IDS LIFE OF NEW YORK ACCOUNT 4
497, 1997-05-07
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<PAGE>



PAGE 1
IDS Life of New York Variable Retirement and Combination Retirement
Annuities

Prospectus
May 1, 1997

This prospectus  describes two individual  deferred annuity contracts offered by
IDS Life  Insurance  Company of New York (IDS Life of New York), a subsidiary of
IDS Life Insurance Company (IDS Life), which is a subsidiary of American Express
Financial  Corporation  (AEFC).  The  Variable  Retirement  Annuity  (VRA)  is a
deferred annuity  contract in which a single purchase  payment  accumulates on a
variable basis and retirement benefits are paid to the owner. It can be used for
qualified and nonqualified  retirement plans. The Combination Retirement Annuity
(CRA) is a deferred annuity contract in which installment  purchase payments are
accumulated  on a fixed  and/or  variable  basis  and  provides  for  retirement
payments to the owner. It is available only for qualified plans.

New Variable Retirement Annuity contracts are not currently being
offered.

IDS Life of New York Accounts 4, 5, 6, 9, 10, 11, 12, 13 and 14

Sold by:  IDS Life Insurance Company of New York
          20 Madison Ave. Extension
          Albany, NY 12203
          Telephone: 800-541-2251

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, IDS Life Special
Income Fund, IDS Life Moneyshare Fund, IDS Life Growth Dimensions Fund, IDS Life
Global  Yield  Fund  and IDS Life  Income  Advantage  Fund.  Please  read  these
documents carefully and keep them 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 of New York is not a financial institution and the securities it offers
are not deposits or  obligations  of, or guaranteed or endorsed by any financial
institution nor are they insured by the Federal Deposit  Insurance  Corporation,
the Federal
Reserve Board or any other agency.



<PAGE>



PAGE 2
A Statement of Additional Information (SAI) (incorporated by reference into this
prospectus) filed with the Securities and Exchange Commission (SEC) is available
without charge by contacting IDS Life of New York at the telephone  number above
or by completing and sending the order form on the last page of this prospectus.
The table of contents of the SAI is on the last page of this prospectus.



<PAGE>



PAGE 3
Table of contents

Key terms

The Variable and Combination
 Retirement Annuities in brief

Expense summary

Condensed financial information

Financial statements

Performance information

The variable accounts

The funds
IDS Life  Aggressive  Growth  Fund 
IDS Life  International  Equity Fund 
IDS Life Capital  Resource  Fund
IDS Life Managed  Fund
IDS Life Special  Income Fund
IDS Life Moneyshare Fund 
IDS Life Growth  Dimensions Fund 
IDS Life Global Yield Fund
IDS Life Income Advantage Fund

The fixed account

Buying your annuity
The retirement date
Beneficiary
How to make purchase payments

Charges
Contract administrative charge
Mortality and expense risk fee
Surrender charge

Valuing your investment
Number of units
Accumulation unit value
Net investment factor
Factors that affect variable account
 accumulation units

Making the most of your annuity  
Automated  dollar-cost  averaging 
Transferring money  between  accounts  
Transfer  policies  
How to  request  a  transfer  or a surrender

Surrendering your contract
Surrender policies
Receiving payment when you request a surrender




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PAGE 4
TSA special surrender provisions

Changing ownership

Benefits in case of death

The annuity payout period
Annuity payout plans
Death after annuity payouts begin

Taxes

Voting rights

Distribution of the contracts

About IDS Life of New York

Regular and special reports
Services
Table of contents of the Statement of
 Additional Information



<PAGE>



PAGE 5
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 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 annuity 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 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.

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 4
p.m. Eastern 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.  Amounts
allocated to this account earn interest at rates that are declared  periodically
by IDS Life of New York.

IDS Life of New York - In this  prospectus,  "we,"  "us," "our" and "IDS Life of
New York" refer to IDS Life Insurance Company of New York.

Mutual funds (funds) - Nine 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.




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PAGE 6
Owner (you,  your) - The person who controls the annuity  (decides on investment
allocations,  transfers,  payout options,  etc.).  Usually,  but not always, the
owner is also the annuitant.  The owner is responsible for taxes,  regardless of
whether he or she receives the annuity's benefits.

Purchase payments - Payments made to IDS Life of New York for an annuity.

Qualified  annuity - An annuity  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)

All other annuities are considered nonqualified annuities.

Retirement  date - The date when annuity  payouts are  scheduled to begin.  This
date is first established when you start your contract. You can change it 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 - Nine 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  lifetime  or other  forms of  payouts to you or to anyone you
designate.




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PAGE 7
Ten-day free look: You may return your annuity to your financial  advisor or our
Albany  office  within 10 days after it is  delivered  to you and receive a full
refund of the contract value. No charges will be deducted.

Accounts:  You may allocate your purchase payments among any or all
of:

o  nine  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, which earns interest at rates that are
   adjusted periodically by IDS Life of New York.  (p.)

Buying the annuity:  Your financial advisor will help you complete and submit an
application  for CRA.  Applications  are  subject  to  acceptance  at our Albany
office.  You may buy a nonqualified  annuity or a qualified annuity including an
IRA.

o  Minimum purchase payment - $600 on an annual basis.

o  Minimum installment or additional payment - $50 monthly; $23.08
   biweekly payroll deductions.

o  Maximum first-year payment(s) - 
   Nonqualified:  $25,000.
   Qualified:  Two times initial annual gross premium subject to
   any restrictions.

o  Maximum payment for each subsequent year -
   Nonqualified:  $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.  (p.)

Transfers:  You may redistribute your money among accounts without charge at any
time until  annuity  payouts begin and once per contract year among the variable
accounts  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.)




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PAGE 8
Changing  ownership:  You may  change  ownership  of a  nonqualified  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.)

Benefits 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 the  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.  During the annuity payout period, you cannot be invested in more
than five variable accounts at any one time unless we agree otherwise. (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.  (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.  Both annuities are also subject to a 1%
mortality and expense risk charge and a surrender charge. (p.)

Expense summary

The purpose of these  tables is to help you  understand  the  various  costs and
expenses associated with VRA and CRA.



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PAGE 9
You pay no sales charge when you purchase the annuities. All costs that you bear
directly or indirectly for the variable11  accounts and underlying  mutual funds
are shown below. Some expenses may vary as explained under "Contract charges."

Variable Retirement Annuity Expenses
         Owner Expenses
                  Surrender Charge*

                  (Contingent deferred
                    sales charge as a
                     percentage of
                  amount surrendered)  Contract Year   Percentage
                  -----------------------------------------------
                                            1               7%
                                            2               6
                                            3               5
                                            4               4
                                            5               3
                                            6               2
                                            7               1
                                      8 and later           0

                  Annual Contract
                  Administrative Charge                    $20

         Separate Account Annual Expenses
         (as a percentage of average daily net assets of the
         underlying fund)

                   Mortality and Expense Risk Fee           1%

Combination Retirement Annuity Expenses
         Owner Expenses
                  Surrender Charge*

                  (Contingent deferred
                    sales charge as a
                     percentage of
                  amount surrendered    Contract Year    Percentage
                                           1-5              7%
                                            6               6
                                            7               5
                                            8               4
                                            9               3
                                           10               2
                                           11               1
                                     12 and later           0

                 Annual Contract
                 Administrative Charge                     $30

         Separate Account Annual Expenses
         (as a percentage of average daily net assets of the
         underlying fund)
                     Mortality and Expense Risk Fee         1%

*  The  surrender  charge is further  limited so it will  never  exceed  8.5% of
   aggregate purchase payments made to the contract.


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PAGE 10
Combination Retirement Annuity Expenses (American Express
Retirement Services)
         Owner Expenses
                  Surrender Charge*

                  (Contingent deferred
                     sales charge as a
                      percentage of
                  amount surrendered   Contract Year     Percentage
                  -------------------------------------------------
                                            1               6%
                                            2               6
                                            3               5
                                            4               4
                                            5               3
                                            6               2
                                            7               1
                                      8 and later           0

                  Annual Contract
                  Administrative Charge                    $30

         Separate Account Annual Expenses
         (as a percentage of average daily net assets of the
         underlying fund)
                     Mortality and Expense Risk Fee         1%

         Annual Operating  Expenses of Underlying  Mutual Funds (management fees
         and other expenses deducted as a percentage of average net assets)

<TABLE>
<CAPTION>
                 IDS Life       IDS Life      IDS Life               IDS Life                 IDS Life    IDS Life   IDS Life
                Aggressive   International    Capital     IDS Life   Special    IDS Life       Growth      Global     Income
                  Growth         Equity       Resource    Managed    Income    Moneyshare    Dimensions    Yield     Advantage

<S>                 <C>            <C>          <C>         <C>        <C>           <C>         <C>        <C>         <C> 
Management fees     .60%           .82%         .60%        .59%       .59%          .50%        .63%       .84%        .63%

Other expenses      .09            .16          .08         .07        .10           .06         .22        .62         .54

Total**             .69%           .98%         .68%        .66%       .69%          .56%        .85%      1.46%       1.17%
</TABLE>

*  The  surrender  charge is further  limited so it will  never  exceed  8.5% of
   aggregate purchase payments made to the contract.
** Annualized operating expenses of underlying mutual funds at
   Dec. 31, 1996.



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PAGE 11
                           Example for the Variable Retirement Annuity:*

<TABLE>
<CAPTION>
                 IDS Life       IDS Life      IDS Life               IDS Life                 IDS Life    IDS Life   IDS Life
                Aggressive   International    Capital     IDS Life   Special    IDS Life       Growth      Global     Income
                  Growth         Equity       Resource    Managed    Income    Moneyshare    Dimensions    Yield     Advantage

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:

<S>              <C>            <C>           <C>         <C>        <C>         <C>           <C>         <C>        <C>    
1 year           $ 90.04        $ 92.80       $ 89.94     $ 89.75    $ 90.04     $ 88.80       $ 91.56     $ 97.38    $ 94.61

3 years           110.08         118.62        109.78      109.19     110.08      106.23        114.80      132.66     124.19

5 years           129.99         144.68        129.48      128.46     129.99      123.35        138.12      168.61     154.21

10 years          205.96         237.12        204.87      202.69     205.96      191.71        223.26      286.77     257.06

You  would  pay the  following  expenses  on the  same  investment  assuming  no
surrender or selection of an annuity payout plan at the end of each time period:

1 year           $ 17.78        $ 20.76       $ 17.68     $ 17.48    $ 17.78     $ 16.45       $ 19.42     $ 25.68    $ 22.70

3 years            55.09          64.11         54.78       54.15      55.09       51.03         60.07       78.92      69.99

5 years            94.84         110.03         94.31       93.25      94.84       87.96        103.24      134.78     119.89

10 years          205.96         237.12        204.87      202.69     205.96      191.71        223.26      286.77     257.06
</TABLE>

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 .045% charge based on our average contract size.

                         Example for the Combination Retirement Annuity:*

<TABLE>
<CAPTION>
                 IDS Life       IDS Life      IDS Life               IDS Life                 IDS Life    IDS Life   IDS Life
                Aggressive   International    Capital     IDS Life   Special    IDS Life       Growth      Global     Income
                  Growth         Equity       Resource    Managed    Income    Moneyshare    Dimensions    Yield     Advantage

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:

<S>              <C>            <C>           <C>         <C>        <C>         <C>           <C>         <C>        <C>    
1 year           $ 91.06        $ 93.82       $ 90.96     $ 90.77    $ 91.06     $ 89.82       $ 92.58     $ 98.40    $ 95.63

3 years           135.16         143.50        134.87      134.30     135.16      131.41        139.77      157.19     148.94

5 years           182.05         196.01        181.57      180.60     182.05      175.74        189.78      218.75     205.07

10 years          244.73         274.79        243.68      241.58     244.73      230.98        261.42      322.68     294.02

You  would  pay the  following  expenses  on the  same  investment  assuming  no
surrender or selection of an annuity payout plan at the end of each time period:

1 year           $ 18.88        $ 21.85       $ 18.78     $ 18.57    $ 18.88     $ 17.55       $ 20.52     $ 26.77    $ 23.80

3 years            58.42          67.42         58.11       57.49      58.42       54.37         63.39       82.20      73.29

5 years           100.46         115.59         99.94       98.89     100.46       93.62        108.83      140.23     125.40

10 years          217.56         248.39        216.48      214.32     217.56      203.45        234.68      297.52     268.12
</TABLE>

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 .152% charge based on our average contract size.



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PAGE 12
Condensed financial information
(unaudited)

The following tables give per-unit  information  about the financial  history of
each variable account.
<TABLE>
<CAPTION>

                                                                 Years Ended Dec. 31,
                                   1996    1995     1994     1993     1992     1991     1990     1989     1988     1987
- -----------------------------------------------------------------------------------------------------------------------
<S>                                <C>     <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>
Account 4 (investing in shares of Capital Resource Fund)
Accumulation unit value at
beginning of year ............     $4.35   $3.43    $3.43    $3.35    $3.25    $2.24    $2.25    $1.78    $1.61    $1.44
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ......................     $4.64   $4.35    $3.43    $3.43    $3.35    $3.25    $2.24    $2.25    $1.78    $1.61
- ------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................    47,283  44,849   38,283   30,089   21,677   13,591   10,058    8,345    7,347    7,342
- ------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ...........     1.00%   1.00%    1.00%    1.00%    1.00%    1.00%    1.00%    1.00%    1.00%    1.00%
- ------------------------------------------------------------------------------------------------------------------------

                                                                 Years Ended Dec. 31,
                                   1996    1995     1994     1993     1992     1991     1990     1989     1988     1987
- -----------------------------------------------------------------------------------------------------------------------

Account 101 (investing in shares of International Equity Fund)
Accumulation unit value at
beginning of period ..........     $1.38   $1.25    $1.29    $0.98     $1.00      -        -        -        -        -
- -----------------------------------------------------------------------------------------------------------------------

Accumulation unit value at end
of period ....................     $1.50   $1.38    $1.25    $1.29     $0.98      -        -        -        -        -
- -----------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of period
(000 omitted) ................    77,830  63,576   51,480   21,650     3,421      -        -        -        -        -
- -----------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ...........     1.00%   1.00%    1.00%    1.00%     1.00%      -        -        -        -        -
- -----------------------------------------------------------------------------------------------------------------------

Account 112 (investing in shares of Aggressive Growth Fund)
Accumulation unit value at
beginning of period ..........     $1.47   $1.12    $1.21    $1.08     $1.00      -        -        -        -        -
- -----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of period ....................     $1.69   $1.47    $1.12    $1.21     $1.08      -        -        -        -        -
- -----------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of period
(000 omitted) ................    77,673  62,233   45,347   19,430     5,961      -        -        -        -        -    _
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ...........     1.00%   1.00%    1.00%    1.00%     1.00%      -        -        -        -        -
- -----------------------------------------------------------------------------------------------------------------------

