IDS LIFE OF NEW YORK ACCOUNT 8, 485BPOS, 1999-04-28

IDS LIFE OF NEW YORK ACCOUNT 8
485BPOS, 1999-04-28

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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Post-Effective Amendment No. 18
FORM S-6

File No. 33-15290

FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF
SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED ON FORM
N-8B-2

A. Exact name of trust: IDS Life of New York Account 8

B. Name of depositor: IDS LIFE INSURANCE COMPANY OF NEW YORK

C. Complete address of depositor's principal executive offices:

20 Madison Avenue Ext. Albany, NY 12203

D. Name and complete address of agent for service:

Mary Ellyn Minenko, Esq.
IDS Life Insurance Company
IDS Tower 10
Minneapolis, Minnesota 55440-0010

It is proposed that this filing will become effective (check appropriate box)
[ ] immediately upon filing pursuant to paragraph (b)
[X] on April 30, 1999 pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ] on (date) pursuant to paragraph (a)(1) of rule (485)
[ ] this post-effective amendment designates a new effective date for a
previously filed post effective amendment.

E. Title of securities being registered:

Flexible Premium Variable Life Insurance Policy

F. Approximate date of proposed public offering: not applicable.

<PAGE>

<PAGE>
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
PROSPECTUS APRIL 30, 1999

IDS LIFE OF NEW YORK ACCOUNT 8

Issued and sold by:

IDS Life Insurance Company of New York (IDS Life of New York)
20 Madison Avenue Extension
Albany, New York 12203
Telephone: 800-541-2251

This prospectus contains information about the insurance policy that you should
know before investing. You also will receive prospectuses for the underlying
funds that are investment options under your policy. Please read all
prospectuses carefully and keep them for future reference.

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

AN INVESTMENT IN THIS POLICY IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION
AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR
ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS POLICY INVOLVES INVESTMENT
RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL.
<PAGE>
CONTENTS

TABLE OF CONTENTS

THE POLICY IN BRIEF 3
KEY TERMS 6
THE VARIABLE ACCOUNT 9
THE FUNDS 10
IDS Life Series Fund -- Equity Portfolio 10
IDS Life Series Fund -- Income Portfolio 10
IDS Life Series Fund -- Money Market
Portfolio 10
IDS Life Series Fund -- Managed Portfolio 10
IDS Life Series Fund -- Government
Securities Portfolio 10
IDS Life Series Fund -- International
Equity Portfolio 10
AIM V.I. Growth and Income Fund 11
Putnam VT New Opportunities Fund -- Class
IA Shares 11
Fund objectives 12
Relationship between funds and
subaccounts 12
RATES OF RETURN OF THE FUNDS AND SUBACCOUNTS 13
THE TRUST 15
Trust maturity 15
Roles of Smith Barney Inc. and IDS Life
of New York 15
THE FIXED ACCOUNT 16
PURCHASING YOUR POLICY 17
Application 17
Right to examine policy 17
Premiums 18
KEEPING THE POLICY IN FORCE 19
Death benefit guarantee 19
Grace period 19
Reinstatement 19
LOADS, FEES AND CHARGES 21
Premium expense charge 21
Monthly deduction 21
Surrender charge 23
Partial surrender fee 28
Mortality and expense risk charge 28
Transaction charge 28
Fund expenses 28
POLICY VALUE 30
Fixed account value 30
Subaccount values 30
DEATH BENEFITS 33
Change in death benefit option 34
Changes in specified amount 35
Misstatement of age or sex 36
Suicide 36
Beneficiary 36
TRANSFERS BETWEEN THE FIXED ACCOUNT AND
SUBACCOUNTS 37
Fixed account transfer policies 37
Minimum transfer amounts 37
Maximum transfer amounts 37
Maximum number of transfers per year 37
Two ways to request a transfer, loan or
surrender 38
Automated transfers 38
Automated dollar-cost averaging 39
POLICY LOANS 40
POLICY SURRENDERS 42
Total surrenders 42
Partial surrenders 42
Allocations of partial surrenders 42
Effects of partial surrenders 42
Taxes 43
Exchange right 43
Paid-up insurance option 43
OPTIONAL INSURANCE BENEFITS 44
Waiver of monthly deduction 44
Accidental death benefit 44
Other insured rider 44
Children's insurance rider 44
PAYMENT OF POLICY PROCEEDS 45
FEDERAL TAXES 49
IDS Life of New York's tax status 49
Taxation of policy proceeds 49
Modified endowment contracts 50
Other tax considerations 51
IDS LIFE OF NEW YORK 53
Ownership 53
State regulator 53
Distribution of the policy 53
Legal proceedings 54
Year 2000 54
Experts 55
MANAGEMENT OF IDS LIFE OF NEW YORK 56
OTHER FUND MANAGERS 58
OTHER INFORMATION 59
Voting rights 59
Reports 59
POLICY ILLUSTRATIONS 60

2 PROSPECTUS
<PAGE>
- ---------------------------------
The policy in brief
PURPOSE: The purpose of the policy is to provide life insurance
protection on the life of the insured and to build policy
value. The policy provides a death benefit that we pay to the
beneficiary upon the insured's death. As in the case of other
life insurance policies, it may not be advantageous to purchase
this policy as a replacement for, or in addition to an existing
life insurance policy.

The policy allows you, as the owner, to allocate your net
premiums, or transfer policy value, to:

THE VARIABLE ACCOUNT, consisting of subaccounts, each of
which invests in a fund or unit investment trust with a
particular investment objective. You may direct premiums to
any or all of nine of these subaccounts. Your policy's value
may increase or decrease daily, depending on the investment
return. No minimum amount is guaranteed. (p. 9)

THE FIXED ACCOUNT, which earns interest at rates that are
adjusted periodically by IDS Life of New York. This rate
will never be lower than 4.5%. (p. 16)
LOADS, FEES
AND CHARGES: You pay the following charges either directly (such as
deductions from your premium payments or from your policy
value), or indirectly (as deductions from the underlying
funds.) These changes primarily compensate IDS Life of New York
for administering and distributing the policy as well as paying
policy benefits and assuming related risks.

- PREMIUM EXPENSE CHARGE -- 2.5% sales charge and 1% premium
tax charge for a total of 3.5% of each premium payment.
This charge pays some distribution expenses and state and
local premium taxes. (p. 21)

- MONTHLY DEDUCTION -- charged against the value of your
policy each month, covering the cost of insurance, cost of
issuing the policy, certain administrative expenses, a
death benefit guarantee charge and optional insurance
benefits. (p. 21)

- SURRENDER CHARGE -- applies if you surrender your policy
for its full cash surrender value, or the policy lapses,
during the first 10 years and for 10 years after
requesting an increase in the specified amount. We base it
on the initial specified amount and on any increase in the
specified amount. (p. 23)

- PARTIAL SURRENDER FEE -- applies if you surrender part of
the value of your policy; equals $25 or 2% of the amount
surrendered, whichever is less. (p. 28)

- MORTALITY AND EXPENSE RISK CHARGE -- applies only to the
subaccounts; equals, on an annual basis, 0.9% of the
average daily net asset value of the subaccounts. (p. 28)

- TRANSACTION CHARGE -- applies only to subaccounts that
invest in the unit investment trust which is part of the
Smith Barney Inc. Stripped ("Zero Coupon") U.S. Treasury
Securities Fund, Series A ("trust"); equals, on an annual
basis, 0.25% of their average daily net asset value. (p.
28)

- FUND EXPENSES -- applies only to the underlying funds and
consists of investment management fees, taxes, brokerage
commissions and nonadvisory expenses. (p. 28)
PURCHASING YOUR
POLICY: To apply, send a completed application and premium payment to
IDS Life of New York's home office. You will need to provide
medical and other evidence that the person you propose to
insure (yourself or someone else) is insurable according to our
underwriting rules before we can accept your application. (p.
17)
RIGHT TO EXAMINE
POLICY: You may return your policy for any reason and receive a full
refund of your
premiums by mailing us the policy and a written request for
cancellation within a specified period. (p. 17)

3 PROSPECTUS
<PAGE>
The policy in brief

PREMIUMS: In applying for your policy, you state how much you intend to
pay and whether you will pay quarterly, semiannually or
annually. You may also make additional, unscheduled premium
payments subject to certain limits. We may refuse premiums in
order to comply with the Code. (p. 18)
DEATH BENEFIT
GUARANTEE (DBG): A feature of the policy guaranteeing the policy will remain in
force until the insured's attained insurance age 65 (or 5
policy years, if later). The feature is in effect if you meet
certain premium requirements. (p. 19)
GRACE PERIOD: If the cash surrender value of your policy becomes less than
the amount needed to pay the monthly deduction and the DBG is
not in effect, you will have 61 days to pay a premium that
raises the cash surrender value to an amount sufficient to pay
the monthly deduction. If you don't, the policy will lapse. (p.
19)
REINSTATEMENT: If your policy lapses, it can be reinstated within five years.
The reinstatement is subject to certain conditions including
evidence of insurability satisfactory to IDS Life of New York
and the payment of a sufficient premium. The DBG cannot be
reinstated. (p. 19)
DEATH BENEFITS: Your policy's death benefit can never be less than the
specified amount in your policy application, unless you change
that amount or your policy has outstanding indebtedness. The
relationship between the policy value and the death benefit
depends on which of two options you choose:

- OPTION 1 LEVEL AMOUNT: The death benefit is the greater of
the specified amount or a percentage of policy value.

- OPTION 2 VARIABLE AMOUNT: The death benefit is the greater
of the specified amount plus the policy value, or a
percentage of policy value.

You may change the death benefit option or specified amount
within certain limits; doing so generally will affect policy
charges. (p. 33)
TRANSFERS
BETWEEN THE
FIXED ACCOUNT
AND SUBACCOUNTS: You may, at no charge, transfer policy value from one
subaccount to another or between subaccounts and the fixed
account. (Certain restrictions apply to transfers involving the
fixed account.) You can request up to five transfers per year
by phone or mail. You can also arrange for automated transfers
on a monthly, quarterly, semiannual or annual basis. (p. 37)
POLICY LOANS: You may borrow against your policy's cash surrender value. A
policy loan, even if repaid, can have a permanent effect on the
death benefit and policy value. A loan also may have tax
consequences if your policy lapses or you surrender it. (p. 40)
POLICY
SURRENDERS: You may cancel the policy while it is in force and receive its
cash surrender value. The cash surrender value is the policy
value minus indebtedness, minus any applicable surrender
charges. (p. 42)
EXCHANGE RIGHT: For two years after the policy is issued, you can exchange it
for one that provides benefits that do not vary with the
investment return of the subaccounts. Because the policy itself
offers a fixed return option, all you need do is transfer all
of the policy value in the subaccounts to the fixed account.
(p. 43)
PAYMENT OF
POLICY PROCEEDS: We will pay policy proceeds when you surrender the policy the
insured dies or the policy matures. You or the beneficiary may
choose whether you want us to make a lump sum payment or
payments under one or more of certain options. (p. 45)

4 PROSPECTUS
<PAGE>

FEDERAL TAXES: The death benefit is not considered part of the beneficiary's
income and thus is not subject to federal income taxes. Part or
all of any proceeds you receive through full or partial
surrender, maturity, lapse, policy loan or assignment of policy
value may be subject to federal income tax as ordinary income.
Proceeds other than death benefits from certain policies,
classified as "modified endowments," are taxed differently from
proceeds of conventional life insurance contracts and also may
be subject to an additional 10% IRS penalty tax if you are
younger than 59 1/2. A policy is considered
to be a modified endowment if it was applied for or materially
changed after June 21, 1988, and premiums paid in the early
years exceed certain modified endowment limits. (p. 49)

5 PROSPECTUS
<PAGE>
- ------------------------------
Key terms

THESE TERMS CAN HELP YOU UNDERSTAND DETAILS ABOUT YOUR POLICY

ACCUMULATION UNIT: An accounting unit used to calculate the policy value of the
subaccounts prior to the insured's death.

ATTAINED INSURANCE AGE: The insured's insurance age plus the number of policy
anniversaries since the policy date. Attained insurance age changes only on a
policy anniversary.

CASH SURRENDER VALUE: Proceeds received if you surrender the policy in full or
the policy matures. The cash surrender value equals the policy value minus any
indebtedness and any applicable surrender charges.

CLOSE OF BUSINESS: Closing time of the New York Stock Exchange, normally 4 p.m.,
Eastern time.

CODE: The Internal Revenue Code of 1986, as amended.

DEATH BENEFIT GUARANTEE (DBG): A feature of the policy guaranteeing that the
policy will not lapse before the insured's attained insurance age 65 (or five
policy years, if later). The guarantee is in effect if you meet certain premium
payment requirements.

FIXED ACCOUNT: The general investment account of IDS Life of New York. The fixed
account is made up of all of IDS Life of New York's assets other than those held
in any separate account.

FIXED ACCOUNT VALUE: The portion of the policy value you allocate to the fixed
account, including indebtedness.

FUNDS: Mutual funds or portfolios, each with a different investment objective.
See ("The funds.") Each of the subaccounts of the variable account invests in a
specific one of these funds.

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.

INDEBTEDNESS: All existing loans on the policy plus interest that has either
been accrued or added to the policy loan.

INSURANCE AGE: The age of the insured, based upon his or her last birthday on
the date of the application.

INSURED: The person whose life is insured by the policy.

MATURITY DATE: The insured's attained insurance age 100, if living.

MINIMUM MONTHLY PREMIUM: We show the premium required to keep the DBG in effect.
We show the minimum monthly premium in your policy.

MONTHLY DATE: The same day each month as the policy date. If there is no monthly
date in a calendar month, the monthly date is the first day of the next calendar
month.

NET AMOUNT AT RISK: A portion of the death benefit, equal to the total current
death benefit minus the policy value. This is the amount to which we apply cost
of insurance rates in determining the monthly cost of insurance.

6 PROSPECTUS
<PAGE>

NET PREMIUM: The premium paid minus the premium expense charge.

OWNER: The entity to which, or individual(s) to whom we issue the policy or to
whom you subsequently transfer ownership. In the prospectus "you" and "your"
refer to the owner.

POLICY ANNIVERSARY: The same day and month as the policy date each year the
policy remains in force.

POLICY DATE: The date we issue the policy and from which we determine policy
anniversaries, policy years and policy months.

POLICY VALUE: The sum of the fixed account value plus the variable account
value.

PROCEEDS: The amount payable under the policy as follows:

- - Upon death of the insured prior to the insured's attained insurance age 100,
proceeds will be the death benefit in effect as of the date of the insured's
death, minus any indebtedness.

- - On the maturity date, proceeds will be the cash surrender value.

- - On surrender of the policy prior to the maturity date, the proceeds will be
the cash surrender value.

RATE CLASSIFICATION: A group of insureds that IDS Life of New York expects will
have similar mortality experience.

SCHEDULED PREMIUM: A premium you select at the time of application, of a level
amount, at a fixed interval of time.

SPECIFIED AMOUNT: An amount we use to determine the death benefit and the
proceeds payable upon death of the insured. We show initial specified amount in
your policy.

SUBACCOUNT(S): One or more of the investment divisions of the variable account,
each of which invests in a particular fund or trust.

SURRENDER CHARGE: A charge we assess against the policy value at the time of
surrender, or if the policy lapses during the first 10 years of the policy and
for 10 years after an increase in coverage.

TRUST: A unit investment trust, which is part of Smith Barney Inc. Stripped
("Zero Coupon") U.S. Treasury Securities Fund, Series A. One subaccount of the
variable account invests in the trust, which contains certain debt obligations
of the United States.

VALUATION DATE: A normal business day, Monday through Friday, on which the New
York Stock Exchange is open. We set the value of each subaccount at the close of
business on each valuation date.

VALUATION PERIOD: The interval commencing at the close of business on each
valuation date and ending at the close of business on the next valuation date.

7 PROSPECTUS
<PAGE>
Key terms

VARIABLE ACCOUNT: IDS Life of New York Account 8 is a separate account of IDS
Life of New York. Each subaccount invests in a particular fund or unit
investment trust. The policy value in each subaccount depends on the performance
of the particular fund or trust.

VARIABLE ACCOUNT VALUE: The sum of the values that you allocate to the
subaccounts of the variable account.

8 PROSPECTUS
<PAGE>
- ------------------------------
The variable account

We established the variable account on Sept. 12, 1985, under
New York law. It is registered as a single unit investment
trust under the Investment Company Act of 1940. The variable
account consists of a number of subaccounts, each of which
invests in shares of a particular fund, and the trust. This
registration does not involve any SEC supervision of the
accounts management or investment practices or policies.

The variable account meets the definition of a separate account
under federal securities laws. Income, capital gains or capital
losses of each subaccount are credited to or charged against
the assets of that subaccount alone. State insurance law
provides that we will not charge a variable subaccount with
liabilities of any other subaccount or of any other business
conducted by IDS Life. Other variable life insurance policies
that are not described in this prospectus also invest in
subaccounts of the variable account. At all times, IDS Life of
New York will maintain assets in the subaccounts with total
market value at least equal to the reserves and other
liabilities required to cover insurance benefits under all
contracts participating in the subaccount.

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

9 PROSPECTUS
<PAGE>
- ------------------------------
The funds

You can direct your premiums to any or all of the subaccounts
of the variable account that invest in shares of the following
funds:

IDS LIFE SERIES FUND, INC.

IDS Life Series Fund, Inc., a Minnesota corporation, is a diversified, open-end
management investment company incorporated on May 8, 1985. The IDS Life Series
Fund International Equity Portfolio was added on October 24, 1994. IDS Life acts
as the investment manager and American Express Financial Corporation acts as the
investment advisor of the IDS Life Series Fund, Inc. American Express Trust
Company acts as the custodian of the IDS Life Series Fund, Inc.'s investments.

IDS LIFE SERIES FUND -- EQUITY PORTFOLIO

Objective: capital appreciation. Invests primarily in common stocks and other
securities convertible into common stock.

IDS LIFE SERIES FUND -- INCOME PORTFOLIO

Objective: to maximize current income while attempting to conserve the value of
the investment and to continue the high level of income for the longest period
of time. At least 50% of net assets normally will be invested in high-quality,
lower-risk corporate bonds, unrated corporate bonds believed to have the same
investment qualities and government bonds. Other investments may include
lower-rated corporate bonds, bonds and common stocks sold together as a unit,
preferred stock and foreign securities.

IDS LIFE SERIES FUND -- MONEY MARKET PORTFOLIO

Objective: to provide maximum current income consistent with liquidity and
conservation of capital. Invests in relatively short-term money market
securities, such as marketable debt securities issued or guaranteed as to
principal and interest by the U.S. government or its agencies or
instrumentalities, bank certificates of deposit, bankers' acceptances, letters
of credit and high-grade commercial paper.

