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PAGE 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 23 (File No. 2-73114) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 14 (File No. 811-3217) X
IDS LIFE ACCOUNT F
IDS LIFE ACCOUNT IZ
IDS LIFE ACCOUNT JZ
IDS LIFE ACCOUNT G
IDS LIFE ACCOUNT H
IDS LIFE ACCOUNT N
___________________________________________________________________
(Exact Name of Registrant)
IDS Life Insurance Company
___________________________________________________________________
(Name of Depositor)
IDS Tower 10, Minneapolis, MN 55440-0010
___________________________________________________________________
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-3678
Mary Ellyn Minenko, IDS Tower 10, Minneapolis, MN 55440-0010
___________________________________________________________________
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b) of Rule 486
on (date) pursuant to paragraph (b) of Rule 486
60 days after filing pursuant to paragraph (a) of Rule 486
X on April 29, 1994, pursuant to paragraph (a) of Rule 486
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. Registrant's Rule
24f-2 Notice for its most recent fiscal year will be filed on or
about February 25, 1994.
<PAGE>
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<TABLE>
<CAPTION>
CROSS REFERENCE SHEET
Cross reference sheet showing location in the prospectus of the information called for by the items enumerated in Part A and B
of Form N-4.
Negative answers omitted from prospectus are so indicated.
PART A PART B
Page Number in
Page Number Statement of
Item No. in Prospectus Item No. Additional Information
<C> <C> <C> <C>
1 3 15 35
2 5-6 16 36
3(a) 8-12 17(a) NA
(b) 6-8 (b) NA
(c) 33*
4(a) 12
(b) 12-13 18(a) NA
(c) 12 (b) NA
(c) 42
5(a) 3, 33-34 (d) NA
(b) 13-14 (e) NA
(c) 14-15 (f) 42
(d) 3, 15
(e) 33 19(a) 42
(f) NA (b) 19-20*
6(a) 18-21 20(a) 42
(b) 19-20 (b) 42
(c) 20 (c) 42
(d) NA (d) NA
(e) 15
(f) NA 21 37-38
7(a) 16 22 NA
(b) 13-14, 23-25, 32
(c) 15, 20 23(a) NA
(d) 3 (b) NA
8(a) 28
(b) 16
(c) 29
(d) 40
(e) 30
(f) 30
9(a) 27-28
(b) 27-28
10(a) 16, 17, 21-22
(b) 21-22
(c) 16, 17, 21-22
(d) NA
11(a) 25-27
(b) 27
(c) 26
(d) 17
(e) 6
12(a) 30-32
(b) 6
(c) NA
13 NA
14 34
*Designates filing page number in the prospectus, which is hereby
incorporated by reference in this Statement of Additional
Information. /TABLE
<PAGE>
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IDS Life Variable Retirement and Combination Retirement Annuities
Prospectus
April 29, 1994
This prospectus describes two individual deferred annuity contracts
offered by IDS Life Insurance Company (IDS Life). The Variable
Retirement Annuity (VRA) is a deferred variable annuity contract in
which a single purchase payment accumulates on a variable basis and
retirement payments are paid to the owner. The Combination
Retirement Annuity (CRA) is a deferred fixed/variable annuity
contract in which installment purchase payments are accumulated on
a fixed and/or variable basis and retirement payments are paid to
the owner. Both can be used for qualified and non-qualified
retirement plans.
New Variable Retirement Annuity contracts are not currently being
offered.
IDS Life Accounts F, IZ, JZ, G, H and N
Sold by: IDS Life Insurance Company, IDS Tower 10 Minneapolis, MN
55440-0010 Telephone: 612-671-3131.
THIS PROSPECTUS CONTAINS THE INFORMATION ABOUT THE VARIABLE
ACCOUNTS THAT YOU SHOULD KNOW BEFORE INVESTING. Refer to "The
variable accounts" in this prospectus.
THE PROSPECTUS IS ACCOMPANIED OR PRECEDED BY THE RETIREMENT ANNUITY
MUTUAL FUND PROSPECTUS FOR IDS LIFE AGGRESSIVE GROWTH FUND, IDS
LIFE INTERNATIONAL EQUITY FUND, IDS LIFE CAPITAL RESOURCE FUND, IDS
LIFE MANAGED FUND, INC., IDS LIFE SPECIAL INCOME FUND, INC. AND IDS
LIFE MONEYSHARE FUND, INC. PLEASE KEEP THESE PROSPECTUSES FOR
FUTURE REFERENCE.
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.
IDS LIFE IS NOT A BANK AND THE SECURITIES IT OFFERS ARE NOT
DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY ANY BANK
NOR ARE THEY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
A Statement of Additional Information (SAI) dated April 29, 1994
(incorporated by reference into this prospectus) has been filed
with the Securities and Exchange Commission (SEC), and is available
without charge by contacting IDS Life at the telephone number above
or by completing and sending the order form on the last page of
this prospectus. The table of contents of the SAI is on the last
page of this prospectus.
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Contents
Key Terms.....................................................p.
The Variable and Combination Retirement Annuities in brief....p.
Expense summary...............................................p.
Condensed financial information...............................p.
Financial statements..........................................p.
Performance information.......................................p.
The variable accounts.........................................p.
The funds.....................................................p.
Aggressive Growth Fund...................................p.
International Equity Fund................................p.
Capital Resource Fund....................................p.
Managed Fund.............................................p.
Special Income Fund......................................p.
Moneyshare Fund..........................................p.
The fixed account.............................................p.
Buying your annuity...........................................p.
Setting the retirement date...................................p.
Beneficiary...................................................p.
Two ways to make purchase payments............................p.
Charges.......................................................p.
Contract administrative charge...........................p.
Mortality and expense risk fee...........................p.
Surrender charges........................................p.
Other information on charges.............................p.
Premium taxes............................................p.
Valuing your investment.......................................p.
Number of units..........................................p.
Accumulation unit value..................................p.
Net investment factor................ ...................p.
Factors that affect variable account
accumulation units.......................................p.
Making the most of your annuity...............................p.
Automated dollar - cost averaging during
the accumulation period..................................p.
How dollar - cost averaging works........................p.
Transferring money between accounts......................p.
Transfer policies........................................p.
Three ways to request a transfer or a surrender..........p.
Surrendering your contract....................................p.
Surrender policies.......................................p.
Receiving payment when you request a surrender...........p.
Special surrender provisions.............................p.
Changing ownership............................................p.
Benefits in case of death.....................................p.
The annuity payout period.....................................p.
Annuity payout plans.....................................p.
Death after annuity payouts begin........................p.
Transfers between accounts after annuity
payouts begin............................................p.
Taxes.........................................................p.
Voting Rights.................................................p.
About IDS Life................................................p.
Regular and special reports...................................p.
Table of contents of the Statement of Additional
Information...................................................p. <PAGE>
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Key terms
These terms can help you understand details about your annuity.
Annuity - A contract purchased from an insurance company that
offers tax-deferred growth of the owner's investment until earnings
are withdrawn, and that can be tailored to meet the specific needs
of the individual during retirement.
Accumulation unit - A measure of the value of each variable account
before annuity payouts begin.
Annuitant - The person on whose life or life expectancy the payouts
are based.
Annuity payouts - An amount paid at regular intervals under one of
several plans available to the owner and/or any other payee. This
amount may be paid on a variable or fixed basis or a combination of
both.
Annuity unit - A measure of the value of each variable account used
to calculate the annuity payouts you receive.
Beneficiary - The person designated to receive annuity benefits in
case of the owner's or annuitant's death.
Close of business - When the New York Stock Exchange (NYSE) closes,
normally 3:00 p.m. Central time.
Code - Internal Revenue Code of 1986, as amended.
Contract value - The total value of your annuity before any
applicable surrender charge and any contract administrative charge
have been deducted.
Contract year - A period of 12 months, starting on the effective
date of your contract and on each anniversary of the effective
date.
Fixed account - An account to which you may allocate purchase
payments under the Combination Retirement Annuity. Amounts
allocated to this account earn interest at rates that are declared
periodically by IDS Life.
IDS Life - In this prospectus, "we," "us," "our," and "IDS Life"
refer to IDS Life Insurance Company.
Mutual funds (funds) - Six IDS Life Retirement Annuity mutual
funds, each with a different investment objective. (See "The
funds.") You may allocate your purchase payments into variable
accounts investing in shares of any or all of these funds.
Owner (you, your) - The person who controls the annuity (decides on
investment allocations, transfers, annuity payout options, etc.).
Usually, but not always, the owner is also the annuitant. The
owner is responsible for taxes, regardless of whether he or she
receives the annuity's benefits.<PAGE>
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Purchase payments - Payments made to IDS Life for a contract.
Qualified annuity - A contract purchased for a retirement plan that
is subject to applicable federal law and any rules of the plan
itself. These plans include:
o Individual Retirement Annuities (IRAs)
o Simplified Employee Pension Plans (SEPs)
o Section 401(k) plans
o Custodial and trusteed pension and profit sharing plans
o Tax Sheltered Annuities (TSAs)
o Section 457 plans.
All other annuities are considered non-qualified annuities.
Retirement date - The date when annuity payouts are scheduled to
begin. You select this date when you start your contract. It can
be changed in the future.
Surrender charge - A deferred sales charge that may be applied if
you surrender your annuity before the retirement date.
Surrender value - The amount you are entitled to receive if you
surrender your annuity. It is the contract value minus any
applicable surrender charge and contract administrative charge.
Valuation date - Any normal business day, Monday through Friday,
that the NYSE is open. The value of each variable account is
calculated at the close of business on each valuation date.
Variable accounts - Six separate accounts to which you may allocate
purchase payments; each invests in shares of one mutual fund. (See
"The variable accounts.") The value of your investment in each
variable account changes with the performance of the particular
fund.
The Variable and Combination Retirement Annuities in brief
Purpose: The Variable and Combination Retirement Annuities are
designed to allow you to build up funds for retirement. You do
this by making one or more investments (purchase payments) that may
earn returns that increase the value of the annuity. Beginning at
a specified future date (the retirement date), the annuity provides
a lifetime or other forms of payouts to you or to anyone you
designate.
Ten-day free look: You may return your annuity to your financial
planner or our Minneapolis office within 10 days after it is
delivered to you and receive a full refund of the contract value.
No charges will be deducted. However, you bear the investment risk
from the time of purchase until return of the contract; the refund
amount may be more or less than the payment you made. (Exceptions:
If the law so requires, all of your purchase payment will be
refunded.)
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Accounts: You may allocate your purchase payments among any or all
of:
o six variable accounts, each of which invests in mutual funds
with a particular investment objective. The value of each
variable account varies with the performance of the particular
fund. We cannot guarantee that the value at the retirement date
will equal or exceed the total of purchase payments allocated to
the variable accounts. (p.)
o one fixed account (under CRA only), which earns interest at
rates that are adjusted periodically by IDS Life. (p.)