Account 5 (investing in shares of Special Income Fund)
Accumulation unit value at
beginning of year ............     $3.53   $2.91   $3.06    $2.67    $2.46    $2.12    $2.05    $1.90    $1.74    $1.74
- -----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ......................     $3.73   $3.53   $2.91    $3.06    $2.67    $2.46    $2.12    $2.05    $1.90    $1.74
- -----------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................    24,424  23,903  21,936   23,259   16,710   12,228   10,315    9,301    7,891    8,093
- -----------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ...........     1.00%   1.00%   1.00%    1.00%    1.00%    1.00%    1.00%    1.00%    1.00%    1.00%    _
- ----------------------------------------------------------------------------------------------------------------------------

Account 6 (investing in shares of Moneyshare Fund)
Accumulation unit value at
beginning of year ............     $1.99   $1.91   $1.86    $1.83    $1.80    $1.71    $1.61     $1.49    $1.40    $1.33
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ......................     $2.07   $1.99   $1.91    $1.86    $1.83    $1.80    $1.71     $1.61    $1.49    $1.40
- ------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................     5,927   5,445   3,794    4,113    5,378    7,253    6,487     5,493    2,836    2,125
- ------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ...........     1.00%   1.00%   1.00%    1.00%    1.00%    1.00%    1.00%     1.00%    1.00%    1.00%
- ------------------------------------------------------------------------------------------------------------------------

Simple yield3 ................     3.83%   4.09%   4.39%    1.88%    1.77%    3.24%    6.20%     6.80%    7.30%    5.73%
- ------------------------------------------------------------------------------------------------------------------------

Compound yield3 ..............     3.90%   4.17%   4.48%    1.90%    1.78%    3.29%    6.39%     7.03%    7.57%    5.90%
- ------------------------------------------------------------------------------------------------------------------------

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PAGE 13
Account 94 (investing in shares of Managed Fund)
Accumulation unit value at
beginning of year ............     $2.57   $2.09   $2.21    $1.98    $1.86    $1.45    $1.42     $1.14    $1.06    $1.01
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ......................     $2.96   $2.57   $2.09    $2.21    $1.98    $1.86    $1.45     $1.42    $1.14    $1.06
- ------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................    75,219  72,999  66,800   50,761   31,828   20,105   15,292    12,248   11,920   12,219
- ------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ...........     1.00%   1.00%   1.00%    1.00%    1.00     1.00%    1.00%     1.00%    1.00%    1.00%
- ------------------------------------------------------------------------------------------------------------------------

Account 125 (investing in shares of Global Yield Fund)
Accumulation unit value at
beginning of year ............     $1.00       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ......................     $1.07       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................     2,311       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ...........     1.00%       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------

                                                                   Years Ended Dec. 31,
                                    1996   1995    1994     1993     1992     1991     1990     1989     1988     1987
- ----------------------------------------------------------------------------------------------------------------------

Account 135 (investing in shares of Income Advantage Fund)
Accumulation unit value at
beginning of year ............     $1.00       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ......................     $1.05       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................     4,671       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ...........     1.00%       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------

Account 145 (investing in shares of Growth Dimensions Fund)
Accumulation unit value at
beginning of year ............     $1.00       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ......................     $1.11       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................    27,817       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ...........     1.00%       -       -        -        -        -        -         -        -        -
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>

1 Account 10 commenced operations on Jan. 13, 1992.
2 Account 11 commenced operations on Jan. 13, 1992.
3 Net of annual contract administrative charge and mortality and expense risk 
  fee.
4 Account 9 commenced operations on April 30, 1986.
5 Accounts 12, 13 and 14 commenced operations on April 30, 1996

Financial statements

The SAI dated May 1, 1997, contains:

o       complete audited financial statements of the variable accounts
        including:
        - statements of net assets as of Dec. 31, 1996;
        - statements of operations for the year ended Dec. 31, 1996,
        except for IDS Life of New York Accounts 12, 13, and 14 which
        are for the period April 30, 1996 (commencement of operations)
        to Dec. 31, 1996; and
        - statements of changes in net assets for the years ended Dec.
        31, 1996 and Dec. 31, 1995, except for IDS Life of New York
        Accounts 12, 13, and 14 which are for the period April 30,
        1996 (commencement of operations) to Dec. 31, 1996.



<PAGE>



PAGE 14
o       complete audited financial statements for IDS Life of New York
        including:
        - balance sheets as of Dec. 31, 1996 and Dec. 31, 1995; and
        - related statements of income and cash flows for each of the
        three years in the period ended Dec. 31, 1996.

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 6 (investing in IDS Life 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) 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 6:  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 - For accounts  investing in income funds:  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 10 years (or
up to the life of the  account  if it is less than 10 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  average
annual  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 the value of an
investment over a specified  period of time  (reflecting  change in an account's
accumulation  unit value).  The calculation  assumes  reinvestment of investment
earnings and reflects the  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
aggregate  total return  quotations  may be made that do not reflect a surrender
charge deduction (assuming no surrender). 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


<PAGE>



PAGE 15
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.)

If you would like additional information about actual performance,  contact your
financial advisor.

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 of
                                  New York Account   Established

IDS Life Aggressive Growth Fund        11            Oct. 8, 1991
IDS Life International Equity Fund     10            Oct. 8, 1991
IDS Life Capital Resource Fund          4            Nov. 12, 1981
IDS Life Managed Fund                   9            Feb. 12, 1986
IDS Life Special Income Fund            5            Nov. 12, 1981
IDS Life Moneyshare Fund                6            Nov. 12, 1981
IDS Life Growth Dimensions Fund        14            April 17, 1996
IDS Life Global Yield Fund             12            April 17, 1996
IDS Life Income Advantage Fund         13            April 17, 1996

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.  Each variable
account's  net assets are held in relation to the  contracts  described  in this
prospectus as well as other  variable  annuity  contracts that we issue that are
not described in this  prospectus.  All obligations  arising under the contracts
are general obligations of IDS Life of New York.

All variable  accounts were  established  under New York 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

IDS Life 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.



<PAGE>



PAGE 16
IDS Life 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.

IDS Life Capital Resource Fund
Objective: capital appreciation.  Invests primarily in U.S. common
stocks and other securities convertible into common stock,
diversified over many different companies in a variety of
industries.

IDS Life Managed Fund
Objective: maximum total investment return.  Invests primarily in
U.S. common stocks, 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.

IDS Life 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.

IDS Life 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.

IDS Life Growth Dimensions Fund
Objective: long-term growth of capital.  Invests primarily in
common stocks of U.S. and foreign companies showing potential for
significant growth.

IDS Life Global Yield Fund
Objective: high total return through income and growth of capital.
Invests primarily in a non-diversified portfolio of debt securities
of U.S. and foreign issuers.

IDS Life Income Advantage Fund
Objective: high current income, with capital growth as a secondary
objective.  Invests in long-term, high-yielding, high-risk debt
securities below investment grade issued by U.S. and foreign
corporations.

More  comprehensive  information  regarding  each fund is  contained in the fund
prospectus. You should read the fund prospectus and consider carefully, and on a
continuing  basis,  which fund or  combination  of funds is best  suited to your
long-term investment needs. There is no assurance that the investment objectives
of the funds will be attained nor is there any guarantee that the contract



<PAGE>



PAGE 17
value will  equal or exceed the total  purchase  payments  made.  Some funds may
involve more risk than others--please monitor your investments accordingly.

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  that 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.

IDS Life is the investment  manager and AEFC is the investment  advisor for each
of the funds. IDS International, Inc., a wholly-owned subsidiary of AEFC, is the
sub-investment  advisor for IDS Life  International  Equity Fund. The investment
manager and advisors 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 of New
York at the address or telephone number on the front of this prospectus, or from
your financial advisor.

The fixed account

For the Combination Retirement Annuity contracts only.

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 of New York, 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


<PAGE>



PAGE 18
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.

Buying your annuity

Your financial advisor will help you prepare and submit your application for CRA
(VRA is no longer  being  sold) and send it along  with  your  initial  purchase
payment to our Albany office.  As the owner, you have all rights and may receive
all benefits under the contract.  The annuity can be owned in joint tenancy only
in spousal situations. Please remember that investment performance, expenses and
deduction of certain charges affect accumulation unit value.

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 business days after we receive it at our
Albany office. If your application is accepted,  we will send you a contract. If
we cannot accept your application  within five business days, we will decline it
and return your payment.  We will credit  additional  purchase  payments to your
account(s)  at the next  close of  business  after we receive  and  accept  your
payments at our Albany office.

The retirement date
Upon processing your  application,  we will establish the retirement date to the
maximum age or date as  specified  below.  You can also select a date within the
maximum limits. 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 annuity payouts begin.

For nonqualified annuities, the retirement date must be:

o       no earlier than the 60th day after the contract's effective
        date; and
o       no later than the annuitant's 85th birthday.

For  qualified  annuities,  to avoid IRS  penalty  taxes,  the  retirement  date
generally must be:

o       on or after the date the annuitant reaches age 59 1/2; and
o       for IRAs and SEPs, by April 1 of the year following the year
        when the annuitant reaches age 70 1/2;


<PAGE>



PAGE 19
o       for all other qualified annuities,  by April 1 of the year following the
        calendar  year  when the  annuitant  reaches  age 70 1/2 or,  if  later,
        retires; except that 5% business owners may not select a retirement date
        that is later than April 1 of the year  following the calendar year when
        they reach age 70 1/2.

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 "Benefits 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.

For the Combination Retirement Annuity

If installment payments

$50 monthly; $23.08 biweekly

Installments must total $600 in the first year.*

*If you make no purchase payments for 36 months and your previous payments total
$600 or less, we have the right to give you 30 days' written  notice and pay you
the total value of your annuity in a lump sum.

Maximum payment(s)**

Nonqualified:
  first year:  $25,000
  subsequent years:  two times initial gross premium

Qualified:  two times initial gross premium (subject to any IRS
  limits)

**These  limits apply in total to all IDS Life of New York 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.

How to make purchase payments

1    By letter

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

Regular mail:

IDS Life Insurance Company of New York
Box 5144
Albany, NY  12205



<PAGE>



PAGE 20
Express mail:

IDS Life Insurance Company of New York
20 Madison Avenue Extension
Albany, NY  12203

2    By scheduled payment plan

Your financial advisor 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 from
each VRA contract or $30 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 mortality risk and expense risk and is applied daily to
the variable  accounts and  reflected  in the unit values of the  accounts.  The
variable  accounts pay this fee at the time that dividends are distributed  from
the funds in which they  invest.  Annually,  the fee  totals 1% of the  variable
accounts' 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 the fixed account.

Mortality  risk arises  because of our  guarantee to pay a death benefit and our
guarantee to make annuity  payouts  according to the terms of the  contract,  no
matter  how long a  specific  annuitant  lives and no matter how long the entire
group of IDS Life of New York annuitants  live. If, as a group,  IDS Life of New
York  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 of New York 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.



<PAGE>



PAGE 21
We may use any profits  realized from the mortality and expense risk fee for any
proper  corporate  purpose,  including,  among others,  payment of  distribution
(selling) expenses. We do not expect that the surrender charge, discussed in the
following paragraphs, will cover sales and distribution expenses.

Surrender charge
If you surrender 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.



<PAGE>



PAGE 22
Example of withdrawal charge:
You request a $1,000 partial withdrawal, and the withdrawal charge is 5%:

    $1,000 partial withdrawal = $1,052.63
              .95

Total amount withdrawn............ $1,052.63
                                   x     .05
Total withdrawal charge........... $   52.63

We will not increase the surrender charges during the term of the contract.

Other information on charges: AEFC makes certain custodial services available to
some  custodial and trusteed  pension and profit  sharing plans and 401(k) plans
funded by IDS Life of New York  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.

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  (including the contract
administrative charge).

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:



<PAGE>



PAGE 23
Number of units
To  calculate  the number of  accumulation  units for a particular  account,  we
divide your investment, 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.

Because the net asset value of the  underlying  mutual fund may  fluctuate,  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
   account(s);
o transfers  into or out of the variable  account(s);  
o partial  surrenders;  
o surrender charges; and/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;  and/or 
o mortality and expense risk fees.

Making the most of your annuity

Automated dollar-cost averaging
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


<PAGE>



PAGE 24
the market value falls,  fewer units when it rises.  The potential  effect is to
lower the average cost per unit.  For specific  features  contact your financial
advisor.

How dollar-cost averaging works

         Amount      Accumulation    Number of units
Month    invested    unit value      purchased

Jan      $100          $20           5.00
Feb       100           18           5.56
March     100           17           5.88
April     100           15           6.67
May       100           16           6.25
June      100           18           5.56
July      100           17           5.88
Aug       100           19           5.26
Sept      100           21           4.76
Oct       100           20           5.00

(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 September) and fewer units when the per unit market
price is high.

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

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

Transferring money between accounts
You may  transfer  money from one account,  including  CRA's 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.

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.



<PAGE>



PAGE 25
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  variable  account back to
        the fixed account until the 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.

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

o       Once annuity  payouts  begin,  no  transfers  may be made to or from the
        fixed  account,  but  transfers may be made once per contract year among
        the variable  accounts.  During the annuity payout period, you cannot be
        invested in more than five  variable  accounts at any one time unless we
        agree otherwise.

How 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 of New York
Box 5144
Albany, NY  12205

Express mail:
IDS Life Insurance Company of New York
20 Madison Ave. Extension
Albany, NY  12203

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)



<PAGE>



PAGE 26
2    By automated transfers and automated partial surrenders

Your  financial  advisor  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 of New  York.  You  must  allow 30 days for IDS Life of New York to
change any instructions that are currently in place.

o  Automated  transfers from the 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 the 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 to IDS Life of New York. 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.

Receiving payment when you request a surrender

By regular or express mail:

o       payable to owner;

o       mailed to address of record.



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PAGE 27
NOTE:  You will be charged a fee if you request express mail
delivery.

By wire:

o       request that payment be wired to your bank;

o       bank account must be in the same ownership as your contract;

o       pre-authorization required.  For instructions, contact your
        financial advisor.

Payment  normally will be sent within seven days after  receiving  your request.
However, we may postpone the payment if:
  o     the surrender amount includes a purchase payment check that
        has not cleared;
  o     the NYSE is closed, except for normal holiday and weekend
        closings;
  o     trading on the NYSE is restricted, according to SEC rules;
  o     an emergency, as defined by SEC rules, makes it impractical to
        sell securities or value the net assets of the accounts; or
  o     the SEC permits us to delay payment for the protection of
        security holders.

TSA special surrender provisions

Participants in Tax-Sheltered  Annuities:  The Code imposes certain restrictions
on your right 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.


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PAGE 28
o  If the contract has a loan  provision,  the right to receive a loan from your
   fixed  account 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.

Changing ownership

You may change  ownership of your  nonqualified  annuity at any time by filing a
change of ownership with us at our Albany 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  nonqualified  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 of New York. 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.

If your  spouse is sole  beneficiary  under a  nonqualified  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 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 or any other
date  permitted  by the  Code.  To do this,  the  spouse  must  give us  written
instructions within 60 days after we receive proof of death.



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PAGE 29
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, or other date
   as permitted by the Code; 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; and
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.)

For information with respect to transfers between accounts after annuity payouts
begin, see "Transfer policies."

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.



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PAGE 30
o Plan B - Life annuity with five, 10 or 15 years certain:  Monthly  payouts are
made for a guaranteed payout period of five, 10 or 15 years that you elect. This
election will  determine the length of the payout period to the  beneficiary  if
the annuitant  should die before the elected period 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  while both the  annuitant  and a joint  annuitant  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:  Monthly payouts are
made for a specific payout period of 10 to 30 years that you elect.
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.")