IDS LIFE SERIES FUND -- MANAGED PORTFOLIO

Objective: to maximize total investment return through a combination of capital
appreciation and current income. If the investment manager believes the stock
market will be moving higher, it can emphasize stocks that offer potential for
appreciation. At other times, the manager may increase the portfolio's holdings
in bonds and money-market securities providing high current income.

IDS LIFE SERIES FUND -- GOVERNMENT SECURITIES PORTFOLIO

Objective: to provide a high current return and safety of principal. Invests
primarily in debt obligations issued or guaranteed as to principal and interest
by the U.S. government, its agencies and instrumentalities.

IDS LIFE SERIES FUND -- INTERNATIONAL EQUITY PORTFOLIO

Objective: capital appreciation. Invests primarily in common stocks of foreign
issuers and foreign securities convertible into common stock. Other investments
may include certain international bonds if the portfolio manager believes they
have greater potential for capital appreciation than equities.

10 PROSPECTUS
<PAGE>

AIM VARIABLE INSURANCE FUNDS, INC.

AIM Variable Insurance Funds, Inc., a Maryland corporation, is an open-end,
series, management investment company incorporated on January 22, 1993. AIM
Advisors, Inc. acts as the investment advisor for AIM Variable Insurance Funds,
Inc.

AIM V.I. GROWTH AND INCOME FUND

Objective: growth of capital, with a secondary objective of current income.

PUTNAM VARIABLE TRUST

Putnam Variable Trust is a Massachusetts business trust organized on September
24, 1987. Putnam Investment Management Inc. ("Putnam Management") acts as the
investment manager for Putnam Variable Trust.

PUTNAM VT NEW OPPORTUNITIES FUND -- CLASS IA SHARES

Objective: seeks long term capital appreciation by investing principally in
common stocks of companies in sectors of the economy which Putnam Management,
believes possesses above-average long-term growth potential.

11 PROSPECTUS
<PAGE>
- ------------------------------
Fund objectives

The investment managers and advisors cannot guarantee that the
funds will meet their investment objectives nor is there any
guarantee that your policy value will equal or exceed the total
premiums you paid. You can find detailed information about the
funds, their investment objectives, policies and risks in the
accompanying fund prospectuses. Please read these prospectuses
carefully and consider, on a continuing basis, which funds best
suit to your long-term investment needs. Some funds involve
more risk than others, so please monitor your investment.

The investment objectives and policies of some of the funds may
be similar to the investment objectives and policies of other
funds that the investment managers or advisors or their
affiliates manage. Although the objectives and policies may be
similar, the investment results of one fund may be higher or
lower than the results of the other fund. The investment
manager or advisor cannot guarantee, and makes no
representation that the investment results of similar funds
will be comparable even if the funds have the same investment
advisor, manager or sponsor.

Shares of all funds except the IDS Life Series Fund Portfolios
are available to serve as the underlying investment for
variable life insurance policies, variable annuities and
qualified plans. Currently the shares of the IDS Life Series
Fund Portfolios are available to serve as the underlying
investment for variable life insurance only. However, in the
future these shares also may be available to serve as the
underlying investment for variable life insurance contracts,
variable annuities and qualified plans. It is possible that in
the future it may not be an advantage for variable life
insurance separate accounts, variable annuity separate
accounts, and/or qualified plans to invest in the available
funds simultaneously. Although IDS Life of New York and the
funds do not currently foresee any such disadvantages, the
board of directors or trustees of the appropriate funds will
monitor events in order to identify any material conflicts
between such policy owners, contract owners and qualified plans
to determine what action, if any, they should take in response
to a conflict. If a board were to conclude that separate funds
should be established for variable life insurance, variable
annuity and qualified plan separate accounts, the variable life
insurance policy holders would not bear any expenses associated
with establishing separate accounts. Please refer to the fund
prospectuses for risk disclosure regarding mixed and shared
funding.

RELATIONSHIP BETWEEN FUNDS AND SUBACCOUNTS

Each subaccount buys shares of the appropriate fund at net asset value without a
sales charge. Dividends and capital gain distributions from a fund are
reinvested at net asset value without a sales charge and held by the subaccount
as an asset. Each subaccount redeems fund shares without a charge to the extent
necessary to make death benefit or other payments under the policy.

12 PROSPECTUS
<PAGE>
- ---------------------------------
Rates of return of the funds and subaccounts

This section presents rates of return first for the funds, and then for the
corresponding subaccounts. Rates of return are different in the two cases
because those of the subaccounts reflect additional charges. All expenses
mentioned in the section are explained fully under "Loads, fees and charges".

RATES OF RETURN OF THE FUNDS
In the following table are average annual rates of return based on the actual
investment performance of the funds after deduction of applicable fund expenses
(including the investment management fees) for the periods indicated assuming
reinvestment of dividends and capital gains. These rates do not reflect charges
that apply to the subaccounts or the policy and therefore do not illustrate how
actual investment performance will affect policy benefits. If these charges were
reflected, the illustrated rates of return would have been lower. Past
performance does not guarantee future results.

PERIOD ENDING 12/31/98

<TABLE>
<CAPTION>
10 YEARS OR
FUND 1 YEAR 3 YEARS 5 YEARS SINCE COMMENCEMENT

<S> <C> <C> <C> <C>
IDS LIFE SERIES FUND, INC.

Equity Portfolio (Beta 1.16*)
(1/86)** 9.05% 16.57% 17.64% 18.05%

Income Portfolio (1/86)** 5.46 5.63 6.41 8.91

Money Market Portfolio
(1/86)** 5.04 4.97 4.74 5.19

Managed Portfolio (Beta 0.72*)
(1/86)** 14.43 15.61 13.11 16.44

Government Securities
Portfolio (1/86)** 8.32 6.08 6.03 8.60

International Equity Portfolio
(10/94)** 21.51 19.09 -- 28.00

AIM VARIABLE INSURANCE FUNDS,
INC.

AIM V.I. Growth and Income
Fund (5/94) 27.68 -- -- 22.49

PUTNAM VARIABLE TRUST

Putnam VT New Opportunities
Fund-Class IA Shares (5/94) 24.38 -- -- 23.19
</TABLE>

* Beta is a volatility measure based on calculations of the fund's monthly
returns compared to the S&P 500 Index. A beta less than 1 indicates
performance that is less volatile than the market; a beta more than 1
indicates performance that is more volatile than the market.

** (Commencement date of the fund.)

13 PROSPECTUS
<PAGE>
Rates of return of the funds and subaccounts

RATES OF RETURN OF SUBACCOUNTS:
Average annual rates of return in the following table reflect all charges
incurred by the portfolios and charges against the subaccounts (including the
mortality and expense risk charge). The rates do not reflect the premium expense
charge, surrender charge or monthly deduction. If these charges were reflected,
the illustrated rates of return would have been lower.

We show actual performance from the date the subaccounts began investing in the
funds. For some subaccounts, we do not provide any performance information
because they are new and have not had any activity to date. Although we base
performance figures on historical earnings, past performance does not guarantee
future results.

PERIOD ENDING 12/31/98

<TABLE>
<CAPTION>
SINCE COMMENCEMENT OF THE SUBACCOUNTS
10 YEARS OR
SUBACCOUNT INVESTING IN: 1 YEAR 3 YEARS 5 YEARS SINCE COMMENCEMENT

<S> <C> <C> <C> <C> <C>
IDS LIFE SERIES FUND,
INC.

Equity Equity Portfolio (8/87)* 8.08% 15.52% 16.58% 16.94%

Income Income Portfolio (8/87)* 4.56 4.71 5.48 7.95

Money Market Portfolio
Money Market (8/87)* 4.12 4.09 3.87 4.29

Managed Managed Portfolio (8/87)* 13.41 14.58 12.09 15.29

Government Securities
Government Securities Portfolio (8/87)* 7.38 5.15 5.10 7.61

International Equity
International Equity Portfolio (10/94)* 20.42 15.94 -- 19.59

AIM VARIABLE INSURANCE
FUNDS, INC.

AIM V.I. Growth and
YGI Income Fund (11/96)* 26.54 -- -- 24.22

PUTNAM VARIABLE TRUST

Putnam VT New
Opportunities Fund-
YNO Class IA Shares (11/96)* 23.27 -- -- 20.12
</TABLE>

* (Commencement date of the subaccount)

14 PROSPECTUS
<PAGE>
- ---------------------------------
The trust

You can direct your premiums to one subaccount that invests in the SMITH BARNEY
INC. STRIPPED ("ZERO COUPON") U.S. TREASURY SECURITIES FUND, SERIES A, a unit
investment trust ("trust"). This trust matures in 2004.

The objective of the trust is to provide safety of capital and income through
investment in a fixed portfolio consisting primarily of zero coupon securities.

Zero coupon securities are:

- - bearer obligations issued by the United States Government stripped of their
unmatured interest coupons;

- - coupons stripped from United States debt obligations; and

- - receipts and certificates for these stripped debt obligations and coupons.

Zero coupon securities are issued and sold at a deep discount from their face
value. If they are held to maturity, they return full face value. Before
maturity, the market prices of zero coupon securities generally are more
volatile than the market prices of conventional, interest-bearing securities.

TRUST MATURITY
On the maturity date of the trust, the policy value allocated to the subaccount
that invests in the trust will automatically be reallocated to the Money Market
subaccount, which invests in the Money Market Portfolio, unless you give us
other directions in writing at least seven days before the maturity date. We
will notify you in writing 30 days before the trust matures.

ROLES OF SMITH BARNEY INC. AND IDS LIFE OF NEW YORK
Smith Barney sponsors the trust and sells units to the subaccounts. Because the
trust invests in a specified portfolio, there is no investment manager.

The price of the trust's units includes a transaction charge that IDS Life of
New York pays directly to Smith Barney out of our general account assets. This
charge is limited by agreement between IDS Life of New York and Smith Barney and
will not be greater than that ordinarily paid by a dealer for similar
securities. We will seek reimbursement for the amounts paid through a daily
asset charge, described under "Loads, fees and charges."

IDS Life of New York and Smith Barney reserve the right to discontinue the sale
of new units of a trust and to create additional trusts in the future.

YOU CAN FIND MORE DETAILED INFORMATION MAY BE FOUND IN THE CURRENT PROSPECTUS
FOR THE SMITH BARNEY INC. STRIPPED ("ZERO COUPON") U.S. TREASURY SECURITIES
FUND, SERIES A.

15 PROSPECTUS
<PAGE>
- ------------------------------
The fixed account

You can allocate premiums to the fixed account or transfer policy value from the
subaccounts to the fixed account (with certain restrictions, explained in
"Transfers between the fixed account and subaccounts").

The fixed account is the general investment account of IDS Life of New York. It
includes all assets owned by IDS Life of New York other than those in the
variable account and other separate accounts. Subject to applicable law, IDS
Life of New York has sole discretion to decide how assets of the fixed account
will be invested.

Placing policy value in the fixed account does not entitle you to share in the
fixed account's investment experience, nor does it expose you to the account's
investment risk. Instead, IDS Life of New York guarantees that the policy value
you place in the fixed account will accrue interest at an effective annual rate
of at least 4.5%, independent of the actual investment experience of the
account. IDS Life of New York bears the full investment risk for amounts
allocated to the fixed account.

We will not credit interest in excess of 4.5% on any portion of the policy value
in the fixed account against which you have a policy loan outstanding.

Because of exemptive and exclusionary provisions, interests in the fixed account
have not been registered under the Securities Act of 1933, and the fixed account
has not been registered as an investment company under the Investment Company
Act of 1940. Accordingly, neither the fixed account nor any interests in it are
subject to the provisions of these Acts, and the staff of the SEC has not
reviewed the disclosures in this prospectus relating to the fixed account.
Disclosures regarding the fixed account may, however, be subject to certain
generally applicable provisions of the federal securities laws relating to the
accuracy and completeness of statements made in prospectuses.

16 PROSPECTUS
<PAGE>
- ------------------------------
Purchasing your policy

APPLICATION

To apply for coverage, complete an application and send it with your premium
payment to IDS Life of New York's home office. In your application, you:

- - select a specified amount of insurance;

- - select a death benefit option;

- - designate a beneficiary; and

- - state how premiums are to be allocated among the fixed account and/or the
subaccounts.

INSURABILITY: Before issuing your policy, we require satisfactory evidence of
the insurability of the person whose life you propose to insure (yourself or
someone else). Our underwriting department will review your application and any
medical information or other data required to determine whether the proposed
individual is insurable under our underwriting rules. We may decline your
application if we determine the individual is not insurable and we will return
any premium you have paid.

AGE LIMIT: IDS Life of New York generally will not issue a policy to persons
over the insurance age of 75. We may, however, do so at its sole discretion.

RATE CLASSIFICATION: The rate classification is based on the insured's health,
occupation or other relevant underwriting standards. This classification will
affect your monthly deduction and may affect the cost of certain optional
insurance benefits. (See "Loads, fees and charges" and "Optional insurance
benefits.")

OTHER CONDITIONS: In addition to proving insurability, you and the insured must
also meet certain conditions, stated in the application form, before coverage
will become effective and your policy will be delivered to you.

INCONTESTABILITY: IDS Life of New York will have two years from the effective
date of your policy to contest the truth of statements or representations in
your application. After the policy has been in force during the insured's
lifetime for two years from the policy date, we cannot contest the policy.

DEATH OF THE INSURED: If the insured dies before the policy is issued and:

- - if all conditions stated in the application have not been met, IDS Life of New
York's sole liability will be to return the premium paid plus any interest
earned.

- - if all conditions stated in the application have been met, IDS Life of New
York's liability will be the lesser of the death benefit applied for or
$150,000.

RIGHT TO EXAMINE POLICY

You may return your policy for any reason and receive a full refund of all
premiums paid. To do so, you must mail or deliver the policy to IDS Life of New
York home office or your financial advisor with a written request for
cancellation, by the latest of:

- - the 10th day after you receive it;

- - the 10th day after IDS Life of New York mails or personally delivers a written
notice of withdrawal right; or

- - the 45th day after you sign your application.

17 PROSPECTUS
<PAGE>
Purchasing your policy

On the date your request is postmarked or received, the policy will immediately
be considered void from the start.

PREMIUMS

PAYMENT OF PREMIUMS:
In applying for your policy, you decide how much you intend to pay and how often
you will make payments. During the first several policy years, until the policy
value is sufficient to cover the surrender charge, IDS Life of New York requires
that you pay premiums sufficient to keep the DBG in effect in order to keep the
policy in force.

You may schedule payments annually, semiannually or quarterly. (IDS Life of New
York must approve payment at any other interval.) We show this premium schedule
in your policy.

The scheduled premium serves only as an indication of your intent as to the
frequency and amount of future premium payments. You may skip scheduled premium
payments at any time if your cash surrender value is sufficient to pay the
monthly deduction or if the death benefit guarantee will remain in effect.

You may also change the amount and frequency of scheduled premium payments by
written request. IDS Life of New York reserves the right to limit the amount of
such changes. Any change in the premium amount is subject to applicable tax laws
and regulations.

Although you have flexibility in paying premiums, the amount and frequency of
your payments will affect the policy value, cash surrender value and length of
time your policy will remain in force, as well as affect whether the DBG remains
in effect.

PREMIUM LIMITATIONS:
You may make unscheduled premium payments at any time and in any amount of at
least $25. IDS Life of New York reserves the right to limit the number and
amount of unscheduled premium payments.

Also, in order to receive favorable tax treatment under the Code, premiums paid
during the life of the policy must not exceed certain limitations. To comply
with the Code, we can either refuse excess premiums as they are paid or refund
excess premiums with interest no later than 60 days after the end of the policy
year in which they were paid.

ALLOCATION OF PREMIUMS:
Until the policy date, we hold all premiums in the fixed account and we credit
interest on the net premiums (gross premiums minus premium expense charge) at
the current fixed account rate. As of the policy date, we will allocate the net
premiums plus accrued interest to the account(s) you have selected in your
application. At that time, we will begin to assess the various loads, fees,
charges and expenses.

We convert any amount that you allocate to a subaccount into accumulation units
of that subaccount, as explained under "Policy value." Similarly, when you
transfer value between subaccounts, we convert accumulation units in one
subaccount into a cash value, which we then convert into accumulation units of
the second subaccount.

Your ability to allocate policy value to the trust may be limited by the
availability of trust units.

18 PROSPECTUS
<PAGE>
- ------------------------------
Keeping the policy in force

DEATH BENEFIT GUARANTEE

The DBG provides that your policy will remain in force until insured's age 65
(or five policy years if later) even in the cash surrender value is insufficient
to pay the monthly deductions. The DBG will stay in effect as long as:

- - the sum of premiums paid; minus

- - partial surrenders; minus

- - any outstanding indebtedness; equals or exceeds

- - the minimum monthly premiums; times

- - the number of months since policy date (including the current month)

If, on a monthly date, you have not paid enough premiums to keep the death
benefit guarantee in effect, we will mail a notice to your last known address,
asking you to pay a premium sufficient to bring your total up to the required
minimum. If you do not pay this amount within 61 days, your policy will lapse
(terminate) if the cash surrender value is less than the amount needed to pay
the monthly deduction. Although the policy can be reinstated as explained below,
the death benefit guarantee cannot be reinstated.

GRACE PERIOD

If on a monthly date the cash surrender value of your policy is less than the
amount needed to pay the next monthly deduction and the DBG is not in effect,
you will have 61 days to pay the required premium amount. If you do not pay the
required premium, the policy will lapse.

IDS Life of New York will mail a notice to your last known address, requesting
payment of a premium that will raise the cash surrender value to an amount
sufficient to cover the next three monthly deductions. If we receive this
premium before the end of the 61-day grace period, we will use the payment to
cover all monthly deductions and any other charges then due. We will add any
balance to the policy value and allocated in the same manner as other premium
payments.

If a policy lapses with outstanding indebtedness, any excess of the outstanding
indebtedness over the premium paid will generally be taxable to the owner. (See
"Federal taxes.") If the insured dies during the grace period, any overdue
monthly deductions will be deducted from the death benefit.

REINSTATEMENT

Your policy may be reinstated within five years after it lapses, unless you
surrender it for cash. To reinstate, IDS Life of New York will require:

- - a written request;

- - evidence satisfactory to IDS Life of New York that the insured remains
insurable;

- - payment of a premium that will keep the policy in force for at least three
months;

- - payment of the monthly deductions that were not collected during the grace
period; and

- - payment or reinstatement of any indebtedness.

19 PROSPECTUS
<PAGE>
Keeping the policy in force

The effective date of a reinstated policy will be the monthly date on or next
following the day IDS Life of New York accepts your application for
reinstatement. The suicide period (see "Death benefits") will apply from the
effective date for reinstatement. Surrender charges will also be reinstated.

IDS Life of New York will have two years from the effective date of
reinstatement to contest the truth of statements or representations in the
reinstatement application.