Buying the annuity: Your IDS personal financial planner will help
you complete and submit an application for CRA. Applications are
subject to acceptance at our Minneapolis office. You may buy a
non-qualified annuity or a qualified annuity including an IRA.
o Minimum purchase payment - $2,000 ($1,000 for qualified
annuities) unless you pay in installments by means of a bank
authorization or under a group billing arrangement such as a
payroll deduction.
o Minimum installment or additional payment - $50 monthly; $23.08
bi-weekly payroll deduction.
o Maximum first-year purchase -
Non-qualified: $25,000.
Qualified: Two times initial annual gross premium subject to
any restrictions.
o Maximum payment for each subsequent year -
Non-qualified: $50,000 excluding rollovers.
Qualified: Two times initial annual gross premium subject to
any restrictions.
Unlike the CRA, VRA was purchased with a single payment. No
additional payments are allowed for VRA.
Transfers: You may redistribute your money among accounts without
charge at any time until annuity payouts begin, and once per
contract year thereafter. You may establish automated transfers
among the fixed and variable account(s), subject to certain
restrictions. (p.)
Surrenders: You may surrender all or part of your contract value at
any time before the retirement date. You also may establish
automated partial surrenders. Surrenders may be subject to charges
and tax penalties and may have other tax consequences; also,
certain restrictions apply. (p.)
Changing ownership: You may change ownership of a non-qualified
annuity by written instruction, however, such changes of non-
qualified annuities may have federal income tax consequences.
Certain restrictions apply concerning change of ownership of a
qualified annuity. (p.)
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Payment in case of death: If you or the annuitant dies before
annuity payouts begin, we will pay the beneficiary an amount at
least equal to the contract value. (p.)
Annuity payouts: The contract value of your investment can be
applied to an annuity payout plan that begins on your retirement
date. You may choose from a variety of plans to make sure that
payouts continue as long as they are needed. If you purchased a
qualified annuity, the payout schedule must meet requirements of
the qualified plan. Payouts may be made on a fixed or variable
basis, or both. Total monthly payouts include amounts from each
variable account and the fixed account. (p.)
Taxes: Generally your annuity grows tax deferred until you
surrender it or begin to receive payouts. (Under certain
circumstances, IRS penalty taxes may apply.) Even if you direct
payouts to someone else, you will still be taxed on the income if
you are the owner. Certain state and local governments impose
premium taxes. (p.)
Charges: Your Variable Retirement Annuity is subject to an annual
charge of $20 and your Combination Retirement Annuity is subject to
an annual charge of $30 for contract administrative services. The
annuities are also subject to a 1% mortality and expense risk
charge and surrender charges. (p. )
Expense summary
The purpose of this summary is to help you understand the various
costs and expenses associated with VRA and CRA.
You pay no sales charge when you purchase the annuities. All costs
that you bear directly or indirectly for the variable accounts and
underlying mutual funds are shown below. Some expenses may vary as
explained under "Contract charges."
Direct charges. These are deducted directly from the contract
value. They include:
o Surrender charge - Surrender charges apply if you surrender more
than a certain limited percentage of your Variable Retirement
Annuity's value within the first seven contract years. The
surrender charge starts at 7% of the amount surrendered in the
first contract year and reduces by 1% each contract year
thereafter, so that there is no surrender charge in the eighth
and later contract years.
With a Combination Retirement Annuity, you will pay surrender
charges on any surrender within the first 11 contract years. The
surrender charge starts at 7% of any amount surrendered during the
first five contract years, then declines by 1% per year from 6% in
the sixth year to 1% in the 11th year. There is no surrender
charge on amounts surrendered after the 11th year.
There also are two additional CRA plans available for: 1)
participants in the CRA-Select (University of Wisconsin Tax Shelter
Annuity (TSA) plan), and 2) contract owners who have converted <PAGE>
PAGE 9
benefits from IDS Retirement Service, or any other retirement
annuity offered by IDS Retirement Service under which said
conversion is available to the CRA.
Participants in the Combination Retirement Annuity-Select
(University of Wisconsin TSA plan) will pay surrender charges on
any surrender within the first eight years. The surrender charge
starts at 7% of any amount surrendered during the first three
contract years, then declines by 1% per year from 6% in the fourth
year to 2% in the eighth year. There is no surrender charge on
amounts surrendered after the eighth year.
Contract owners who have converted benefits distributed from IDS
Retirement Service to CRA will pay surrender charges on any
surrender in the first seven years ranging from 6% in the first two
contract years to 1% in the seventh contract year.
The surrender charge for the Variable and Combination Retirement
Annuity in all cases is further limited so that it will never
exceed 8.5% of aggregate purchase payments made to the contract.
o Annual contract administrative charge -
Variable Retirement Annuity - $20
Combination Retirement Annuity - $30
Indirect charges. The variable account pays these expenses out of
its assets. They are reflected in the variable account's daily
accumulation unit value and are not charged directly to your
account. They include:
o Mortality and expense risk fee - 1% per year, deducted from the
variable account as a percentage of the average daily net assets
of the underlying fund.
o Operating expenses of underlying mutual funds - management fees
and other expenses deducted as a percentage of average net assets
as follows: *
<TABLE>
<CAPTION>
Aggressive International Capital Special
Growth Equity Resource Managed Income Moneyshare
<S> <C> <C> <C> <C> <C> <C>
Management fees .__% .__% .__% .__% .__% .__%
Other expenses .__ .__ .__ .__ .__ .__
Total** .__% .__% .__% .__% .__% .__%
</TABLE>
* Premium taxes imposed by some state and local governments are not
reflected in this table.
**Annualized operating expenses of underlying mutual funds at Dec.
31, 1993.
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Example for the Variable Retirement Annuity*
You would pay the following expenses on a $1,000 investment,
assuming a 5% annual return and surrender at the end of each time
period:
1 year $______ $______ $______ $______ $______ $______
3 years ______ ______ ______ ______ ______ ______
5 years ______ ______ ______ ______ ______ ______
10 years ______ ______ ______ ______ ______ ______
You would pay the following expenses on the same investment
assuming no surrender:
1 year $______ $______ $______ $______ $______ $______
3 years ______ ______ ______ ______ ______ ______
5 years ______ ______ ______ ______ ______ ______
10 years ______ ______ ______ ______ ______ ______
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
*In this example, the $20 annual contract administrative charge is
approximated as a __% charge based on our average contract size.
Example for the Combination Retirement Annuity
You would pay the following expenses on a $1,000 investment,
assuming a 5% annual return and surrender at the end of each time
period:
1 year $______ $______ $______ $______ $______ $______
3 years ______ ______ ______ ______ ______ ______
5 years ______ ______ ______ ______ ______ ______
10 years ______ ______ ______ ______ ______ ______
You would pay the following expenses on the same investment
assuming no surrender:
1 year $______ $______ $______ $______ $______ $______
3 years ______ ______ ______ ______ ______ ______
5 years ______ ______ ______ ______ ______ ______
10 years ______ ______ ______ ______ ______ ______
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This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
*In this example, the $30 annual contract administrative charge is
approximated as a __% charge based on our average contract size.
Example for the Combination Retirement Annuity Select (University
of Wisconsin TSA plan)
You would pay the following expenses on a $1,000 investment,
assuming a 5% annual return and surrender at the end of each time
period:
1 year $______ $______ $______ $______ $______ $______
3 years ______ ______ ______ ______ ______ ______
5 years ______ ______ ______ ______ ______ ______
10 years ______ ______ ______ ______ ______ ______
You would pay the following expenses on the same investment
assuming no surrender:
1 year $______ $______ $______ $______ $______ $______
3 years ______ ______ ______ ______ ______ ______
5 years ______ ______ ______ ______ ______ ______
10 years ______ ______ ______ ______ ______ ______
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
*In this example, the $30 annual contract administrative charge is
approximated as a __% charge based on our average contract size.
Example for the Combination Retirement Annuity (IDS Retirement
Service Conversion)
You would pay the following expenses on a $1,000 investment,
assuming a 5% annual return and surrender at the end of each time
period:
1 year $______ $______ $______ $______ $______ $______
3 years ______ ______ ______ ______ ______ ______
5 years ______ ______ ______ ______ ______ ______
10 years ______ ______ ______ ______ ______ ______
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PAGE 12
You would pay the following expenses on the same investment
assuming no surrender:
1 year $______ $______ $______ $______ $______ $______
3 years ______ ______ ______ ______ ______ ______
5 years ______ ______ ______ ______ ______ ______
10 years ______ ______ ______ ______ ______ ______
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
*In this example, the $30 annual contract administrative charge is
approximated as a __% charge based on our average contract size.
Condensed financial information
(unaudited)
The following tables give per-unit information about the financial
history of each variable account.
Financial statements
The SAI dated April 29, 1994, contains:
o complete audited financial statements of the variable accounts
including:
- statements of net assets as of Dec. 31, 1993;
- statements of operations for the year ended Dec. 31, 1993;
and
- statements of changes in net assets for the years ended
Dec. 31, 1993 and Dec. 31, 1992 (for Accounts IZ and
JZ, the period from Jan. 13, 1992 when they commenced
operations, to Dec. 31, 1992).
o complete audited financial statements for IDS Life including:
- consolidated balance sheets as of Dec. 31, 1993 and Dec.
31, 1992; and
- related consolidated statements of income and cash flows
for each of three years in the period ended Dec. 31, 1993.
Performance information
Performance information for the variable accounts may appear from
time to time in advertisements or sales literature. In all cases,
such information reflects the performance of a hypothetical
investment in a particular account during a particular time period.
Calculations are performed as follows:
Simple yield - Account H (investing in Moneyshare Fund): Income
over a given seven-day period (not counting any change in the
capital value of the investment) is annualized (multiplied by 52)
<PAGE>
PAGE 13
by assuming that the same income is received for 52 weeks. This
annual income is then stated as an annual percentage return on the
investment.
Compound yield - Account H: Calculated like simple yield, except
that, when annualized, the income is assumed to be reinvested.
Compounding of reinvested returns increases the yield as compared
to a simple yield.
Yield - all other accounts: Net investment income (income less
expenses) per accumulation unit during a given 30-day period is
divided by the value of the unit on the last day of the period.
The result is converted to an annual percentage.
Average annual total return: Expressed as an average annual
compounded rate of return of a hypothetical investment over a
period of one, five and ten years (or up to the life of the account
if it is less than ten years old). This figure reflects deduction
of all applicable charges, including the contract administrative
charge, mortality and expense risk fee and surrender charge,
assuming a surrender at the end of the illustrated period.
Optional total return quotations may be made that do not reflect a
surrender charge deduction (assuming no surrender).
Aggregate total return: Represents the cumulative change in value
of an investment for a given period (reflecting change in an
account's accumulation unit value). The calculation assumes
reinvestment of investment earnings. Aggregate total return may be
shown by means of schedules, charts or graphs.
Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of
the fund in which the account invests, and the market conditions
during the given time period. Such information is not intended to
indicate future performance. Because advertised yields and total
return figures include all charges attributable to the annuity,
which has the effect of decreasing advertised performance, account
performance should not be compared to that of mutual funds that
sell their shares directly to the public. (See the SAI for a
further description of methods used to determine yield and total
return for the accounts.)
The variable accounts
Purchase payments can be allocated to any or all of the variable
accounts that invest in shares of the following funds:
IDS Life Account Established
Aggressive Growth Fund JZ Sept. 20, 1991
International Equity Fund IZ Sept. 20, 1991
Capital Resource Fund F May 13, 1981
Managed Fund N April 12, 1985
Special Income Fund G May 13, 1981
Moneyshare Fund H May 13, 1981
<PAGE>
PAGE 14
Each variable account meets the definition of a separate account
under federal securities laws. Income, capital gains and capital
losses of each account are credited or charged to that account
alone. No variable account will be charged with liabilities of any
other account or of our general business.
All variable accounts were established under Minnesota law and are
registered together as a single unit investment trust under the
Investment Company Act of 1940 (the 1940 Act). This registration
does not involve any supervision of our management or investment
practices and policies by the SEC.
The funds
Aggressive Growth Fund
Objective: capital appreciation. Invests primarily in common stock
of small and medium-size companies. The fund also may invest in
warrants or debt securities or in large well-established companies
when the portfolio manager believes such investments offer the best
opportunity for capital appreciation.
International Equity Fund
Objective: capital appreciation. Invests primarily in common stock
of foreign issuers and foreign securities convertible into common
stock. The fund also may invest in certain international bonds if
the portfolio manager believes they have a greater potential for
capital appreciation than equities.
Capital Resource Fund
Objective: capital appreciation. Invests primarily in U.S. common
stocks listed on national securities exchanges and other securities
convertible into common stock, diversified over many different
companies in a variety of industries.
Managed Fund
Objective: maximum total investment return. Invests primarily in
U.S. common stocks listed on national securities exchanges,
securities convertible into common stock, warrants, fixed income
securities (primarily high-quality corporate bonds), and
money-market instruments. The fund invests in many different
companies in a variety of industries.
Special Income Fund
Objective: to provide a high level of current income while
conserving the value of the investment for the longest time period.
Invests primarily in high-quality, lower-risk corporate bonds
issued by many different companies in a variety of industries, and
in government bonds.
Moneyshare Fund
Objective: maximum current income consistent with liquidity and
conservation of capital. Invests in high-quality money market
securities with remaining maturities of 13 months or less. The
fund also will maintain a dollar-weighted average portfolio
maturity not exceeding 90 days. The fund attempts to maintain a
constant net asset value of $1 per share.
<PAGE>
PAGE 15
The Internal Revenue Service (IRS) has issued final regulations
relating to the diversification requirements under section 817(h)
of the Code. Each mutual fund intends to comply with these
requirements.
The U.S. Treasury and the IRS have indicated they may provide
additional guidance concerning how many variable accounts may be
offered and how many exchanges among variable accounts may be
allowed before the owner is considered to have investment control,
and thus is currently taxed on income earned within variable
account assets. We do not know at this time what the additional
guidance will be or when action will be taken. We reserve the
right to modify the contract, as necessary, to ensure that the
owner will not be subject to current taxation as the owner of the
variable account assets.
We intend to comply with all federal tax laws to ensure that the
contract continues to qualify as an annuity for federal income tax
purposes. We reserve the right to modify the contract as necessary
to comply with any new tax laws.
We are the investment adviser for each of the funds. We cannot
guarantee that the funds will meet their investment objectives.
Please read the Retirement Annuity Mutual Fund prospectus for
complete information on investment risks, deductions, expenses and
other facts you should know before investing. It is available by
contacting IDS Life at the address or telephone number on the front
of this publication, or from your financial planner.
The fixed account
Purchase payments can also be allocated to the fixed account. The
cash value of the fixed account increases as interest is credited
to the account. Purchase payments and transfers to the fixed
account become part of the general account of IDS Life, the
company's main portfolio of investments. Interest is credited
daily and compounded annually. We may change the interest rates
from time to time.
Because of exemptive and exclusionary provisions, interests in the
fixed account have not been registered under the Securities Act of
1933 (1933 Act), nor is the fixed account registered as an
investment company under the 1940 Act. Accordingly, neither the
fixed account nor any interests in it are generally subject to the
provisions of the 1933 or 1940 Acts, and we have been advised that
the staff of the SEC has not reviewed the disclosures in this
prospectus that relate to the fixed account. Disclosures regarding
the fixed account, however, may be subject to certain generally
applicable provisions of the federal securities laws relating to
the accuracy and completeness of statements made in prospectuses.
<PAGE>
PAGE 16
Buying your annuity
Your financial planner will help you prepare and submit your CRA
application (VRA is no longer being sold), and send it along with
your initial purchase payment to our Minneapolis office. As the
owner, you have all rights and may receive all benefits under the
contract. Annuities cannot be owned in joint tenancy.
When you apply, you can select:
o the account(s) in which you want to invest;
o how you want to make purchase payments;
o an annual purchase payment amount;
o the date you want to start receiving annuity payouts (the
retirement date); and
o a beneficiary.
If your application is complete, we will process it and apply your
purchase payment to your account(s) within two days after we
receive it. If your application is accepted, we will send you a
contract. If we cannot accept your application within five days,
we will decline it and return your payment. We will credit
additional purchase payments to your account(s) at the next close
of business.
Setting the retirement date
You'll start receiving annuity payouts on the retirement date you
select. This date can be aligned with your actual retirement from
a job, or it can be a different future date, depending on your
needs and goals and on certain restrictions. You can also change
the date, provided you send us written instructions at least 30
days before the change.
For non-qualified annuities, the retirement date you select must
be:
o no earlier than the 60th day after the contract's effective
date; and
o no later than the annuitant's 85th birthday.
For qualified annuities, to avoid IRS penalty taxes, the retirement
date generally must be:
o on or after the annuitant reaches age 59 1/2; and
o by April 1 of the year following the calendar year when the
annuitant reaches age 70 1/2.
Certain restrictions on retirement dates apply to participants in
the Texas Optional Retirement Program. (See "Special surrender
provisions".)
<PAGE>
PAGE 17
Beneficiary
If death benefits become payable before the retirement date, your
named beneficiary will receive all or part of the contract value.
If there is no named beneficiary, then you or your estate will be
the beneficiary. (See "Payment in case of death" for more about
beneficiaries.)
For the Variable Retirement Annuity
This is a single premium contract. Additional payments cannot be
made. This annuity is no longer being sold.
If installment payments:
For the Combination Retirement Annuity
$50 monthly; $23.08 bi-weekly
Installments must total $600 in the first year.*
*If you make no purchase payments for 24 months, and your previous
payments total $600 or less, we have the right to give ou 30 days'
written notice and pay you the total value of your annuity in a
lump sum. This right does not apply to contracts sold to New
Jersey residents.
Maximum payment(s)**
Non-qualified -
first year: $25,000
subsequent years: $50,000 excluding rollovers
Qualified - two times initial gross premium (subject to any IRS
limits)
**These limits apply in total to all IDS Life annuities you own.
We reserve the right to increase maximum limits or reduce age
limits. For qualified annuities the qualified plan's limits on
annual contributions also apply.
Participants in the Combination Retirement Annuity-Select
(University of Wisconsin TSA Plan) may buy the Combination
Retirement Annuity with installment payments of $200 to $25,000
annually.
Two ways to make purchase payments
1 By letter
Send your check along with your name and account number to:
<PAGE>
PAGE 18
Regular mail:
IDS Life Insurance Company
P.O. Box 74
Minneapolis, MN 55440-0074
Express mail:
IDS Life Insurance Company
733 Marquette Avenue
Minneapolis, MN 55402
2 By scheduled payment plan for CRA
Your financial planner can help you set up:
o an automatic payroll deduction, salary reduction, or other group
billing arrangement; or
o a bank authorization.
Charges
Contract administrative charge
This fee is for establishing and maintaining your records. We
deduct $20 annually from each VRA contract or $30 annually from
each CRA contract. This charge is deducted on each anniversary
date from the contract value at the end of each contract year.
If you surrender your contract, the charge will be deducted at the
time of surrender. The charge cannot be increased and does not
apply after annuity payouts begin.
Mortality and expense risk fee
This fee is to cover the annuity mortality risk and annuity expense
risk and is applied daily to the variable accounts and reflected in
the unit values of the accounts. Annually it totals 1% of their
average daily net assets. Approximately two-thirds of this amount
is for our assumption of mortality risk, and one-third is for our
assumption of expense risk. This fee does not apply to CRA's fixed
account.
Mortality risk arises because of our guarantee to make annuity
payouts according to the terms of the contract, no matter how long
a specific annuitant lives and no matter how long the entire group
of IDS Life annuitants live. If, as a group, IDS Life annuitants
outlive the life expectancy we have assumed in our actuarial
tables, then we must take money from our general assets to meet our
obligations. If, as a group, IDS Life annuitants do not live as
long as expected, we could profit from the mortality risk fee.
Expense risk arises because the contract administrative charge
cannot be increased and may not cover our expenses. Any deficit
would have to be made up from our general assets. We could profit
from the expense risk fee if the annual contract administrative
charge is more than sufficient to meet expenses.
<PAGE>
PAGE 19
We do not plan to profit from the contract administrative charge.
However, we hope to profit from the mortality and expense risk fee.
We may use any profits realized from this fee for any proper
corporate purpose, including, among others, payment of distribution
(selling) expenses. We do not expect that the surrender charges,
discussed in the following paragraphs, will cover sales and
distribution expenses.
Surrender charge
If you surrender part or all of your contract, you may be subject
to a surrender charge as follows:
Variable Retirement Annuity - A surrender charge applies if you
make a surrender in the first seven contract years.
Surrender charge as
percent of
amount surrendered Contract year
7% 1
6 2
5 3
4 4
3 5
2 6
1 7
0 After 7 years
The surrender charge is further limited so it will never exceed
8.5% of aggregate purchase payments made to the contract. After
the first contract year, you may surrender 10% of your purchase
payment each year without any surrender charge.
Combination Retirement Annuity - A surrender charge applies if you
surrender all or part of your annuity's value in the first 11
contract years.
Surrender charge as
percent of
amount surrendered Contract year
7% 1-5
6 6
5 7
4 8
3 9
2 10
1 11
0 After 11 years
The surrender charge is further limited so that it will never
exceed 8.5% of aggregate purchase payments made to the contract.
Combination Retirement Annuity Select (University of Wisconsin TSA
participants only) - A surrender charge applies if you surrender
all or part of your annuity's value in the first eight contract
years.
<PAGE>
PAGE 20
Surrender charge as
percent of
amount surrendered Contract year
7% 1-3
6 4
5 5
4 6
3 7
2 8
0 After 8 years
The surrender charge is further limited so that it will never
exceed 8.5% of aggregate purchase payments made to the contract.