Restrictions 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.

If we do not receive instructions: You must give us written instructions for the
annuity payouts at least 30 days before the annuitant's  retirement date. If you
do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed.

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.



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PAGE 31
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.

Taxes

Generally,  under current law, any increase in your contract value is taxable to
you only when you  receive  a payout  or  surrender.  (See  detailed  discussion
below.) Any portion of the annuity  payouts and any  surrenders you request that
represent  ordinary  income are  normally  taxable.  You will receive a 1099 tax
information form for any year in which a taxable distribution was made according
to our records.

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

Tax law requires that all nonqualified  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  immediately before the surrender exceeds your investment.  You
also may have to pay a 10% IRS penalty for  surrenders  before  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 payouts.

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 payment(s).

Annuities  owned by  corporations,  partnerships  or  trusts:  For  nonqualified
annuities,  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.


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PAGE 32
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
payout. 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. If this should be the case, any payment from which
federal withholding is deducted may also have state withholding deducted.

The withholding  requirements  may differ if payment is being made to a non-U.S.
citizen or if the payment is being delivered outside the United States.

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;


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PAGE 33
o       the payout is one in a series of substantially  equal periodic  payouts,
        made at least annually,  over your life or life expectancy (or the joint
        lives or life  expectancies of you and your  designated  beneficiary) or
        over a specified period of 10 years or more; or
o       the 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 mandatory 20% income tax withholding.

State withholding also may be imposed on taxable distributions.

Transfer of ownership  of a  nonqualified  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 for income tax  purposes,  the amount of deferred
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.

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

Important: Our discussion of federal tax laws is based upon our understanding of
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 advisor if you have any questions about taxation of your contract.

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

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 is determined by applying the
percentage  interest  in each  variable  account  to the  total  number of votes
allowed to the account.


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PAGE 34
After annuity payouts begin, the number of votes 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 annuity  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.

Distribution of the contracts

American  Express  Financial  Advisors Inc., a registered  broker/dealer  and an
affiliate of IDS Life of New York, is the sole distributor of the contract.  IDS
Life of New York pays  total  commissions  of up to 7.0% of the  total  purchase
payments  received on the contracts.  A portion of this total commission is paid
to district managers and field vice presidents of the selling representative.

About IDS Life of New York

The  Variable  Retirement  Annuity and the  Combination  Retirement  Annuity are
issued  by IDS  Life  of New  York.  IDS  Life  of New  York  is a  wholly-owned
subsidiary  of IDS Life which itself is a  wholly-owned  subsidiary  of American
Express Financial Corporation. AEFC is a wholly-owned subsidiary of the American
Express  Company.  American  Express  Company is a  financial  services  company
principally engaged through subsidiaries (in addition to AEFC) in travel related
services, investment services and international banking services.

IDS Life of New York is a stock life insurance  company  organized in 1972 under
the laws of the  State of New York.  Our home  office  is at 20  Madison  Avenue
Extension,  Albany,  New York. Our address for mail is P.O. Box 5144, Albany, NY
12205.  IDS Life of New York is  licensed  in New York and North  Dakota  and we
conduct a conventional life insurance business in the state of New York.

American Express Financial Advisors Inc. offers mutual funds,
investment certificates and a broad range of financial management
services.  IDS Life of New York offers insurance and annuities.

American Express Financial Advisors Inc. serves individuals and
businesses through its nationwide network of more than 175 offices
and more than 7,800 financial advisors.


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PAGE 35
Other  subsidiaries  provide  investment  management and related37  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, we provide:

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 advisor.



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PAGE 36
Table of contents of the Statement of Additional Information

Performance information....................... 3
Calculating annuity payouts................... 6
Rating agencies............................... 7
Principal underwriter......................... 8
Independent auditors.......................... 8
Prospectus.................................... 8
Financial  statements - IDS Life of New York Accounts 4, 5, 6, 9, 10, 11, 12, 13
     and 14 IDS Life Insurance Company of New York

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

_____ IDS Life of New York Variable Retirement and Combination
      Retirement Annuities

_____ IDS Life Retirement Annuity Mutual Funds

Please return this request to:

IDS Life of New York Annuity Service
IDS Life Insurance Company of New York
P.O. Box 5144
Albany, NY  12205

Your name _______________________________________________________

Address _________________________________________________________

City ______________________  State ______________ Zip ___________




<PAGE>



PAGE 37

















                       STATEMENT OF ADDITIONAL INFORMATION

                                       for

            VARIABLE RETIREMENT AND COMBINATION RETIREMENT ANNUITIES


          IDS LIFE OF NEW YORK ACCOUNTS 4, 5, 6, 9, 10, 11, 12, 13 and
                                       14

                                   May 1, 1997


IDS Life of New York  Accounts  4, 5, 6, 9, 10, 11,  12, 13 and 14 are  separate
accounts  established  and maintained by IDS Life Insurance  Company of New York
(IDS Life of New York).

This  Statement  of  Additional  Information,  dated  May  1,  1997,  is  not  a
prospectus. It should be read together with the accounts' prospectus,  dated May
1, 1997,  which may be obtained from your  financial  advisor,  or by writing or
calling IDS Life of New York Annuity Service at the address or telephone  number
below.



IDS Life of New York Annuity Service
20 Madison Avenue Extension
Albany, NY 12203
(518) 869-8613




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PAGE 38
                                         TABLE OF CONTENTS

Performance Information.......................................p. 3

Calculating Annuity Payouts...................................p. 6

Rating Agencies...............................................p. 7

Principal Underwriter.........................................p. 8

Independent Auditors..........................................p. 8

Prospectus....................................................p. 8

Financial Statements
     - IDS Life of New York Accounts 4, 5, 6, 9, 10, 11, 12, 13 and 14
     - IDS Life Insurance Company of New York



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PAGE 39
PERFORMANCE INFORMATION

Calculation of yield for Account 6

IDS Life of New York  Account 6,  which  invests  in IDS Life  Moneyshare  Fund,
calculates  an annualized  simple yield and 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 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, 1996, the account's annualized simple yield was 3.83%
and its compound yield was 3.90%.

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 6 with fixed annuities,  that
fixed  annuities  often  provide an  agreed-to or  guaranteed  fixed yield for a
stated  period of time,  whereas the variable  account's  yield  fluctuates.  In
comparing the yield of Account 6 to a money market fund, you should consider the
different services that the annuity provides.

Calculation of yield for accounts investing in income funds

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:



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PAGE 40
                                        YIELD = 2[(a-b + 1)6- 1]
                                                cd

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.

On Dec. 31, 1996, the annualized yield for Account 5 was 7.68% for
Account 12 2.79% and for Account 13 9.32%.

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 ten 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).




<PAGE>



PAGE 41
The  following  performance  figures are  calculated  on the basis of historical
performance of the funds.

                   Average Annual Total Return For Period Ended:  Dec. 31, 1996

Average Annual Total Return with Surrender

<TABLE>
<CAPTION>
                                                                                     Since
Account investing in:                     1 Year        5 Year       10 Year       Inception
- --------------------

IDS Life
<S>                                      <C>            <C>           <C>             <C>   
  Aggressive Growth Fund (1/92)*          7.96%             -%            -%           10.09%
  Capital Resource Fund (10/81)          -0.21           6.21         12.27                -
  International Equity Fund (1/92)        1.38              -             -             7.33
  Managed Fund (4/86)                     8.72           8.67         11.28                -
  Moneyshare Fund (10/81)                -3.09           1.61          4.44                -
  Special Income Fund (10/81)            -1.20           7.45          7.76                -
  Growth Dimensions Fund (4/96)              -              -             -             3.83
  Global Yield Fund (4/96)                   -              -             -             0.14
  Income Advantage Fund (4/96)               -              -             -            -2.05

Average Annual Total Return without Surrender

                                                                                     Since
Account Investing in:                     1 Year        5 Year       10 Year       Inception
- --------------------

IDS Life
  Aggressive Growth Fund (1/92)           14.96%            -%            -%           11.03%
  Capital Resource Fund (10/81)            6.79          7.29         12.27                -
  International Equity Fund (1/92)         8.38             -             -             8.37
  Managed Fund (4/86)                     15.72          9.66         11.28                -
  Moneyshare Fund (10/81)                  3.91          2.89          4.44                -
  Special Income Fund (10/81)              5.80          8.48          7.76                -
  Growth Dimensions Fund (4/96)               -             -             -            10.83
  Global Yield Fund (4/96)                    -             -             -             7.14
  Income Advantage Fund (4/96)                -             -             -             4.95
</TABLE>

  * inception dates of the funds are shown in parentheses

Aggregate total return

Aggregate  total  return  represents  the  cumulative  change in the value of an
investment over a specified  period of time  (reflecting  change in an account's
accumulation unit value) and is computed by the following formula:

                               ERV - P
                                  P

where:       P = a hypothetical initial payment of $1,000.
           ERV = Ending Redeemable Value of a hypothetical $1,000
                 payment made at the beginning of 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).

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.  In addition,  performance figures may
be shown without the deduction of a surrender charge.



<PAGE>



PAGE 42
Total return figures reflect the deduction of all applicable  charges  including
the contract administrative charge and mortality and expense risk fee.

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, CDA Technologies,  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, Morningstar, 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.

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.

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



<PAGE>



PAGE 43
that the  contract  value is invested  at the  beginning  of the annuity  payout
period and earns a 3.5% rate of return, which is reinvested and helps to support
future payouts.

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
3.5%, the neutralizing factor is 0.999906 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 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.

RATING AGENCIES

The  following  chart  reflects  the  ratings  given  to IDS Life of New York by
independent rating agencies. These agencies evaluate the financial soundness and
claims-paying  ability of  insurance  companies  based on a number of  different
factors.  This  information  does not relate to the management or performance of
the variable accounts of the annuity. This information relates only to the



<PAGE>



PAGE 44
fixed  account  and  reflects  IDS Life of New York's  ability  to make  annuity
payouts and to pay death benefits and other distributions from the annuity.

Rating agency            Rating

A.M. Best                  A+
                       (Superior)

Duff & Phelps             AAA

Moody's                   Aa2

PRINCIPAL UNDERWRITER

The  principal  underwriter  for the  accounts  is  American  Express  Financial
Advisors Inc. which offers the variable annuities on a continuous basis.

Surrender  charges  received  by IDS Life of New York for  1996,  1995 and 1994,
aggregated $551,374, $464,724, and $269,273,  respectively.  Commissions paid by
IDS Life of New York for 1996, 1995 and 1994, aggregated  $1,036,511,  $681,615,
and $1,130,352,  respectively. The surrender charges were applied toward payment
of commissions.

INDEPENDENT AUDITORS

The  financial  statements  of IDS Life of New York Accounts 4, 5, 6, 9, 10, 11,
12, 13 and 14,  including the  statements of net assets as of December 31, 1996,
and the related statements of operations for the year then ended, except for IDS
Life of New York  Accounts 12, 13 and 14 which are for the period April 30, 1996
(commencement of operations) to December 31, 1996 and the related  statements of
changes in net assets for each of the two years in the period then ended, except
for IDS Life of New York  Accounts  12, 13 and 14 which are for the period April
30, 1996  (commencement  of  operations)  to December 31, 1996 and the financial
statements of IDS Life Insurance Company of New York as of December 31, 1996 and
1995,  and for each of the three years in the period  ended  December  31, 1996,
appearing  in this SAI,  have been  audited  by Ernst & Young  LLP,  independent
auditors, as stated in their reports appearing herein.

PROSPECTUS

The prospectus  dated May 1, 1997, is hereby  incorporated  in this Statement of
Additional Information by reference.


<PAGE>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14


Annual Financial Information

Report of Independent Auditors

The Board of Directors
IDS Life Insurance Company of New York

We have  audited the  accompanying  individual  and combined  statements  of net
assets of IDS Life of New York  Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14 as of
December 31, 1996,  and the related  statements of operations  for the year then
ended, except for Accounts 12, 13 and 14 which are for the period April 30, 1996
(commencement of operations) to December 31, 1996, and the statements of changes
in net  assets for each of the two years in the period  then  ended,  except for
Accounts 12, 13 and 14 which are for the period April 30, 1996  (commencement of
operations)  to  December  31,  1996.   These   financial   statements  are  the
responsibility  of the management of IDS Life Insurance Company of New York. Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned at December 31, 1996 with the affiliated mutual
fund manager.  An audit also includes  assessing the accounting  principles used
and significant estimates made by management,  as well as evaluating the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the individual and combined  financial  position of IDS
Life of New York  Accounts  4, 10,  11, 5, 6, 9, 12, 13 and 14 at  December  31,
1996, and the individual and combined results of their operations and changes in
their net assets for the periods  described  above, in conformity with generally
accepted accounting principles.


ERNST & YOUNG LLP
Minneapolis, Minnesota
March 21, 1997

<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14                                                         
- -------------------------------------------------------------------------------------------------------------------------
Statements of Net Assets                                                                                  Dec. 31, 1996

                                                                          Segregated Asset Account        
                                                -------------------------------------------------------------------------
Assets                                                4             10              11              5             6      
                                                                                                                         
- -------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>            <C>            <C>            <C>            <C>          
Investments in shares of mutual funds,
at market value:
IDS Life Capital Resource Fund -
9,296,157 shares at net asset value
of  $23.68 per share  (cost $221,823,927) ...   $220,112,291   $         --     $       --     $       --     $       --   
IDS Life International Equity Fund -
8,460,137 shares at net asset value
of  $13.77 per share  (cost $104,618,790) ...             --    116,517,540             --             --             --   
IDS Life Aggressive Growth Fund -
8,375,263 shares at net asset value
of  $15.66 per share  (cost $108,479,787) ...             --             --    131,159,892             --             --   
IDS Life Special Income Fund -
7,690,600 shares at net asset value
of  $11.90 per share  (cost $87,503,384) ....             --             --             --     91,492,614             --   
IDS Life Moneyshare Fund, Inc. -
12,366,654 shares at net asset value
of  $1.00 per share  (cost $12,364,374) .....             --             --             --             --     12,366,659
IDS Life Manged Fund, Inc. -
13,381,220 shares at net asset value
of  $16.77 per share  (cost $185,133,073) ...             --             --             --             --             --   
IDS Life Global Yield Fund -
236,119 shares at net asset value
of  $10.49 per share  (cost $2,399,519) .....             --             --             --             --             --   
IDS Life Income Advantage Fund -
488,904 shares at net asset value
of  $10.04 per share  (cost $4,830,882) .....             --             --             --             --             --   
IDS Life Growth Dimensions Fund -
2,783,508 shares at net asset value
of  $11.11 per share  (cost $29,561,245) ....             --             --             --             --             --
- ------------------------------------------------------------------------------------------------------------------------
                                                 220,112,291    116,517,540    131,159,892     91,492,614     12,366,659
- ------------------------------------------------------------------------------------------------------------------------
Dividends receivable ........................             --             --             --        575,496         49,582
Accounts receivable from IDS Life of New York
for contract purchase payments ..............         51,509         33,654         25,757          6,414        452,379
Receivable from mutual funds for
share redemptions ...........................        282,812         84,551         83,943         44,198             --  
- ------------------------------------------------------------------------------------------------------------------------
Total assets ................................    220,446,612    116,635,745    131,269,592     92,118,722     12,868,620
- ------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------
Payable to IDS Life of New York for:
Mortality and expense risk fee ..............        193,324        101,548        113,945         80,388         10,329
Contract terminations .......................        282,812         84,551         83,943         44,198             --  
Payable to mutual funds for investments
   purchased ................................         51,509         33,655         25,756        501,522        492,633
- ------------------------------------------------------------------------------------------------------------------------
Total liabilities ...........................        527,645        219,754        223,644        626,108        502,962
- ------------------------------------------------------------------------------------------------------------------------
Net assets applicable to contracts in
   accumulation period ......................    219,568,659    116,414,351    130,982,792     91,167,981     12,263,241
Net assets applicable to contracts in
   payment period ...........................        350,308          1,640         63,156        324,633        102,417
- ------------------------------------------------------------------------------------------------------------------------
Total net assets ............................   $219,918,967   $116,415,991   $131,045,948   $ 91,492,614   $ 12,365,658
- ------------------------------------------------------------------------------------------------------------------------
Accumulation units outstanding ..............     47,282,795     77,830,409     77,672,683     24,424,365      5,926,901
- ------------------------------------------------------------------------------------------------------------------------
Net asset value per accumulation unit ......           $4.64          $1.50          $1.69          $3.73          $2.07
- ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14                                                        
- ------------------------------------------------------------------------------------------------------------------------
Statements of Net Assets (continued)                                                                       Dec. 31, 1996