20 PROSPECTUS
<PAGE>
- ---------------------------------
Loads, fees and charges

Policy charges compensate IDS Life of New York for:

- - providing the insurance benefits of the policy;

- - issuing the policy;

- - administering the policy;

- - assuming certain risks in connection with the policy; and

- - distributing the policy.

We deduct some of these charges from your premium payments. We deduct others
periodically from your policy value in the fixed and/or subaccounts. We may also
assess a charge if you surrender your policy or the policy lapses.

PREMIUM EXPENSE CHARGE

We deduct this charge from each premium payment. The amount remaining after the
deduction, called the net premium, is credited to the account(s) you have
selected. The premium expense charge has two parts:

SALES CHARGE: 2.5% of each premium payment. Partially compensates IDS Life of
New York for expenses in distributing the policy, including agents' commissions,
advertising and printing of prospectuses and sales literature. (The contingent
deferred sales charge, discussed under "Surrender charge," below also may
partially compensate those expenses.)

PREMIUM TAX CHARGE: 1% of each premium payment. Compensates IDS Life of New York
for paying taxes imposed by the state of New York on premiums received by
insurance companies.

MONTHLY DEDUCTION

On each monthly date we deduct from the value of your policy in the fixed and/or
subaccounts an amount equal to the sum of:

1. the cost of insurance for the policy month;

2. the policy fee shown in your policy;

3. the death benefit guarantee charge shown in your policy; and

4. charges for any optional insurance benefits provided by rider for the policy
month.

We explain each of the four components below.

You specify, in your policy application, what percentage of the monthly
deduction from 0% to 100% will be taken from the fixed account and from each of
the subaccounts. You may change these percentages for future monthly deductions
by written request.

We will take monthly deductions from the fixed account and the subaccounts on a
pro rata basis if:

- - you do not specify the accounts from which the monthly deduction is to be
taken; or

- - the value in the fixed account or any subaccount is insufficient to pay the
portion of the monthly deduction you have specified.

21 PROSPECTUS
<PAGE>
Loads, fees and charges

If the cash surrender value of your policy is not enough to cover the monthly
deduction on a monthly anniversary, the policy may lapse. However, the policy
will not lapse if the DBG is in effect. (See "Death benefit guarantee"; also
"Grace period" and "Reinstatement" at the end of this section on policy costs.)

COMPONENTS OF THE MONTHLY DEDUCTION:

1. COST OF INSURANCE: primarily, the cost of providing the death benefit under
your policy, which depends on:

- - the amount of the death benefit;

- - the policy value; and

- - the statistical risk that the insured will die in a given period.

The cost of insurance for a policy month is calculated as:

[a X (b - c)] + d

where:

(a) IS THE MONTHLY COST OF INSURANCE RATE, which reflects the insured's
statistical mortality risk, based on his or her sex, attained insurance age (age
at last policy anniversary) and rate classification. Generally, the cost of
insurance rate will increase as the insured's attained insurance age increases.

We set the rates based on our expectations as to future mortality experience. We
may change the rates from time to time; any change will apply to all individuals
of the same rate classification. However, rates will not exceed the Guaranteed
Maximum Monthly Cost of Insurance Rates shown in your policy, which are based on
the 1980 Commissioners Standard Ordinary Smoker and Nonsmoker Mortality Tables,
Age Nearest Birthday.

Policies purchased on or after May 1, 1991 with an initial specified amount of
$350,000 or greater qualify for lower cost of insurance rates than policies
purchased with a specified amount less than $350,000. In addition, all policies
purchased on or after May 1, 1993 and before November 20, 1997 qualify for lower
cost of insurance rates than policies purchased earlier. Cost of insurance rates
that are modified to reflect IDS Life of New York and industry-wide changes in
mortality experience apply to all policies purchased on or after November 20,
1997.

(b) IS THE DEATH BENEFIT on the monthly date divided by 1.0036748 (which reduces
IDS Life of New York's net amount at risk, solely for computing the cost of
insurance, by taking into account assumed monthly earnings at an annual rate of
4.5%);

(c) IS THE POLICY VALUE on the monthly date. At this point, the policy value has
been reduced by the policy fee, death benefit guarantee charge and any charges
for optional riders;

(d) IS ANY FLAT EXTRA INSURANCE CHARGES we assess as a result of special
underwriting considerations.

2. POLICY FEE: $5 per month. This charge reimburses IDS Life of New York for
expenses of issuing the policy, such as processing the application (primarily

22 PROSPECTUS
<PAGE>

underwriting) and setting up computer records; and of administering the policy,
such as processing claims, maintaining records, making policy changes and
communicating with owners.

3. DEATH BENEFIT GUARANTEE CHARGE: 1 cent per $1,000 of the current specified
amount and 1 cent per $1,000 of coverage under any other insured rider. This
charge compensates IDS Life of New York for the risk assumed in providing the
DBG. The charge is included in the monthly deduction in the first five policy
years or until the insured's attained insurance age 65, whichever is later. The
charge will not be deducted if the DBG is no longer in effect. For any policy
month in which the monthly deduction is paid by a waiver of monthly deduction
rider, the minimum monthly premium will be zero. (See "Death benefit guarantee,"
later in this section for an explanation of the minimum monthly premium and
"Other insured rider," under "Optional insurance benefits.")

4. OPTIONAL INSURANCE BENEFIT CHARGES: charges for any optional benefits added
to the policy by rider. See "Optional insurance benefits".

SURRENDER CHARGE

If you surrender your policy or the policy lapses during the first 10 policy
years and in the 10 years following an increase in specified amount, we will
assess a surrender charge. The surrender charge is the sum of two parts:

CONTINGENT DEFERRED ISSUE AND ADMINISTRATIVE EXPENSE CHARGE:
Reimburses IDS Life of New York for costs of issuing the policy, such as
processing the application (primarily underwriting) and setting up computer
records. For the initial specified amount, this charge is $4 per thousand
dollars of initial specified amount. It remains level during the first five
policy years and then decreases monthly until it is zero at the end of 10 policy
years. If you increase the specified amount of the policy, an additional charge
will apply. The additional charge will be $4 per thousand dollars of increase in
specified amount. It remains level during the first five years following the
effective date of the increase and then decreases monthly until it is zero at
the end of the 10th year following the increase.

CONTINGENT DEFERRED SALES CHARGE:
Partially compensates IDS Life of New York for expenses of distributing the
policy, including financial advisors' commissions, advertising and printing the
prospectus and sales literature. For the initial specified amount, this charge
is the sum of 27.5% of premium payments up to a maximum premium amount shown in
the policy plus 6.5% of all other premium payments. The maximum premium amount
shown in the policy will be based on the insured's insurance age, sex, rate
classification and initial specified amount. It is calculated according to a
formula contained in an SEC rule. If you increase the specified amount of the
policy, an additional charge will apply. The additional charge will be 6.5% of
all premium payments attributable to the increase. Premiums attributable to the
increase are calculated as

a X (b + c)

where:

(a) IS THE AMOUNT OF THE INCREASE in the specified amount divided by the total
specified amount after the increase;

23 PROSPECTUS
<PAGE>
Loads, fees and charges

(b) IS THE POLICY VALUE on the date of the increase; and

MAXIMUM SURRENDER CHARGE:
The total surrender charge is subject to an overall upper limit or "maximum
surrender charge." We will show the "maximum surrender charge" for the initial
specified amount in the policy. It is based on the insured's insurance age, sex,
rate classification and initial specified amount. The "maximum surrender charge"
for the initial specified amount will remain level during the first five policy
years and then decrease monthly until it is zero at the end of 10 policy years.
If the specified amount is increased, an "additional maximum surrender charge"
will apply. We will show the "additional maximum surrender charge" in a revised
policy. It will be based on the insured's attained insurance age, sex, rate
classification and the amount of the increase. The "additional maximum surrender
charge" will remain level during the first five years following the effective
date of the increase and then decrease monthly until it is zero at the end of
the 10th year following the increase.

If premium payments are equal to or somewhat higher than the premiums needed to
keep the DBG in effect, for several years the surrender charge will generally be
the charge described in the "Contingent deferred issue and administrative
expense charge" and "Contingent deferred sales charge" sections above. After
that, the "Maximum surrender charge" will generally apply. If premium payments
are paid at a significantly higher level, the "Maximum surrender charge" will
generally apply in all years.

The following example illustrates how we calculate the maximum surrender charge
for a male, insurance age 35 qualifying for nonsmoker rates. The specified
amount is assumed to be $100,000.

a. the contingent deferred issue and administrative expense charge is $4 per
$1000 of specified amount or $400. This amount remains level during the first
five policy years and then decreases monthly until it is zero at the end of
10 policy years.

b. the contingent deferred sales charge is 27.5% of premium payments up to a
maximum premium amounts of $985 of premium payments and 6.5% of all premium
payments in excess of $985.

c. the "maximum surrender charge" is $901. It remains level during the first
five policy years and then decreases monthly until it is zero at the end of
10 policy years.

24 PROSPECTUS
<PAGE>

Assuming an annual premium payment of $900, the actual surrender charge will be
the lesser of a+b or c. Here is how we calculate the actual surrender:

<TABLE>
<CAPTION>
LAPSE OR SURRENDER
AT BEGINNING OF YEAR a b a + b c SURRENDER CHARGE
<S> <C> <C> <C> <C> <C>
1 $247.50 $400.00 $647.50 $901.00 $647.50
2 323.85 400.00 723.85 901.00 723.85
3 382.35 400.00 782.35 901.00 782.35
4 440.85 400.00 840.85 901.00 840.85
5 499.35 400.00 899.35 901.00 899.35
6 557.85 400.00 957.85 901.00 901.00
7 616.35 320.00 936.35 720.80 720.80
8 674.85 240.00 914.85 540.60 540.60
9 733.35 160.00 893.35 360.40 360.40
10 791.85 80.00 871.85 180.20 180.20
11 850.35 0.00 850.35 0.00 0.00
</TABLE>

From the beginning of the year 6 to the end of year 10, the amounts shown in b
and c decrease on a monthly basis.

25 PROSPECTUS
<PAGE>
Loads, fees and charges

The maximum surrender charge is the rate from the table below multiplied by the
number of thousands of dollars of initial specified amount.

For example, a male age 20 with a nonsmoker rate classification and an initial
specified amount of $50,000 will have a maximum surrender charge of $6.61
multiplied by 50 or $330.50. As another example, a female age 75 with a standard
rate classification and an initial specified amount of $5,000,000 will have a
maximum surrender charge of $33.92 multiplied by 5,000 or $169,600.

<TABLE>
<CAPTION>
AGE MALE STANDARD MALE NONSMOKER FEMALE STANDARD FEMALE NONSMOKER

26 PROSPECTUS
<PAGE>

<TABLE>
<CAPTION>
AGE MALE STANDARD MALE NONSMOKER FEMALE STANDARD FEMALE NONSMOKER

27 PROSPECTUS
<PAGE>
Loads, fees and charges

PARTIAL SURRENDER FEE

If you surrender part of the value of your policy, you will be charged $25 (or
2% of the amount surrendered, if less). This fee is guaranteed not to increase
for the duration of your policy.

MORTALITY AND EXPENSE RISK CHARGE

This charge applies only to the subaccounts and not to the fixed account. It is
equal, on an annual basis, to 0.9% of the daily net asset value of the
subaccounts -- a level guaranteed for the life of the policy. Computed daily,
the charge compensates IDS Life of New York for:

- - MORTALITY RISK -- the risk that the cost of insurance charge will be
insufficient to meet actual claims.

- - EXPENSE RISK -- the risk that the policy fee and the contingent deferred issue
and administrative expense charge (described above) may be insufficient to
cover the cost of administering the policy.

Any profit from the mortality and expense risk charge would be available to IDS
Life of New York for any proper corporate purpose including, among others,
payment of sales and distribution expenses, which we do not expect to be covered
by the sales and surrender charges discussed earlier. Any further deficit will
have to be made up from IDS Life of New York's general assets.

TRANSACTION CHARGE

IDS Life of New York makes a daily charge against the assets of the subaccount
that invests in the trust. This charge is intended to reimburse us for the
transaction fee we pay from our general account assets to Smith Barney Inc. on
the sale of the trust units to the subaccounts.

The asset charge is equivalent to an effective annual rate of 0.25% of the value
of the subaccounts investing in the trust. This amount may be increased in the
future but will not exceed an effective annual rate of 0.5% of the value of
these subaccounts. The charge will be based on our costs (taking into account
the interest we lose on the amounts paid to Smith Barney).

FUND EXPENSES

The investment managers and advisors receive fees for their services to the
funds. The funds also pay taxes, brokerage commissions and nonadvisory expenses,
such as custodian and trustee fees, registration fees for shares, postage,
fidelity and security bond costs, legal fees and other miscellaneous fees and
charges. The table below will help you understand the expenses that the funds
pay.

28 PROSPECTUS
<PAGE>

ANNUAL OPERATING EXPENSES OF THE FUNDS

(as a percentage of average daily net assets)

<TABLE>
<CAPTION>
IDS LIFE
IDS LIFE IDS LIFE SERIES IDS LIFE
SERIES SERIES FUND- SERIES
FUND- FUND- MONEY FUND-
EQUITY INCOME MARKET MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO

<S> <C> <C> <C> <C>
Management fees 0.70% 0.70% 0.50% 0.70%

12b-1 fees -- -- -- --

Other expenses 0.02 0.04 0.10 0.02

Total 0.72%** 0.74%** 0.60%** 0.72%**
</TABLE>

<TABLE>
<CAPTION>
IDS LIFE IDS LIFE
SERIES SERIES
FUND- FUND-
GOVERNMENT INTERNATIONAL
SECURITIES EQUITY AIM V.I. PUTNAM VT
PORTFOLIO PORTFOLIO GROWTH NEW
(AFTER (AFTER AND OPPORTUNITIES
EXPENSE EXPENSE INCOME FUND-
LIMITATION) LIMITATION) FUND CLASS IA SHARES

<S> <C> <C> <C> <C>
Management fees 0.70% 0.95% 0.61% 0.56%

12b-1 fees -- -- -- --

Other expenses 0.10* 0.10* 0.04 0.05

Total 0.80%** 1.05%** 0.65%*** 0.61%***
</TABLE>

* IDS Life has agreed to a voluntary limit of 0.1%, on an annual basis, of the
average daily net assets of each of the IDS Life Series Fund Portfolios for
other expenses like taxes and brokerage commissions and for nonadvisory
expenses. If the 0.1% limitation had not been in place, these other expenses
would have been 0.19% for IDS Life Series Fund-Government Securities
Portfolio and 0.11% for IDS Life Series Fund-International Equity Portfolio.
IDS Life reserves the right to discontinue limiting these other expenses at
0.1%. However, its present intention is to continue the limit until the time
that actual expenses are less than the limit.

** Annual operating expenses at April 30, 1998.

*** Annual operating expenses at Dec. 31, 1998.

IDS Life of New York has entered into certain arrangements under which it is
compensated by the funds' advisors and/or distributors for the administrative
services it provides to these funds.

OTHER INFORMATION ON CHARGES:
IDS Life of New York may reduce or eliminate various fees and charges when we
incur lower sales costs and/or perform fewer administrative services than usual.
The two most common cases are:

- - Policies made available by an employer to a group of employees.

- - Policies purchased on or after May 1, 1991 with an initial specified amount of
$350,000 or greater.

29 PROSPECTUS
<PAGE>
- ---------------------------------
Policy value

The value of your policy is the sum of values in the fixed account and each
subaccount of the variable account.

FIXED ACCOUNT VALUE

The value in the fixed account on the policy date (when the policy is issued)
equals:

- - the portion of your initial net premium allocated to the fixed account; plus

- - interest accrued before the policy date; minus

- - the portion of the monthly deduction for the first policy month allocated to
the fixed account.

On any later date, the value in the fixed account equals:

- - the value on the previous monthly date; plus

- - net premiums allocated to the fixed account since the last monthly date; plus

- - any transfers to the fixed account from the subaccounts, including loan
transfers, since the last monthly date; plus

- - accrued interest on all of the above; minus

- - any transfers from the fixed account to the subaccounts, including loan
repayment transfers, since the last monthly date; minus

- - any partial surrenders or partial surrender fees allocated to the fixed
account since the last monthly date; minus

- - interest on any transfers or partial surrenders, from the date of the transfer
or surrender to the date of calculation; minus

- - any portion of the monthly deduction for the coming month that is allocated to
the fixed account if the date of calculation is a monthly date.

SUBACCOUNT VALUES

The value in each subaccount changes daily, depending on the investment
performance of the fund or trust in which that subaccount invests and on other
factors detailed below. There is no guaranteed minimum subaccount value. You as
owner bear the entire investment risk.

CALCULATION OF SUBACCOUNT VALUE: The value of each subaccount on the policy date
equals:

- - the portion of your initial net premium allocated to the subaccount; plus

- - interest accrued before the policy date; minus

- - the portion of the monthly deduction for the first policy month allocated to
that subaccount.

The value of each subaccount on each valuation date equals:

- - the value of the subaccount on the preceding valuation date, multiplied by the
net investment factor for the current valuation period (explained below); plus

- - net premiums received and allocated to the subaccount during the current
valuation period; plus

- - any transfers to the subaccount (from the fixed account or other subaccounts,
including loan repayment transfers) during the period; minus

30 PROSPECTUS
<PAGE>

- - any transfers from the subaccount including loan transfers during the current
valuation period; minus

- - any partial surrenders and partial surrender fees allocated to the subaccount
during the period; minus

- - any portion of the monthly deduction allocated to the subaccount during the
period.

The net investment factor measures the investment performance of a subaccount
from one valuation period to the next. Because performance may fluctuate, the
value of a subaccount may increase or decrease from day to day.

ACCUMULATION UNITS: We convert the policy value allocated to each subaccount
into accumulation units. Each time you direct a premium payment or transfer
policy value into one of the subaccounts, we credit a certain number of
accumulation units to your policy for that subaccount. Conversely, each time you
take a partial surrender or transfer value out of a subaccount, we subtract a
certain number of accumulation units.

Accumulation units are the true measure of investment value in each subaccount.
For subaccounts investing in the funds, they're related to, but not the same as,
the net asset value of the corresponding fund. The dollar value of each
accumulation unit can rise or fall daily, depending on the investment
performance of the underlying fund, on any change in the value of trust units
and on certain charges. Here is how unit values are calculated:

NUMBER OF UNITS: To calculate the number of units for a particular subaccount,
we divide your investment (net premium or transfer amount) by the current
accumulation unit value.

ACCUMULATION UNIT VALUE: The current value for each subaccount equals the last
value times the current net investment factor.