Combination Retirement Annuity (Conversion from IDS Retirement
Service, or other IDS Life retirement annuity under which
conversion is available) - A surrender charge applies if you
surrender all or part of your annuity's value in the first seven
contract years.
Surrender charge as
percent of
amount surrendered Contract year
6% 1
6 2
5 3
4 4
3 5
2 6
1 7
0 After 7 years
The surrender charge is further limited so that it will never
exceed 8.5% of aggregate purchase payments made to the contract.
All of the above charges are guaranteed not to increase during the
term of the contract.
Other information on charges
IDS makes certain custodial services available to some custodial
and trusteed pension and profit sharing plans and 401(k) plans
funded by IDS Life annuities. Fees for these services start at $30
per calendar year per participant. A termination fee for owners
under 59 1/2 will be charged (fee waived in case of death or
disability).
Possible group reductions - In some cases (for example an employer
making the annuity available to employees) lower sales and
administrative expenses may be incurred due to the size of the
group, the average contribution and the use of group enrollment
procedures. In such cases, we may be able to reduce or eliminate
the contract administrative and surrender charges. However, we
expect this to occur infrequently.
<PAGE>
PAGE 21
Premium taxes
Certain state and local governments impose premium taxes which may
reach to 3.5%. These taxes are dependent upon the state of
residence or the state in which the contract was sold. In some
cases, premium taxes are deducted from your purchase payments
before they are allocated. In other cases, the deduction is made
when you surrender your contract or when annuity payouts begin.
Valuing your investment
Here is how your accounts are valued:
Fixed account for CRA: The amounts allocated to the fixed account
are valued directly in dollars and equal the sum of your purchase
payments, plus interest earned, less any amounts surrendered or
transferred.
Variable accounts: Amounts allocated to the variable accounts are
converted into accumulation units. Each time you make a purchase
payment or transfer amounts into one of the variable accounts, a
certain number of accumulation units are credited to your contract
for that account. Conversely, each time you take a partial
surrender, transfer amounts out of a variable account, or are
assessed a contract administrative charge, a certain number of
accumulation units are subtracted from your contract.
The accumulation units are the true measure of investment value in
each account during the accumulation period. They are related to,
but not the same as, the net asset value of the underlying fund.
The dollar value of each accumulation unit can rise or fall daily
depending on the performance of the underlying mutual fund and on
certain fund expenses. Here is how unit values are calculated:
Number of units:
To calculate the number of accumulation units for a particular
account, we divide your investment, after deduction of any premium
taxes, by the current accumulation unit value.
Accumulation unit value:
The current accumulation unit value for each variable account
equals the last value times the account's current net investment
factor.
Net investment factor:
o Determined each business day by adding the underlying mutual
fund's current net asset value per share plus per-share amount
of any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
<PAGE>
PAGE 22
Because the net asset value of the underlying mutual fund may
fluctuate, the net investment factor may be greater or less than
one, and the accumulation unit value may increase or decrease. You
bear this investment risk in a variable account.
Factors that affect variable account accumulation units
Accumulation units may change in two ways; in number and in value.
Here are the factors that influence those changes:
The number of accumulation units you own may fluctuate due to:
o additional purchase payments allocated to the variable accounts;
o transfers into or out of the account(s);
o partial surrenders;
o surrender charges; or
o contract administrative charges.
Accumulation unit values may fluctuate due to:
o changes in underlying mutual fund(s) net asset value;
o dividends distributed to the variable account(s);
o capital gains or losses of underlying mutual funds;
o mutual fund operating expenses; or
o mortality and expense risk fees.
Making the most of your annuity
Automated dollar-cost averaging during the accumulation period
You can use automated transfers to take advantage of dollar-cost
averaging (investing a fixed amount at regular intervals). For
example, you might have a set amount transferred monthly from a
relatively conservative variable account to a more aggressive one,
or to several others.
This systematic approach can help you benefit from fluctuations in
accumulation unit values caused by fluctuations in the market
value(s) of the underlying mutual fund(s). Since you invest the
same amount each period, you automatically acquire more units when
the market value falls, fewer units when it rises. The potential
effect is to lower your average cost per unit and increase your
long-term return. For specific features contact your financial
planner.
How dollar-cost averaging works
Amount Accumulation Number of units
Month invested unit value purchased
Jan $100 $20 5.00
Feb 100 16 6.25
Mar 100 9 11.11
Apr 100 5 20.00
May 100 7 14.29
June 100 10 10.00
July 100 15 6.67
Aug 100 20 5.00
Sept 100 17 5.88
Oct 100 12 8.33<PAGE>
PAGE 23
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more units
when the per unit market price is low
(arrow in table pointing to August) and fewer units when the per
unit market price is high.
You have paid an average price of only $10.81 per unit over the 10
months, while the average market price actually was $13.10.
Dollar-cost averaging does not guarantee that any variable account
will gain in value, nor will it protect against a decline in value
if market prices fall. However, if you can continue to invest
regularly throughout changing market conditions, it can be an
effective strategy to help meet your long term goals.
Transferring money between accounts
You may transfer money from any one account including the fixed
account, to another before the annuity payouts begin. If we
receive your request before the close of business, we will process
it that day. Requests received after the close of business will be
processed the next business day. There is no charge for transfers.
Before making a transfer, you should consider the risks involved in
switching investments.
We may suspend or modify transfer privileges at any time. Certain
restrictions apply to transfers involving CRA's fixed account.
(For information on transfers after annuity payouts begin, see "The
annuity payout period.")
Transfer policies
You may transfer contract values between the variable accounts for
VRA or CRA, or from the variable account(s) to the fixed account
for CRA at any time.
For the Combination Retirement Annuity
o If you have made a transfer from CRA's fixed account to the
variable account(s), you may not make a transfer from any
variable account back to the fixed account until the next
contract anniversary.
o You may transfer contract values from the fixed account to the
variable account(s) once a year during a 31-day transfer period
starting on each contract anniversary, (except for automated
transfers, which can be set up for transfer periods of your
choosing subject to certain minimums.)
o If we receive your transfer request within 30 days before the
contract anniversary date, the transfer from the fixed account
to the variable account(s) will be effective on the anniversary.
o If we receive your request on or within 30 days after the
contract anniversary date, the transfer from the fixed account
to the variable account(s) will be effective on the day we
receive it.
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PAGE 24
o We will not accept requests for transfers from the fixed account
at any other time.
o No transfers may be made to or from the fixed account once
annuity payouts begin.
Three ways to request a transfer or surrender
1 By letter
Send your name, account number, Social Security number or Taxpayer
Identification number and signed request for a transfer or
surrender to:
Regular mail:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Express mail:
IDS Life Insurance Company
733 Marquette Avenue
Minneapolis MN 55402
Minimum amount
Mail transfers: $250 or entire account balance
Mail surrenders: none
Maximum amount
Mail transfers: none-up to contract value
Mail surrenders: none-up to contract value
2 By phone
Call between 7 a.m. and 6 p.m. Central time:
1-800-437-0602 (toll free) or
(612) 671-1888 (Minneapolis/St. Paul area)
Minimum amount
Phone transfers: $250 or entire account balance
Phone surrenders: $100
Maximum amount
Phone transfers: none - up to contract value
Phone surrenders: $50,000
TTY service for the hearing impaired:
1-800-285-8846 (toll free) or
(612) 671-4695 (Minneapolis/St. Paul area)
We answer phone requests promptly, but you may experience delays
when the call volume is unusually high. If you are unable to get
through, use the mail procedure as an alternative.
<PAGE>
PAGE 25
o We will honor any telephone transfer or surrender request
believed to be authentic and will use reasonable procedures to
confirm that they are. This includes asking identifying
questions and tape recording calls. As long as the procedures
are followed, neither IDS Life nor its affiliates will be
liable for any loss resulting from fraudulent requests.
o You may request that telephone withdrawals not be authorized
from your account by writing IDS Life.
3 By automated transfers and automated partial surrenders
o Your financial planner can help you set up automated transfers
among your accounts or partial surrenders from the accounts.
You can start or stop this service by written request or other
method acceptable to IDS Life. You must allow 30 days for IDS Life
to change any instructions that are currently in place.
o Automated transfers from CRA's fixed to variable account(s) may
not exceed an amount that, if continued, would deplete the fixed
account within 12 months.
o Automated transfers and automated partial surrenders are subject
to all of the contract provisions and terms, including transfer
of contract values between accounts. Automated surrenders may
be restricted by applicable law under some contracts.
o You may not make additional purchase payments if automated
partial surrenders are in effect.
o Automated partial surrenders may result in IRS taxes and
penalties on all or part of the amount surrendered.
Minimum amount
Automated transfers or surrenders: $50
Maximum amount
Automated transfers or surrenders: None - except for automated
transfers from CRA's fixed
account
Surrendering your contract
As owner, you may surrender all or part of your contract at any
time before annuity payouts begin by sending a written request or
calling IDS Life. For total surrenders we will compute the value
of your contract at the close of business after we receive your
request. We may ask you to return the contract. You may have to
pay surrender charges (see "Surrender charge") and IRS taxes and
penalties (see "Taxes"). No surrenders may be made after annuity
payouts begin.
Surrender policies
If you have a balance in more than one account and request a
partial surrender, we will withdraw money from all your accounts in
the same proportion as your value in each account correlates to
your total contract value, unless you request otherwise.<PAGE>
PAGE 26
Receiving payment when you request a surrender
By regular or express mail:
o Payable to owner.
o Normally mailed to address of record within seven days after
receiving your request. However, we may postpone the payment
if:
-the surrender amount includes a purchase payment check that
has not cleared;
-the NYSE is closed, except for normal holiday and weekend
closings;
-trading on the NYSE is restricted, according to SEC rules;
-an emergency, as defined by SEC rules, makes it impractical
to sell securities or value the net assets of the accounts; or
-the SEC permits us to delay payment for the protection of
security holders.
Note: The express mail delivery charges you pay will vary. The
express mailing cost for partial surrenders is deducted from
remaining balance whereas the express mailing cost for full
surrenders is deducted from proceeds.
Special surrender provisions
Participants in Tax-Sheltered Annuities: The Code imposes certain
restrictions on your right as owner to receive early distributions
from a TSA:
o Distributions attributable to salary reduction contributions
made after Dec. 31, 1988, plus the earnings on them, or to
transfers or rollovers of such amounts from other contracts, may
be made from the TSA only if:
-you have attained age 59 1/2;
-you have become disabled as defined in the Code;
-you have separated from the service of the employer who
purchased the annuity; or
-the distribution is made to your beneficiary because of your
death.
o If you encounter a financial hardship (within the meaning of the
Code), you may receive a distribution of all contract values
attributable to salary reduction contributions made after Dec.