                                                                 Segregated Asset Account                       Combined
                                               ----------------------------------------------------------       Variable
                                                     9              12             13            14              Account
- ------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>            <C>            <C>            <C>            <C>          
Investments in shares of mutual funds,
at market value:
IDS Life Capital Resource Fund -
9,296,157 shares at net asset value
of  $23.68 per share  (cost $221,823,927) ...   $         --     $       --     $       --     $       --   $220,112,291
IDS Life International Equity Fund -
8,460,137 shares at net asset value
of  $13.77 per share  (cost $104,618,790) ...             --             --             --             --    116,517,540
IDS Life Aggressive Growth Fund -
8,375,263 shares at net asset value
of  $15.66 per share  (cost $108,479,787) ...             --             --             --             --    131,159,892
IDS Life Special Income Fund -
7,690,600 shares at net asset value
of  $11.90 per share  (cost $87,503,384) ....             --             --             --             --     91,492,614
IDS Life Moneyshare Fund, Inc. -
12,366,654 shares at net asset value
of  $1.00 per share  (cost $12,364,374) .....             --             --             --             --     12,366,659
IDS Life Manged Fund, Inc. -
13,381,220 shares at net asset value
of  $16.77 per share  (cost $185,133,073) ...    224,451,184             --             --             --    224,451,184
IDS Life Global Yield Fund -
236,119 shares at net asset value
of  $10.49 per share  (cost $2,399,519) .....             --      2,477,817             --             --      2,477,817
IDS Life Income Advantage Fund -
488,904 shares at net asset value
of  $10.04 per share  (cost $4,830,882) .....             --             --      4,906,891             --      4,906,891
IDS Life Growth Dimensions Fund -
2,783,508 shares at net asset value
of  $11.11 per share  (cost $29,561,245) ....             --             --             --     30,924,903     30,924,903
- ------------------------------------------------------------------------------------------------------------------------
                                                 224,451,184      2,477,817      4,906,891     30,924,903    834,409,791
- ------------------------------------------------------------------------------------------------------------------------
Dividends receivable ........................           --            5,376         35,654             --        666,108
Accounts receivable from IDS Life of New York
for contract purchase payments ..............         95,182          8,381         11,055         15,035        699,366
Receivable from mutual funds for
share redemptions ...........................            135             --             --         33,074        528,713
- ------------------------------------------------------------------------------------------------------------------------
Total assets ................................    224,546,501      2,491,574      4,953,600     30,973,012    836,303,978
- ------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------
Payable to IDS Life of New York for:
Mortality and expense risk fee ..............        196,435          2,050          4,121         25,400        727,540
Contract terminations .......................            135             --             --         33,074        528,713
Payable to mutual funds for investments
   purchased ................................         95,182         11,707         42,586         15,036      1,269,586
- ------------------------------------------------------------------------------------------------------------------------
Total liabilities ...........................        291,752         13,757         46,707         73,510      2,525,839
- ------------------------------------------------------------------------------------------------------------------------
Net assets applicable to contracts in
   accumulation period ......................    222,678,072      2,474,841      4,906,893     30,822,712    831,279,542
Net assets applicable to contracts in
   payment period ...........................      1,576,677          2,976             --         76,790      2,498,597
- ------------------------------------------------------------------------------------------------------------------------
Total net assets ............................   $224,254,749   $  2,477,817   $  4,906,893   $ 30,899,502   $833,778,139
- ---------------------------------------------------------------------------------------------------------
Accumulation units outstanding ..............     75,218,566      2,311,440      4,671,075     27,817,069
- ---------------------------------------------------------------------------------------------------------
Net asset value per accumulation unit ......           $2.96          $1.07          $1.05          $1.11
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ----------------------------------------------------------------------------------------------------------------------------------
Statements of Operations                                                                                  Year ended Dec. 31, 1996

                                                                                     Segregated Asset Account
                                                            ----------------------------------------------------------------------
Investment Income                                                 4              10            11              5             6

- ----------------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>             <C>           <C>            <C>             <C>       
Dividend income from mutual funds ......................   $ 34,766,577    $ 4,041,729   $ 13,550,738   $  6,849,609    $  548,659
Mortality and expense risk fee .........................      2,198,649      1,061,164      1,169,568        893,306       112,057
- ----------------------------------------------------------------------------------------------------------------------------------
Investment income (loss) - net .........................     32,567,928      2,980,565     12,381,170      5,956,303       436,602
- ----------------------------------------------------------------------------------------------------------------------------------

Realized and Unrealized Gain (Loss) on Investments - net

- ----------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on sales of investments
in mutual funds:
Proceeds from sales ....................................     13,175,154        879,002      1,327,697      5,967,130     7,658,767
Cost of investments sold ...............................     11,982,866        795,929      1,028,550      5,767,665     7,657,565
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments .......................      1,192,288         83,073        299,147        199,465         1,202
- ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation of investments ............................    (19,655,157)     5,168,183      2,596,119       (968,877)         (169)
- ----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments .........................    (18,462,869)     5,251,256      2,895,266       (769,412)        1,033
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase from operations ...........................   $ 14,105,059    $ 8,231,821   $ 15,276,436   $  5,186,891    $  437,635
- ----------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14                                                               
- -------------------------------------------------------------------------------------------------------------------------------
Statements of Operations (continued)                                                                   Year ended Dec. 31, 1996
                                                                    Segregated Asset Account
                                                           -------------------------------------------------------     Combined
Investment Income                                               9              12*         13*            14*          Variable
                                                                                                                        Account
- -------------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>           <C>           <C>           <C>            <C>        
Dividend income from mutual funds ......................   $19,241,896   $    32,460   $   133,975   $    65,957    $79,231,600
Mortality and expense risk fee .........................     2,096,584        11,631        15,866        81,681      7,640,506
- -------------------------------------------------------------------------------------------------------------------------------
Investment income (loss) - net .........................    17,145,312        20,829       118,109       (15,724)    71,591,094
- -------------------------------------------------------------------------------------------------------------------------------

Realized and Unrealized Gain (Loss) on Investments - net
- -------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on sales of investments
in mutual funds:
Proceeds from sales ....................................     7,861,652       100,199        39,008        23,151     37,031,760
Cost of investments sold ...............................     6,472,998        98,943        38,701        22,402     33,865,619
- -------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments .......................     1,388,654         1,256           307           749      3,166,141
- -------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation of investments ............................    12,125,056        78,298        76,009     1,363,658        783,120
- -------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments .........................    13,513,710        79,554        76,316     1,364,407      3,949,261
- -------------------------------------------------------------------------------------------------------------------------------
Net increase from operations ...........................   $30,659,022   $   100,383   $   194,425   $ 1,348,683    $75,540,355
- -------------------------------------------------------------------------------------------------------------------------------
*For the period April 30, 1996 (commencement of operations) to Dec. 31, 1996.
See accompanying notes to financial statements.

</TABLE>


<PAGE>

<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ----------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets

                                                                            Segregated Asset Account
                                                 ---------------------------------------------------------------------------------
Operations                                             4                 10              11                5               6

- ----------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>              <C>              <C>              <C>              <C>          
Investment income (loss) - net ...............   $  32,567,928    $   2,980,565    $  12,381,170    $   5,956,303    $     436,602
Net realized gain on investments .............       1,192,288           83,073          299,147          199,465            1,202
Net change in unrealized appreciation or
depreciation of investments ..................     (19,655,157)       5,168,183        2,596,119         (968,877)            (169)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase from operations .................      14,105,059        8,231,821       15,276,436        5,186,891          437,635
- ----------------------------------------------------------------------------------------------------------------------------------
Contract Transactions
- ----------------------------------------------------------------------------------------------------------------------------------
Variable annuity contract purchase payments ..      20,330,907       12,049,591       13,404,656       10,398,139        8,607,758
Net transfers**...............................       1,600,158       12,202,696       15,280,912       (2,184,401)      (6,469,416)
Loan repayments ..............................         202,501          103,529          109,247           54,947           63,917
Annuity payments .............................         (15,604)          (2,155)          (1,422)         (15,209)              --
Contract charges .............................        (202,297)         (93,716)        (100,503)         (71,767)          (7,431)
Contract terminations:
Surrender benefits ...........................     (10,133,424)      (3,283,391)      (3,668,917)      (5,387,735)        (986,101)
Death benefits ...............................      (1,010,404)        (445,933)        (490,164)        (969,384)        (148,200)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase from contract transactions...........      10,771,837       20,530,621       24,533,809        1,824,590        1,060,527
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets at beginning of year ..............     195,042,071       87,653,549       91,235,703       84,481,133       10,867,496
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year ....................   $ 219,918,967    $ 116,415,991    $ 131,045,948    $  91,492,614    $  12,365,658
- ----------------------------------------------------------------------------------------------------------------------------------
Accumulation Unit Activity
- ----------------------------------------------------------------------------------------------------------------------------------
Units outstanding at beginning of year .......      44,849,219       63,576,047       62,233,323       23,903,081        5,445,411
Contract purchase payments ...................       4,567,169        8,408,019        8,509,131        2,970,770        4,416,368
Net transfers**...............................         404,594        8,480,752        9,621,711         (594,109)      (3,159,416)
Transfers for policy loans ...................          45,098           71,375           68,531           15,495           31,550
Contract charges .............................         (45,712)         (65,492)         (63,531)         (20,385)          (3,814)
Contract terminations:
Surrender benefits ...........................      (2,293,619)      (2,289,122)      (2,326,635)      (1,565,420)        (731,034)
Death benefits ...............................        (243,954)        (351,170)        (369,847)        (285,067)         (72,164)
- ----------------------------------------------------------------------------------------------------------------------------------
Units outstanding at end of year .............      47,282,795       77,830,409       77,672,683       24,424,365        5,926,901
- ----------------------------------------------------------------------------------------------------------------------------------
**Includes transfer activity from (to) other Accounts and transfers (from) to IDS Life of New York for conversion from (to) 
 Fixed Account.
See accompanying notes to financial statements.
</TABLE>

<PAGE>


<TABLE>
<CAPTION>

IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ----------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)                                                           Year ended Dec. 31, 1996

                                                                Segregated Asset Account
                                                 -----------------------------------------------------------------        Combined
Operations                                               9               12*            13*              14*              Variable
                                                                                                                           Account
- ----------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>              <C>             <C>               <C>              <C>          
Investment income (loss) - net ...............   $  17,145,312    $      20,829   $      118,109    $     (15,724)   $  71,591,094
Net realized gain on investments .............       1,388,654            1,256              307              749        3,166,141
Net change in unrealized appreciation or
depreciation of investments ..................      12,125,056           78,298           76,009        1,363,658          783,120
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase from operations .................      30,659,022          100,383          194,425        1,348,683       75,540,355
- ----------------------------------------------------------------------------------------------------------------------------------
Contract Transactions
- ----------------------------------------------------------------------------------------------------------------------------------
Variable annuity contract purchase payments ..      14,199,518          729,261        1,221,447        4,412,059       85,353,336
Net transfers**...............................       3,533,766        1,658,796        3,530,908       25,471,387       54,624,806
Loan repayments ..............................         250,240              515              663           11,905          797,464
Annuity payments .............................         (53,767)              --               --           (1,152)         (89,309)
Contract charges .............................        (185,940)            (363)            (773)          (5,767)        (668,557)
Contract terminations:
Surrender benefits ...........................     (10,923,388)         (10,775)         (39,777)        (337,613)     (34,771,121)
Death benefits ...............................      (1,123,893)              --               --               --       (4,187,978)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase from contract transactions...........       5,696,536        2,377,434        4,712,468       29,550,819      101,058,641
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets at beginning of year ..............     187,899,191               --               --               --      657,179,143
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year ....................   $ 224,254,749    $   2,477,817    $   4,906,893    $  30,899,502    $ 833,778,139
- ----------------------------------------------------------------------------------------------------------------------------------
Accumulation Unit Activity
- -----------------------------------------------------------------------------------------------------------------
Units outstanding at beginning of year .......      72,999,139             --               --               --
Contract purchase payments ...................       5,336,610          723,874        1,249,285        4,300,482
Net transfers**...............................       1,346,249        1,611,211        3,491,927       23,898,488
Transfers for policy loans ...................          92,249              483              638           10,893
Contract charges .............................         (69,479)            (348)            (762)          (5,376)
Contract terminations:
Surrender benefits ...........................      (4,029,397)         (23,780)         (70,013)        (387,418)
Death benefits ...............................        (456,805)            --               --               --
- -----------------------------------------------------------------------------------------------------------------
Units outstanding at end of year .............      75,218,566        2,311,440        4,671,075       27,817,069
- -----------------------------------------------------------------------------------------------------------------
*For the period April 30, 1996 (commencement of operations) to Dec. 31, 1996.
**Includes transfer activity from (to) other Accounts and transfers (from) to IDS Life of New York for conversion from (to) 
 Fixed Account.
See accompanying notes to financial statements.

