapolis, MN 55440 Development
Morris Goodwin Jr. Vice President and None
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
Suzanne Graf Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
Bruce M. Guarino Group Vice President- None
Hawaii
David A. Hammer Vice President None
IDS Tower 10 and Marketing
Minneapolis, MN 55440 Controller
Teresa A. Hanratty Group Vice President- None
Northern New England
John R. Hantz Group Vice President- None
Detroit Metro
Robert L. Harden Group Vice President- None
Suite 403 Boston Metro
8500 Leesburg Pike
Vienna, VA 22180
Lorraine R. Hart Vice President- None
IDS Tower 10 Insurance Investments
Minneapolis, MN 55440
Scott A. Hawkinson Vice President-Assured None
IDS Tower 10 Assets Product Development
Minneapolis, MN 55440 and Management
Brian M. Heath Group Vice President- None
IDS Tower 10 North Texas
Minneapolis, MN 55440
Raymond E. Hirsch Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
<PAGE>
PAGE 28
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
David J. Hockenberry Group Vice President- None
Eastern Tennessee
Kevin P. Howe Vice President- None
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations
David R. Hubers Chairman, Chief None
IDS Tower 10 Executive Officer and
Minneapolis, MN 55440 President
Marietta L. Johns Senior Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440
Douglas R. Jordal Vice President-Taxes None
IDS Tower 10
Minneapolis, MN 55440
Craig A. Junkins Vice President - IDS 1994 None
IDS Tower 10 Implementation Planning
Minneapolis, MN 55440 and Financial Planning
Development
James E. Kaarre Vice President- None
IDS Tower 10 Marketing Information
Minneapolis, MN 55440
Linda B. Keene Vice President- None
Market Development
G. Michael Kennedy Vice President-Investment None
IDS Tower 10 Services and Investment
Minneapolis, MN 55440 Research
Susan D. Kinder Senior Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440
Richard W. Kling Senior Vice President- None
IDS Tower 10 Risk Management Products
Minneapolis, MN 55440
<PAGE>
PAGE 29
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Harold D. Knutson Vice President- None
IDS Tower 10 System Services
Minneapolis, MN 55440
Paul F. Kolkman Vice President- None
IDS Tower 10 Actuarial Finance
Minneapolis, MN 55440
Claire Kolmodin Vice President- None
IDS Tower 10 Service Quality
Minneapolis, MN 55440
David S. Kreager Group Vice President- None
IDS Tower 10 Greater Michigan
Minneapolis, MN 55440
Steven C. Kumagai Director and Senior None
IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Management and Business
Systems
Mitre Kutanovski Group Vice President- None
IDS Tower 10 Chicago Metro
Minneapolis, MN 55440
Edward Labenski Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Kurt A. Larson Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Lori J. Larson Vice President- None
IDS Tower 10 Variable Assets Product
Minneapolis, MN 55440 Development
Ryan R. Larson Vice President- None
IDS Tower 10 IPG Product Development
Minneapolis, MN 55440
Daniel E. Laufenberg Vice President and None
IDS Tower 10 Chief U.S. Economist
Minneapolis, MN 55440
Richard J. Lazarchic Vice President- None
IDS Tower 10 Senior Portfolio
MInneapolis, MN 55440 Manager
Peter A. Lefferts Senior Vice President and None
IDS Tower 10 Chief Marketing Officer
Minneapolis, MN 55440<PAGE>
PAGE 30
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Douglas A. Lennick Director and Executive None
IDS Tower 10 Vice President-Private
Minneapolis, MN 55440 Client Group
Mary J. Malevich Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Fred A. Mandell Vice President- None
IDS Tower 10 Field Marketing Readiness
Minneapolis, MN 55440
Daniel E. Martin Group Vice President- None
Pittsburgh Metro
William J. McKinney Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440 Support
Thomas W. Medcalf Vice President- None
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
William C. Melton Vice President- None
IDS Tower 10 International Research
Minneapolis, MN 55440 and Chief International
Economist
Janis E. Miller Vice President- None
IDS Tower 10 Variable Assets
Minneapolis, MN 55440
James A. Mitchell Executive Vice President- None
IDS Tower 10 Marketing and Products
Minneapolis, MN 55440
John P. Moraites Group Vice President- None
Kansas/Oklahoma
Pamela J. Moret Vice President- None
IDS Tower 10 Corporate Communications
Minneapolis, MN 55440
Barry J. Murphy Senior Vice President- None
IDS Tower 10 Client Service
Minneapolis, MN 55440
Robert J. Neis Vice President- None
IDS Tower 10 Information Systems
Minneapolis, MN 55440 Operations<PAGE>
PAGE 31
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald E. Newton Group Vice President- None
Rhode Island/Central
Massachusetts
Thomas V. Nicolosi Group Vice President- None
New York Metro Area