31, 1988, but not the earnings on them.
o Even though a distribution may be permitted under the above
rules, it still may be subject to IRS taxes and penalties. (See
"Taxes.")
o The above restrictions on the right to receive a distribution do
not affect the availability of the amount credited to the
contract as of Dec. 31, 1988. The restrictions do not apply to
transfers or exchanges of contract value within the annuity, or
to another registered variable annuity contract or investment
vehicle available through the employer.<PAGE>
PAGE 27
o If the contract has a loan provision, the right to receive a
loan from your fixed account continues to exist and is described
in detail in your contract. You may borrow from the contract
value allocated to the fixed account.
o For certain types of contributions under a TSA contract to be
excluded from taxable income, the employer must comply with
certain nondiscrimination requirements. You should consult your
employer to determine whether the nondiscrimination rules apply
to you.
Participants in the Texas Optional Retirement Program: You cannot
receive any distribution before retirement unless you become
totally disabled or end your employment at a Texas college or
university. This restriction affects your right to:
o surrender all or part of your annuity at any time; and
o move up your retirement date.
If you are in the program for only one year, the portion of the
purchase payments made by the state of Texas will be refunded to
the state with no surrender charge. These restrictions are based
on an opinion of the Texas Attorney General interpreting Texas law.
Changing ownership
You may change ownership of your non-qualified annuity at any time
by filing a change of ownership with us at our Minneapolis office.
The change will become binding upon us when we receive and record
it. We take no responsibility for the validity of the change.
If you have a non-qualified annuity, you may lose your tax
advantages by transferring, assigning or pledging any part of it.
(See "Taxes".)
If you have a qualified annuity, you may not sell, assign,
transfer, discount or pledge your contract as collateral for a
loan, or as security for the performance of an obligation or for
any other purpose to any person except IDS Life. However, if the
owner is a trust or custodian, or an employer acting in a similar
capacity, ownership of a contract may be transferred to the
annuitant.
Benefits in case of death
If you or the annuitant dies (or, for qualified annuities, if the
annuitant dies) before annuity payouts begin, we will pay the
beneficiary as follows:
If death occurs before the annuitant's 75th birthday, the
beneficiary receives the greater of:
o the contract value; or
o purchase payments, minus any surrenders.
If death occurs on or after the annuitant's 75th birthday, the
beneficiary receives the contract value.
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PAGE 28
If your spouse is sole beneficiary under a non-qualified annuity
and you die before the retirement date, your spouse may keep the
annuity as owner. To do this your spouse must, within 60 days
after we receive proof of death, give us written instructions to
keep the contract in force.
Under a qualified annuity, if the annuitant dies before reaching
age 70 1/2 and before the retirement date, and the spouse is the
only beneficiary, the spouse may keep the annuity in force until
the date on which the annuitant would have reached age 70 1/2. To
do this, the spouse must give us written instructions within 60
days after we receive proof of death.
Payments: We will pay the beneficiary in a single sum unless you
have given us other written instructions, or the beneficiary may
receive payouts under any annuity payout plan available under this
contract if:
o the beneficiary asks us in writing within 60 days after we
receive proof of death;
o payouts begin no later than one year after death; and
o the payout period does not extend beyond the beneficiary's life
or life expectancy.
When paying the beneficiary, we will determine the contract's value
at the next close of business after our death claim requirements
are fulfilled. Interest, if any, will be paid from the date of
death at a rate no less than required by law. We will mail payment
to the beneficiary within seven days after our death claim
requirements are fulfilled. (See "Taxes.")
The annuity payout period
As owner of the contract, you have the right to decide how and to
whom annuity payouts will be made starting at the retirement date.
You may select one of the annuity payout plans outlined below, or
we will mutually agree on other payout arrangements. The amount
available for payouts under the plan you select is the contract
value on your retirement date. No surrender charges are deducted
under the payout plans listed below.
You also decide whether annuity payouts are to be made on a fixed
or variable basis, or a combination of fixed and variable. Amounts
of fixed and variable payouts depend on:
o the annuity payout plan you select;
o the annuitant's age and, in most cases, sex;
o the annuity table in the contract;
o the amounts you allocated to the account(s) at settlement.
In addition, for variable payouts only, amounts depend on the
investment performance of the account(s) you select. These payouts
will vary from month to month because the performance of the
underlying mutual funds will fluctuate. (In the case of fixed
annuities, payouts remain the same from month to month.)
<PAGE>
PAGE 29
Annuity payout plans
You may choose any one of these annuity payout plans by giving us
written instructions at least 30 days before contract values are to
be used to purchase the payout plan:
o Plan A - Life annuity - no refund: Monthly payouts are made
until the annuitant's death. Payouts end with the last payout
before the annuitant's death; no further payouts will be made.
This means that if the annuitant dies after only one monthly payout
has been made, no more payouts will be made.
o Plan B - Life annuity with five, ten or fifteen years certain:
Monthly payouts are made for a guaranteed payout period of five,
ten or fifteen years that the annuitant elects. This election will
determine the length of the payout period to the beneficiary if the
annuitant should die before the elected period has expired. The
guaranteed payout period is calculated from the retirement date.
If the annuitant outlives the elected guaranteed payout period,
payouts will continue until the annuitant's death.
o Plan C - Life annuity - installment refund: Monthly payouts are
made until the annuitant's death, with our guarantee that payouts
will continue for some period of time. Payouts will be made for at
least the number of months determined by dividing the amount
applied under this option by the first monthly payout, whether or
not the annuitant is living.
o Plan D - Joint and last survivor life annuity - no refund:
Monthly payouts are made to the annuitant and a joint annuitant
while both are living. If either annuitant dies, monthly payouts
continue at the full amount until the death of the surviving
annuitant. Payouts end with the death of the second annuitant.
o Plan E - Payouts for a specified period (available as a fixed
payout only): Monthly payouts are made for a specific payout
period of 10 to 30 years chosen by the annuitant. Payouts will be
made only for the number of years specified whether the annuitant
is living or not. Depending on the time period selected, it is
foreseeable that an annuitant can outlive the payout period
selected. In addition, a 10% IRS penalty tax could apply under
this payout plan. (See "Taxes.")
Retrictions for some qualified plans: If you purchased a qualified
annuity, you must select a payout plan that provides for payouts:
o over the life of the annuitant;
o over the joint lives of the annuitant and a designated
beneficiary;
o for a period not exceeding the life expectancy of the
annuitant; or
o for a period not exceeding the joint life expectancies
of the annuitant and a designated beneficiary.
<PAGE>
PAGE 30
If we do not receive instructions: You must give us written
instructions for the annuity payouts at least 30 days before the
retirement date. If you do not, we will make payouts under Plan B,
with 120 monthly payouts guaranteed.
If monthly payouts would be less than $20: We will calculate the
amount of monthly payouts at the time the contract value is used to
purchase a payout plan. If the calculations show that monthly
payouts would be less than $20, we have the right to pay the
contract value to the owner in a lump sum.
Death after annuity payouts begin
If you or the annuitant dies after annuity payouts begin, any
amount payable to the beneficiary will be provided in the annuity
payout plan in effect.
Transfers between accounts after annuity payouts begin
After the annuity payouts begin, you may transfer the value of your
annuity from one variable account to another once each contract
year. You must send us written instructions to do this. We will
make the transfer at the next close of business after we receive
your instructions.
Taxes
Generally, under current law, any increase in your contract value
is not taxable until you receive a payout or surrender. (See
detailed discussion below.) Any portion of the annuity payouts and
any surrenders you request that represent ordinary income are
normally taxable. You will receive a 1099 tax information form for
any year in which a taxable distribution was made.
Annuity payouts under non-qualified annuities: A portion of each
payout will be ordinary income and subject to tax, and a portion of
each payout will be considered a return of part of your investment
and will not be taxed. All amounts received after your investment
in the annuity is fully recovered will be subject to tax.
Tax law requires that all non-qualified deferred annuity contracts
issued by the same company to the same owner during a calendar year
are to be taxed as a single, unified contract when distributions
are taken from any one of such contracts.
Annuity payouts under qualified annuities: Under a qualified
annuity, the entire payout generally will be includable as ordinary
income and subject to tax except to the extent that contributions
were made with after-tax dollars. If you or your employer invested
in your contract with pre-tax dollars as part of a qualified
retirement plan, such amounts are not considered to be part of your
investment in the contract and will be taxed when paid to you.
Surrenders: If you surrender part or all of your contract before
your annuity payouts begin, your surrender payment will be taxed to
the extent that the value of your contract exceeds your investment.
You also may have to pay a 10% IRS penalty for surrenders before
<PAGE>
PAGE 31
reaching age 59 1/2. For qualified annuities, other penalties may
apply if you surrender your annuity before your plan specifies that
you can receive payments.
Death benefits to beneficiaries: The death benefit under an
annuity is not tax exempt. Any amount received by the beneficiary
that represents previously deferred earnings within the contract,
is taxable as ordinary income to the beneficiary in the year(s) he
or she receives the payments.
Annuities owned by corporations, partnerships or trusts: Any
annual increase in the value of annuities held by such entities
generally will be treated as ordinary income received during that
year. This provision is effective for purchase payments made after
Feb. 28, 1986. However, if the trust was set up for the benefit of
a natural person only, the income will continue to be tax-deferred.
Penalties: If you receive amounts from your contract before
reaching age 59 1/2, you may have to pay a 10% IRS penalty on the
amount includable in your ordinary income. However, this penalty
will not apply to any amount received by you or your beneficiary:
o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal
periodic payments, made at least annually, over your life or
life expectancy (or joint lives or life expectancies of you and
your beneficiary); or
o if it is allocable to an investment before Aug. 14, 1982 (except
for qualified annuities).
For a qualified annuity, other penalties or exceptions may apply if
you surrender your annuity before your plan specifies that payouts
can be made.
Withholding, generally: If you receive all or part of the contract
value from an annuity, withholding may be imposed against the
taxable income portion of the payment. Any withholding that is
done represents a prepayment of your tax due for the year. You
take credit for such amounts on the annual tax return that you
file.
If the payout is part of an annuity payout plan, the amount of
withholding generally is computed using payroll tables. You can
provide us with a statement of how many exemptions to use in
calculating the withholding. As long as you've provided us with a
valid Social Security number or Taxpayer Identification number, you
can elect not to have any withholding occur.
If the distribution is any other type of payment (such as a partial
or full surrender) withholding is computed using 10% of the taxable
portion. Similar to above, as long as you've provided us with a
valid Social Security number or Taxpayer Identification number, you
can elect not to have this withholding occur.
Some states also impose withholding requirements similar to the
federal withholding described above.
<PAGE>
PAGE 32
Withholding from qualified annuities: If you receive directly all
or part of the contract value from a qualified annuity (except an
IRA), mandatory 20% income tax withholding generally will be
imposed at the time the payout is made. This mandatory withholding
is in place of the elective withholding discussed above. This
mandatory withholding will not be imposed if:
o instead of receiving the distribution check, you elect to have
the distribution rolled over directly to an IRA or another
eligible plan;
o the payout is one in a series of substantially equal periodic
payouts, made at least annually, over your life or life
expectancy (or the joint lives or life expectancies of you and
your beneficiary) or over a specified period of 10 years or
more; or
o the payment is a minimum distribution required under the Code.