NET INVESTMENT FACTOR: We determine the net investment factor at the end of each
valuation period. This factor equals

(a DIVIDED BY b) - c

where:

(a) equals:

- - net asset value per share of the fund or value of a unit of the trust; plus

- - per-share amount of any dividend or capital gain distribution made by the
relevant fund to the subaccount; plus

- - any credit or minus any charge for reserves to cover any tax liability
resulting from the investment operations of the subaccount.

(b) equals:

- - net asset value per share of the fund or value of a unit of the trust at the
end of the preceding valuation period; plus

- - any credit or minus any charge for reserves to cover any tax liability in the
preceding valuation period.

31 PROSPECTUS
<PAGE>
Policy value

(c) is a percentage factor representing the mortality and expense risk charge
and, for the subaccount investing in the trust, the transaction charge, as
described in "Loads, fees and charges," above.

FACTORS THAT AFFECT SUBACCOUNT 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:

- - additional purchase payments allocated to the subaccounts;

- - transfers into or out of the subaccount(s);

- - partial surrenders and partial surrender fees;

- - surrender charges; and/or

- - pro rata portions of the monthly deductions

Accumulation unit values will fluctuate due to:

- - changes in underlying fund(s) net asset value or the value of the trust;

- - dividends distributed to the subaccount(s);

- - capital gains or losses of underlying funds;

- - fund operating expenses;

- - mortality and expense risk charges; and/or

- - the transaction charge for the subaccount investing in the trust.

32 PROSPECTUS
<PAGE>
- ---------------------------------
Death benefits

When you purchase your policy, you decide on the minimum amount of protection
you want for the beneficiary if the insured dies. This amount is called the
specified amount. Your policy's death benefit can never be less than this amount
unless you change it or unless your policy has an outstanding indebtedness.

You also choose one of two death benefit options, which determines how the
policy's value will affect the amount paid to the beneficiary if the insured
dies while the policy is in force:

OPTION 1 (LEVEL AMOUNT): Under this option, the policy's value is part of the
specified amount. The Option 1 death benefit is the greater of:

- - the specified amount on the date of the insured's death; or

- - the applicable percentage of the policy value on the date of death, if death
occurs on a valuation date, or on the next valuation date following the date
of death. (See table below.)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
APPLICABLE PERCENTAGE TABLE

<CAPTION>
INSURED'S APPLICABLE INSURED'S APPLICABLE
ATTAINED PERCENTAGE OF ATTAINED PERCENTAGE OF
INSURANCE POLICY INSURANCE POLICY
AGE VALUE AGE VALUE
<S> <C> <C> <C>

40 or younger 250% 61 128%
41 243 62 126
42 236 63 124
43 229 64 122
44 222 65 120
45 215 66 119
46 209 67 118
47 203 68 117
48 197 69 116
49 191 70 115
50 185 71 113
51 178 72 111
52 171 73 109
53 164 74 107
54 157 75-95 105
55 150 96 104
56 146 97 103
57 142 98 102
58 138 99 101
59 134 100 100
60 130
</TABLE>

The percentage is designed to ensure that the policy meets the provisions of
federal tax law which requires a minimum death benefit in relation to policy
value for your policy to qualify as life insurance.

33 PROSPECTUS
<PAGE>
Death benefits

OPTION 2 (VARIABLE AMOUNT): Under this option, the policy value is added to the
specified amount. The Option 2 death benefit is the greater of:

- - the policy value plus the specified amount; or

- - the applicable percentage of policy value (from the preceding table) on the
date of death, if death occurs on a valuation date, or on the next valuation
date following the date of death.

<TABLE>
<CAPTION>
EXAMPLES: OPTION 1 OPTION 2
<S> <C> <C>
specified amount $100,000 $100,000
policy value $5,000 $5,000
death benefit $100,000 $105,000
policy value increases to $8,000 $8,000
death benefit $100,000 $108,000
policy value decreases to $3,000 $3,000
death benefit $100,000 $103,000
</TABLE>

If you want to have premium payments and favorable investment performance
reflected partly in the form of an increasing death benefit, you should consider
Option 2. If you are satisfied with the specified amount of insurance protection
and prefer to have premium payments and favorable investment performance
reflected to the maximum extent in the policy value, you should consider Option
1. Under Option 1, the cost of insurance is lower because IDS Life of New York's
net amount at risk is generally lower; for this reason the monthly deduction is
less and a larger portion of your premiums and investment returns is retained in
the policy value.

CHANGE IN DEATH BENEFIT OPTION

You may make a written request to change the death benefit option once per
policy year. A change in the death benefit option also will change the specified
amount. You do not need to provide additional evidence of insurability.

IF YOU CHANGE FROM OPTION 1 TO OPTION 2: The specified amount will decrease by
an amount equal to the policy value on the effective date of the change. You
cannot change from Option 1 to Option 2 if the resulting specified amount would
fall below the minimum amount shown in the policy.

The minimum specified amount for policies purchased on or after May 1, 1991 with
an initial specified amount of $350,000 or more is:

- - $350,000 in the first policy year;

- - $325,000 in years two to five;

- - $300,000 in years six to 10; and

- - $275,000 thereafter.

IF YOU CHANGE FROM OPTION 2 TO OPTION 1: The specified amount will increase by
an amount equal to the policy value on the effective date of the change.

An increase or decrease in specified amount resulting from a change in the death
benefit option will affect the following policy costs:

34 PROSPECTUS
<PAGE>

- - Monthly deduction because the cost of insurance depends upon the specified
amount.

- - Minimum monthly premium.

- - Charges for certain optional insurance benefits.

The surrender charge will not be affected.

CHANGES IN SPECIFIED AMOUNT

Subject to certain limitations, you may make a written request to increase or
decrease the specified amount at any time. Changes in specified amount may have
tax implications, discussed in the section "Modified endowment contracts" under
"Federal taxes."

INCREASES: If you increase the specified amount, we may require additional
evidence of insurability that is satisfactory to us. The effective date of the
increase will be the monthly anniversary on or next following our approval of
the increase. The increase may not be less than $10,000, and we will not permit
an increase after the insured's attained insurance age 75.

An increase in the specified amount will have the following effects on policy
charges:

- - Your monthly deduction will increase because the cost of insurance and the
death benefit guarantee charge both depend upon the specified amount.

- - Charges for certain optional insurance benefits will increase.

- - The minimum monthly premium will increase if the DBG is in effect.

- - The surrender charge will increase.

At the time of the increase in specified amount, the cash surrender value of
your policy must be sufficient to pay the monthly deduction on the next monthly
anniversary. The increased surrender charge will reduce the cash surrender
value. If the remaining cash surrender value is not sufficient to cover the
monthly deduction, we will require you to pay additional premiums within the
61-day grace period. If you do not, the policy will lapse unless the DBG is in
effect. Because the minimum monthly premium will increase, you may also have to
pay additional premiums to keep the DBG in effect.

DECREASES: Any decrease in specified amount will take effect on the monthly
anniversary on or next following our receipt of your written request. The
specified amount remaining after the decrease may not be less than the minimum
specified amount (currently $50,000 for the first two policy years, $40,000 in
years three through 10, and $25,000 thereafter). If, following a decrease in
specified amount, the policy would no longer qualify as life insurance under
federal tax law, the decrease may be limited to the extent necessary to meet
these requirements.

The minimum specified amount for policies purchased on or after May 1, 1991 with
an initial specified amount of $350,000 or more is:

- - $350,000 in the first policy year;

- - $325,000 in years two to five;

- - $300,000 in years six to 10; and

- - $275,000 thereafter.

A decrease in specified amount will affect your costs as follows:

35 PROSPECTUS
<PAGE>
Death benefits

- - Your monthly deduction will decrease because the cost of insurance and the DBG
charge both depend upon the specified amount.

- - Charges for certain optional insurance benefits will decrease.

- - The minimum monthly premium will decrease if the DBG is in effect.

- - The surrender charge will not change.

No surrender charge is imposed when you request a decrease in the specified
amount.

We will deduct decreases in the specified amount from the current specified
amount in this order:

- - First from the portion due to the most recent increase;

- - Next from portions due to the next most recent increases successively; and

- - Then from the initial specified amount when the policy was issued.

This procedure may affect the cost of insurance if we have applied different
rate classifications to the current specified amount. We will eliminate the rate
classification applicable to the most recent increase in the specified amount
first, then the rate classification applicable to the next most recent increase,
and so on.

MISSTATEMENT OF AGE OR SEX

If the insured's age or sex has been misstated, the proceeds payable upon death
will be:

- - the policy value on the date of death; plus

- - the amount of insurance that would have been purchased by the cost of
insurance deducted for the policy month during which death occurred, if that
cost had been calculated using rates for the correct age and sex; minus

- - the amount of any outstanding indebtedness on the date of death.

SUICIDE

Suicide by the insured, whether sane or insane, within two years from policy
date is not covered by the policy. If suicide occurs, the only amount payable to
the beneficiary will be the premiums paid, minus the amount of any outstanding
indebtedness.

BENEFICIARY

Initially, the beneficiary will be the person you designate in your application
for the policy. You may change the beneficiary by giving written notice to IDS
Life of New York, subject to requirements and restrictions stated in the policy.
If you do not designate a beneficiary, or if the designated beneficiary dies
before the insured, the beneficiary will be you or your estate.

36 PROSPECTUS
<PAGE>
- ---------------------------------
Transfers between the fixed account and subaccounts

You may transfer policy values from one subaccount to another or between
subaccounts and the fixed account. For most transfers, we will process your
transfer request at the end of the valuation period during which we receive your
request. There is no charge for transfers. Before transferring policy value, you
should consider the risks involved in switching investments.

We may suspend or modify the transfer privilege at any time. Transfers involving
the fixed account are subject to the restrictions below.

FIXED ACCOUNT TRANSFER POLICIES

- - You must make transfers from the fixed account during a 30-day period starting
on a policy anniversary, except for automated transfers, which can be set up
for monthly, quarterly or semiannual transfer periods.

- - If we receive your request to transfer amounts from the fixed account within
30 days before the policy anniversary, the transfer will become effective on
the anniversary.

- - If we receive your request on or within 30 days after the policy anniversary,
the transfer will be effective on the day we receive it.

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

- - If you made a transfer from the fixed account to one or more subaccounts, you
may not make a transfer from any subaccount back to the fixed account until
the next policy anniversary. We will waive this limitation once during the
first two policy years if you exercise the policy's right to exchange
provision. (See "Exchange right.")

MINIMUM TRANSFER AMOUNTS

From a subaccount to another subaccount or the fixed account:

- - For mail and phone transfers -- $250 or the entire subaccount balance,
whichever is less.

- - For automated transfers -- $50.

From the fixed account to a subaccount:

- - $250 or the entire fixed account balance minus any outstanding indebtedness,
whichever is less.

- - For automated transfers -- $50.

MAXIMUM TRANSFER AMOUNTS

From a subaccount to another subaccount or the fixed account:

- - None.

From the fixed account to a subaccount:

- - Entire fixed account balance minus any outstanding indebtedness.

MAXIMUM NUMBER OF TRANSFERS PER YEAR

We reserve the right to limit mail and telephone transfers to five per policy
year. Twelve automated transfers per policy are allowed.

37 PROSPECTUS
<PAGE>
Transfers between the fixed account and subaccounts

TWO WAYS TO REQUEST A TRANSFER, LOAN OR SURRENDER

Provide your name, policy number, Social Security Number or Taxpayer
Identification Number when you request a transfer.

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
- ---
1
BY LETTER
REGULAR MAIL: EXPRESS MAIL:
IDS Life Insurance Company of IDS Life Insurance Company of
New York New York
P.O. Box 5144 20 Madison Ave. Extension
Albany, NY 12205 Albany, NY 12203

- ----------------------------------------------------------------------------------------------------------
- ---
2
BY PHONE
Call between 8 a.m. and 6 p.m. (Monday-Thursday); 8 a.m. and 4:30 p.m. (Friday),
All Eastern Times:
1-800-541-2251 (toll free) or
(518) 869-8613 (Albany area)
</TABLE>

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

- - We will honor any telephone transfer or surrender request believed to be
authentic and will use reasonable procedures to confirm that they are. These
include asking identifying questions and tape recording calls. As long as we
follow these procedures, neither IDS Life of New York nor its affiliates will
be liable for any loss resulting from fraudulent requests.

- - We make telephone transfers available automatically. You may request that
telephone transfers not be authorized from your account by writing IDS Life of
New York.

AUTOMATED TRANSFERS

In addition to written and phone requests, you can arrange to have policy value
transferred from one account to another automatically. Your financial advisor
can help you set up an automated transfer.

AUTOMATED TRANSFER POLICIES:

- - Minimum automated transfer: $50

- - Only one automated transfer arrangement can be in effect at any time. You can
transfer policy values TO one or more subaccounts and the fixed account, but
you can transfer FROM only one account.

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

- - You cannot make automated transfers from the fixed account in an amount that,
if continued, would deplete the fixed account within 12 months.

- - If you made a transfer from the fixed account to one or more subaccounts, you
may not make a transfer from any subaccount back to the fixed account until
the next policy anniversary.

38 PROSPECTUS
<PAGE>

- - If you submit your automated transfer request with an application for a
policy, automated transfers will not take effect until the policy is issued.

- - If the value of the account from which you are transferring policy value is
less than the $50 minimum, we will stop the transfer arrangement
automatically.

- - Automated transfers are subject to all other policy provisions and terms
including provisions relating to the transfer of money between the fixed
account and the subaccounts.

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 subaccount to a more
aggressive one, or to several others.

This systematic approach can help you benefit from fluctuations in accumulation
unit value, caused by fluctuations in the market value of the underlying fund.
Since you invest the same amount each period, you automatically acquire more
units when the market value falls, fewer units when it rises. The potential
effect is to lower your average cost per unit. There is no charge for
dollar-cost averaging.
By investing an
equal number of
dollars each month...
you automatically
buy more units when
the per unit market
price is low...
and fewer units
when the per unit
market price is high.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
HOW DOLLAR-COST AVERAGING WORKS

<CAPTION>
AMOUNT ACCUMULATION NUMBER OF UNITS
MONTH INVESTED UNIT VALUE PURCHASED
<S> <C> <C> <C>

Jan $100 $20 5.00

Feb 100 16 6.25

Mar 100 9 11.11

Apr 100 5 20.00

May 100 7 14.29

June 100 10 10.00

July 100 15 6.67

Aug 100 20 5.00

Sept 100 17 5.88

Oct 100 12 8.33
</TABLE>

You have paid an average price of $10.81 per unit over the 10 months, while the
average market price actually was $13.10.

Dollar-cost averaging does not guarantee that any variable 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 continue to invest
regularly through periods of low price levels. Dollar-cost averaging can be an
effective way to help meet your long-term goals.

39 PROSPECTUS
<PAGE>
- ------------------------------
Policy loans

You may borrow against your policy by written or telephone request. (See chart
under "Transfers between the fixed account and subaccounts" for address and
phone numbers for your requests.) We will process your loan request at the end
of the valuation period during which your request is received. (Loans by
telephone are limited to $50,000.)

INTEREST RATE:
6.1% payable in advance, which is equivalent to a 6.5% effective rate. For
policies purchased on or after May 1, 1993, we expect to reduce the loan
interest rate after a policy's 10th anniversary to 4.3% payable in advance,
equivalent to a 4.5% effective rate.

MINIMUM LOAN:
$200 or the remaining loan value, whichever is less.

MAXIMUM LOAN:

- - 85% of the policy value minus surrender charges.

We will compute the maximum loan value as of the end of the valuation period
during which we receive your loan request. In doing so, we will deduct from the
loan value interest for the period until the next policy anniversary.

PAYMENT OF LOANED FUNDS:
Generally, we will pay loans within seven days after we receive your request
(with certain exceptions -- see "Deferral of payments," under "Payment of policy
proceeds").

ALLOCATION OF LOANS TO ACCOUNTS:
If you do not specify whether the loan is to come from the fixed account or the
subaccounts, we will take it from the subaccounts and the fixed account in
proportion to their values, minus indebtedness. When we make a loan from a
subaccount, we redeem accumulation units and the proceeds transferred into the
fixed account. We will credit the loaned amount with 4.5% annual interest.

REPAYMENTS:
We will allocate loan repayments to subaccounts and/or the fixed account using
the premium allocation percentages in effect unless you tell us otherwise.
Repayments must be in amounts of at least $25.

40 PROSPECTUS
<PAGE>

OVERDUE INTEREST:
If you do not pay accrued interest when it is due, we will increase the amount
of indebtedness in the fixed account to cover the amount due. Interest added to
a policy loan will be charged the same interest rate as the loan itself. We will
take such interest from the fixed account and/or subaccounts, using the monthly
deduction allocation percentages. If the value in the fixed account or any
subaccount is not enough to pay the interest so allocated, all of the interest
will be taken from all of the accounts in proportion to their value, minus
indebtedness.

EFFECTS OF POLICY LOANS:
If you do not repay your loan, it will reduce the death benefit and policy
value. Even if you do repay it, your loan can have a permanent effect on death
benefits and policy values, because money borrowed against the subaccounts will
not share in the investment results of the relevant fund(s) or the trust.

TAXES:
If your policy lapses or you surrender it with an outstanding indebtedness, and
the amount of outstanding indebtedness plus the cash surrender value is more
than the sum of premiums you paid, you generally will be liable for taxes on the
excess. (See "Federal taxes.")

41 PROSPECTUS
<PAGE>
- ------------------------------
Policy surrenders

You may surrender your policy in full or in part by written or telephone
request. (See chart under "Transfers between the fixed account and
subaccounts.") We will process your surrender request at the end of the
valuation period during which your request is received.

We will normally process your payment within seven days; however, we reserve the
right to defer payment. (See "Deferral of payments," under "Payment of policy
proceeds.")

TOTAL SURRENDERS

If you surrender your policy totally, you receive its cash surrender value --
the policy value minus outstanding indebtedness and applicable surrender
charges. (See "Loads, fees and charges.") We will compute the value of each
subaccount as of the end of the valuation period during which we receive your
request.

PARTIAL SURRENDERS

After the first policy year, you may surrender any amount from $200 up to 85% of
the policy's cash surrender value. (Partial surrenders by telephone are limited
to $50,000.) We will charge you a partial surrender fee, described under "Loads,
fees and charges."

ALLOCATION OF PARTIAL SURRENDERS:

Unless you specify otherwise, IDS Life of New York will make partial surrenders
from the fixed account and subaccounts in proportion to their values at the end
of the valuation period during which your request is received. In determining
these proportions, we first subtract the amount of any outstanding indebtedness
from the fixed account value.

EFFECTS OF PARTIAL SURRENDERS

A partial surrender will reduce the policy value by the amount of the partial
surrender and fee.

A partial surrender will reduce the death benefit by the amount of the partial
surrender and fee, or, if the death benefit is based on the applicable
percentage of policy value, by an amount equal to the applicable percentage
times the amount of the partial surrender.