Vernon F. Palen Region Vice President- None
Suite D-222 Rocky Mountain Region
7100 E. Lincoln Drive
Scottsdale, AZ 85253
James R. Palmer Vice President- None
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
Carla P. Pavone Vice President- None
IDS Tower 10 Specialty Service Teams
Minneapolis, MN 55440 and Emerging Business
Judith A. Pennington Vice President- None
IDS Tower 10 Field Technology
Minneapolis, MN 55440
George M. Perry Vice President- None
IDS Tower 10 Corporate Strategy
Minneapolis, MN 55440 and Development
Susan B. Plimpton Vice President- None
IDS Tower 10 Segmentation Development
Minneapolis, MN 55440 and Support
Larry M. Post Group Vice President- None
Philadelphia Metro
Ronald W. Powell Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James M. Punch Vice President- None
IDS Tower 10 TransAction Services
Minneapolis, MN 55440
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
R. Daniel Richardson Group Vice President- None
Southern Texas
<PAGE>
PAGE 32
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Roger B. Rogos Group Vice President- None
Suite 15, Parkside Pl. Western Florida
945 Boardman-Canfield Rd
Youngstown, Ohio 44512
ReBecca K. Roloff Vice President-1994 None
IDS Tower 10 Program Director
Minneapolis, MN 55440
Stephen W. Roszell Vice President- None
IDS Tower 10 Advisory Institutional
Minneapolis, MN 55440 Marketing
Max G. Roth Group Vice President- None
Wisconsin/Upper Michigan
Robert A. Rudell Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Institutional Services
John P. Ryan Vice President and None
IDS Tower 10 General Auditor
Minneapolis, MN 55440
Erven A. Samsel Senior Vice President- None
45 Braintree Hill Park Field Management
Braintree, MA 02184
Russell L. Scalfano Group Vice President- None
Illinois/Indiana/Kentucky
William G. Scholz Group Vice President- None
Arizona/Las Vegas
Stuart A. Sedlacek Vice President- None
IDS Tower 10 Assured Assets
Minneapolis, MN 55440
Donald K. Shanks Vice President- None
IDS Tower 10 Property Casualty
Minneapolis, MN 55440
F. Dale Simmons Vice President-Senior None
IDS Tower 10 Portfolio Manager,
Minneapolis, MN 55440 Insurance Investments
Judy P. Skoglund Vice President- None
IDS Tower 10 Human Resources and
Minneapolis, MN 55440 Organization Development<PAGE>
PAGE 33
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Julian W. Sloter Group Vice Presidnet- None
9040 Roswell Rd. Orlando/Jacksonville
River Ridge-Suite 600
Atlanta, GA 30350
Ben C. Smith Vice President- None
IDS Tower 10 Workplace Marketing
Minneapolis, MN 55440
William A. Smith Vice President and None
IDS Tower 10 Controller-Private
Minneapolis, MN 55440 Client Group
James B. Solberg Group Vice President- None
IDS Tower 10 Eastern Iowa Area
Minneapolis, MN 55440
Bridget Sperl Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440 Management Services
Paul J. Stanislaw Group Vice President- None
Southern California
Lois A. Stilwell Group Vice President- None
IDS Tower 10 Outstate Minnesota Area/
Minneapolis, MN 55440 North Dakota/Western Wisconsin
William A. Stoltzmann Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James J. Strauss Vice President- None
IDS Tower 10 Corporate Planning
Minneapolis, MN 55440 and Analysis
Jeffrey J. Stremcha Vice President-Information None
IDS Tower 10 Resource Management/ISD
Minneapolis, MN 55440
Neil G. Taylor Group Vice President- None
IDS Tower 10 Seattle/Tacoma
Minneapolis, MN 55440
John R. Thomas Senior Vice President- Director/
IDS Tower 10 Information and Trustee
Minneapolis, MN 55440 Technology
Melinda S. Urion Vice President and None
IDS Tower 10 Corporate Controller
Minneapolis, MN 55440<PAGE>
PAGE 34
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Peter S. Velardi Group Vice President- None
Atlanta/Birmingham
Charles F. Wachendorfer Group Vice President- None
Denver/Salt Lake City/
Albuquerque
Wesley W. Wadman Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Norman Weaver Jr. Senior Vice President- None
Suite 215 Field Management
1501 Westcliff Drive
Newport Beach, CA 92660
Michael L. Weiner Vice President- None
IDS Tower 10 Corporate Tax
Minneapolis, MN 55440 Operations
Lawrence J. Welte Vice President- None
IDS Tower 10 Investment Administration
Minneapolis, MN 55440
Jeffry M. Welter Vice President- None
IDS Tower 10 Equity and Fixed Income
Minneapolis, MN 55440 Trading
William N. Westhoff Senior Vice President and None
IDS Tower 10 Global Chief Investment
Minneapolis, MN 55440 Officer
Thomas L. White Group Vice President- None
Cleveland Metro
Eric S. Williams Group Vice President- None
Virginia
Edwin M. Wistrand Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Michael R. Woodward Senior Vice President- None
Suite 815 Field Management
8585 Broadway
Merrillville, IN 46410
<PAGE>
PAGE 35
Item 29(c). Not applicable.
