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002 B000000 MINNEAPOLIS
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002 D020000 0010
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015 A000001 AMERICAN EXPRESS TRUST COMPANY
015 B000001 C
015 C010001 MINNEAPOLIS
015 C020001 MN
015 C030001 55402
015 C040001 2307
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 9
019 C000000 IDSLIFESEP
020 A000001 SALOMON BROTHERS INC.
020 B000001 13-3082694
020 C000001 54
020 A000002 GOLDMAN SACHS & CO.
020 B000002 13-5108880
020 C000002 34
020 A000003 CAPITAL INSTITUTIONAL SERVICES INC.
<PAGE> PAGE 2
020 B000003 75-1565705
020 C000003 18
020 A000004 LEHMAN BROTHERS INC.
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020 C000004 18
020 A000005 SMITH BARNEY INC.
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020 A000006 LYNCH JONES & RYAN, INC.
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020 A000008 J.P. MORGAN SECURITIES INC.
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020 C000008 10
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022 C000001 147697
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022 B000002 13-2501865
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<PAGE> PAGE 3
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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SIGNATURE MARY ELLEN MINENKO
TITLE COUNSEL
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 367051824
<INVESTMENTS-AT-VALUE> 667422329
<RECEIVABLES> 8607103
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 676109607
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2202629
<TOTAL-LIABILITIES> 2202629
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 32644907
<SHARES-COMMON-PRIOR> 36471678
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 676109607
<DIVIDEND-INCOME> 3925477
<INTEREST-INCOME> 2016444
<OTHER-INCOME> 0
<EXPENSES-NET> 9229123
<NET-INVESTMENT-INCOME> (3287202)
<REALIZED-GAINS-CURRENT> 34858039
<APPREC-INCREASE-CURRENT> 100833860
<NET-CHANGE-FROM-OPS> 132404697
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 59965541
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2637138
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9229123
<AVERAGE-NET-ASSETS> 655881717
<PER-SHARE-NAV-BEGIN> 16.55
<PER-SHARE-NII> (.09)
<PER-SHARE-GAIN-APPREC> 3.80
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.26
<EXPENSE-RATIO> 1.41
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Supplementary Report of Independent Auditors
The Board of Managers and Contract Owners
IDS Life Variable Annuity Fund B
In planning and performing our audit of the financial
statements of IDS Life Variable Annuity Fund B for
the year ended December 31, 1996, we considered its
internal control structure, including procedures for
afeguarding securities, in order to determine our
uditing procedures for the purpose of expressing our
opinion on the financial statements and to comply
ith the requirements of Form N-SAR, not to provide
ssurance on the internal control structure.
The management of IDS Life Variable Annuity Fund
B is responsible for establishing and maintaining an
internal control structure. In fulfilling this
esponsibility, estimates and judgments by management
are required to assess the expected benefits and related
osts of internal control structure polices and procedures.
Two of the objectives of an internal control structure
are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition
and that transactions are executed in accordance
with management s authorization and recorded properly
to permit preparation of financial statements in
conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not be
detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk
hat it may become inadequate because of changes
n conditions or that the effectiveness of the design
and operation may deteriorate.
Our consideration of the internal control structure
would not necessarily disclose all matters in the
nternal control structure that might be material
weaknesses under standards established by the
American Institute of Certified Public Accountants.
A material weakness is a condition in which the
design or operation of the specific internal control
structure elements does not reduce to a relatively
low level the risk that errors or irregularities in
amounts that would be material in relation to the
inancial statements being audited may occur and
ot be detected within a timely period by employees
n the normal course of performing their assigned
unctions. However, we noted no matters involving
he internal control structure, including procedures
or safeguarding securities, that we consider to be
material weaknesses as defined above as of
December 31, 1996.
This supplementary report is intended solely for
the information and use of management and the
Securities and Exchange Commission.
We consent to the use of this supplementary report
in connection with the filing of the report on Form
N-SAR of IDS Life Variable Annuity Fund B with
the Securities and Exchange Commission.
Minneapolis, Minnesota
February 3, 1997