Payments made to a surviving spouse instead of being directly
rolled over to an IRA may also be subject to 20% mandatory income
tax withholding.
State withholding also may be imposed on taxable distributions.
Transfer of ownership of a non-qualified annuity: If you make such
a transfer without receiving adequate consideration, the transfer
is considered a gift, and also may be considered a surrender for
federal income tax purposes. If the gift is a currently taxable
event, the amount of the earnings at the time of the transfer will
be taxed to the original owner, who also may be subject to a 10%
IRS penalty as discussed earlier. In this case, the new owner's
investment in the annuity will be the value of the annuity at the
time of the transfer.
Exchanges: Code section 1035 generally provides that no gain or
loss is recognized on the exchange of one annuity contract for
another annuity contract. If the old contract contained premium
payments made prior to Aug. 14, 1982, the tax rules which
previously applied to that investment will continue to apply.
However, not all characteristics of the old contract carry forward
to your new contract. The IRS 10% penalty and required
distribution-at-death rules may apply to your new contract.
Special rules and procedures must be followed in order to take
advantage of Code section 1035. If you consider such a
transaction, you should consult your tax advisor before preceeding.
Collateral assignment of a non-qualified annuity: If you
collaterally assign or pledge your contract, earnings on purchase
payments you made on or after Aug. 13, 1982 will be taxed to you
like a surrender.
Important: Our discussion of federal tax laws is based upon our
understanding of these laws as they are currently interpreted.
Federal tax laws or current interpretations of them may change.
For this reason and because tax consequences are complex and highly
individual and cannot always be anticipated, you should consult a
tax adviser if you have any questions about taxation of your
contract.
<PAGE>
PAGE 33
Voting rights
As a contract owner with investments in the variable account(s),
you may vote on important mutual fund policies until annuity
payouts begin. Once they begin, the person receiving them has
voting rights. We will vote fund shares according to the
instructions of the person with voting rights.
Before annuity payouts begin, the number of votes you have is
determined by applying your percentage interest in each variable
account to the total number of votes allowed to the account.
After payouts begin, the number of votes you have is equal to:
o the reserve held in each account for your contract, divided by
o the net asset value of one share of the applicable underlying
mutual fund.
As we make annuity payouts, the reserve for the contract decreases;
therefore, the number of votes also will decrease.
We calculate votes separately for each account not more than 60
days before a shareholders' meeting. Notice of these meetings,
proxy materials and a statement of the number of votes to which the
voter is entitled, will be sent.
We will vote shares for which we have not received instructions in
the same proportion as the votes for which we have received
instructions. We also will vote the shares for which we have
voting rights in the same proportion as the votes for which we have
received instructions.
About IDS Life
The Variable Retirement Annuity and the Combination Retirement
Annuity are issued by IDS Life, a wholly owned subsidiary of IDS,
which itself is a wholly owned subsidiary of the American Express
Company (American Express), a financial services company
headquartered in New York City.
IDS Life is a stock life insurance company organized in 1957 under
the laws of the State of Minnesota and located at IDS Tower 10,
Minneapolis, MN 55440-0010. We conduct a conventional life
insurance business in the District of Columbia and all states
except New York.
The IDS family of companies offers not only insurance and
annuities, but also mutual funds, investment certificates and a
broad range of financial management services.
As a subsidiary of IDS, IDS Life is part of a 100-year tradition of
excellent service and responsible financial management. Today, the
IDS group of companies owns or manages assets of more than $__
billion.
IDS Financial Services, Inc. serves individuals and businesses
through its nationwide network of more than ___ offices and more
than _____ planners.<PAGE>
PAGE 34
Other subsidiaries provide investment management and related
services for pension, profit-sharing, employee savings and
endowment funds of businesses and institutions.
Regular and special reports
Services
To help you track and evaluate the performance of your annuity, IDS
Life provides:
Quarterly statements showing the value of your investment.
Annual reports containing required information on the annuity and
its underlying investments.
A personalized annuity progress report detailing the cumulative
return since the contract was purchased and the average annual rate
of return on your investments. This report, which is unique in the
industry, is available upon request from your financial planner.
Table of contents of the Statement of Additional Information
Performance information.......................p.
Rating agencies...............................p.
Principal underwriter.........................p.
Independent auditors..........................p.
Prospectus....................................p.
Financial statements -
IDS Life Accounts F, IZ, JZ, G, H and N...........p.
IDS Life Insurance Company........................p.
___________________________________________________________________
Please check the appropriate box to receive a copy of the Statement
of Additional Information for:
_____ IDS Life Variable Retirement and Combination Retirement
Annuities
_____ IDS Life Retirement Annuity Mutual Funds
Please return this request to:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Your name _______________________________________________________
Address _________________________________________________________
City ______________________ State ______________ Zip ___________
<PAGE>
PAGE 35
STATEMENT OF ADDITIONAL INFORMATION
for
VARIABLE AND COMBINATION RETIREMENT ANNUITIES
IDS LIFE ACCOUNTS F, IZ, JZ, G, H AND N
April 29, 1994
IDS Life Accounts F, IZ, JZ, G, H and N are separate accounts
established and maintained by IDS Life Insurance Company (IDS
Life).
This Statement of Additional Information, dated April 29, 1994, is
not a prospectus. It should be read together with the Accounts'
prospectus, dated April 29, 1994, which may be obtained from your
IDS financial planner, or by writing or calling IDS Life at the
address or telephone number below.
IDS Life Insurance Company
P10/199
P.O. Box 74
Minneapolis, MN 55440-0074
612-671-3131
<PAGE>
PAGE 36
TABLE OF CONTENTS
Performance Information.......................................p. 3
Calculating Annuity Payouts...................................p. 5
Rating Agencies...............................................p. 7
Principal Underwriter.........................................p. 8
Independent Auditors..........................................p. 8
Prospectus....................................................p. 8
Financial Statements
- IDS Life Accounts F, IZ, JZ, G, H and N...........p.
- IDS Life Insurance Company........................p.
<PAGE>
PAGE 37
PERFORMANCE INFORMATION
Calculation of yield for Account H
IDS Life Account H, which invests in IDS Life Moneyshare Fund,
Inc., calculates an annualized simple yield and a compound yield
based on a seven-day period.
The simple yield is calculated by determining the net change in the
value of a hypothetical account having the balance of one
accumulation unit at the beginning of the seven-day period. (The
net change does not include capital change, but does include a pro
rata share of the annual contract charges, including the annual
contract administrative charge and the mortality and expense risk
fee.) The net change in the account value is divided by the value
of the account at the beginning of the period to obtain the return
for the period. That return is then multiplied 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 variable account's
(account) yield does not include any realized or unrealized gains
or losses, nor does it include the effect of any applicable
surrender charge.
The account calculates its compound yield according to the
following formula:
Compound Yield = [(return for seven-day period +1) 365/7 ] - 1
On Dec. 31, 1993, the account's annualized yield was ___% and its
compound yield was ___%.
The rate of return, or yield, on the account's accumulation unit
may fluctuate daily and does not provide a basis for determining
future yields. Investors must consider, when comparing an
investment in Account H with fixed annuities, that fixed annuities
often provide an agreed-to or guaranteed fixed yield for a stated
period of time, whereas the account's yield fluctuates. In
comparing the yield of Account H to a money market fund, you should
consider the different services that the annuity provides.
Calculation of yield for non-money market accounts
For an account other than the money market account, quotations of
yield will be based on all investment income earned during a
particular 30-day period, less expenses accrued during the period
(net investment income) and will be computed by dividing net
investment income per accumulation unit by the value of an
accumulation unit on the last day of the period, according to the
following formula:
YIELD = 2[(a-b + 1)6 - 1]
cd
<PAGE>
PAGE 38
where: a = dividends and investment income earned during the
period.
b = expenses accrued for the period (net of
reimbursements).
c = the average daily number of accumulation units
outstanding during the period that were entitled to
receive dividends.
d = the maximum offering price per accumulation unit on
the last day of the period.
Yield on the account is earned from the increase in the net asset
value of shares of the fund in which the account invests and from
dividends declared and paid by the fund, which are automatically
invested in shares of the fund.
Calculation of average annual total return
Quotations of average annual total return for an account will be
expressed in terms of the average annual compounded rate of return
of a hypothetical investment in the annuity contract over a period
of one, five and 10 years (or, if less, up to the life of the
account), calculated 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 the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
Account total return figures reflect the deduction of the contract
administrative charge and mortality and expense risk fee.
Performance figures will be shown with and may be shown without the
deduction of a surrender charge. The Securities and Exchange
Commission requires that an assumption be made that the contract
owner surrenders the entire contract at the end of the one, five
and ten year periods (or, if less, up to the life of the account)
for which performance is required to be calculated.
Aggregate total return
Aggregate total return represents the cumulative change in the net
asset value of shares of the fund in which the account invests over
a specified period of time and is computed by the following
formula:
ERV - P
P
<PAGE>
PAGE 39
where: P = a hypothetical initial payment of $1,000.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
Performance of the accounts may be quoted or compared to rankings,
yields, or returns as published or prepared by independent rating
or statistical services or publishers or 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
Report, The Wall Street Journal and Wiesenberger Investment
Companies Service.
CALCULATING ANNUITY PAYOUTS
The Variable Account
The following calculations are done separately for each of the
variable accounts. The separate monthly payouts, added together,
make up your total variable annuity payout.
Initial Payout: To compute your first monthly payment, we:
o determine the dollar value of your annuity as of the valuation
date seven days before the retirement date and then deduct any
applicable premium tax.
o apply the result to the annuity table contained in the contract
or another table at least as favorable. The annuity table shows
the amount of the first monthly payment for each $1,000 of value
which depends on factors built into the table, as described below.
Annuity Units: The value of your account is then converted to
annuity units. To compute the number credited to you, we divide
the first monthly payment by the annuity unit value (see below) on
the valuation date on (or next day preceding) the seventh calendar
day before the retirement date. The number of units in your
account is fixed. The value of the units fluctuate with the
performance of the underlying mutual fund.
Subsequent Payouts: To compute later payouts, we multiply:
o the annuity unit value on the valuation date on or immediately
preceding the seventh calendar day before the payout is due; by
o the fixed number of annuity units credited to you.
<PAGE>
PAGE 40
Annuity Table: The table shows the amount of the first monthly
payment for each $1,000 of contract value according to the age and,
when applicable, the sex of the annuitant. (Where required by law,
we will use a unisex table of settlement rates.) The table assumes
that the contract value is invested at the beginning of the annuity
payout period and earns a 5% rate of return, which is reinvested
and helps to support future payouts.