A partial surrender may terminate the DBG. We deduct the surrender amount from
total premiums you paid, which may reduce the total below the level required to
keep the DBG in effect.

If Option 1 is in effect, a partial surrender will reduce the specified amount
by the amount of the partial surrender and fee. IDS Life of New York will deduct
this decrease from the current specified amount in this order:

- - First from the specified amount provided by the most recent increase;

- - Next from the next most recent increases successively;

- - Then from the initial specified amount when the policy was issued.

42 PROSPECTUS
<PAGE>

Because they reduce the specified amount, partial surrenders may affect the cost
of insurance. IDS Life of New York will not allow a partial surrender if it
would reduce the specified amount below the required minimum. (See "Decreases"
under "Death benefits.")

- - If Option 2 is in effect, a partial surrender does not affect the specified
amount.

TAXES

Upon surrender, you will generally be liable for taxes on any excess of the cash
surrender value plus outstanding indebtedness over the premium paid. (See
"Federal taxes.")

EXCHANGE RIGHT

For two years after the policy is issued, you can exchange it for one that
provides benefits that do not vary with the investment return of the
subaccounts. Because the policy itself offers a fixed return option, all you
need to do is transfer all of the policy value in the subaccounts to the fixed
account. We will automatically credit all future premium payments to the fixed
account unless you request a different allocation.

A transfer for this purpose will not count against the five-transfers-per-year
limit. Also, we will waive any restrictions on transfers into the fixed account
for this type of transfer.

There will be no effect on the policy's death benefit, specified amount, net
amount at risk, rate classification or issue age. Only the method of funding the
policy value will be affected.

PAID-UP INSURANCE OPTION

You may request that we use the cash surrender value of the policy be used to
purchase an amount of paid-up insurance. You may make your request may be made
in writing during the 30 days before any policy anniversary. The paid-up
insurance policy will take effect as of the policy anniversary and will mature
on the original policy's maturity date. You will forfeit all rights to make
future premium payments and all riders will terminate.

The amount and cash surrender value of the paid-up insurance will be based on
the cost of insurance rates guaranteed in the policy and on the fixed account
guaranteed interest rate. The paid-up policy's death benefit amount, minus its
cash surrender value, cannot be greater than your current policy's death
benefit, minus its policy value (both as of the date of the paid-up policy's
purchase). The amount of paid-up insurance will remain level and will not be
less than required by law.

43 PROSPECTUS
<PAGE>
- ------------------------------
Optional insurance benefits

You may choose to add the following benefits to your policy, in the form of
riders (if you meet certain requirements). More detailed information on these
benefits is in your policy.

WAIVER OF MONTHLY DEDUCTION (WMD)
Under WMD, we will waive the monthly deduction if the insured becomes totally
disabled.

ACCIDENTAL DEATH BENEFIT (ADB)
ADB provides an additional death benefit if the insured's death is caused by
accidental injury.

OTHER INSURED RIDER (OIR)
OIR provides a level, adjustable death benefit on the life of each other insured
covered.

CHILDREN'S INSURANCE RIDER (CIR)
CIR provides level term coverage on each eligible child.

44 PROSPECTUS
<PAGE>
- ---------------------------------
Payment of policy proceeds

Proceeds will be paid when:

- - you surrender the policy;

- - the insured dies; or

- - the policy maturity date is reached, which occurs when the insured reaches
attained insurance age 100.

We pay all proceeds by check. We will compute the amount of the death benefit
and pay it in a single sum unless you select one of the payment options below.
We will pay interest at a rate not less than 4% per year on single sum death
proceeds, from the date of the insured's death to the settlement date (the date
on which proceeds are paid in a lump sum or first placed under a payment
option).

PAYMENT OPTIONS:
During the insured's lifetime, you may request in writing that we pay policy
proceeds under one or more of the three payment options below. (The beneficiary
may also select a payment option, unless you say that he or she cannot.) You
decide how much of the proceeds will be placed under each option (minimum:
$5,000). We will transfer any such amount will be transferred to IDS Life of New
York's general account. Unless we agree otherwise, payments under all options
must be made to a natural person.

You may also, by written request, change a prior choice of payment option, or
elect a payment option other than the three below if we agree.

If you elect a payment option for pre-death proceeds, payments under this option
may be subject to federal income tax as ordinary income. If you elect Option A,
the full pre-death proceeds will be taxed as a full surrender or maturity as
described in "Taxation of policy proceeds" and may also be subject to an
additional 10% penalty tax if the policy is a modified endowment. The interest
paid under Option A will be ordinary income subject to income tax in the year
earned. The interest payments will not be subject to the 10% penalty tax.

If you elect Option B or Option C for payment of pre-death proceeds, any
indebtedness at the time of election will be taxed as a partial surrender as
described in "Taxation of policy proceeds" and may also be subject to an
additional 10% penalty tax if the policy is a modified endowment. We will use
the remainder of the proceeds will be used to make payments under the option
elected. A portion of each payment will be taxed as ordinary income and a
portion of each payment will be considered a return of the investment in the
policy and will not be taxed. We describe an owner's investment in the policy in
"Taxation of policy proceeds." All payments made after the investment in the
policy is fully recovered will be subject to tax. Amounts paid under Option B or
Option C that are subject to tax may also be subject to an additional 10%
penalty tax. (See "Penalty tax" under "Federal Taxes.")

Death benefit proceeds applied to any payment option are not considered part of
the beneficiary's income and thus are not subject to federal income tax.
Payments of interest under Option A will be ordinary income subject to tax.
Under Option B or Option C, a portion of each payment will be ordinary income,
subject to tax and a portion of each payment will be considered a return of the
beneficiary's investment in

45 PROSPECTUS
<PAGE>
Payment of policy proceeds

the policy. The beneficiary's investment in the policy is the death benefit
proceeds applied to the payment option. All payments made after the investment
in the policy is fully recovered will be subject to tax.

OPTION A -- INTEREST PAYMENTS: We will pay interest on any proceeds placed under
this option at a rate of 4% per year compounded annually, at regular intervals
and for a period that is agreeable to both you and us. At the end of any payment
interval, you may withdraw proceeds in amounts of at least $100. At any time,
you may withdraw all of the proceeds that remain or you may place them under a
different payment option approved by us.

OPTION B -- PAYMENTS FOR A SPECIFIED PERIOD: We will make fixed monthly payments
for any number of years you specify. Here are examples of monthly payments for
each $1,000 placed under this option:

<TABLE>
<CAPTION>
PAYMENT PERIOD MONTHLY PAYMENT PER $1,000
(YEARS) PLACED UNDER OPTION B

<S> <C>
5 $18.32

10 10.06

15 7.34

20 6.00

25 5.22

30 4.72
</TABLE>

We will furnish monthly amounts for other payment periods will be furnished at
your request, free of charge.

OPTION C -- LIFETIME INCOME: We will make monthly payments for the life of the
person (payee) who is to receive the income. Payment will be guaranteed for 10,
15 or 20 years.

46 PROSPECTUS
<PAGE>

We will base the amount of each monthly payment per $1,000 placed under this
option will be based on the table of settlement rates in effect at the time of
the first payment. The amount depends on the sex and adjusted age of the payee
on that date. Adjusted age means the age of the payee (on the payee's nearest
birthday) minus an adjustment as follows:

<TABLE>
<CAPTION>
CALENDAR YEAR OF CALENDAR YEAR OF
PAYEE'S BIRTH ADJUSTMENT PAYEE'S BIRTH ADJUSTMENT

<S> <C> <C> <C>
Before 1920 0 1945-1949 6

1920-1924 1 1950-1959 7

1925-1929 2 1960-1969 8

1930-1934 3 1970-1979 9

1935-1939 4 1980-1989 10

1940-1944 5 After 1989 11
</TABLE>

The amount of each monthly payment per $1,000 placed under this option will not
be less than amounts shown in the next table. We will furnish monthly amounts
for any adjusted age not shown will be furnished at your request, without
charge.
<TABLE>
<CAPTION>
ADJUSTED
AGE LIFE INCOME PER $1,000 WITH
PAYEE PAYMENTS GUARANTEED FOR
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------

<CAPTION>
10 YEARS 15 YEARS 20 YEARS
MALE FEMALE MALE FEMALE MALE FEMALE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>

50 $4.81 $4.47 $4.74 $4.45 $4.65 $4.40

55 5.20 4.80 5.09 4.74 4.94 4.87

60 5.70 5.22 5.51 5.12 5.25 4.98

65 6.35 5.77 5.98 5.58 5.54 5.32

70 7.14 6.50 6.47 6.12 5.77 5.63

75 8.00 7.40 6.87 6.64 5.91 5.85
</TABLE>

DEFERRAL OF PAYMENTS:
We reserve the right to defer payments of cash surrender value, policy loans or
variable death benefits in excess of the specified amount if:

- - the payments derive from a premium payment made by a check that has not
cleared the banking system (we have not collected good payment);

- - the NYSE is closed (other than customary weekend and holiday closings);

- - in accordance with SEC rules, trading on the NYSE is restricted or, because of
an emergency, it is not practical to dispose of securities held in the
subaccount or determine the value of the subaccount's net assets.

47 PROSPECTUS
<PAGE>
Payment of policy proceeds

We may delay the payment of any loans or surrenders from the fixed account may
be delayed up to six months from the date we receive the request. If we postpone
the payment of surrender proceeds more than 10 days, we will pay you interest on
the amount surrendered at an annual rate of 4% for the period of postponement.

48 PROSPECTUS
<PAGE>
- ------------------------------
Federal taxes

The following is a general discussion of the policy's federal income tax
implications. It is not intended as tax advice. Because the effect of taxes on
the value and benefits of your policy depends on your individual situation as
well as IDS Life of New York's tax status, YOU SHOULD CONSULT A TAX ADVISOR TO
FIND OUT HOW THESE GENERAL CONSIDERATIONS APPLY TO YOU. The discussion is based
on our understanding of federal income tax laws as the Internal Revenue Service
(IRS) currently interprets them; both the laws and their interpretation may
change.

We intend the policy is intended to qualify as a life insurance policy for
federal income tax purposes. To that end, the provisions of the policy are to be
interpreted to ensure or maintain this tax qualification. IDS Life of New York
reserves the right to change the policy in order to ensure that it will continue
to qualify as life insurance for tax purposes. We will send you a copy of any
changes.

IDS LIFE OF NEW YORK'S TAX STATUS

The IRS taxes IDS Life of New York as a life insurance company under the Code.
For federal income tax purposes, the subaccounts are considered a part of IDS
Life of New York, although we treat their operations separately in accounting
and financial statements. Investment income from the subaccounts is reinvested
and becomes part of the subaccounts' value. The IRS does not tax IDS Life of New
York on this investment income, including realized capital gains. Therefore, IDS
Life of New York and therefore no charge is made against the subaccounts for our
federal income taxes. IDS Life of New York reserves the right to make such a
charge in the future if there is a change in the tax treatment of variable life
insurance contracts or in IDS Life of New York's tax status as we currently
understand it.

TAXATION OF POLICY PROCEEDS

The IRS does not consider the death benefit to be part of the beneficiary's
income and therefore is not subject to federal income taxes. The IRS may tax
part or all of any pre-death proceeds received through full surrender or
maturity, lapse, partial surrender, policy loan or assignment of policy value or
payment options may be subject to federal income tax as ordinary income. (See
the following table.) In some cases, the tax liability depends on whether the
policy is a modified endowment (explained following the table). The taxable
amount may also be subject to an additional 10% penalty tax if the policy is a
modified endowment.

49 PROSPECTUS
<PAGE>
Federal taxes

<TABLE>
<CAPTION>
SOURCE OF PROCEEDS TAXABLE PORTION OF PRE-DEATH PROCEEDS
<S> <C>
FULL SURRENDER AND MATURITY: Amount received plus any indebtedness, minus your
investment in the policy.*
- ------------------------------------------------------------------------------------------------------
LAPSE: Any outstanding indebtedness minus your investment
in the policy.*
- ------------------------------------------------------------------------------------------------------
PARTIAL SURRENDERS Lesser of:
(MODIFIED ENDOWMENTS): the amount received or policy value minus your
investment in the policy.*
- ------------------------------------------------------------------------------------------------------
POLICY LOANS AND ASSIGNMENTS Lesser of:
(MODIFIED ENDOWMENTS): the amount of the loan / assignment or policy
value minus your investment in the policy.*
- ------------------------------------------------------------------------------------------------------
PARTIAL SURRENDERS Generally, if the amount received is greater than
(OTHER POLICIES): your investment in the policy,* the amount in
excess of your investment is taxable. However,
during the first 15 policy years, a different
amount may be taxable if the partial surrender
results in or is necessitated by a reduction in
benefits.
- ------------------------------------------------------------------------------------------------------
POLICY LOANS AND ASSIGNMENTS None
(OTHER POLICIES)
- ------------------------------------------------------------------------------------------------------
PAYMENT OPTIONS: If we pay proceeds of the policy under one of the
payment options, see the "Payment option" under
"Payment of policy proceeds" section for tax
information.
- ------------------------------------------------------------------------------------------------------
</TABLE>

* The owner's investment is equal to premiums paid, minus the nontaxable
portion of any previous partial surrenders, plus the taxable portion of any
previous policy loans.

MODIFIED ENDOWMENT CONTRACTS

In 1988, Congress created a new class of life insurance policies called
"Modified Endowment Contracts." The IRS taxes these policies differently from
conventional life insurance contracts.

Your policy is a modified endowment contract if:

- - you apply for it or materially change it on or after June 21, 1988 and

- - the premiums you pay in the first seven years of the policy, or the first
seven years following a material change, exceed certain limits.

Also, any life insurance policy you receive in exchange for a modified endowment
is itself a modified endowment.

We have procedures for monitoring whether your policy may become a modified
endowment contract. We calculate modified endowment limits when we issue the
policy. We base these limits on the benefits we provide under the policy and on
the risk classification of the insured. We recalculate these limits later if
certain increases or reductions in benefits occur.

50 PROSPECTUS
<PAGE>

INCREASES IN BENEFITS: We recalculate limits when an increase is a "material
change." Almost any increase you request, such as an increase in specified
amount, the addition of a rider benefit or an increase in an existing rider
benefit, is a material change. An automatic increase under the terms of you
policy, such as an increase in death benefit due to operation of the applicable
percentage table described in the "Death benefits" section or an increase in
policy value growth under Option 2, generally is not a material change. A policy
becomes a modified endowment if premiums you pay in the early years following a
material change exceed the recalculated limits.

REDUCTIONS IN BENEFITS: When you reduce benefits within seven years after issue
or after the most recent material change, we recalculate the limits as if the
reduced level of benefits had always been in effect. In most cases, this
recalculation will further restrict the amount of premium you can pay without
exceeding modified endowment limits. If the premiums you have already paid
exceed the recalculated limits, the policy becomes a modified endowment even if
you do not pay any further premiums.

DISTRIBUTIONS AFFECTED: Modified endowment rules apply to distributions in the
year the policy becomes a modified endowment and in all subsequent years. In
addition, the rules apply to distributions taken two years before the policy
becomes a modified endowment, which are presumed to be taken in anticipation of
that event.

SERIAL PURCHASE OF MODIFIED ENDOWMENTS: The IRS treats all modified endowments
issued by the same insurer (or affiliated companies of the insurer) to the same
owner during any calendar year as one policy for purposes of determining the
amount of any loan or distribution that is taxable.

PENALTY TAX: If a policy is a modified endowment, the taxable portion of
pre-death proceeds from a full surrender, maturity, lapse, partial surrender,
policy loan or assignment of policy value or certain payment options may be
subject to a 10% penalty tax unless:

- - the distribution occurs after the owner attains age 59 1/2;

- - the distribution is attributable to the owner becoming disabled (within the
meaning of Code Section 72(m)(7); or

- - the distribution is part of a series of substantially equal periodic payments
made at least once a year over the life (or life expectancy) of the owner or
over the joint lives (or life expectancies) of the owner and the owner's
beneficiary.

OTHER TAX CONSIDERATIONS

INTEREST PAID ON POLICY LOANS: If you use a loan for personal purposes, interest
paid on the loan is not tax-deductible. Other rules apply if you use the loan
for trade or business or investment purposes or if a business or corporation
owns the policy from which the loan is taken.

POLICY CHANGES: Changing ownership, exchanging or assigning the policy may have
tax consequences, depending on the circumstances.

OTHER TAXES: Federal estate tax, state and local estate tax, inheritance tax,
gift tax and other tax consequences of ownership or receipt of policy proceeds
will also depend on the circumstances.

51 PROSPECTUS
<PAGE>
Federal taxes

QUALIFIED RETIREMENT PLANS: The policy may be used in conjunction with certain
qualified plans. Since the rules governing such use are complex, a purchaser
should consult a competent pension consultant.

On July 6, 1983, the Supreme Court held in ARIZONA GOVERNING COMMITTEE V. NORRIS
that optional annuity benefits provided under an employee's deferred
compensation plan could not, under Title VII of the Civil Rights Act of 1964,
vary between men and women on the basis of sex. Since the policy's cost of
insurance rates and purchase rates for certain settlement options distinguish
between men and women, employers and employee organizations should consult with
legal counsel before purchasing the policy for any employment-related insurance
or benefit program.

52 PROSPECTUS
<PAGE>
- ---------------------------------
IDS Life of New York

IDS Life of New York is a stock life insurance company organized under the laws
of the State of New York in 1972. Our address is 20 Madison Ave. Extension,
Albany, NY 12203.

IDS Life of New York is licensed in New York and North Dakota, and it conducts a
conventional life insurance business in the state of New York. All annuity
contracts and insurance policies issued by IDS Life of New York, including the
policy described in this prospectus, are non-participating.

OWNERSHIP

IDS Life of New York, a New York corporation, is a wholly-owned subsidiary of
IDS Life, a Minnesota corporation, which is a wholly-owned subsidiary of
American Express Financial Corporation (AEFC). AEFC, a Delaware corporation, is
a wholly-owned subsidiary of American Express Company.

The AEFA family of companies offers not only insurance and annuities, but also
mutual funds, investment certificates and a broad range of financial management
services.

Besides managing investments for all funds in the IDS MUTUAL FUND GROUP, AEFC
also manages investments for itself and its subsidiaries, IDS Certificate
Company and IDS Life Insurance Company. Total assets under management on Mar. 31
were more than $219 billion.

STATE REGULATION

IDS Life of New York is subject to the laws of New York governing insurance
companies and to regulation by the New York Department of Insurance. IDS Life of
New York files an annual statement in a prescribed form with New York's
Department of Insurance. IDS Life of New York's books and accounts are subject
to review by the New York Department of Insurance at all times and a full
examination of its operations is conducted periodically. Such regulation does
not, however, involve any supervision of management or investment practices or
policies.