</TABLE>



<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- -------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets                                                                    Year ended Dec. 31, 1995

                                                        Segregated Asset Account                                       Combined
                      ------------------------------------------------------------------------------------------       Variable
Operations                   4               10            11             5                6             9              Annuity
- -------------------------------------------------------------------------------------------------------------------------------
<S>                   <C>              <C>           <C>            <C>              <C>           <C>             <C>
Investment income
(loss) - net.......   $ 18,196,363     $   973,652   $  (193,808)   $ 5,073,198      $  377,541    $  2,853,713    $ 27,280,659
Net realized gain
(loss) on
investments........         87,786         (57,081)       87,529        (72,398)         (2,449)        146,673         190,060
Net change in
unrealized appreciation
or depreciation
of investments.....     19,556,680       6,954,573    18,746,495      8,858,427           2,447      30,533,716      84,652,338
- -------------------------------------------------------------------------------------------------------------------------------
Net increase
from operations....     37,840,829       7,871,144    18,640,216     13,859,227         377,539      33,534,102     112,123,057
- -------------------------------------------------------------------------------------------------------------------------------
Contract Transactions
- -------------------------------------------------------------------------------------------------------------------------------
Variable annuity contract
purchase payments..     17,774,286       9,647,212     9,970,694      8,824,370       5,766,036      13,779,392      65,761,990
Net transfers*.....     15,429,827       8,077,120    13,841,579      1,677,378      (1,624,726)      7,758,872      45,160,050
Loan repayments....        119,341          49,312        56,943         43,465           7,715         108,253         385,029
Annuity payments            (7,054)           (904)          (66)        (4,097)             --         (24,947)        (37,068)
Contract charges...       (175,972)        (79,384)      (74,786)       (68,007)         (6,429)       (172,302)       (576,880)
Contract terminations:
Surrender benefits.     (6,815,254)     (2,029,739)   (2,019,720)    (3,336,084)       (842,323)     (5,674,574)    (20,717,694)
Death benefits.....       (568,783)       (274,425)     (139,773)      (421,430)        (41,803)       (876,643)     (2,322,857)
- -------------------------------------------------------------------------------------------------------------------------------
Increase from contract
transactions.......     25,756,391      15,389,192    21,634,871      6,715,595       3,258,470      14,898,051      87,652,570
- -------------------------------------------------------------------------------------------------------------------------------
Net assets at beginning
of year............    131,444,851      64,393,213    50,960,616     63,906,311       7,231,487     139,467,038     457,403,516
- -------------------------------------------------------------------------------------------------------------------------------
Net assets at end
of year............   $195,042,071     $87,653,549   $91,235,703    $84,481,133     $10,867,496    $187,899,191    $657,179,143
- -------------------------------------------------------------------------------------------------------------------------------
Accumulation Unit Activity
- ---------------------------------------------------------------------------------------------------------------
Units outstanding at
beginning of year..     38,283,499      51,479,988    45,346,878     21,935,625       3,793,729      66,799,845
Contract purchase
payments...........      4,595,175       7,739,246     7,846,624      2,737,871       2,946,331       5,995,376
Net transfers*.....      3,917,622       6,358,941    10,791,998        486,490        (838,659)      3,316,169
Transfers for
policy loans.......         30,100          38,541        44,002         13,690           3,922          46,329
Contract charges...        (45,603)        (62,946)      (57,886)       (21,461)         (3,415)        (74,760)
Contract terminations:
Surrender benefits.     (1,784,376)     (1,746,253)   (1,636,852)    (1,108,257)       (435,104)     (2,679,553)
Death benefits.....       (147,198)       (231,470)     (101,441)      (140,877)        (21,393)       (404,267)
- ---------------------------------------------------------------------------------------------------------------
Units outstanding at
end of year.........    44,849,219      63,576,047    62,233,323     23,903,081       5,445,411      72,999,139
- ---------------------------------------------------------------------------------------------------------------
*Includes transfer activity from (to) other Accounts and transfers (from) to IDS
Life of New York for conversion from (to) Fixed Account.
See accompanying notes to financial statements.
</TABLE>



<PAGE>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14

Notes to Financial Statements
- --------------------------------------------------------------------------------
1.  Organization

IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14 were established
as segregated asset accounts of IDS Life Insurance Company of New York (IDS Life
of New York) under New York law and are registered collectively as a single unit
investment trust under the Investment  Company Act of 1940.  Accounts 4, 5 and 6
were  established on Nov. 12, 1981.  Account 9 was  established on Feb. 12, 1986
and commenced  operations on April 30, 1986. Accounts 10 and 11 were established
on Oct. 8, 1991 and commenced  operations on Jan. 13, 1992.  Accounts 12, 13 and
14 were  established  on April 17, 1996 and  commenced  operations  on April 30,
1996.  IDS  Life of New York  Accounts  4, 10,  11,  5, 6, 9, 12,  13 and 14 are
collectively referred to as "the Accounts."

The assets of each Account are held for the exclusive  benefit of the Retirement
Annuity contract owners and are not chargeable with  liabilities  arising out of
the business conducted by any other Account or by IDS Life of New York. Contract
owners  allocate  their  variable  purchase  payments to one or more of the nine
segregated asset accounts. Such funds are then invested in shares of nine mutual
funds  organized  by IDS Life  Insurance  Company  (IDS Life) as the  investment
vehicles for variable  annuity  contracts  issued by IDS Life of New York and by
IDS Life.

Each  Fund  is  registered  under  the  Investment  Company  Act  of  1940  as a
diversified,  (non-diversified for Global Yield) open-end management  investment
company.  IDS Life Capital  Resource  Fund, IDS Life Special Income Fund and IDS
Life  Moneyshare  Fund,  Inc.  commenced  operations on Oct. 13, 1981.  IDS Life
Managed Fund, Inc.  commenced  operations on April 30, 1986. IDS Life Aggressive
Growth Fund and IDS Life International  Equity Fund commenced operations on Jan.
13, 1992.  IDS Life Global Yield Fund,  IDS Life Income  Advantage  Fund and IDS
Life Growth  Dimensions  Fund  commenced  operations  on April 30,  1996.  Funds
allocated  to IDS Life of New York  Account 4 are  invested in the shares of IDS
Life  Capital  Resource  Fund;  IDS Life of New York  Account  10 invests in the
shares of IDS Life  International  Equity Fund;  IDS Life of New York Account 11
invests in the shares of IDS Life  Aggressive  Growth Fund; IDS Life of New York
Account 5 invests in the shares of IDS Life Special Income Fund; IDS Life of New
York Account 6 invests in the shares of IDS Life Moneyshare Fund, Inc.; IDS Life
of New York Account 9 invests in the shares of IDS Life Managed Fund,  Inc.; IDS
Life of New York Account 12 invests in the shares of IDS Life Global Yield Fund;
IDS Life of New  York  Account  13  invests  in the  shares  of IDS Life  Income
Advantage  Fund and IDS Life of New York Account 14 invests in the shares of IDS
Life Growth Dimension Fund.

IDS Life, parent company of IDS Life of New York, serves as manager,  investment
adviser and underwriter for the underlying nine mutual funds.  American  Express
Financial Advisors Inc., an affiliated company, is the principal underwriter for
the Accounts. IDS Life of New York serves as issuer for the Accounts.

- --------------------------------------------------------------------------------
2.  Summary of Significant Accounting Policies

Investments in Mutual Funds
Investments  in shares of the mutual funds are stated at market value,  which is
the net asset value per share as  determined  by the  respective  mutual  funds.
Investment  transactions  are accounted for on the date the shares are purchased
and sold. The cost of investments sold and redeemed is determined on the average
cost  method.   Dividend  distributions  received  from  the  mutual  funds  are
reinvested,  net of any expenses  payable to IDS Life of New York, in additional
shares of the mutual  funds and are  recorded  as income by the  Accounts on the
ex-dividend date.

Unrealized  appreciation  or  depreciation  of investments  in the  accompanying
financial  statements  represents  the  Accounts'  share  of the  mutual  funds'
undistributed net investment income, undistributed realized gain or loss and the
unrealized appreciation or depreciation on their investment securities.

Federal Income Taxes 
IDS Life of New York is taxed as a life insurance company. The Accounts are 
treated as part of IDS Life of New York for federal income tax purposes.  Under 
existing tax law, no income taxes are payable with respect to any income of 
the Accounts.

- --------------------------------------------------------------------------------
3. Mortality and Expense Risk Fee and Administrative Charges

IDS Life of New York makes contractual  assurances to the Accounts that possible
future  adverse  changes in contract  expenses and  mortality  experience of the
annuitants  and  beneficiaries  will not affect the Accounts.  The mortality and
expense risk fee paid to IDS Life of New York is computed daily and is equal, on
an annual basis, to 1 percent of the average daily net assets of the Accounts.

An annual  charge of $20 is deducted  from the contract  value of each  Variable
Retirement  Annuity  contract.  An  annual  charge of $30 is  deducted  from the
contract value of each Combination Retirement Annuity contract. An annual charge
of $30 is deducted from the certificate  value of each Employee  Benefit Annuity
Certificate.  A quarterly  charge of $6 is deducted  from the contract  value of
each Flexible Annuity contract. The annual charges are deducted at contract year
end and the quarterly  charges are deducted at contract  quarter end, during the
accumulation period, for administrative services provided to the Accounts by IDS
Life of New York.

A contingent deferred sales charge (surrender charge) will be imposed upon:

a) certain Variable Retirement Annuity contract surrenders during
   the first seven years,

b) Combination Retirement Annuity contract surrenders during the
   first eleven years,

c) Employee Benefit Annuity Certificate surrenders during the first eleven
   years, and

c) Flexible Annuity contract surrenders of amounts other than those representing
   earnings or those representing purchase payments more than six years old.

Charges  by IDS  Life  of New  York  for  surrenders  are  not  available  on an
individual  segregated  asset account basis.  Charges for all  segregated  asset
accounts amounted to $551,374 in 1996 and $464,724 in 1995. Such charges are not
an expense of the Accounts.  They are deducted from contract  surrender benefits
paid by IDS Life of New York.



<PAGE>
- --------------------------------------------------------------------------------
4.  Investment Transactions

The  Accounts'  purchases  of mutual  fund shares  (net of  charges),  including
reinvestment of dividend distributions, were as follows:

<TABLE>
                                                       Year Ended Dec. 31, 
Account   Investment                                  1996            1995  
- -----------------------------------------------------------------------------
<S>                                              <C>             <C>         
 4      IDS Life Capital Resource Fund........   $ 56,554,274    $ 45,150,464
10      IDS Life International Equity Fund....     24,422,664      19,597,217
11      IDS Life Aggressive Growth Fund.......     38,284,864      22,015,912
 5      IDS Life Special Income Fund..........     13,748,022      15,921,102
 6      IDS Life Moneyshare Fund, Inc.........      9,156,896       9,987,321
 9      IDS Life Managed Fund, Inc............     30,751,777      20,445,428
12      IDS Life Global Yield Fund............      2,498,462*             --
13      IDS Life Income Advantage Fund. ......      4,869,583*             --
14      IDS Life Growth Dimensions Fund.......     29,583,647*             --
- -----------------------------------------------------------------------------
                                                 $209,870,189    $133,117,444
*For the period April 30, 1996 to Dec. 31, 1996.
</TABLE>

- --------------------------------------------------------------------------------
5. Annuity Contracts in Payment Period

Net assets and annuity units relating to contracts in the payment period
as of Dec. 31, 1996 were as follows:

<TABLE>
            Net assets applicable
                  to contracts in         Annuity units in
Account            payment period           payment period
- ----------------------------------------------------------
<S>               <C>                            <C>
    4             $350,308                       880
   10                1,640                       196
   11               63,156                       167
    5              324,633                       885
    6              102,417                        --
    9            1,576,677                     3,834
   12                2,976                        --
   13                   --                        --
   14               76,790                       224
- ----------------------------------------------------
                $2,498,597
</TABLE>

<PAGE>
IDS Life of New York Financial Information

The financial  statements shown below are those of the insurance company and not
those of any other  entity.  They are included for the purpose of informing  the
investor as to the financial condition of the insurance company and its ability
to carry out its obligations under its variable contracts.

                     IDS LIFE INSURANCE COMPANY OF NEW YORK
                                 BALANCE SHEETS

                                                       Dec. 31,       Dec. 31,
ASSETS                                                   1996           1995
- ------                                                -----------      ------
                                                              (thousands)

Investments:
Fixed maturities:
Held to maturity, at amortized cost (Fair value:
1996, $604,635; 1995, $683,147)                       $ 585,812       $ 642,580
Available for sale, at fair value (Fair value:
1996, $590,608; 1995, $577,068)                         601,623         601,298
Mortgage loans on real estate                           160,017         158,730
          Policy loans                                   20,077          18,035
Other investments                                         1,374           1,915
                                                    -----------          ------

Total investments                                     1,368,903       1,422,558

Accrued investment income                                21,068          22,572
Deferred policy acquisition costs                       119,183         109,800
Other assets                                              3,950           2,108
Separate account assets                                 950,018         724,212
                                                       --------       ---------

Total assets                                         $2,463,122      $2,281,250
                                                       ========        ========




<PAGE>


                     IDS LIFE INSURANCE COMPANY OF NEW YORK
                           BALANCE SHEETS (continued)


                                                       Dec. 31,       Dec. 31,
LIABILITIES AND STOCKHOLDER'S EQUITY                     1996           1995
- ------------------------------------                  ----------     ---------
                                                             (thousands)

Liabilities:
Future policy benefits:
Fixed annuities                                      $1,054,954     $1,109,167
Universal life-type insurance                           142,278        136,475
Traditional life, disability income
and long-term care insurance                             45,338         42,477

Policy claims and other policyholders' funds              3,155          3,644
Deferred income taxes                                     9,046         15,663
Amounts due to brokers                                    3,007         10,000
Other liabilities                                        25,463         21,029
Separate account liabilities                            950,018        724,212
                                                      ---------      ---------

Total liabilities                                     2,233,259      2,062,667

Stockholder's equity:
Capital stock, $10 par value per share;
200,000 shares authorized, issued and outstanding         2,000          2,000
Additional paid-in capital                               49,000         49,000
Net unrealized gain on investments                        6,943         15,341
Retained earnings                                       171,920        152,242
                                                      ---------    -----------

Total stockholder's equity                              229,863        218,583
                                                       --------    -----------

Total liabilities and stockholder's equity           $2,463,122     $2,281,250
                                                       ========       ========

Commitments and contingencies (Note 7)

See accompanying notes.


<PAGE>



                     IDS LIFE INSURANCE COMPANY OF NEW YORK
                              STATEMENTS OF INCOME

                                                  
                                                      Years ended Dec.31,
                                                 1996         1995         1994
                                               ---------     -------    -------
                                                           (thousands)
Revenues:
Traditional life, disability income
and long-term care insurance
premiums                                       $ 10,931    $  9,280     $ 7,846
Policyholder and contractholder charges          15,832      13,216      11,607
Mortality and expense risk fees                   8,574       6,213       4,562
Net investment income                           109,468     110,924     108,143
Net realized gain (loss) on investments          (1,424)      1,548         957
                                                 ------      ------     -------

Total revenues                                  143,381     141,181     133,115
                                               --------    --------     -------

Benefits and expenses:
Death and other benefits:
Traditional life, disability income
and long-term care insurance                      4,182       3,354       6,016
Universal life-type insurance
and investment contracts                          4,409       4,548       3,773

Increase in liabilities for future
policy benefits for traditional life,
disability income and
long-term care insurance                          2,324       1,958         506
Interest credited on universal life-type
insurance and investment contracts               65,099      68,630      65,018
Amortization of deferred policy
acquisition costs                                16,071      13,085      12,994
Other insurance and operating expenses            8,972       7,474       8,359
                                               --------     -------      ------

Total benefits and expenses                     101,057      99,049      96,666
                                                -------     -------     -------

Income before income taxes                       42,324      42,132      36,449

Income taxes                                     14,640      14,745      12,794
                                                -------     -------     -------

Net income                                     $ 27,684    $ 27,387    $ 23,655
                                                 ======      ======      ======


See accompanying notes.