Substitution of 3.5% Table: If you ask us at least 30 days before
the retirement date, we will substitute an annuity table based on
an assumed 3.5% investment rate for the 5% table in the contract.
The assumed investment rate affects both the amount of the first
payout and the extent to which subsequent payouts increase or
decrease. Using the 5% table results in a higher initial payment,
but later payouts will increase more slowly when annuity unit
values are rising and decrease more rapidly when they are
declining.
Annuity Unit Values: This value was originally set at $1 for each
variable account. To calculate later values we multiply the last
annuity value by the product of:
o the net investment factor; and
o the neutralizing factor. The purpose of the neutralizing factor
is to offset the effect of the assumed investment rate built into
the annuity table. With an assumed investment rate of 5%, the
neutralizing factor is 0.999866 for a one day valuation period.
Net Investment Factor:
o Determined each business day by adding the underlying mutual
fund's current net asset value per share plus per share amount of
any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the net investment factor may be greater or less than
one, and the accumulation unit value may increase or decrease. You
bear this investment risk in a variable account.
The Fixed Account
Your fixed annuity payout amounts are guaranteed. Once calculated,
your payout will remain the same and never change. To calculate
your annuity payouts we:
o take the value of your fixed account at the retirement date or
the date you have selected to begin receiving your annuity payouts;
then
o using an annuity payout table we apply the value according to
the annuity payout plan you select; and
o the annuity payout table we use will be the one in effect at the
time you choose to begin your annuity payouts. The table will be
equal to or greater than the table in your contract.
<PAGE>
PAGE 41
RATING AGENCIES
The following chart provides information on the relevance of
ratings* given to IDS Life by independent rating agencies that
evaluate the financial soundness of insurance companies. IDS Life
has one of the most liquid and highest quality balance sheets of
the largest insurance companies in the industry.**
Rating Agency Rating Relevance of Rating
A.M. Best A+ Reflects A.M. Best's opinion
(Superior) regarding IDS Life's strong
distribution network, favorable
overall balance sheet profile,
consistently improving
profitability, adequate level of
capitalization and asset-liability
management expertise.
Duff & Phelps AAA Reflects Duff & Phelps' opinion
regarding IDS Life's consistently
excellent profitability record,
stable operating leverage,
leadership position in chosen
markets and effective use of
asset/liability management
techniques.
Moody's Aa2 Reflects Moody's opinion regarding
IDS Life's leadership position in
financial planning, strong
asset/liability management and
good capitalization. IDS Life has
a strong market focus, and it
greatly emphasizes quality
service.
A.M. Best rates over 1,600 insurance companies on a 15 level scale
with letters ranging from A++ to F to "NA" ratings based on a
company's financial strength and claim paying ability.
Duff & Phelps rates over 125 companies for claims-paying ability
with 19 rating categories from AAA to CCC-.
Moody's rates over 80 companies for financial strength with 19
rating categories ranging from Aaa to C.
* Ratings relate to IDS Life's ability to fulfill its obligations
under its contracts and not to the management or performance of the
separate accounts.
** Measured by comparing the 15 largest life insurance companies'
investments in below investment grade (junk) bonds, mortgages and
real estate to a percentage of those companies' total assets.
<PAGE>
PAGE 42
PRINCIPAL UNDERWRITER
The principal underwriter for the accounts is IDS Life which offers
the variable annuities on a continuous basis.
Surrender charges received by IDS Life for 1993, 1992 and 1991,
aggregated $_________, $3,648,836 and $3,264,084, respectively.
Commissions paid by IDS Life for 1993, 1992 and 1991, aggregated
$__________, $10,334,092 and $5,205,239, respectively. The
surrender charges were applied toward payment of commissions.
INDEPENDENT AUDITORS
The Financial Statements of the accounts and of IDS Life appearing
in this Statement of Additional Information have been audited by
Ernst & Young, independent auditors, 1400 Pillsbury Center,
Minneapolis, MN 55402, to the extent indicated in their reports.
Ernst & Young are experts in accounting and auditing.
PROSPECTUS
The prospectus dated April 29, 1994, is hereby incorporated in this
Statement of Additional Information by reference.
<PAGE>
PAGE 43
PART C.
Item 24. Financial Statements and Exhibits
(a) Not Applicable.
(b) Exhibits:
1.1 Resolution of the Executive Committee of the Board of
Directors of IDS Life adopted May 13, 1981, filed
electronically herewith.
1.2 Resolution of the Executive Committee of the Board of
Directors of IDS Life establishing Account N on April 17,
1985, filed electronically herewith.
1.3 Resolution of the Board of Directors of IDS Life establishing
Accounts IZ and JZ on Sept. 20, 1991 filed electronically
herewith.
2. Not applicable.
3. Not applicable.
4.1 Copy of form of Qualified Deferred Annuity Contract (form
30307) filed as Exhibit 4(a) to Registration Statement No. 33-
4173 is incorporated herein by reference.
4.2 Copy of form of Non-Qualified Deferred Annuity Contract (form
30302) filed as Exhibit 4(b) to Registration Statement No. 33-
4173 is incorporated herein by reference.
4.3 Copy of form of Deferred Annuity Contract (IRA) (form 30307)
filed as Exhibit 4(c) to Registration Statement No. 33-4173 is
incorporated herein by reference.
5.1 Form of Application for IDS Life Deferred Variable Annuity
Contract (form 34512), filed as Exhibit 10 to Post-Effective
Amendment No. 2 to Registration Statement 2-73114, is
incorporated herein by reference.
5.2 Copy of Form of Application for IDS Flexible Annuity Contract,
filed as Exhibit 5(b) to Registration Statement No. 33-4173 is
incorporated herein by reference.
6.1 Copy of Articles of Incorporation of IDS Life filed as Exhibit
6(a) to the INNOVEST I Registration Statement* are
incorporated herein by reference.
6.2 Copy of Amendment to By-Laws of IDS Life, filed as Exhibit
6(b) to the INNOVEST I Registration Statement*, filed as
Exhibit 6(b) to Post-Effective Amendment No. 6 to Registration
Statement 2-73114, is incorporated herein by reference.
7. Not applicable.
8. Not applicable.
<PAGE>
PAGE 44
9. Opinion of counsel and consent to its use as to the legality
of the securities being registered will be filed with
Registrant's 24f-2 Notice on or about Feb. 25, 1994.
10. Not applicable.
11. Not applicable.
12. Not applicable.
13. Not applicable.
14.1 Power of Attorney to sign Amendments to this Registration
Statement filed on April 25, 1990, as Exhibit (14) to Post-
Effective Amendment No. 18 to Registration Statement No. 2-
73114 is incorporated herein by reference.
14.2 Power of Attorney dated April 1, 1993, to sign Amendments to
this Registration Statement filed as Exhibit 14(b) to Post-
Effective Amendment No. 22 to Registration Statement No. 2-
73114 is incorporated herein by reference.
* "INNOVEST I Registration Statements" refers to the Registration
Statement on Form N-8B-2 of IDS Life Account C, IDS Life Account D
and IDS Life Account E (File No. 811-3195) filed May 29, 1981.
<PAGE>
PAGE 45
<TABLE><CAPTION>
Item 25. Directors and Officers of the Depositor
Positions and Positions and
Name & Principal Offices with Name & Principal Offices with
Business Address Depositor Business Address Depositor
<S> <C> <C> <C>
Timothy V. Bechtold Vice President, Ryan R. Larson Vice President,
IDS Tower 10 Ins. Product IDS Tower 10 Annuity Product
Minneapolis, MN Development Minneapolis, MN Development
David J. Berry Vice President James A. Mitchell Director; President
IDS Tower 10 IDS Tower 10 and Chief Executive
Minneapolis, MN Minneapolis, MN Officer
John L. Burbidge Vice President Patricia A. Mitshulis Vice President,
IDS Tower 10 IDS Tower 10 Real Estate Loan
Minneapolis, MN Minneapolis, MN Management
Alan R. Dakay Vice President, Mary O. Neal Vice President,
IDS Tower 10 Institutional IDS Tower 10 Sales Support
Minneapolis, MN Insurance Minneapolis, MN
Marketing
William H. Dudley Vice President James R. Palmer Vice President,
IDS Tower 10 IDS Tower 10 Taxes
Minneapolis, MN Minneapolis, MN
Lorraine R. Hart Vice President, ReBecca K. Roloff Director; Executive
IDS Tower 10 Investments IDS Tower 10 Vice President,
Minneapolis, MN Minneapolis, MN Operations
David R. Hubers Director William A. Smith Director
IDS Tower 10 IDS Tower 10
Minneapolis, MN Minneapolis, MN
Roger P. Husemoller Vice President, Jeffrey E. Stiefler Chairman of the
IDS Tower 10 Intercorporate IDS Tower 10 Board and Director
Minneapolis, MN Insurance Minneapolis, MN
Operations
Thomas J. Kelly Vice President, William A. Stoltzmann Vice President,
IDS Tower 10 Insurance IDS Tower 10 General Counsel
Minneapolis, MN New Business Minneapolis, MN and Secretary
Richard W. Kling Director; Jeffrey Sullivan Vice President
IDS Tower 10 Executive Vice IDS Tower 10 and Medical
Minneapolis, MN President, Minneapolis, MN Director
Marketing and
Products Melinda Urion Director, Vice
IDS Tower 10 President, Controller
Paul F. Kolkman Director; Minneapolis, MN and Treasurer
IDS Tower 10 Vice President,
Minneapolis, MN Finance Daniel J. Willis Vice President,
IDS Tower 10 Annuity New Business/
Christopher Kudrna Director; Vice Minneapolis, MN 1035 Services
IDS Tower 10 President, Systems
Minneapolis, MN and Technology
Development /TABLE
<PAGE>
PAGE 46
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
IDS Life Insurance Company is a wholly owned subsidiary
of IDS Financial Corporation. IDS Financial Corporation
is a wholly owned subsidiary of American Express Company
(American Express).
The following list includes the names of major
subsidiaries of American Express.
Jurisdiction
Name of Subsidiary of Incorporation
I. Travel Related Services
American Express Travel Related
Services Company, Inc. New York
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Investment Services
Shearson Lehman Brothers Holdings Inc. Delaware
IV. Companies engaged in Investors
Diversified Financial Services
IDS Financial Corporation Delaware
IDS Certificate Company Delaware
Investors Syndicate Development Corp. Nevada
IDS Financial Services Inc. Delaware
IDS Securities Corporation Delaware
IDS Bank & Trust Minnesota
IDS Real Estate Services, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
American Enterprise Life Insurance Company Indiana
IDS International, Inc. Delaware
IDS Fund Management Limited U.K.