Item 30. Location of Accounts and Records
IDS Financial Corporation
IDS Tower 10
Minneapolis, MN 55440
Item 31. Management Services
Not Applicable.
Item 32. Undertakings
(a) Not Applicable.
(b) Not Applicable.
(c) The Registrant undertakes to furnish each person
to whom a prospectus is delivered with a copy of
the Registrant's latest annual report to
shareholders, upon request and without charge.
<PAGE>
PAGE 59
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, IDS Tax-Free Money
Fund, Inc., certifies that it meets all of the requirements for
effectiveness of this Amendment to its Registration Statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has
duly caused this Amendment to its Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized,
in the City of Minneapolis and the State of Minnesota on the 15th
day of February, 1995.
IDS TAX-FREE MONEY FUND, INC.
By /s/ William R. Pearce**
William R. Pearce, President
Pursuant to the requirements of the Securities Act of 1933, this
Amendment to its Registration Statement has been signed below by
the following persons in the capacities indicated on the 15th day
of February, 1995.
Signature Capacity
/s/ William R. Pearce* President,
William R. Pearce Principal Executive
Officer and Director
/s/ Leslie L. Ogg* Treasurer, Principal
Leslie L. Ogg Financial Officer and
Principal Accounting Officer
/s/ William H. Dudley** Director
William H. Dudley
/s/ Robert F. Froehlke** Director
Robert F. Froehlke
/s/ David R. Hubers** Director
David R. Hubers
/s/ Anne P. Jones** Director
Anne P. Jones
/s/ Donald M. Kendall** Director
Donald M. Kendall
/s/ Melvin R. Laird** Director
Melvin R. Laird
<PAGE>
PAGE 60
Signature Capacity
/s/ Lewis W. Lehr** Director
Lewis W. Lehr
/s/ Aulana L. Peters** Director
Aulana L. Peters
/s/ Edson W. Spencer** Director
Edson W. Spencer
/s/ John R.Thomas** Director
John R. Thomas
/s/ Wheelock Whitney** Director
Wheelock Whitney
* Signed pursuant to Officers' Power of Attorney dated June 1, 1993
filed as Exhibit 17(b) to Post-Effective Amendment No. 23 to
Registration Statement No. 2-66868 by:
_______________________________
Leslie L. Ogg
** Signed pursuant to Directors' Power of Attorney dated November
10, 1994 filed as Exhibit 18(a) to Post-Effective Amendment No. 26
to Registration Statement No. 2-66868 by:
_______________________________
Leslie L. Ogg
<PAGE>
PAGE 61
CONTENTS OF THIS
POST-EFFECTIVE AMENDMENT NO. 27
TO REGISTRATION STATEMENT NO. 2-66868
This post-effective amendment comprises the following papers and
documents:
The facing sheet.
The cross reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Part C.
Other Information.
The signatures.
Exhibits
<PAGE>
PAGE 1
EXHIBIT INDEX
B(11) Independent Auditors' Consent
B(17) Financial Data Schedule
<PAGE>
PAGE 1
INDEPENDENT AUDITORS' CONSENT
___________________________________________________________________
The Board of Directors and Shareholders
IDS Tax Free Money Fund, Inc.:
We consent to the use of our report incorporated herein by
reference and to the references to our Firm under the headings
"Financial Highlights" in Part A and "INDEPENDENT AUDITORS" in Part
B of the Registration Statement.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
February 16, 1995
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
PAGE 1
<ARTICLE> 6
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 130513540
<INVESTMENTS-AT-VALUE> 130513540
<RECEIVABLES> 864519
<ASSETS-OTHER> 1407495
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 132785554
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 149106
<TOTAL-LIABILITIES> 149106
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 132647619
<SHARES-COMMON-STOCK> 132646785
<SHARES-COMMON-PRIOR> 115613175
<ACCUMULATED-NII-CURRENT> 1952
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (13123)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 132636448
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3291207
<OTHER-INCOME> 0
<EXPENSES-NET> 803838
<NET-INVESTMENT-INCOME> 2487369
<REALIZED-GAINS-CURRENT> 8363
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 2495732
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2485462)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 246600213
<NUMBER-OF-SHARES-REDEEMED> (231967181)
<SHARES-REINVESTED> 2400582
<NET-CHANGE-IN-ASSETS> 17043884
<ACCUMULATED-NII-PRIOR> 2038716
<ACCUMULATED-GAINS-PRIOR> (16772)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 400146
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 803838
<AVERAGE-NET-ASSETS> 118013225
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.02)
<PER-SHARE-DISTRIBUTIONS> (.02)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .68
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<PAGE>
</TABLE>