<PAGE>
<TABLE>
<CAPTION>

                                      IDS LIFE INSURANCE COMPANY OF NEW YORK
                                             STATEMENTS OF CASH FLOWS

                                                                                       Years ended Dec. 31,
                                                                             1996               1995               1994
                                                                          ---------          ---------           ------
                                                                                            (thousands)
<S>                                                                        <C>                <C>                <C>    
                                                                                           
Cash flows from operating activities:
Net income                                                                 $27,684            $27,387            $23,655
Adjustments to reconcile net income to net
cash provided by operating activities:
Policy loan issuance, excluding universal
life-type insurance                                                         (2,473)            (2,093)            (1,365)
Policy loan repayment, excluding universal
life-type insurance                                                          1,571                881                849
Change in accrued investment income                                          1,504             (1,055)              (175)
Change in deferred policy acquisition
costs, net                                                                  (9,087)           (11,017)           (11,522)
Change in liabilities for future policy
benefits for traditional life, disability income
and long-term care insurance                                                 2,861              1,931                501
Change in policy claims and other
policyholders' funds                                                          (489)               427                870
Change in deferred income taxes                                             (2,095)            (1,301)            (4,321)
Change in other liabilities                                                  4,434              2,429             (1,711)
(Accretion of discount)
amortization of premium, net                                                  (652)              (480)             2,464
Net realized (gain) loss on investments                                      1,424             (1,548)              (957)
Policyholder and contractholder
charges, non-cash                                                           (7,831)            (6,962)            (6,000)
Other, net                                                                  (1,781)              (508)               689
                                                                          ---------              -----            ------

Net cash provided by operating
activities                                                                 $15,070            $ 8,091             $2,977
                                                                           -------            -------             ------

</TABLE>



<PAGE>
<TABLE>
<CAPTION>



                                      IDS LIFE INSURANCE COMPANY OF NEW YORK
                                       STATEMENTS OF CASH FLOWS (continued)

                                                                                        Years ended Dec. 31,
                                                                             1996               1995               1994
                                                                            -------            -------            -----
                                                                                             (thousands)
<S>                                                                   <C>                   <C>                <C>       
Cash flows from investing activities: 
Fixed maturities held to maturity:
Purchases                                                             $         --          $ (37,540)         $ (36,560)
Maturities, sinking fund payments and calls                                 39,082             34,216             78,757
Sales                                                                       14,465             28,905              2,649
Fixed maturities available for sale:
Purchases                                                                  (97,370)          (133,503)          (117,965)
Maturities, sinking fund payments and calls                                 71,939             44,234             70,316
Sales                                                                       15,669              8,839             14,533
Other investments, excluding policy loans:
Purchases                                                                  (14,802)            (1,939)           (47,353)
Sales                                                                       12,659              5,993              2,975
Change in amounts due to brokers                                            (6,993)            10,000             (4,952)
                                                                            -------           -------            -------

Net cash provided by (used in)
investing activities                                                        34,649            (40,795)           (37,600)
                                                                         ---------           --------          ---------

Cash flows from financing activities:
Activity related to universal life-type insurance
and investment contracts:
Considerations received                                                    131,011            159,431            188,469
Surrenders and death benefits                                             (236,689)          (190,695)          (212,171)
Interest credited to account balances                                       65,099             68,630             65,018
Universal life-type insurance policy loans:
Issuance                                                                    (4,490)            (4,870)            (3,907)
Repayment                                                                    3,350              2,946              2,476
Cash dividend to parent                                                     (8,000)            (8,000)                --
                                                                            ------             -------               ---

Net cash (used in) provided by financing
activities                                                                 (49,719)            27,442             39,885
                                                                          --------            -------            -------


Net (decrease) increase in cash and cash
equivalents                                                                     --             (5,262)             5,262

Cash and cash equivalents at
beginning of year                                                               --              5,262                 --
                                                                          --------             ------            -------

Cash and cash equivalents at
end of year                                                             $       --        $        --         $    5,262
                                                                         =========            =======            =======

See accompanying notes.

</TABLE>
<PAGE>

                     IDS LIFE INSURANCE COMPANY OF NEW YORK
                          NOTES TO FINANCIAL STATEMENTS
                                  ($ thousands)

1.       Summary of significant accounting policies

         Nature of business

         IDS Life Insurance  Company of New York (the Company) is engaged in the
         insurance and annuity  business in the state of New York. The Company's
         principal  products are deferred annuities and universal life insurance
         which are issued primarily to individuals. It offers single premium and
         flexible premium deferred annuities on both a fixed and variable dollar
         basis. Immediate annuities are offered as well. The Company's insurance
         products  include  universal  life  (fixed and  variable),  whole life,
         single premium life and term products  (including waiver of premium and
         accidental death benefits).  The Company also markets disability income
         and long-term care insurance.

         Basis of presentation

         The Company is a wholly owned subsidiary of IDS Life Insurance  Company
         (IDS Life),  which is a wholly  owned  subsidiary  of American  Express
         Financial  Corporation,  which is a wholly owned subsidiary of American
         Express  Company.  The  accompanying  financial  statements  have  been
         prepared in conformity with generally  accepted  accounting  principles
         which vary in certain respects from reporting  practices  prescribed or
         permitted by the New York Department of Insurance as reconciled in Note
         11.

         The  preparation of financial  statements in conformity  with generally
         accepted  accounting  principles  requires management to make estimates
         and  assumptions  that  affect  the  reported  amounts  of  assets  and
         liabilities and disclosure of contingent  assets and liabilities at the
         date of the financial  statements and the reported  amounts of revenues
         and expenses during the reporting  period.  Actual results could differ
         from those estimates.

         Investments

         Fixed  maturities that the Company has both the positive intent and the
         ability to hold to maturity  are  classified  as held to  maturity  and
         carried  at  amortized  cost.  All  other  fixed   maturities  and  all
         marketable  equity  securities are classified as available for sale and
         carried  at fair  value.  Unrealized  gains and  losses  on  securities
         classified as available for sale are carried as a separate component of
         stockholder's equity, net of deferred taxes.

         Realized  investment  gain or loss is determined on an identified  cost
         basis.

         Prepayments are anticipated on certain  investments in  mortgage-backed
         securities  in  determining  the  constant   effective  yield  used  to
         recognize   interest   income.   Prepayment   estimates  are  based  on
         information   received   from  brokers  who  deal  in   mortgage-backed
         securities.

         Mortgage  loans on real  estate  are  carried  at  amortized  cost less
         reserves for  mortgage  loan losses.  The  estimated  fair value of the
         mortgage  loans is determined by a discounted  cash flow analysis using
         mortgage  interest  rates  currently  offered for  mortgages of similar
         maturities.

         Impairment  of  mortgage  loans is measured as the excess of the loan's
         recorded  investment  over its present value of expected  principal and
         interest payments  discounted at the loan's effective interest rate, or
         the fair value of collateral.  The amount of the impairment is recorded
         in a reserve for mortgage loan losses.  The reserve for mortgage  loans
         losses is maintained at a level that management believes is adequate to
         absorb  estimated  losses in the  portfolio.  The level of the  reserve
         account is determined  based on several factors,  including  historical
         experience,  expected future principal and interest payments, estimated
         collateral values,  and current and anticipated  economic and political
         conditions.  Management regularly evaluates the adequacy of the reserve
         for mortgage loan losses.

         The Company  generally  stops  accruing  interest on mortgage loans for
         which interest payments are delinquent more than three months. Based on
         management's judgement as to the ultimate  collectibility of principal,
         interest  payments  received are either recognized as income or applied
         to the recorded investment in the loan.

         The cost of interest rate caps is amortized to  investment  income over
         the life of the  contracts  and payments  received as a result of these
         agreements  are  recorded  as a  reduction  of  investment  income when
         realized. The amortized cost of interest rate caps is included in other
         investments.

         Policy loans are carried at the  aggregate of the unpaid loan  balances
         which do not exceed the cash surrender values of the related policies.

         When evidence  indicates a decline,  which is other than temporary,  in
         the underlying value or earning power of individual  investments,  such
         investments are written down to the fair value by a charge to income.

         Statements of cash flows

         The Company considers  investments with a maturity at the date of their
         acquisition  of  three  months  or less to be cash  equivalents.  These
         securities are carried principally at amortized cost which approximates
         fair value.

         Supplementary information to the statements of cash flows is summarized
         as follows:

                                           1996            1995           1994
                                         --------        --------       ------
         Cash paid during the year for:
           Income taxes                  $15,247         $15,026        $17,386
           Interest on borrowings            777             742            147

         Recognition of profits on annuity contracts and insurance policies

         Profits on fixed deferred  annuities are recognized by the Company over
         the  lives of the  contracts,  using  primarily  the  interest  method.
         Profits   represent  the  excess  of  investment   income  earned  from
         investment  of  contract   considerations  over  interest  credited  to
         contract owners and other expenses.

         The  retrospective  deposit  method is used in accounting for universal
         life-type  insurance.  This method recognizes profits over the lives of
         the policies in proportion to the estimated  gross profits  expected to
         be realized.

         Premiums on  traditional  life,  disability  income and long-term  care
         insurance  policies  are  recognized  as revenue  when due, and related
         benefits and expenses are associated  with premium  revenue in a manner
         that results in  recognition of profits over the lives of the insurance
         policies.  This  association is  accomplished by means of the provision
         for future policy benefits and the deferral and subsequent amortization
         of policy acquisition costs.

         Policyholder  and  contractholder  charges  include the monthly cost of
         insurance charges and issue and administrative fees. These charges also
         include the minimum  death  benefit  guarantee  fees  received from the
         variable life insurance  separate  accounts.  Management and other fees
         include investment  management fees and mortality and expense risk fees
         from the variable annuity and variable life insurance separate accounts
         and underlying funds.

         Deferred policy acquisition costs

         The costs of acquiring new business,  principally  sales  compensation,
         policy issue costs,  underwriting and certain sales expenses, have been
         deferred on insurance and annuity contracts.  The deferred  acquisition
         costs  for most  single  premium  deferred  annuities  and  installment
         annuities are amortized in relation to surrender  charge  revenue and a
         portion of the excess of investment  income  earned from  investment of
         the  contract  considerations  over the  interest  credited to contract
         owners.  The  costs  for  universal  life-type  insurance  and  certain
         installment  annuities  are  amortized as a percentage of the estimated
         gross profits expected to be realized on the policies.  For traditional
         life,  disability  income and long-term  care insurance  policies,  the
         costs are amortized over an appropriate period in proportion to premium
         revenue.

         Liabilities for future policy benefits

         Liabilities for universal life-type insurance,  single premium deferred
         annuities and installment annuities are accumulation values.

         Liabilities  for fixed  annuities in a benefit  status are based on the
         Progressive  Annuity  Table  with  interest  at  5  percent,  the  1971
         Individual Annuity Table with interest at 7 percent or 8.25 percent, or
         the 1983a Table with various interest rates ranging from 5.5 percent to
         9.5 percent, depending on year of issue.

         Liabilities for future benefits on traditional life insurance are based
         on the net level  premium  method and  anticipated  rates of mortality,
         policy persistency and interest earnings.  Anticipated  mortality rates
         generally approximate the 1955-1960 Select and Ultimate Basic Table for
         policies issued prior to 1980, the 1965-1970  Select and Ultimate Basic
         Table for policies  issued from 1981-1984 and the 1975-1980  Select and
         Ultimate Basic Table for policies issued after 1984. Anticipated policy
         persistency  rates vary by policy form,  issue age and policy  duration
         with persistency on cash value plans generally anticipated to be better
         than  persistency on term insurance plans.  Anticipated  interest rates
         are 4% for policies issued before 1974,  5.25% for policies issued from
         1974-1980,  and range from 10% to 6% depending  on policy  form,  issue
         year and policy duration for policies issued after 1980.

         Liabilities for future  disability  income policy benefits include both
         policy  reserves and claim  reserves.  Policy reserves are based on the
         net level premium method and anticipated rates of morbidity, mortality,
         policy persistency and interest earnings.  Anticipated  morbidity rates
         are  based on the 1964  Commissioners  Disability  Table  for  policies
         issued before 1996 and the 1985 CIDA table for policies issued in 1996.
         Anticipated  mortality  rates  are  based  on  the  1958  Commissioners
         Standard  Ordinary  Table  for  policies  issued  before  1996  and the
         1975-1980 Basic Table for policies issued in 1996.  Anticipated  policy
         persistency rates vary by policy form,  occupation class, issue age and
         policy duration.  Anticipated interest rates are 3% for policies issued
         before  1996 and grade  from 7.5% to 5% over  five  years for  policies
         issued  in  1996.  Claim  reserves  are  calculated  on  the  basis  of
         anticipated   rates  of  claim   continuance  and  interest   earnings.
         Anticipated claim continuance rates are based on the 1964 Commissioners
         Disability  Table for  claims  incurred  before  1993 and the 1985 CIDA
         Table for claims incurred after 1992. Anticipated interest rates are 8%
         for claims  incurred prior to 1992, 7% for claims  incurred in 1992 and
         6% for claims incurred after 1992.

         Liabilities  for future  long-term  care policy  benefits  include both
         policy  reserves and claim  reserves.  Policy reserves are based on the
         net level premium method and anticipated rates of morbidity, mortality,
         policy persistency and interest earnings.  Anticipated  morbidity rates
         are  based  on the  1985  National  Nursing  Home  Survey.  Anticipated
         mortality  rates  are  based on the  1983a  Table.  Anticipated  policy
         persistency  rates vary by policy form,  issue age and policy duration.
         Anticipated  interest  rates are 9.5%  grading  to 7% over 10 years for
         policies issued from 1989-1992 and 7.75% grading to 7% over 4 years for
         policies issued after 1992.  Claim reserves are calculated on the basis
         of  anticipated  rates  of claim  continuance  and  interest  earnings.
         Anticipated  claim  continuance  rates are  based on the 1985  National
         Nursing  Home  Survey.  Anticipated  interest  rates are 8% for  claims
         incurred  prior to 1992,  7% claims  incurred in 1992 and 6% for claims
         incurred after 1992.

         Reinsurance

         The maximum  amount of life  insurance  risk retained by the Company on
         any one life is $750 of life and waiver of premium benefits plus $50 of
         accidental death benefits. The maximum amount of disability income risk
         retained  by the  Company on any one life is $6 of monthly  benefit for
         benefit  periods  longer than three years.  The excesses are  reinsured
         with other life insurance  companies on a yearly  renewable term basis.
         Long-term care policies are primarily reinsured on a coinsurance basis.

         Federal income taxes

         The Company's  taxable income is included in the  consolidated  federal
         income tax return of American Express Company. The Company provides for
         income  taxes  on a  separate  return  basis,  except  that,  under  an
         agreement between American Express  Financial  Corporation and American
         Express  Company,  tax benefit is  recognized  for losses to the extent
         they can be used on the  consolidated  tax return.  It is the policy of
         American Express  Financial  Corporation to reimburse  subsidiaries for
         all tax benefits.