DISTRIBUTION OF THE POLICY

American Express Financial Advisors Inc., a registered broker/dealer and an
affiliate of IDS Life of New York, is the sole distributor of the policy.

IDS Life of New York pays its representatives a commission of up to 47.5% of the
initial minimum monthly premium (annualized) when the policy is sold, plus 3% of
all premiums in excess of 12 times the minimum monthly premium. Additional
commissions are paid if an increase in coverage occurs. IDS Life of New York
also pays approximately 27% of the total representative's commission to the
field vice presidents and district sales managers of the selling representative.

53 PROSPECTUS
<PAGE>
IDS Life of New York

LEGAL PROCEEDINGS

A number of lawsuits have been filed against life and health insurers in
jurisdictions in which we do business involving insurers' sales practices,
alleged agent misconduct, failure to properly supervise agents, and other
matters. IDS Life Insurance Company of New York, like other life and health
insurers, from time to time are involved in such litigation. On October 13,
1998, an action entitled Richard W. And Elizabeth J. Thoresen vs. American
Express Financial Corporation, American Centurion Life Assurance Company,
American Enterprise Life Insurance Company, American Partners Life Insurance
Company, IDS Life Insurance Company and IDS Life Insurance Company of New York
was commenced in Minnesota state court. The action was brought by individuals
who purchased an annuity in a qualified plan. They allege that the sale of
annuities in tax-deferred contributory retirement investment plans (E.G., IRAs)
is never appropriate. The plaintiffs purport to represent a class consisting of
all persons who made similar purchases. The plaintiffs seek damages in an
unspecified amount. IDS Life Insurance Company of New York also are defendants
in various other lawsuits. In our opinion, none of these lawsuits will have a
material adverse effect on our financial condition.

YEAR 2000

The Year 2000 issue is the result of computer programs having been written using
two digits rather than four to define a year. Any programs that have
time-sensitive software may recognize a date using "00" as the year 1900 rather
than 2000. This could result in the failure of major systems or miscalculations,
which could have a material impact on the operations of IDS Life of New York and
the variable account. IDS Life of New York and the variable account have no
computer systems of their own but are dependent upon the systems of AEFC and
certain other third parties.

A comprehensive review of AEFC's computer systems and business processes has
been conducted to identify the major systems that could be affected by the Year
2000 issue. Steps are being taken to resolve any potential problems including
modification to existing software and the purchase of new software. These
measures are scheduled to be completed and tested on a timely basis. AEFC's
target date for substantially completing corrective measures on business
critical systems was Dec. 31, 1998. Substantial testing of these systems was
targeted for completion early in 1999. AEFC currently is on track with this
schedule an also is on track to finish the work on non-critical systems by June
30, 1999. The Year 2000 readiness of unaffiliated investment managers and other
third parties whose system failures could have an impact on IDS Life of New
York's and the variable account's operations continues to be evaluated. The
potential materiality of any such impact is not known at this time.

AEFC's Year 2000 project includes establishing Year 2000 contingency plans for
all key business units. Business continuation plans, which address business
continuation in the event of a system disruption, are in place for all key
business units. These plans are being amended to include specific Year 2000
considerations and will continue to be refined throughout 1999 as additional
information related to potential Year 2000 exposure is gathered.

54 PROSPECTUS
<PAGE>

EXPERTS

Ernst & Young LLP, independent auditors, have audited the financial statements
of IDS Life Insurance Company of New York at Dec. 31, 1998 and 1997, and for
each of the three years in the period ended Dec. 31, 1998, and the individual
and combined financial statements of the segregated asset subaccounts of the IDS
Life of New York Account 8 -- Flexible Premium Variable Life Subaccounts as of
Dec. 31, 1998, and for each of the three years in the period then ended, except
for the YGI and YNO subaccounts which are for each of the two years in the
period ended Dec. 31, 1998 and the period Nov. 22, 1996 (commencement of
operations) to Dec. 31, 1996, as set forth in their reports. We've included our
financial statements in the prospectus in reliance on Ernst & Young LLP's
report, given on their authority as experts in accounting and auditing.

Actuarial matters included in the prospectus have been examined by Mark Gorham,
F.S.A., M.A.A.A., Actuarial Director, Insurance Product Development, as stated
in his opinion filed as an exhibit to the Registration Statement.

55 PROSPECTUS
<PAGE>
- ------------------------------
Management of IDS Life of New York

----------------------------------------------------------------
DIRECTORS

TIMOTHY V. BECHTOLD
Director since April 1999; president since 1998; vice president, Risk Management
Products, IDS Life Insurance Company since January 1995; vice president,
Insurance Product Development, IDS Life Insurance Company from May 1989 to
December 1994.

MAUREEN A. BUCKLEY
Director since April 1999; vice president, chief operating officer and consumer
affairs officer since 1998; chief operating officer and consumer affairs
officer, American Centurion Life Assurance Company, since March 1995;
supervisor, IDS Life of New York from September 1989 to March 1995.

RODNEY P. BURWELL
Director since April 1999; chairman, Xerxes Corporation (manufacturing), since
1969.

JOHN CATTAU
Director since April 1999; vice president, American Express Financial Direct,
since November 1997; manager, American Express Financial Direct from June 1992
to November 1997.

ROBERT R. GREW
Lawyer & Partner, Carter, Ledyard & Milburn, NYC, since 1957.

JEAN B. KEFFELER
Director since April 1999; business and management consultant since 1991.

RICHARD W. KLING
President and chairman of the board, IDS Life of New York, since April 1994;
director, IDS Life, since February 1984; President, IDS Life, since March 1994;
executive vice president, Marketing and Products, IDS Life, from January 1988 to
March 1994; senior vice president, Risk Management Products, AEFC, since May
1994; vice president, AEFC, from January 1988 to May 1994; director and
president of IDS Life Series Fund, Inc.; chairman of the board of managers and
president of IDS Life Variable Annuity Funds A and B.

THOMAS R. MCBURNEY
Director since April 1999; president, McBurney Management Associates, since
1990.

EDWARD J. MUHL
Director since April 1999; vice chairman, Peterson Consulting LLC, since January
1997; superintendent of insurance, New York State from January 1995 to December
1996; senior vice president, Reliance Insurance Group from November 1991 to
January 1995.

THOMAS V. NICOLOSI
Director since October 1996; group vice president, AEFA, from January 1995 to
present; field vice president, AEFA, from January 1988 to December 1994.

STEPHEN P. NORMAN
Secretary, American Express, since 1982.

RICHARD M. STARR
Director since October 1996; managing counsel, American Express Company, since
March 1995; senior counsel, American Express Company, from May 1992 to March
1995; counsel, American Express Company, from June 1989 to May 1992.

MICHAEL R. WOODWARD
Senior vice president, Field Management, AEFC, since June 1991; region vice
president, Atlantic Region, AEFC, from 1988 to June 1991.

56 PROSPECTUS
<PAGE>

- --------------------------------------------------------------------------------
PRINCIPAL OFFICERS OTHER THAN DIRECTORS

MARIO ALAIA
Claims officer and assistant secretary since 1988.

DARRELL C. BECKSTROM
Underwriting officer since 1994; underwriting technical manager, IDS Life, since
1990; senior underwriter, IDS Life, from 1987 to 1992.

JEFFREY W. SULLIVAN, M.D.
Medical director since 1998.

LORRAINE R. HART
Investment officer since March 1992; vice president, Insurance Investments, IDS
Life, since October 1989.

ERIC L. MARHOUN
General counsel and secretary since 1998; group counsel and vice president,
AEFA, since 1997; counsel, AEFA, from 1996 to 1997; associate counsel, AEFA,
from 1995 to 1996; associate, Meagher & Gear, from 1991 to 1995.

F. DALE SIMMONS
Vice president and assistant treasurer since 1994; vice president and senior
portfolio manager, Insurance Investments, AEFC, since 1990.

WILLIAM A. STOLTZMANN
Counsel and assistant secretary since March 1990.

The officers, employees and sales force of IDS Life of New York are bonded, in
the amount of $100 million, by virtue of a blanket fidelity bond issued to
American Express Company by Saint Paul Fire and Marine, the lead underwriter.

57 PROSPECTUS
<PAGE>
- ------------------------------
Other fund managers

A I M ADVISORS, INC.

A I M Advisors, Inc. ("AIM") serves as the Fund's investment advisor. AIM has
acted as advisor since its organization in 1976. Today, AIM, together with its
subsidiaries, advises or manages over 110 investment portfolios encompassing a
broad range of investment objectives.

PUTNAM INVESTMENT MANAGEMENT, INC.

Putnam Management been managing mutual funds since 1937. Today, the firm serves
as the investment manager for the funds in the Putnam Family, with nearly $222
billion in assets under management at Dec. 31, 1998.

SMITH BARNEY, INC.

Smith Barney, sponsor of the trust, a Delaware corporation and a subsidiary of
The Travelers Inc., is engaged in the underwriting, securities and commodities
brokerage business, and is a member of the NYSE, other major securities
exchanges and commodity exchanges and the National Association of Securities
Dealers, Inc. The sponsor sponsors seven open-end investment companies and three
closed-end investment companies as well as a variety of unit investment trusts.
The sponsor has acted as principal underwriter and managing underwriter of other
investment companies. The sponsor, in addition to participating as a member of
various selling groups or as an agent of other investment companies, executes
orders on behalf of investment companies for the purchase and sale of securities
of such companies and sells securities to such companies in its capacity as a
broker or dealer in securities.

58 PROSPECTUS
<PAGE>
- ------------------------------
Other information

The variable account has filed a registration statement with the SEC. For
further information concerning the policy, the variable account and IDS Life of
New York, please refer to the registration statement.

VOTING RIGHTS

As a policy owner with investments in any subaccount, you may vote on important
fund matters. Each share of a fund has one vote. On some issues, such as
election of directors of IDS Life Series Fund, all shares of the IDS Life Series
Fund Portfolios vote together as one series. When electing directors, all shares
of IDS Life Series Fund Portfolios have cumulative voting rights. Cumulative
voting means that shareholders are entitled to a number of votes equal to the
number of shares they hold multiplied by the number of directors to be elected
and they have the right to divide votes among candidates.

On an issue affecting only one fund -- for example, a fundamental investment
restriction pertaining only to that fund -- its shares vote as a separate
series. If shareholders of a particular fund vote approval of an agreement, the
agreement becomes effective with respect to that fund, whether or not it is
approved by shareholders of the other funds.

IDS Life of New York is the owner of all fund shares and therefore holds all
voting rights. However, IDS Life of New York will vote the shares of each fund
according to instructions we receive from owners. If we do not receive timely
instructions from you, we will vote your shares in the same proportion as the
shares for which we do receive instructions. IDS Life of New York also will vote
fund shares that are not otherwise attributable to owners the same proportion as
those shares in that subaccount for which we receive instructions.

We determine the number of fund shares in each subaccount for which you may give
instructions by applying your percentage interest in the subaccount to the total
number of votes attributable to the subaccount. We will determine that number as
of a date we choose that is 60 days or less before the meeting of the fund. We
will send you notice of each shareholder meeting, together with any proxy
solicitation materials and a statement of the number of votes for which you are
entitled to give instructions.

Under certain conditions, IDS Life of New York may disregard voting instructions
that would change the goals of one or more of the funds or would result in
approval or disapproval of an investment advisory contract. If IDS Life of New
York does disregard voting instructions, we will advise you of that action and
the reasons for in our next report to owners.

Generally, ownership of units of a unit investment trust does not involve the
exercise of voting rights. However, unit holders in the trust may vote for
removal of the trustee or for amendment or termination of the trust indenture.
In the event of such a vote, IDS Life of New York, as the owner of the units,
would solicit voting instructions from owners under the same procedures used for
votes affecting the fund.

REPORTS

At least once a year IDS Life of New York will mail you, at your last known
address of record, a report containing all information required by law or
regulation, including a statement showing the current policy value.

59 PROSPECTUS
<PAGE>
- ---------------------------------
Policy illustrations

The following tables illustrate how policy values, cash surrender values and
death benefits may change with the investment experience of the subaccount. The
tables show how these amounts might vary, for a 35-year-old male nonsmoker,
under Death Benefit Option 1, if:

- - the annual rate of return of the Fund is 0%, 6% or 12%

- - the cost of insurance rates and policy fees are current rates and fees for
policies purchased:

- -- on or after November 20, 1997;

- -- on or after May 1, 1993 and before November 20, 1997;

- -- before May 1, 1993; and

- - the cost of insurance rates and policy fees are guaranteed rates and fees.

UNDERSTANDING THE ILLUSTRATIONS:

RATES OF RETURN: assumes uniform, gross, after-tax, annual rates of 0%, 6% or
12% for the funds. Results would differ depending on allocations among the
subaccounts, if returns averaged 0%, 6% and 12% for the funds as a whole but
differed across individual funds.

INSURED: assumes a male insurance age 35, in a standard rate classification,
qualifying for the nonsmoker rate. Results would be lower if the insured were in
a substandard rate classification or did not qualify for the non-smoker rate.

PREMIUMS: assumes a $900 premium is assumed to be paid in full at the beginning
of each policy year. Results would differ if premiums were paid on a different
schedule.

POLICY LOANS AND PARTIAL WITHDRAWALS: assumes that none have been made. (Since
indebtedness is assumed to be zero, the cash surrender value in all cases equals
the policy value minus the surrender charge.)

EFFECT OF EXPENSES AND CHARGES
The death benefit, policy value and cash surrender value reflect the following
charges:

- - Sales charge: 2.5% of each premium payment.

- - Premium tax charge: 1% of each premium payment.

- - Cost of insurance charge for the sex, age and rate classification for the
assumed insured.

- - Policy fee: $5 per month.

- - Death benefit guaranteed charge: 1 cent per $1,000 of the current specified
amount.

- - The expenses paid by the fund and charges made against the subaccounts as
described below:

The net investment return of the subaccounts, shown in the tables, is lower than
the gross, after-tax return of the fund or trust because we deducted the
expenses paid by the fund and charges made against the subaccounts. These
include:

- - the daily investment management fee paid by the funds, assumed to be
equivalent to an annual rate of 0.7% of the fund's average daily net assets;
the assumed investment

60 PROSPECTUS
<PAGE>

management fee is approximately equal to a simple average of the investment
management fees of the funds available under the policy and the transaction
charge of the trust. The actual charges you incur will depend on how you
choose to allocate policy value. See Fund expenses in the Loads, fees and
charges section of this prospectus for additional information;

- - the daily mortality and expense risk charge, equivalent to 0.9% of the daily
net asset value of the subaccounts annually; and

- - a nonadvisory expense charge of 0.1% of each fund's average daily net assets
for direct expenses incurred by the fund; currently, this is the maximum
direct expenses the funds will incur after IDS Life limits the direct expenses
of some funds. The actual charges you incur will depend on how you choose to
allocate policy value. See Fund expenses in the Loads, fees, and charges
section of this prospectus for additional information.

After deduction of the expenses and charges described above, the illustrated
gross annual investment rates of return correspond to the following approximate
net annual rates of return:

<TABLE>
<CAPTION>
NET ANNUAL RATE
OF RETURN FOR NET ANNUAL RATE
GROSS ANNUAL "GUARANTEED OF RETURN FOR
INVESTMENT COSTS "CURRENT COSTS
RATE ASSUMED" ASSUMED"
OF RETURN ILLUSTRATION ILLUSTRATION

TAXES: Results shown in the tables reflect the fact that IDS Life of New York
does not currently charge the subaccounts for federal income tax. If we take
such a charge in the future, the portfolios will have to earn more than they do
now in order to produce the death benefits and policy values illustrated.

61 PROSPECTUS
<PAGE>
Policy illustrations
<TABLE>
<CAPTION>
ILLUSTRATION POLICIES PURCHASED ON OR AFTER NOVEMBER 20, 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------

<CAPTION>
INITIAL SPECIFIED AMOUNT
$100,000 CURRENT COSTS ASSUMED
DEATH BENEFIT OPTION 1 MALE - AGE 35 NONSMOKER ANNUAL PREMIUM $900
- ---------------------------------------------------------------------------------------------------------------
CASH SURRENDER VALUE
POLICY VALUE (1)(2) (1)(2)
PREMIUM ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL
ACCUMULATED DEATH BENEFIT (1)(2) GROSS GROSS
END OF WITH ANNUAL ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN ANNUAL INVESTMENT RETURN
POLICY INTEREST ANNUAL INVESTMENT RETURN OF OF OF
YEAR AT 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $945 $100,000 $100,000 $100,000 $621 $665 $709 $0 $7 $61
2 1,937 100,000 100,000 100,000 1,232 1,328 1,490 508 635 766
3 2,979 100,000 100,000 100,000 1,823 2,071 2,340 1,040 1,288 1,547
4 4,073 100,000 100,000 100,000 2,393 2,802 3,265 1,552 1,961 2,424
5 5,222 100,000 100,000 100,000 2,943 3,554 4,273 2,043 2,655 3,374

6 6,428 100,000 100,000 100,000 3,473 4,328 5,374 2,752 3,607 4,653
7 7,694 100,000 100,000 100,000 3,984 5,125 6,576 3,444 4,584 6,036
8 9,024 100,000 100,000 100,000 4,474 5,942 7,889 4,113 5,582 7,529
9 10,420 100,000 100,000 100,000 4,942 6,782 9,324 4,762 6,602 9,144
10 11,886 100,000 100,000 100,000 5,384 7,639 10,888 5,384 7,639 10,888

11 13,425 100,000 100,000 100,000 5,800 8,516 12,595 5,800 8,516 12,595
12 15,042 100,000 100,000 100,000 6,192 9,413 14,462 6,192 9,413 14,462
13 16,739 100,000 100,000 100,000 6,555 10,328 16,503 6,555 10,328 16,503
14 18,521 100,000 100,000 100,000 6,889 11,261 18,735 6,889 11,261 18,735
15 20,392 100,000 100,000 100,000 7,194 12,213 21,179 7,194 12,213 21,179

16 22,356 100,000 100,000 100,000 7,465 13,180 23,854 7,465 13,180 23,854
17 24,419 100,000 100,000 100,000 7,699 14,160 26,784 7,699 14,160 26,789
18 26,585 100,000 100,000 100,000 7,893 15,149 29,994 7,893 15,149 29,994
19 28,859 100,000 100,000 100,000 8,041 16,145 33,512 8,041 16,145 33,512

20 31,247 100,000 100,000 100,000 8,141 17,145 37,373 8,141 17,145 37,373
age 60 45,102 100,000 100,000 100,000 7,714 22,042 63,312 7,714 22,042 63,312
age 65 62,785 100,000 100,000 129,185 5,182 26,336 105,889 5,182 26,336 105,889
</TABLE>

(1) Assumes no policy loans or partial withdrawals have been made.