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Arkansas Inc. Arkansas
IDS Insurance Agency of Alabama Inc. Alabama
IDS Insurance Agency of Massachusetts Inc. Massachusetts
IDS Insurance Agency of Nevada Inc. Nevada
IDS Insurance Agency of New Mexico Inc. New Mexico
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS Advisory Group Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Management Corporation Minnesota
IDS Futures Corporation Minnesota
<PAGE>
PAGE 47
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
Jurisdiction
Name of Subsidiary of Incorporation
IDS Cable Corporation Minnesota
IDS Realty Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Futures III Corporation Minnesota
IDS Cable II Corporation Minnesota
American Express Minnesota Foundation Minnesota
IDS Deposit Corp. Utah
IDS Sales Support Inc. Minnesota
IDS Plan Services of California, Inc. Minnesota
American Enterprise Investment
Services, Inc. Minnesota
IDS Aircraft Services Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
Mankato Ventures
Item 27. Number of Contractowners
On Jan. 31, 1994, there were 95,409 contract owners of
qualified Combination Retirement Annuity contracts.
There were 3,833 owners of non-qualified contracts.
There were 681 contract owners of qualified Variable
Retirement Annuity contracts. There were 3,462 owners of
non-qualified contracts.
Item 28. Indemnification
The By-Laws of the depositor provide that it shall
indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that
he is or was a director, officer, employee or agent of
this Corporation, or is or was serving at the direction
of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture,
trust or other enterprise, to any threatened, pending or
completed action, suit or proceeding, wherever brought,
to the fullest extent permitted by the laws of the State
of Minnesota, as now existing or hereafter amended,
provided that this Article shall not indemnify or protect
any such director, officer, employee or agent against any
liability to the Corporation or its security holders to
which he would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless
disregard of his obligations and duties.
<PAGE>
PAGE 48
Item 29. Principal Underwriters
(a) IDS Life is the principal underwriter for IDS Life
Accounts F, IZ, JZ, G, H and N, IDS Life Variable
Annuity Fund A, IDS Life Variable Annuity Fund B,
IDS Life Account RE, IDS Life Account MGA and IDS
Life Account SLB.
(b) This table is the same as our response to Item 25 of
this Registration Statement.
<TABLE><CAPTION>
(c)
Name of Net Underwriting
Principal Discounts and Compensation on Brokerage
Underwriter Commissions Redemption Commissions Compensation
<S> <C> <C> <C> <C>
IDS Life None $4,408,562 None None
</TABLE>
Item 30. Location of Accounts and Records
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a), (b) & (c) These undertakings were
filed with the Registrant's initial
Registration Statements, File No.
2-73114 and 811-3217.
(d) Registrant represents that it is
relying upon the no-action assurance
given to the American Council of Life
Insurance (pub. avail. Nov. 28,
1989). Further, Registrant
represents that it has complied with
the provisions of paragraphs (1) -
(4) of that no-action letter.
<PAGE>
PAGE 49
SIGNATURES
As required by the Securities Act of 1933 and the Investment
Company Act of 1940, IDS Life Insurance Company, on behalf of the
Registrant, has caused this Registration Statement to be signed on
its behalf in the City of Minneapolis, and State of Minnesota, on
the 25th day of February, 1994.
IDS LIFE ACCOUNT F
IDS LIFE ACCOUNT IZ
IDS LIFE ACCOUNT JZ
IDS LIFE ACCOUNT G
IDS LIFE ACCOUNT H
IDS LIFE ACCOUNT N
(Registrant)
By IDS Life Insurance Company
(Sponsor)
By /s/ James A. Mitchell*
James A. Mitchell
President
As required by the Securities Act of 1933, this Amendment to the
Registration Statement has been signed below by the following
persons in the capacities indicated on the 25th day of February,
1994.
Signature Title
/s/ James A. Mitchell* Director, President and Chief
James A. Mitchell Executive Officer
/s/ Richard W. Kling* Director and Executive Vice
Richard W. Kling President, Marketing and
Products
/s/ Paul F. Kolkman* Director and Vice President,
Paul F. Kolkman Finance
/s/ Melinda S. Urion** Director, Vice President,
Melinda S. Urion Controller and Treasurer
/s/ David R. Hubers* Director
David R. Hubers
/s/ Christopher R. Kudrna* Director and Vice President,
Christopher R. Kudrna Systems and Technology
Development
/s/ ReBecca K. Roloff* Director and Executive Vice
ReBecca K. Roloff President, Operations
<PAGE>
PAGE 50
Signature Title
/s/ Director
William A. Smith
/s/ Jeffrey E. Stiefler** Chairman of the Board and
Jeffrey E. Stiefler Director
* Signed pursuant to Power of Attorney dated April 23, 1990, filed
as Exhibit 14 to Post-Effective Amendment No. 18 to Registration
Statement No. 2-73114 by:
** Signed pursuant to Power of Attorney dated April 1, 1993, filed
as Exhibit 14 to this Post-Effective Amendment No. 22.
___________________________
Mary Ellyn Minenko
<PAGE>
PAGE 51
CONTENTS OF REGISTRATION STATEMENT NO. 23
This Amendment to the Registration Statement is comprised of the
following papers and documents:
The Cover Page.
Cross-reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Part C.
Other Information.
The signatures.
Exhibits.
IDS LIFE VARIABLE AND COMBINATION RETIREMENT ANNUITY
EXHIBIT INDEX
Exhibit 1.1 Resolution of the Executive Committee of the Board
of Directors of IDS Life adopted May 13, 1981.
Exhibit 1.2 Resolution of the Executive Committee of the Board
of Directors of IDS Life establishing Account N on
April 17, 1985.
Exhibit 1.3 Resolution of the Board of Directors of IDS Life
establishing Accounts IZ and JZ on Sept. 20, 1991.
<PAGE>
PAGE 1
IDS LIFE INSURANCE COMPANY
MINUTES OF THE ANNUAL MEETING OF THE BOARD OF DIRECTORS
May 13, 1981
The Annual Meeting of the Board of Directors of IDS Life
Insurance Company, a Minnesota corporation, was held at 10:45 a.m.,
Wednesday, May 13, 1981, at the offices of the Corporation, IDS
Tower, Minneapolis, Minnesota, immediately following adjournment of
the Annual Meeting of Stockholders of the Corporation, pursuant to
written notice duly given.
Mr. W. D. Scott, Chairman of the Board, called the meeting to
order and presided as Chairman. Mr. D. H. Bruer, Assistant
Secretary of the Corporation, acted as Secretary of the meeting.
All members of the Board elected at said Annual Meeting of
Stockholders were present, except Messrs. Ceithaml and Haase,
together with Messrs. R. N. Latzer, Vice President, Investments,
and R. J. O'Brien, Vice President, General Counsel and Secretary,
of the Corporation.
Mr. Pickering directed the Board to a memorandum dated May 1,
1981, and, after discussion, the following resolutions were duly
adopted:
WHEREAS, This Board of Directors has determined that it
is desirable for the Corporation to issue variable
annuity contracts, the values and benefits of which will
vary with the investment performance of certain mutual
funds ("the Funds") which the Corporation has caused to
be established, now, therefore, be it
RESOLVED, That the six separate accounts set forth below
are hereby established in accordance with Section 61A.14,
Minnesota Statutes:
IDS Life Account C, to invest in shares of
IDS Life Capital Resource Fund I, Inc.
IDS Life Account D, to invest in shares of
IDS Life Special Income Fund I, Inc.
IDS Life Account E, to invest in the shares of
IDS Life Moneyshare Fund, Inc.
IDS Life Account F, to invest in the shares of
IDS Life Capital Resource Fund II, Inc.
IDS Life Account G, to invest in the shares of
IDS Life Special Income Fund II, Inc.
IDS Life Account H, to invest in the shares of
IDS Life Moneyshare Fund, Inc.
<PAGE>
PAGE 1
CONSENT IN WRITING IN LIEU
OF MEETING OF BOARD OF DIRECTORS
Pursuant to Section 300.20
of the Minnesota Statutes
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY
As a member of the Board of Directors of IDS Life Insurance
Company, a Minnesota corporation, I hereby consent to and authorize
the adoption of the following resolutions by the Board of Directors
of said Corporation, to become effective at the time of your
receipt of executed counterparts hereof from all other members of
said Board of Directors:
WHEREAS, This Board of Directors has determined that it is
desirable for the Corporation to provide for the acquisition
of shares of IDS Life Managed Fund under its variable annuity
contracts, now, therefore, be it
RESOLVED, That the two separate accounts set forth below are
hereby established in accordance with Section 61A.14,
Minnesota Statutes:
IDS Life Account M, to invest in shares of IDS Life
Managed Fund Inc.
IDS Life Account N, to invest in shares of IDS Life
Managed Fund Inc.
RESOLVED FURTHER, That the Unit Investment Trust comprised of
IDS Life Accounts C, D, and E is hereby reconstituted as IDS
Life Accounts C, D, E, and M; and the Unit Investment Trust
comprised of IDS Life Accounts F, G, and H is hereby
reconstituted as IDS Life Accounts F, G, H and N.
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed to accomplish all filings
and registrations necessary to carry the foregoing into
effect.
Executed this 17th day of April, 1985
/s/ Harvey Golub /s/ Earlon L. Milbrath
Harvey Golub Earlon L. Milbrath
/s/ Richard W. Kling /s/ Paul F. Kolkman
Richard W. Kling Paul F. Kolkman
/s/ James A. Mitchell
James A. Mitchell
Received by the Secretary
April 17 , 1985
/s/ Richard J. O'Brien
Secretary
Effective: April 17 , 1985
<PAGE>
<PAGE>
PAGE 1
CONSENT IN WRITING IN LIEU
OF MEETING OF BOARD OF DIRECTORS
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY
By this consent in writing in lieu of a meeting of the Board of
Directors of IDS Life Insurance Company, a Minnesota corporation,
we the Directors of said Corporation do hereby consent to and
authorize the adoption of the following resolution to be effective
immediately upon receipt by the Secretary of the Corporation:
WHEREAS, This Board of Directors has determined that it is
desirable for the Corporation to provide for the acquisition
of shares of IDS Life International Equity Fund and IDS Life
Aggressive Growth Fund under its variable annuity contracts.
Now, therefore, be it
RESOLVED, That the two separate accounts set forth below are
hereby established in accordance with Section 61A.14 of the
Minnesota Statutes:
IDS Life Account IZ, to invest in shares of IDS Life
International Equity Fund; and
IDS Life Account JZ, to invest in shares of IDS Life
Aggressive Growth Fund.
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized to accomplish all filings,
registrations, and applications for exemptive relief necessary
to carry the foregoing into effect.
/s/ David R. Hubers /s/ Richard W. Kling
David R. Hubers Richard W. Kling
/s/ Paul F. Kolkman /s/ Christopher R. Kudrna
Paul F. Kolkman Christopher R. Kudrna
/s/ James A. Mitchell /s/ ReBecca K. Roloff
James A. Mitchell ReBecca K. Roloff
/s/ Jeffrey E. Stiefler
Jeffrey E. Stiefler
Received by the Secretary
September 20 , 1991
/s/ William A. Stoltzmann
William A. Stoltzmann
<PAGE>