         Included in other  liabilities at Dec. 31, 1996 and 1995 are $5,161 and
         $3,971, respectively, payable to IDS Life for federal income taxes.

         Separate account business

         The separate  account assets and  liabilities  represent funds held for
         the  exclusive  benefit  of the  variable  annuity  and  variable  life
         insurance contract owners.

         The Company  makes  contractual  mortality  assurances  to the variable
         annuity  contract  owners that the net assets of the separate  accounts
         will not be affected by future variations in the actual life expectancy
         experience of the annuitants and the  beneficiaries  from the mortality
         assumptions  implicit  in the  annuity  contracts.  The  Company  makes
         periodic fund transfers to, or withdrawals  from, the separate accounts
         for such actuarial  adjustments for variable  annuities that are in the
         benefit  payment  period.  For  variable  life  insurance,  the Company
         guarantees that the rates at which insurance charges and administrative
         fees are  deducted  from  contract  funds will not  exceed  contractual
         maximums.  The Company  also  guarantees  that the death  benefit  will
         continue   payable  at  the  initial  level  regardless  of  investment
         performance so long as minimum premium payments are made.

         Accounting changes

         The Financial  Accounting  Standards  Board's (FASB) Statement of
         Financial Accounting Standards No. 121, "Accounting for the Impairment
         of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," was
         effective Jan. 1, 1996. The new rule did not have a material impact on
         the Company's results of operations or financial condition.

         Reclassification

         Certain 1995 and 1994 amounts have been  reclassified to conform to the
         1996 presentation.

2.       Investments

         Fair values of investments in fixed maturities  represent quoted market
         prices and  estimated  values  when  quoted  prices are not  available.
         Estimated  values are determined by established  procedures  involving,
         among other things,  review of market indices,  price levels of current
         offerings of comparable  issues,  price  estimates and market data from
         independent brokers and financial files.

         Net realized gain (loss) on investments for the years ended Dec. 31 is
         summarized as follows:

                                   1996          1995            1994
                                  ------        ------          -----

         Fixed maturities        $  (572)       $1,997           $948
         Mortgage loans             (855)         (487)             -
         Other investments             3            38              9
                              ----------         -----             --
                                 $(1,424)       $1,548           $957
                                 ========       ======           ====

         Changes in net unrealized appreciation (depreciation) of investments 
         for the years ended Dec. 31 are summarized as follows:

                                             1996         1995            1994
                                          ----------    ---------       --------
         Fixed maturities:
           Held to maturity                $(21,744)     $73,970       $(84,244)
           Available for sale               (13,215)      43,726        (38,226)
<PAGE>

         The amortized cost, gross unrealized gains and losses and fair value of
         investments in fixed maturities and equity  securities at Dec. 31, 1996
         are as follows:

<TABLE>
<CAPTION>

                                                                          Gross           Gross
                                                     Amortized         Unrealized      Unrealized        Fair
         Held to maturity                              Cost               Gains           Losses         Value
         <S>                                        <C>                <C>             <C>           <C>       
         U.S. Government agency obligations         $    4,498         $     144       $      --     $    4,642
         Corporate bonds and obligations               523,807            23,060           2,964        543,903
         Mortgage-backed securities                     57,507               409           1,826         56,090
                                                     ---------         ---------          ------      ---------
                                                      $585,812           $23,613          $4,790       $604,635
                                                      ========           =======          ======       ========

                                                                          Gross           Gross
                                                      Amortized        Unrealized      Unrealized        Fair
         Available for sale                             Cost              Gains           Losses         Value

         State and municipal obligations           $       105        $       10        $     --    $       115
         Corporate bonds and obligations               260,966             8,857           1,181        268,642
         Mortgage-backed securities                    329,537             5,788           2,459        332,866
                                                      --------          --------          ------       --------
                                                      $590,608           $14,655          $3,640       $601,623
                                                      ========           =======          ======       ========
</TABLE>

         The change in net  unrealized  loss on  available  for sale  securities
         included as a separate component of stockholder's  equity was $8,398 in
         1996.

         The amortized cost, gross unrealized gains and losses and fair value of
         investments in fixed maturities and equity  securities at Dec. 31, 1995
         are as follows:
<TABLE>
<CAPTION>

                                                                          Gross           Gross
                                                      Amortized        Unrealized      Unrealized      Fair
         Held to maturity                                Cost             Gains           Losses         Value
         <S>                                         <C>               <C>              <C>          <C>       
         U.S. Government agency obligations          $   5,003         $     199        $     --     $    5,202
         State and municipal obligations                   150                --               2            148
         Corporate bonds and obligations               578,253            41,939           2,027        618,165
         Mortgage-backed securities                     59,174               846             388         59,632
                                                     ---------         ---------         -------      ---------
                                                      $642,580           $42,984          $2,417       $683,147
                                                      ========           =======          ======       ========

                                                                          Gross           Gross
                                                      Amortized        Unrealized      Unrealized      Fair
         Available for sale                              Cost             Gains           Losses         Value

         State and municipal obligations            $      105         $      10        $     --     $      115
         Corporate bonds and obligations               248,973            17,470             497        265,946
         Mortgage-backed securities                    327,990             9,157           1,910        335,237
                                                      --------          --------          ------       --------
         Total fixed maturities                        577,068            26,637           2,407        601,298
         Equity securities                                  10                --              --             10
                                                   -----------           -------       ---------    -----------
                                                      $577,078           $26,637          $2,407       $601,308
                                                      ========           =======          ======       ========
</TABLE>

         The change in net  unrealized  gain on  available  for sale  securities
         included as a separate component of stockholder's equity was $27,710 in
         1995.
<PAGE>

         The amortized cost and fair value of investments in fixed maturities at
         Dec.  31,  1996 by  contractual  maturity  are  shown  below.  Expected
         maturities will differ from contractual  maturities  because  borrowers
         may have the right to call or prepay  obligations  with or without call
         or prepayment penalties.

                                          Amortized             Fair
         Held to maturity                     Cost              Value

         Due in one year or less           $ 11,777           $ 11,912
         Due from one to five years         125,637            132,169
         Due from five to ten years         321,472            333,245
         Due in more than ten years          69,419             71,219
         Mortgage-backed securities          57,507             56,090
                                          ---------          ---------
                                           $585,812           $604,635
                                           ========           ========

                                          Amortized              Fair
         Available for sale                   Cost              Value

         Due in one year or less           $ 39,155           $ 39,695
         Due from one to five years          55,313             58,288
         Due from five to ten years         127,642            130,246
         Due in more than ten years          38,961             40,528
         Mortgage-backed securities         329,537            332,866
                                           --------           --------
                                           $590,608           $601,623
                                           ========           ========

         During the years ended Dec. 31, 1996, 1995 and 1994,  fixed  maturities
         classified  as  held to  maturity  were  sold  with  amortized  cost of
         $14,507,  $27,971  and  $2,735,  respectively.  Net gains and losses on
         these sales were not  significant.  The sale of these fixed  maturities
         was due to significant deterioration in the issuers' creditworthiness.

         As  a  result  of  adopting  the  FASB  Special  Report,  "A  Guide  to
         Implementation  of Statement 115 on Accounting for Certain  Investments
         in Debt and Equity  Securities,"  the Company  reclassified  securities
         with a book value of $15,607 and net unrealized gains of $144 from held
         to maturity to available for sale in December 1995.

         In addition,  fixed maturities available for sale were sold during 1996
         with proceeds of $15,669 and gross realized gains and losses of $28 and
         $1,541,  respectively.  Fixed  maturities  available for sale were sold
         during 1995 with proceeds of $8,839 and gross realized gains and losses
         of $nil and $74, respectively. Fixed maturities available for sale were
         sold during 1994 with proceeds of $14,533 and gross  realized gains and
         losses of $181 and $308, respectively.

         At Dec. 31, 1996, bonds carried at $261 were on deposit with the state 
         of New York as required by law.

         Net investment income for the years ended Dec. 31 is summarized as 
         follows:

                                               1996        1995          1994
                                            ----------  ---------      -------
         Interest on fixed maturities        $ 95,574    $ 97,092     $ 93,800
         Interest on mortgage loans            14,171      13,888       13,226
         Other investment income                1,293       1,291        1,219
         Interest on cash equivalents              67         186          363
                                          -----------        ----       ------
                                              111,105     112,457      108,608
         Less investment expenses               1,637       1,533          465
                                           ----------      ------      -------
                                             $109,468    $110,924     $108,143
                                             ========    ========     ========
<PAGE>

         At Dec. 31, 1996,  investments in fixed maturities comprised 87 percent
         of the Company's total invested assets. Securities are rated by Moody's
         and  Standard  &  Poor's  (S&P),   except  for  securities  carried  at
         approximately   $130  million  which  are  rated  by  American  Express
         Financial  Corporation  internal  analysts  using  criteria  similar to
         Moody's  and S&P.  A summary of  investments  in fixed  maturities,  at
         amortized cost, by rating on Dec. 31 is as follows:

                Rating                       1996                1995
         ----------------------             -------            --------
         Aaa/AAA                         $  396,097           $ 391,321
         Aa/AA                               13,996              17,572
         Aa/A                                10,197               9,950
         A/A                                196,542             209,483
         A/BBB                               62,488              61,912
         Baa/BBB                            336,706             357,445
         Baa/BB                              51,639              46,029
         Below investment grade             108,755             125,936
                                        -----------            --------
                                         $1,176,420          $1,219,648
                                         ==========          ==========

         At Dec. 31, 1996, 94 percent of the securities rated Aaa/AAA are GNMA,
         FNMA and FHLMC  mortgage-backed  securities.  No holdings of any other
         issuer are greater than 1 percent of the Company's  total  investments
         in fixed maturities.

         At Dec. 31, 1996, approximately 11.6 percent of the Company's invested
         assets were mortgage loans on real estate. Summaries of mortgage loans
         by region and by type of real estate are as follows:
<TABLE>
<CAPTION>

                                          Dec. 31, 1996               Dec. 31, 1995
                                   ------------------------   ----------------------------
                                   On Balance   Commitments   On Balance       Commitments
            Region                     Sheet    to Purchase      Sheet         to Purchase
         --------------               ------    -----------   ---------        -----------
         <S>                        <C>             <C>        <C>           <C>      
         West North Central         $ 23,191        $1,342     $ 23,705      $      --
         East North Central           33,430         1,708       34,207             --
         South Atlantic               35,501            --       38,802          2,033
         Middle Atlantic              22,889            --       23,502             --
         Pacific                      12,986            --       13,150             --
         Mountain                     15,425            --       14,937          5,084
         New England                   8,805            --        8,982             --
         East South Central            8,825            --        1,613          7,407
         West South Central              265            --          277             --
                                   ---------    ----------         ----        -------
                                     161,317         3,050      159,175         14,524
         Less allowance for losses     1,300            --          445             --
                                      ------           ---         ----        -------
                                    $160,017        $3,050     $158,730        $14,524
                                    ========        ======     ========        =======

                                         Dec. 31, 1996             Dec. 31, 1995
                                     ---------------------   --------------------------
                                    On Balance   Commitments   On Balance      Commitments
              Property type           Sheet     to Purchase       Sheet        to Purchase
         -------------------------  --------    -----------      -------       -----------
         Apartments                 $ 70,292       $ 1,708    $  64,136         $7,988
         Department/retail stores     48,476         1,342       55,308             --
         Office buildings             18,684            --       12,367          6,536
         Industrial buildings         11,956            --       13,255             --
         Nursing/retirement            6,477            --        6,565             --
         Medical buildings             5,167            --        5,255             --
         Other                            --            --        2,012             --
         Hotels/motels                   265            --          277             --
                                      ------          ----          ---        -------
                                     161,317         3,050      159,175         14,524
         Less allowance for losses     1,300            --          445             --
                                       -----         -----         ----        -------
                                    $160,017       $ 3,050     $158,730        $14,524
                                    ========       =======     ========        =======
</TABLE>
<PAGE>

         Mortgage loan fundings are  restricted  by state  insurance  regulatory
         authority  to 80 percent or less of the market value of the real estate
         at the time of  origination of the loan. The Company holds the mortgage
         document,  which gives the right to take  possession of the property if
         the borrower fails to perform  according to the terms of the agreement.
         The fair value of the mortgage loans is determined by a discounted cash
         flow analysis  using  mortgage  interest  rates  currently  offered for
         mortgages of similar maturities.  Commitments to purchase mortgages are
         made in the ordinary course of business. The fair value of the mortgage
         commitments is $nil.

         At Dec.  31,  1996 and  1995,  the  Company's  recorded  investment  in
         impaired loans was $1,327 and $2,052 with a reserve of $1,300 and $445,
         respectively.  During 1996 and 1995, the average recorded investment in
         impaired loans was $1,628 and $3,003, respectively.

         The  Company  recognized  $152 and $204 of interest  income  related to
         impaired loans for the year ended Dec. 31, 1996 and 1995, respectively.

         The  following  table  presents  changes in the reserve for  investment
         losses related to all loans:

                                                1996               1995
                                               ------             -----
         Balance, Jan. 1                      $   445              $445
         Provision for investment losses          855                --
                                               ------              ----
         Balance, Dec. 31                      $1,300              $445
                                               ======              ====

3.       Income taxes

         The Company  qualifies as a life  insurance  company for federal income
         tax purposes.  As such, the Company is subject to the Internal  Revenue
         Code provisions applicable to life insurance companies.

         Income tax expense consists of the following:

                                       1996            1995           1994
                                      ------          ------         ------
         Federal income taxes:
         Current                     $15,735         $15,146        $16,419
         Deferred                     (2,095)         (1,301)        (4,320)
                                     -------          ------        -------
                                      13,640          13,845         12,099
         State income taxes-current    1,000             900            695
                                       -----          ------          -----
         Income tax expense          $14,640         $14,745        $12,794
                                     =======         =======        =======

         Increases (decreases) to the federal tax provision applicable to pretax
         income based on the statutory rate are attributable to:
<TABLE>
<CAPTION>

                                                     1996                    1995                       1994
                                            --------------------    ---------------------      --------------------
                                            Provision       Rate    Provision        Rate      Provision       Rate
         <S>                               <C>           <C>       <C>            <C>         <C>          <C>  
         Federal income taxes based
         on the statutory rate             $14,813       35.0%     $14,746        35.0%       $12,757      35.0%
         Increases (decreases) are
           attributable to:
             Tax-excluded interest
               and dividend income              (458)      (1.1)        (464)       (1.1)          (554)     (1.5)
             Other, net                         (716)      (1.7)        (437)       (1.0)          (104)     (0.3)
                                                ----       ----         ----        ----          -----      ----
         Federal income taxes                $13,639       32.2%     $13,845        32.9%       $12,099      33.2%
                                             =======       ====      =======        ====        =======      ====
</TABLE>
<PAGE>

         A portion of life insurance company income earned prior to 1984 was not
         subject to current taxation but was accumulated, for tax purposes, in a
         "policyholders'  surplus  account." At Dec. 31, 1996, the Company had a
         policyholders'  surplus  account  balance of $798.  The  policyholders'
         surplus account is only taxable if dividends to the stockholder  exceed
         the  stockholder's  surplus  account or if the  Company is  liquidated.
         Deferred  income  taxes of $279 have not been  established  because  no
         distributions of such amounts are contemplated.