(2) Assumes a $900 premium is paid at the beginning of each policy year. Values
will be different if premiums are paid in different amounts or with a
different frequency.

THE ABOVE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND YOU SHOULD
NOT CONSIDER THEM A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL
INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN. THE DEATH BENEFIT,
POLICY VALUE AND CASH SURRENDER VALUE WOULD BE DIFFERENT FROM THOSE SHOWN IF
RETURNS AVERAGED 0%, 6% AND 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND
BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. WE DO NOT REPRESENT THAT THESE
HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.

62 PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
ILLUSTRATION POLICIES PURCHASED ON OR AFTER MAY 1, 1993 AND BEFORE NOVEMBER 20, 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------

<CAPTION>
INITIAL SPECIFIED AMOUNT
$100,000 CURRENT COSTS ASSUMED
DEATH BENEFIT OPTION 1 MALE - AGE 35 NONSMOKER ANNUAL PREMIUM $900
- ---------------------------------------------------------------------------------------------------------------
CASH SURRENDER VALUE
POLICY VALUE (1)(2) (1)(2)
PREMIUM ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL
ACCUMULATED DEATH BENEFIT (1)(2) GROSS GROSS
END OF WITH ANNUAL ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN ANNUAL INVESTMENT RETURN
POLICY INTEREST ANNUAL INVESTMENT RETURN OF OF OF
YEAR AT 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $945 $100,000 $100,000 $100,000 $618 $662 $705 $0 $14 $58
2 1,937 100,000 100,000 100,000 1,226 1,352 1,483 503 628 760
3 2,979 100,000 100,000 100,000 1,814 2,061 2,329 1,032 1,279 1,547
4 4,073 100,000 100,000 100,000 2,381 2,790 3,250 1,540 1,949 2,409
5 5,222 100,000 100,000 100,000 2,929 3,538 4,254 2,029 2,639 3,355

6 6,428 100,000 100,000 100,000 3,456 4,308 5,350 2,735 3,587 4,629
7 7,694 100,000 100,000 100,000 3,965 5,101 6,547 3,424 4,560 6,007
8 9,024 100,000 100,000 100,000 4,452 5,914 7,854 4,091 5,554 7,494
9 10,420 100,000 100,000 100,000 4,915 6,747 9,279 4,735 6,567 9,099
10 11,886 100,000 100,000 100,000 5,352 7,598 10,833 5,352 7,598 10,833

11 13,425 100,000 100,000 100,000 5,763 8,467 12,529 5,763 8,467 12,529
12 15,042 100,000 100,000 100,000 6,149 9,356 14,384 6,149 9,356 14,384
13 16,739 100,000 100,000 100,000 6,508 10,263 16,411 6,508 10,263 16,411
14 18,521 100,000 100,000 100,000 6,837 11,188 18,628 6,837 11,188 18,628
15 20,392 100,000 100,000 100,000 7,134 12,128 21,053 7,134 12,128 21,053

16 22,356 100,000 100,000 100,000 7,397 13,082 23,707 7,397 13,082 23,707
17 24,419 100,000 100,000 100,000 7,625 14,050 26,615 7,625 14,050 26,615
18 26,585 100,000 100,000 100,000 7,811 15,027 29,800 7,811 15,027 29,800
19 28,859 100,000 100,000 100,000 7,952 16,008 33,291 7,952 16,008 33,291
20 31,247 100,000 100,000 100,000 8,042 16,992 37,120 8,042 16,992 37,120

age 60 45,102 100,000 100,000 100,000 7,565 21,792 62,844 7,565 21,792 62,844
age 65 62,785 100,000 100,000 128,223 4,981 25,956 105,101 4,981 25,956 105,101
</TABLE>

(1) Assumes no policy loans or partial withdrawals have been made.

(2) Assumes a $900 premium is paid at the beginning of each policy year. Values
will be different if premiums are paid in different amounts or with a
different frequency.

63 PROSPECTUS
<PAGE>
Policy illustrations
<TABLE>
<CAPTION>
ILLUSTRATION
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------

<CAPTION>
INITIAL SPECIFIED AMOUNT $100,000 GUARANTEED COSTS ASSUMED
DEATH BENEFIT OPTION 1 MALE - AGE 35 NONSMOKER ANNUAL PREMIUM $900
------------------------------------------------------------------------------------------------------------------
PREMIUM
ACCUMULATED DEATH BENEFIT(1)(2) POLICY VALUE(1)(2) CASH SURRENDER VALUE(1)(2)
END OF WITH ANNUAL ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
POLICY INTEREST ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
YEAR AT 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $945 $100,000 $100,000 $100,000 $618 $662 $705 $0 $14 $58
2 1,937 100,000 100,000 100,000 1,226 1,352 1,483 503 628 760
3 2,979 100,000 100,000 100,000 1,814 2,061 2,329 1,032 1,279 1,547
4 4,073 100,000 100,000 100,000 2,381 2,790 3,250 1,540 1,949 2,409
5 5,222 100,000 100,000 100,000 2,929 3,538 4,254 2,029 2,639 3,355

6 6,428 100,000 100,000 100,000 3,445 4,297 5,338 2,724 3,576 4,617
7 7,694 100,000 100,000 100,000 3,942 5,077 6,522 3,402 4,536 5,982
8 9,024 100,000 100,000 100,000 4,410 5,869 7,806 4,049 5,509 7,446
9 10,420 100,000 100,000 100,000 4,859 6,686 9,212 4,679 6,506 9,032
10 11,886 100,000 100,000 100,000 5,280 7,516 10,742 5,280 7,516 10,742

11 13,425 100,000 100,000 100,000 5,673 8,362 12,409 5,673 8,362 12,409
12 15,042 100,000 100,000 100,000 6,038 9,224 14,229 6,038 9,224 14,229
13 16,739 100,000 100,000 100,000 6,365 10,093 16,208 6,365 10,093 16,208
14 18,521 100,000 100,000 100,000 6,665 10,979 18,375 6,665 10,979 18,375
15 20,392 100,000 100,000 100,000 6,929 11,875 20,741 6,929 11,875 20,741

16 22,356 100,000 100,000 100,000 7,146 12,770 23,318 7,146 12,770 23,318
17 24,419 100,000 100,000 100,000 7,327 13,675 26,141 7,327 13,675 26,141
18 26,585 100,000 100,000 100,000 7,462 14,581 29,230 7,462 14,581 29,230
19 28,859 100,000 100,000 100,000 7,541 15,480 32,608 7,541 15,480 32,608
20 31,247 100,000 100,000 100,000 7,554 16,360 36,301 7,554 16,360 36,301

age 60 45,102 100,000 100,000 100,000 6,486 20,369 61,016 6,486 20,369 61,056

age 65 62,785 100,000 100,000 124,007 2,602 22,855 101,645 2,602 22,855 101,645
</TABLE>

(1) Assumes no policy loans or partial withdrawals have been made.

(2) Assumes a $900 premium is paid at the beginning of each policy year. Values
will be different if premiums are paid in different amounts or with a
different frequency.

THE ABOVE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND YOU SHOULD
NOT CONSIDER THEM TO BE A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN. THE DEATH
BENEFIT, POLICY VALUE AND CASH SURRENDER VALUE WOULD BE DIFFERENT FROM THOSE
SHOWN IF RETURNS AVERAGED 0%, 6% AND 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. WE DO NOT REPRESENT
THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.

64 PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
ILLUSTRATION POLICIES PURCHASED BEFORE MAY 1, 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------

<CAPTION>
INITIAL SPECIFIED AMOUNT $100,000 CURRENT COSTS ASSUMED
DEATH BENEFIT OPTION 1 MALE - AGE 35 NONSMOKER ANNUAL PREMIUM $900
------------------------------------------------------------------------------------------------------------------
PREMIUM
ACCUMULATED DEATH BENEFIT(1)(2) POLICY VALUE(1)(2) CASH SURRENDER VALUE(1)(2)
END OF WITH ANNUAL ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
POLICY INTEREST ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
YEAR AT 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $945 $100,000 $100,000 $100,000 $618 $662 $705 $0 $14 $58
2 1,937 100,000 100,000 100,000 1,226 1,352 1,483 499 625 756
3 2,979 100,000 100,000 100,000 1,814 2,061 2,329 1,028 1,276 1,544
4 4,073 100,000 100,000 100,000 2,381 2,790 3,250 1,537 1,945 2,406
5 5,222 100,000 100,000 100,000 2,929 3,538 4,254 2,028 2,637 3,353

16 22,356 100,000 100,000 100,000 7,157 12,780 23,328 7,157 12,780 23,328
17 24,419 100,000 100,000 100,000 7,338 13,686 26,152 7,338 13,686 26,152
18 26,585 100,000 100,000 100,000 7,473 14,593 29,242 7,473 14,593 29,242
19 28,859 100,000 100,000 100,000 7,552 15,492 33,621 7,552 15,492 33,621
20 31,247 100,000 100,000 100,000 7,564 16,373 36,316 7,564 16,373 36,316

age 60 45,102 100,000 100,000 100,000 7,565 21,792 61,747 7,565 21,792 61,747

age 65 62,785 100,000 100,000 113,472 3,434 23,746 93,010 3,434 23,746 93,010
</TABLE>

(1) Assumes no policy loans or partial withdrawals have been made.

(2) Assumes a $900 premium is paid at the beginning of each policy year. Values
will be different if premiums are paid in different amounts or with a
different frequency.

THE ABOVE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND YOU SHOULD
CONSIDER THEM TO BE A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN. THE DEATH
BENEFIT, POLICY VALUE AND CASH SURRENDER VALUE WOULD BE DIFFERENT FROM THOSE
SHOWN IF RETURNS AVERAGED 0%, 6% AND 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. WE DO NOT REPRESENT
THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.

65 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8

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 the segregated asset subaccounts of IDS Life of New York Account 8 --
Flexible Premium Variable Life Subaccounts (comprised of subaccounts YEQ, YIN,
YMM, YMA, YGS, YIT, YGI, YNO and Y04) as of December 31, 1998, and the related
statements of operations and changes in net assets for each of the three years
in the period then ended, except for the YGI and YNO subaccounts which are for
each of the two years in the period ended December 31, 1998 and the period
November 22, 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, 1998 with the affiliated mutual
fund manager and the unit investment trust sponsor. 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 the
segregated asset subaccounts of IDS Life of New York Account 8 -- Flexible
Premium Variable Life Subaccounts at December 31, 1998 and the individual and
combined results of their operations and the changes in their net assets for the
periods described above, in conformity with generally accepted accounting
principles.

Ernst & Young LLP
Minneapolis, Minnesota
March 12, 1999

66 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM VARIABLE LIFE SUBACCOUNTS
- -----------------------------------------------------------------------------

STATEMENTS OF NET ASSETS DEC. 31, 1998
<TABLE>
<CAPTION>
SEGREGATED ASSET SUBACCOUNTS COMBINED
------------------------------------------------------------------------------------------------- VARIABLE
ASSETS YEQ YIN YMM YMA YGS YIT YGI YNO Y04 ACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Investments in
shares of
mutual funds,
portfolios and
units of the
trust:
at cost...... $46,849,448 $5,830,340 $1,723,077 $32,861,156 $667,325 $11,348,937 $8,036,049 $6,579,048 $477,959 $114,373,339
--------------------------------------------------------------------------------------------------------------
at market
value....... $55,368,602 $5,832,910 $1,723,084 $39,393,317 $678,711 $13,036,245 $9,799,075 $8,058,453 $754,367 $134,644,764
Dividends
receivable..... -- 32,128 6,722 -- 2,770 -- -- -- -- 41,620
Accounts
receivable from
IDS Life of New
York for
contract
purchase
payments....... -- -- 2,852 59,866 -- 1,877 15,834 11,802 127 92,358
Receivable from
mutual funds,
portfolios and
the trust for
share
redemptions.... 80,183 1,154 -- -- 117 8,006 -- -- -- 89,460
- ------------------------------------------------------------------------------------------------------------------------------
Total assets... 55,448,785 5,866,192 1,732,658 39,453,183 681,598 13,046,128 9,814,909 8,070,255 754,494 134,868,202
- ------------------------------------------------------------------------------------------------------------------------------

LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------------
Payable to IDS
Life of New
York for:
Mortality and
expense risk
fee............ 42,210 4,440 1,291 29,990 496 9,883 7,328 5,992 592 102,222
Transaction
charge......... -- -- -- -- -- -- -- -- 165 165
Contract
terminations... 37,973 1,154 -- 16,130 117 -- -- -- -- 55,374
Payable to
mutual funds,
portfolios and
the trust for
investments
purchased...... -- 27,688 8,283 13,746 2,274 -- 15,834 11,802 127 79,754
- ------------------------------------------------------------------------------------------------------------------------------
Total
liabilities.... 80,183 33,282 9,574 59,866 2,887 9,883 23,162 17,794 884 237,515
- ------------------------------------------------------------------------------------------------------------------------------
Net assets
applicable to
Variable Life
contracts in
accumulation
period......... $55,368,602 $5,832,910 $1,723,084 $39,393,317 $678,711 $13,036,245 $9,791,747 $8,052,461 $753,610 $134,630,687
- ------------------------------------------------------------------------------------------------------------------------------
ACCUMULATION
UNITS
OUTSTANDING.... 13,469,431 2,465,891 1,054,652 9,922,663 300,137 6,172,923 6,205,902 5,471,531 228,803
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER
ACCUMULATION
UNIT........... $ 4.11 $ 2.37 $ 1.63 $ 3.97 $ 2.26 $ 2.11 $ 1.58 $ 1.47 $ 3.29

See accompanying notes to financial statements.

67 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM VARIABLE LIFE SUBACCOUNTS
- -----------------------------------------------------------------------------

STATEMENTS OF OPERATIONS YEAR ENDED DEC. 31, 1998
<TABLE>
<CAPTION>
SEGREGATED ASSET SUBACCOUNTS SEGREGATED ASSET SUBACCOUNTS COMBINED
INVESTMENT ------------------------------------------------------ ----------------------------------------- VARIABLE
INCOME YEQ YIN YMM YMA YGS YIT YGI YNO Y04 ACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------ -----------------------------------------------------
Dividend income
from mutual
funds,
portfolios and
the trust...... $ 7,962,668 $ 394,066 $ 67,725 $3,113,690 $ 36,677 $ 530,817 $ 130,855 $ 52,867 $ -- $12,289,365
- ----------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and
expense risk
fee............ 437,714 48,402 12,392 317,793 5,325 101,270 54,253 44,663 5,273 1,027,085
Transaction
charge......... -- -- -- -- -- -- -- -- 1,929 1,929
- ----------------------------------------------------------------------------------------------------------------------------
Total
expenses....... 437,714 48,402 12,392 317,793 5,325 101,270 54,253 44,663 7,202 1,029,014
- ----------------------------------------------------------------------------------------------------------------------------
Investment
income (loss)
- -- net......... 7,524,954 345,664 55,333 2,795,897 31,352 429,547 76,602 8,204 (7,202) 11,260,351

REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS -- NET
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Realized gain (loss) on sales of investments
in mutual funds, portfolios and the trust:
Proceeds from
sales.......... 881,803 622,887 1,840,441 810,846 118,640 292,083 13,030 17,330 176,797 4,773,857
Cost of
investments
sold........... 697,183 613,975 1,840,441 694,915 117,394 264,666 11,208 16,292 114,786 4,370,860
- ----------------------------------------------------------------------------------------------------------------------------
Net realized
gain (loss) on
investments.... 184,620 8,912 -- 115,931 1,246 27,417 1,822 1,038 62,011 402,997
Net change in
unrealized
appreciation or
depreciation of
investments.... (3,495,686) (117,407) 2 1,593,673 9,354 1,434,548 1,579,781 1,225,925 24,229 2,254,419
- ----------------------------------------------------------------------------------------------------------------------------
Net gain (loss)
on
investments.... (3,311,066) (108,495) 2 1,709,604 10,600 1,461,965 1,581,603 1,226,963 86,240 2,657,416
- ----------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
net assets
resulting from
operations..... $ 4,213,888 $ 237,169 $ 55,335 $4,505,501 $ 41,952 $1,891,512 $1,658,205 $1,235,167 $ 79,038 $13,917,767
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes to financial statements.

68 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM VARIABLE LIFE SUBACCOUNTS
- -----------------------------------------------------------------------------

STATEMENTS OF OPERATIONS YEAR ENDED DEC. 31, 1997

<TABLE>
<CAPTION>
SEGREGATED ASSET SUBACCOUNTS COMBINED
---------------------------------------------------------------------------------------------- VARIABLE
INVESTMENT INCOME YEQ YIN YMM YMA YGS YIT YGI YNO Y04 ACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Dividend income from
mutual funds,
portfolios and the
trust.................. $1,459,523 $322,998 $ 49,171 $2,754,122 $ 37,545 $209,995 $ 3,724 $ -- $ -- $ 4,837,078
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense
risk fee............... 354,681 40,932 8,873 257,676 4,929 62,452 11,474 10,317 8,890 760,224
Transaction charge..... -- -- -- -- -- -- -- -- 1,938 1,938
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses......... 354,681 40,932 8,873 257,676 4,929 62,452 11,474 10,317 10,828 762,162
- ------------------------------------------------------------------------------------------------------------------------------------
Investment income
(loss) -- net.......... 1,104,842 282,066 40,298 2,496,446 32,616 147,543 (7,750) (10,317) (10,828) 4,074,916
- ------------------------------------------------------------------------------------------------------------------------------------

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS -- NET
- ------------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on
sales of investments in
mutual funds,
portfolios and the
trust:
Proceeds from sales.... 751,190 476,335 1,548,607 679,787 227,327 544,898 52,916 56,134 156,382 4,493,576
Cost of investments
sold................... 596,675 465,590 1,548,623 571,899 227,369 504,067 50,365 53,706 111,327 4,129,621
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain
(loss) on
investments............ 154,515 10,745 (16) 107,888 (42) 40,831 2,551 2,428 45,055 363,955
Net change in
unrealized appreciation
or
depreciation of
investments............ 5,965,530 17,158 5 1,711,453 7,613 80,848 180,079 253,559 36,532 8,252,777
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on
investments............ 6,120,045 27,903 (11) 1,819,341 7,571 121,679 182,630 255,987 81,587 8,616,732
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations........ $7,224,887 $309,969 $ 40,287 $4,315,787 $ 40,187 $269,222 $174,880 $245,670 $ 70,759 $12,691,648
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes to financial statements.