         Significant components of the Company's deferred tax assets and 
         liabilities as of Dec. 31  are as follows:
                                                      1996                1995
                                                    --------             ------
         Deferred tax assets:
         Policy reserves                            $28,809             $26,237
         Other                                        4,018               2,791
                                                    -------               -----
              Total deferred tax assets              32,827              29,028
                                                     ------              ------


         Deferred tax liabilities:
         Deferred policy acquisition costs           35,302              33,001
         Investments                                  6,571              11,690
                                                     ------              ------
              Total deferred tax
                liabilities                          41,873              44,691
                                                     ------             -------
              Net deferred tax liabilities          $(9,046)           $(15,663)
                                                    =======            ========

         The Company is required to  establish a "valuation  allowance"  for any
         portion of the deferred tax assets that management believes will not be
         realized. In the opinion of management, it is more likely than not that
         the Company  will  realize the benefit of the  deferred tax assets and,
         therefore, no such valuation allowance has been established.

4.       Stockholder's equity

         Retained earnings available for distribution as dividends to the parent
         are limited to the Company's  surplus as determined in accordance  with
         accounting   practices   prescribed  by  the  New  York  Department  of
         Insurance.  Statutory  unassigned surplus aggregated $94,007 as of Dec.
         31,  1996 and $85,964 as of Dec.  31, 1995 (see Note 3 with  respect to
         the income tax effect of certain distributions).

         Dividends  paid to parent were $8,000 in 1996,  $8,000 in 1995 and $nil
         in 1994.

5.       Retirement plan and services

         Until July 1, 1995, the Company participated in the IDS Retirement Plan
         of American Express  Financial  Corporation which covered all permanent
         employees age 21 and over who had met certain employment  requirements.
         Effective  July 1,  1995,  the IDS  Retirement  Plan  was  merged  with
         American  Express  Company's  American  Express  Retirement Plan, which
         simultaneously was amended to include a cash balance formula and a lump
         sum distribution option.  Employer  contributions to the plan are based
         on participants'  age, years of service and total  compensation for the
         year.  Funding  of  retirement  costs for this plan  complies  with the
         applicable  minimum  funding  requirements   specified  by  ERISA.  The
         Company's share of the total net periodic pension cost was $34, $33 and
         $33 in 1996, 1995 and 1994, respectively.

         The  Company  has  a  "Sales   Benefit  Plan"  which  is  an  unfunded,
         noncontributory  retirement plan for all eligible  financial  advisors.
         Total plan costs for 1996,  1995 and 1994,  which are calculated on the
         basis of commission earnings of the individual financial advisors, were
         $1,474,  $1,392 and $1,372,  respectively.  Such costs are  included in
         deferred policy acquisition costs.

         The Company also participates in defined  contribution pension plans of
         American Express Company which cover all employees who have met certain
         employment  requirements.  Company  contributions  to the  plans  are a
         percent  of  either  each  employee's  eligible  compensation  or basic
         contributions. Costs of these plans charged to operations in 1996, 1995
         and 1994 were $248, $231 and $251, respectively.

         The  Company  participates  in  defined  benefit  health  care plans of
         American  Express  Financial  Corporation  that provide health care and
         life  insurance  benefits to retired  employees  and retired  financial
         advisors.    The   plans   include   participant    contributions   and
         service-related   eligibility  requirements.   Upon  retirement,   such
         employees  are  considered to have been  employees of American  Express
         Financial Corporation.  American Express Financial Corporation expenses
         these  benefits  and  allocates  the  expenses  to  its   subsidiaries.
         Accordingly,  costs of such  benefits to the  Company  are  included in
         employee  compensation  and  benefits  and  cannot be  identified  on a
         separate company basis.

6.       Incentive plan and operating expenses

         The Company maintains a "Persistency  Payment Plan." Under the terms of
         this plan, financial advisors earn additional compensation based on the
         volume and persistency of insurance sales. The total costs for the plan
         for 1996, 1995 and 1994 were $1,424,  $1,720 and $1,287,  respectively.
         Such costs are included in deferred policy acquisition costs.

         Charges by IDS Life and American Express Financial  Corporation for the
         use  of  joint  facilities,   marketing  services  and  other  services
         aggregated  $12,389,  $12,122  and  $9,314  for  1996,  1995 and  1994,
         respectively. Certain of the costs assessed to the Company are included
         in deferred policy acquisition costs.

7.       Commitments and contingencies

         At Dec. 31, 1996 and 1995,  traditional  life  insurance  and universal
         life-type  insurance in force  aggregated  $4,053,561  and  $3,502,851,
         respectively,  of which  $203,963  and $163,462  were  reinsured at the
         respective year ends.

         In addition, the Company has a stop loss reinsurance agreement with IDS
         Life covering ordinary life benefits.  IDS Life agrees to pay all death
         benefits  incurred each year which exceed 125 percent of normal claims,
         where normal claims are defined in the agreement as .095 percent of the
         mean  retained  life  insurance  in force.  Premiums  ceded to IDS Life
         amounted to $98, $85 and $76 for the years ended Dec.  31,  1996,  1995
         and  1994,  respectively.  Claim  recoveries  under  the  terms of this
         reinsurance  agreement  were $861,  $1,426  and $nil in 1996,  1995 and
         1994, respectively.

         Premiums ceded to reinsurers other than IDS Life amounted to $747, $667
         and  $735  for  the  years  ended  Dec.  31,   1996,   1995  and  1994,
         respectively. Reinsurance recovered from reinsurers other than IDS Life
         amounted  to $66,  $576 and ($107) for the years ended Dec.  31,  1996,
         1995 and 1994.

         Reinsurance  contracts  do not  relieve  the  Company  from its primary
         obligations to policyholders.

         The Company has an  agreement  to assume a block of extended  term life
         insurance  business.  The amount of insurance in force  related to this
         agreement  was  $345,943  and  $392,106  at Dec.  31,  1996  and  1995,
         respectively. The accompanying statement of income includes premiums of
         $nil for the years ended Dec. 31, 1996,  1995 and 1994, and decrease in
         liabilities  for future  policy  benefits  of $2,010,  2,039 and $2,538
         related to this  agreement for the years ended Dec. 31, 1996,  1995 and
         1994, respectively.

8.       Lines of credit

         The Company has  available  lines of credit with two banks and American
         Express  Financial  Corporation  (AEFC)  aggregating  $55,000  of which
         $25,000 is with AEFC.  The lines of credit are at 40 to 80 basis points
         over each lender's  cost of funds.  The $10,000 line of credit with one
         bank expired on Dec. 31, 1996 and the Company did not seek renewal. The
         $20,000 line of credit with the other bank expires on June 30, 1997 and
         the Company expects to seek renewal. Outstanding borrowings under these
         agreements were $nil at Dec. 31, 1996 and 1995.
<PAGE>

9.       Derivative financial instruments

         The Company enters into  transactions  involving  derivative  financial
         instruments  to manage its  exposure to interest  rate risk,  including
         hedging  specific  transactions.  The Company does not hold  derivative
         instruments for trading purposes.  The Company manages risks associated
         with these instruments as described below.

         Market  risk  is the  possibility  that  the  value  of the  derivative
         financial  instruments will change due to fluctuations in a factor from
         which the instrument derives its value, primarily an interest rate. The
         Company is not impacted by market risk related to derivatives  held for
         non-trading  purposes beyond that inherent in cash market transactions.
         Derivatives  held for  purposes  other than trading are largely used to
         manage  risk and,  therefore,  the cash flow and income  effects of the
         derivatives are inverse to the effects of the underlying transactions.

         Credit risk is the possibility that the  counterparty  will not fulfill
         the terms of the contract. The Company monitors credit exposure related
         to  derivative  financial   instruments  through  established  approval
         procedures,  including setting concentration limits by counterparty and
         industry, and requiring collateral,  where appropriate. A vast majority
         of the  Company's  counterparties  are rated A or better by Moody's and
         Standard & Poor's.

         Credit   exposure   related  to  interest  rate  caps  is  measured  by
         replacement cost of the contracts.  The replacement cost represents the
         fair value of the instruments.

         The notional or contract amount of a derivative financial instrument is
         generally  used to  calculate  the cash flows that are received or paid
         over the life of the  agreement.  Notional  amounts are not recorded on
         the balance  sheet.  Notional  amounts  far exceed the  related  credit
         exposure.

         The  Company's  holdings of  derivative  financial  instruments  are as
         follows:

                               Notional   Carrying   Fair     Total Credit
         Dec. 31, 1996           Amount    Value     Value       Exposure
         -------------           ------   -------    -----      ---------
         Assets:
         Interest rate caps    $250,000    $1,374     $832        $832
                               ========    ======     ====        ====


         Dec. 31, 1995
         Assets:
         Interest rate caps    $300,000    $1,905     $745        $745
                               ========    ======     ====        ====

         The fair values of derivative financial instruments are based on market
         values,  dealer quotes or pricing models. The interest rate caps expire
         on various dates from 1997 to 2000.

         Interest  rate  caps are  used to  manage  the  Company's  exposure  to
         interest rate risk. These instruments are used primarily to protect the
         margin between  interest  rates earned on investments  and the interest
         rates credited to related annuity contract holders.

<PAGE>

10.      Fair values of financial instruments

         The  Company   discloses  fair  value  information  for  most  on-  and
         off-balance sheet financial  instruments for which it is practicable to
         estimate  that  value.  Fair  values  of  life  insurance  obligations,
         receivables  and  all  non-financial  instruments,   such  as  deferred
         acquisition costs are excluded.  Off-balance  sheet intangible  assets,
         such as the  value  the  field  force,  are also  excluded.  Management
         believes the value of excluded assets is significant. The fair value of
         the Company,  therefore, cannot be estimated by aggregating the amounts
         presented.

<TABLE>
<CAPTION>

                                                               1996                             1995
                                                              -------                         ------
                                                        Carrying        Fair           Carrying        Fair
         Financial Assets                                 Value         Value              Value        Value
         <S>                                           <C>           <C>                 <C>         <C>      
         Investments:
         Fixed maturities (Note 2):
         Held to maturity                              $ 585,812     $ 604,635           $ 642,580   $ 683,147
         Available for sale                              601,623       601,623             601,298     601,298
         Mortgage loans on real estate (Note 2)          160,017       164,444             158,730     168,194
         Other:
         Equity securities (Note 2)                           --            --                  10          10
         Derivative financial instruments (Note 9)         1,374           832               1,905         745
         Separate accounts assets (Note 1)               950,019       950,019             724,212     724,212

         Financial Liabilities
         Future policy benefits for
           fixed annuities                               979,030       946,359           1,038,431   1,005,004
         Separate account liabilities                    880,160       838,492             678,263     645,389
</TABLE>

         At Dec. 31, 1996 and 1995, the carrying amount and fair value of future
         policy  benefits for fixed  annuities  exclude  life  insurance-related
         contracts  carried at $72,252  and  $67,843,  respectively,  and policy
         loans of  $3,672  and  $2,893,  respectively.  The fair  value of these
         benefits is based on the status of the  annuities  at Dec. 31, 1996 and
         1995. The fair value of deferred annuities is estimated as the carrying
         amount less any surrender charges and related loans. The fair value for
         annuities  in non-life  contingent  payout  status is  estimated as the
         present value of projected  benefit  payments at rates  appropriate for
         contracts issued in 1996 and 1995.

         At Dec.  31, 1996 and 1995,  the fair value of  liabilities  related to
         separate  accounts is estimated as the carrying  amount less applicable
         surrender  charges and less  variable  insurance  contracts  carried at
         $69,859 and $45,949, respectively.
<PAGE>

11.      Statutory insurance accounting practices

         Reconciliations of net income for 1996, 1995 and 1994 and stockholder's
         equity  at Dec.  31,  1996  and  1995,  as  shown  in the  accompanying
         financial  statements,  to that determined  using statutory  accounting
         practices are as follows:
                                                    1996       1995       1994
                                                 --------   --------   -------
         Net income, per accompanying
            financial statements                  $27,684    $27,387    $23,655
         Deferred policy acquisition costs         (9,087)   (11,017)   (11,522)
         Adjustments of future policy
            benefit liabilities                    (9,683)   (10,655)    13,741
         Deferred federal income taxes             (2,095)    (1,301)    (4,321)
         Provision for losses on investments          877         --     (1,652)
         IMR gain/loss transfer and amortization    1,010       (331)       (54)
         Adjustment to separate account reserves    8,863     20,769        142
         Other, net                                   116        948        144
                                                  -------   --------   --------
         Net income, on basis of
         statutory accounting practices           $17,685    $25,800    $20,133
                                                  =======    =======    =======

                                                             1996         1995
                                                           --------     -------
         Stockholder's equity, per accompanying
           financial statements                            $229,863    $218,583
         Deferred policy acquisition costs                 (119,183)   (109,800)
         Adjustments of future policy benefit liabilities    13,458      23,172
         Deferred federal income taxes                        9,046      15,663
         Securities valuation reserve                       (19,446)    (18,029)
         Adjustments of separate account liabilities         43,189      34,326
         Net unrealized loss on investments                 (11,016)    (24,231)
         Premiums due, deferred and advance                   1,149         925
         Deferred revenue liability                           1,342         794
         Allowance for losses                                 1,349         445
         Non-admitted assets                                   (634)       (578)
         Interest maintenance reserve                        (1,432)     (2,442)
         Other, net                                            (281)        347
                                                           --------      ------
         Stockholder's equity, on basis of statutory
           accounting practices                            $147,404    $139,175
                                                           ========    ========
<PAGE>
Report of Independent Auditors


The Board of Directors
IDS Life Insurance Company of New York

We have audited the accompanying balance sheets of IDS Life Insurance Company of
New York (a  wholly  owned  subsidiary  of IDS  Life  Insurance  Company)  as of
December 31, 1996 and 1995, and the related  statements of income and cash flows
for each of the  three  years in the  period  ended  December  31,  1996.  These
financial  statements are the  responsibility of the Company's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial position of IDS Life Insurance Company of
New York at December 31, 1996 and 1995,  and the results of its  operations  and
its cash flows for each of the three  years in the  period  ended  December  31,
1996, in conformity with generally accepted accounting principles.


Ernst & Young LLP
February 7, 1997
Minneapolis, Minnesota



<PAGE>


PAGE 45
STATEMENT OF DIFFERENCES

Difference                          Description


1)  Headings.                       1)  The headings in the
                                        prospectus are placed
                                        in blue strip at the top
                                        of the page.

2)  The page numbers in the         2)  The prospectus begins on
    electronic document do not          page 1 in both documents,
    correspond to the printed           ends on page 36 in the
    prospectus.                         electronic document, and
                                        page 53 in the printed
                                        prospectus.

3)  Financial language.             3)  A paragraph was added on
                                        the first page of the IDS Life Insurance
                                        Company of New York Balance Sheets.



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