69 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM VARIABLE LIFE SUBACCOUNTS
- -----------------------------------------------------------------------------

STATEMENTS OF OPERATIONS YEAR ENDED DEC. 31, 1996

<TABLE>
<CAPTION>
SEGREGATED ASSET SUBACCOUNTS COMBINED
INVESTMENT ----------------------------------------------------------------------------------------- VARIABLE
INCOME: YEQ YIN YMM YMA YGS YIT YGI* YNO* Y04 ACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Dividend income
from mutual
funds,
portfolios and
the trust...... $4,256,160 $ 252,288 $ 27,500 $1,556,968 $ 38,169 $369,589 $ 284 $ -- $ -- $6,500,958
- ---------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and
expense risk
fee............ 238,970 34,107 4,683 188,866 5,146 25,967 55 33 6,817 504,644
Transaction
charge......... -- -- -- -- -- -- -- -- 1,913 1,913
- ---------------------------------------------------------------------------------------------------------------------
Total
expenses....... 238,970 34,107 4,683 188,866 5,146 25,967 55 33 8,730 506,557
- ---------------------------------------------------------------------------------------------------------------------
Investment
income (loss)
- -- net......... 4,017,190 218,181 22,817 1,368,102 33,023 343,622 229 (33) (8,730) 5,994,401
- ---------------------------------------------------------------------------------------------------------------------

REALIZED AND
UNREALIZED GAIN
(LOSS) ON
INVESTMENTS --
NET
- ---------------------------------------------------------------------------------------------------------------------
Realized gain
(loss) on sales
of investments
in
mutual funds,
portfolios and
the trust:
Proceeds from
sales.......... 810,674 299,105 1,020,483 594,770 118,200 705,857 1,783 -- 108,552 3,659,424
Cost of
investments
sold........... 647,479 295,360 1,020,488 527,763 119,926 698,109 1,743 -- 79,747 3,390,615
- ---------------------------------------------------------------------------------------------------------------------
Net realized
gain (loss) on
investments.... 163,195 3,745 (5) 67,007 (1,726) 7,748 40 -- 28,805 268,809
Net change in
unrealized
appreciation or
depreciation of
investments.... 227,037 (101,695) 3 1,242,208 (29,290) (5,575) 3,166 (79) (32,185) 1,303,590
- ---------------------------------------------------------------------------------------------------------------------
Net gain (loss)
on
investments.... 390,232 (97,950) (2) 1,309,215 (31,016) 2,173 3,206 (79) (3,380) 1,572,399
- ---------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
net assets
resulting
from
operations..... $4,407,422 $ 120,231 $ 22,815 $2,677,317 $ 2,007 $345,795 $3,435 $(112) $(12,110) $7,566,800
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>

* For the period Nov. 22, 1996 (commencement of operations) to Dec. 31, 1996.

See accompanying notes to financial statements.

70 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM VARIABLE LIFE SUBACCOUNTS
- -----------------------------------------------------------------------------

STATEMENTS OF CHANGES IN NET ASSETS YEAR ENDED DEC. 31, 1998
<TABLE>
<CAPTION>
SEGREGATED ASSET SUBACCOUNTS
-----------------------------------------------------------------------------------
OPERATIONS YEQ YIN YMM YMA YGS YIT YGI
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Investment income (loss) --
net........................... $ 7,524,954 $ 345,664 $ 55,333 $ 2,795,897 $ 31,352 $ 429,547 $ 76,602
Net realized gain (loss) on
investments................... 184,620 8,912 -- 115,931 1,246 27,417 1,822
Net change in unrealized
appreciation or depreciation
of investments................ (3,495,686) (117,407) 2 1,593,673 9,354 1,434,548 1,579,781
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from
operations.................... 4,213,888 237,169 55,335 4,505,501 41,952 1,891,512 1,658,205
- -------------------------------------------------------------------------------------------------------------------

CONTRACT TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Contract purchase payments.... 8,276,481 873,654 656,161 5,414,963 107,907 2,484,288 2,530,326
Net transfers*................ 1,632,511 306,683 244 672,497 70,271 949,063 2,932,508
Transfers for policy loans.... (597,388) (59,506) 16,135 (474,625) (6,281) (88,294) (62,454)
Policy charges................ (2,260,287) (322,016) (138,571) (1,734,889) (46,372) (469,309) (281,819)
Contract terminations:
Surrender benefits............ (1,145,779) (114,726) (5,617) (706,720) (17,975) (177,402) (59,290)
Death benefits................ (91,634) (28,592) (13,421) (72,095) (11,432) (5,766) --
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) from
contract transactions......... 5,813,904 655,497 514,931 3,099,131 96,118 2,692,580 5,059,271
- -------------------------------------------------------------------------------------------------------------------
Net assets at beginning of
year.......................... 45,340,810 4,940,244 1,152,818 31,788,685 540,641 8,452,153 3,074,271
- -------------------------------------------------------------------------------------------------------------------
Net assets at end of year..... $55,368,602 $5,832,910 $1,723,084 $39,393,317 $678,711 $13,036,245 $9,791,747
- -------------------------------------------------------------------------------------------------------------------

ACCUMULATION UNIT ACTIVITY
- -------------------------------------------------------------------------------------------------------------------
Units outstanding at beginning
of year....................... 11,923,765 2,183,554 734,855 9,079,176 256,101 4,819,920 2,465,393
Contracts purchase payments... 2,194,522 376,239 409,620 1,478,004 49,057 1,257,681 1,863,213
Net transfers*................ 434,065 132,004 (1,409) 183,037 32,510 468,519 2,172,226
Transfers for policy loans.... (157,095) (25,559) 10,000 (130,705) (2,916) (44,324) (44,267)
Policy charges................ (598,903) (138,639) (86,424) (474,255) (21,244) (236,945) (207,286)
Contract terminations:
Surrender benefits............ (303,797) (49,418) (3,504) (193,111) (8,261) (88,984) (43,377)
Death benefits................ (23,126) (12,290) (8,486) (19,483) (5,110) (2,944) --
- -------------------------------------------------------------------------------------------------------------------
Units outstanding at end of
year.......................... 13,469,431 2,465,891 1,054,652 9,922,663 300,137 6,172,923 6,205,902
- -------------------------------------------------------------------------------------------------------------------

<CAPTION>
COMBINED
VARIABLE
OPERATIONS YNO Y04 ACCOUNT
<S> <C> <C> <C>
- ------------------------------
Investment income (loss) --
net........................... $ 8,204 $ (7,202) $ 11,260,351
Net realized gain (loss) on
investments................... 1,038 62,011 402,997
Net change in unrealized
appreciation or depreciation
of investments................ 1,225,925 24,229 2,254,419
- ------------------------------
Net increase (decrease) in net
assets resulting from
operations.................... 1,235,167 79,038 13,917,767
- ------------------------------
CONTRACT TRANSACTIONS
- ------------------------------
Contract purchase payments.... 2,188,943 72,980 22,605,703
Net transfers*................ 2,341,436 (86,159) 8,819,054
Transfers for policy loans.... (73,041) (11,442) (1,356,896)
Policy charges................ (251,476) (45,174) (5,549,913)
Contract terminations:
Surrender benefits............ (46,630) (17,973) (2,292,112)
Death benefits................ -- (13,161) (236,101)
- ------------------------------
Increase (decrease) from
contract transactions......... 4,159,232 (100,929) 21,989,735
- ------------------------------
Net assets at beginning of
year.......................... 2,658,062 775,501 98,723,185
- ------------------------------
Net assets at end of year..... $8,052,461 $753,610 $134,630,687
- ------------------------------
ACCUMULATION UNIT ACTIVITY
- ------------------------------
Units outstanding at beginning
of year....................... 2,226,094 257,951
Contracts purchase payments... 1,717,997 22,806
Net transfers*................ 1,815,859 (24,613)
Transfers for policy loans.... (54,454) (3,628)
Policy charges................ (197,732) (14,111)
Contract terminations:
Surrender benefits............ (36,233) (5,665)
Death benefits................ -- (3,937)
- ------------------------------
Units outstanding at end of
year.......................... 5,471,531 228,803
- ------------------------------
</TABLE>

* Includes transfer activity from (to) other subaccounts and transfers from (to)
IDS Life of New York's fixed account.

See accompanying notes to financial statements.

71 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM VARIABLE LIFE SUBACCOUNTS
- -----------------------------------------------------------------------------

STATEMENTS OF CHANGES IN NET ASSETS YEAR ENDED DEC. 31, 1997
<TABLE>
<CAPTION>
SEGREGATED ASSET SUBACCOUNTS
-----------------------------------------------------------------------------------
OPERATIONS YEQ YIN YMM YMA YGS YIT YGI
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Investment income (loss) --
net........................... $ 1,104,842 $ 282,066 $ 40,298 $ 2,496,446 $ 32,616 $ 147,543 $ (7,750)
Net realized gain (loss) on
investments................... 154,515 10,745 (16) 107,888 (42) 40,831 2,551
Net change in unrealized
appreciation or
depreciation of investments... 5,965,530 17,158 5 1,711,453 7,613 80,848 180,079
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from
operations.................... 7,224,887 309,969 40,287 4,315,787 40,187 269,222 174,880
- -------------------------------------------------------------------------------------------------------------------

CONTRACT TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Contract purchase payments.... 7,441,563 784,805 890,628 4,816,210 119,153 2,330,345 828,706
Net transfers*................ 2,009,267 142,593 (455,707) 1,374,196 (100,924) 1,512,734 2,014,043
Transfers for policy loans.... (598,478) (66,319) (71,130) (441,258) (5,109) (61,032) (5,786)
Policy charges................ (1,997,018) (286,765) (104,917) (1,554,701) (46,144) (361,587) (68,945)
Contract terminations:
Surrender benefits............ (1,045,185) (233,575) (20,637) (793,080) (37,707) (99,532) (16,584)
Death benefits................ (69,049) (6,276) (43,028) (16,407) (6,354) (1,487) --
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) from
contract transactions......... 5,741,100 334,463 195,209 3,384,960 (77,085) 3,319,441 2,751,434
- -------------------------------------------------------------------------------------------------------------------
Net assets at beginning of
year.......................... 32,374,823 4,295,812 917,322 24,087,938 577,539 4,863,490 147,957
- -------------------------------------------------------------------------------------------------------------------
Net assets at end of year..... $45,340,810 $4,940,244 $1,152,818 $31,788,685 $ 540,641 $8,452,153 $3,074,271
- -------------------------------------------------------------------------------------------------------------------

ACCUMULATION UNIT ACTIVITY
- -------------------------------------------------------------------------------------------------------------------
Units outstanding at beginning
of year....................... 10,218,855 2,032,494 605,111 8,043,384 295,283 2,922,492 147,682
Contract purchase payments.... 2,193,598 358,800 577,058 1,469,705 60,085 1,327,806 697,652
Net transfers*................ 603,566 64,605 (292,656) 425,487 (51,527) 866,461 1,695,960
Transfers for policy loans.... (176,623) (29,936) (45,562) (134,833) (2,557) (34,345) (4,945)
Policy charges................ (588,039) (131,741) (68,238) (475,355) (23,054) (205,879) (57,282)
Contract terminations:
Surrender benefits............ (308,629) (107,894) (13,385) (244,414) (19,111) (55,746) (13,674)
Death benefits................ (18,963) (2,774) (27,473) (4,798) (3,018) (869) --
- -------------------------------------------------------------------------------------------------------------------
Units outstanding at end of
year.......................... 11,923,765 2,183,554 734,855 9,079,176 256,101 4,819,920 2,465,393
- -------------------------------------------------------------------------------------------------------------------

<CAPTION>
COMBINED
VARIABLE
OPERATIONS YNO Y04 ACCOUNT
<S> <C> <C> <C>
- ------------------------------
Investment income (loss) --
net........................... $ (10,317) $(10,828) $ 4,074,916
Net realized gain (loss) on
investments................... 2,428 45,055 363,955
Net change in unrealized
appreciation or
depreciation of investments... 253,559 36,532 8,252,777
- ------------------------------
Net increase (decrease) in net
assets resulting from
operations.................... 245,670 70,759 12,691,648
- ------------------------------
CONTRACT TRANSACTIONS
- ------------------------------
Contract purchase payments.... 881,192 91,529 18,184,131
Net transfers*................ 1,557,633 (81,712) 7,972,123
Transfers for policy loans.... (11,001) (9,127) (1,269,240)
Policy charges................ (77,116) (46,193) (4,543,386)
Contract terminations:
Surrender benefits............ (20,126) (37,839) (2,304,265)
Death benefits................ -- -- (142,601)
- ------------------------------
Increase (decrease) from
contract transactions......... 2,330,582 (83,342) 17,896,762
- ------------------------------
Net assets at beginning of
year.......................... 81,810 788,084 68,134,775
- ------------------------------
Net assets at end of year..... $2,658,062 $775,501 $98,723,185
- ------------------------------
ACCUMULATION UNIT ACTIVITY
- ------------------------------
Units outstanding at beginning
of year....................... 83,723 290,576
Contract purchase payments.... 805,177 32,546
Net transfers*................ 1,434,487 (32,030)
Transfers for policy loans.... (9,924) (3,167)
Policy charges................ (69,750) (16,379)
Contract terminations:
Surrender benefits............ (17,619) (13,595)
Death benefits................ -- --
- ------------------------------
Units outstanding at end of
year.......................... 2,226,094 257,951
- ------------------------------
</TABLE>

* Includes transfer activity from (to) other subaccounts and transfers from (to)
IDS Life of New York's fixed account.

See accompanying notes to financial statements.

72 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM VARIABLE LIFE SUBACCOUNTS
- -----------------------------------------------------------------------------

STATEMENTS OF CHANGES IN NET ASSETS YEAR ENDED DEC. 31, 1996

<TABLE>
<CAPTION>
SEGREGATED ASSET SUBACCOUNTS SEGREGATED ASSET SUBACCOUNTS COMBINED
-------------------------------------------------------- --------------------------------------- VARIABLE
OPERATIONS YEQ YIN YMM YMA YGS YIT YGI** YNO** Y04 ACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------- ----------------------------------------------------
Investment
income (loss)
- -- net......... $ 4,017,190 $ 218,181 $ 22,817 $ 1,368,102 $ 33,023 $ 343,622 $ 229 $ (33) $ (8,730) $ 5,994,401
Net realized
gain (loss) on
investments.... 163,195 3,745 (5) 67,007 (1,726) 7,748 40 -- 28,805 268,809
Net change in
unrealized
appreciation or
depreciation of
investments.... 227,037 (101,695) 3 1,242,208 (29,290) (5,575) 3,166 (79) (32,185) 1,303,590
- ------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
net assets
resulting from
operations..... 4,407,422 120,231 22,815 2,677,317 2,007 345,795 3,435 (112) (12,110) 7,566,800
- ------------------------------------------------------------------------------------------------------------------------------

CONTRACT
TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------------
Contract
purchase
payments....... 6,573,071 906,414 421,727 4,258,738 128,415 1,399,027 1,212 2,327 106,648 13,797,579
Net
transfers*..... 4,592,956 411,398 84,784 1,920,764 (32,588) 2,388,202 143,217 79,670 (471) 9,587,932
Transfers for
policy loans... (505,653) (62,503) 3,059 (356,351) (9,286) (36,027) 203 203 (9,996) (976,351)
Policy
charges........ (1,632,273) (261,231) (59,118) (1,378,652) (53,375) (181,270) (110) (278) (48,708) (3,615,015)
Contract
terminations:
Surrender
benefits....... (1,066,592) (138,797) (68,038) (750,212) (37,811) (80,784) -- -- (24,330) (2,166,564)
Death
benefits....... (96,266) (9,994) (488) (64,115) (4,633) (642) -- -- -- (176,138)
- ------------------------------------------------------------------------------------------------------------------------------
Increase
(decrease) from
contract
transactions... 7,865,243 845,287 381,926 3,630,172 (9,278) 3,488,506 144,522 81,922 23,143 16,451,443
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at
beginning of
year........... 20,102,158 3,330,294 512,581 17,780,449 584,810 1,029,189 -- -- 777,051 43,116,532
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at
end of year.... $32,374,823 $4,295,812 $917,322 $24,087,938 $577,539 $4,863,490 $147,957 $81,810 $788,084 $68,134,775
- ------------------------------------------------------------------------------------------------------------------------------

ACCUMULATION
UNIT ACTIVITY
- ------------------------------------------------------------------------------------------------------------------------------
Units
outstanding at
beginning of
year........... 7,545,186 1,614,264 351,572 6,737,143 300,900 759,139 -- -- 278,550
Contract
purchase
payments....... 2,226,541 448,584 284,151 1,529,296 67,086 862,329 1,221 2,412 40,078
Net
transfers*..... 1,568,157 201,620 54,143 691,235 (17,357) 1,485,306 146,370 81,389 3,047
Transfers for
policy loans... (172,189) (30,740) 2,027 (127,659) (4,888) (22,490) 201 209 (3,781)
Policy
charges........ (555,329) (128,282) (39,921) (495,019) (28,020) (111,831) (110) (287) (18,322)
Contract
terminations:
Surrender
benefits....... (361,430) (67,972) (46,534) (269,131) (19,955) (49,577) -- -- (8,996)
Death
benefits....... (32,081) (4,980) (327) (22,481) (2,483) (384) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Units
outstanding at
end of year.... 10,218,855 2,032,494 605,111 8,043,384 295,283 2,922,492 147,682 83,723 290,576
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Includes transfer activity from (to) other subaccounts and transfers from
(to) IDS Life of New York's fixed account.

** For the period Nov. 22, 1996 (commencement of operations) to Dec. 31, 1996.

See accompanying notes to financial statements.

73 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM
VARIABLE LIFE SUBACCOUNTS

NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

1. ORGANIZATION

IDS Life of New York Account 8 (the Variable Account) was established under New
York law on Sept. 12, 1985 as a segregated asset account of IDS Life Insurance
Company of New York (IDS Life of New York). The Variable Account is registered
as a single unit investment trust under the Investment Company Act of 1940, as
amended (the 1940 Act). Operations of the Variable Account commenced on Aug. 31,
1987.

The Variable Account is comprised of various subaccounts. Each subaccount
invests exclusively in shares of the following portfolios and funds (the Funds)
or in the Trust. The Funds are registered under the 1940 Act as diversified,
open-end management investment companies. The Trust is registered under the 1940
Act as a unit investment trust. The Funds have the following investment managers
and the Trust has the following sponsor.

<TABLE>
<CAPTION>
SUBACCOUNT INVESTS EXCLUSIVELY IN SHARES OF INVESTMENT MANAGER/SPONSOR
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------

YEQ IDS Life Series Fund Equity Portfolio IDS Life Insurance Company(1)
YIN IDS Life Series Fund Income Portfolio IDS Life Insurance Company(1)
YMM IDS Life Series Fund Money Market Portfolio IDS Life Insurance Company(1)
YMA IDS Life Series Fund Managed Portfolio IDS Life Insurance Company(1)
YGS IDS Life Series Fund Government Securities Portfolio IDS Life Insurance Company(1)
YIT IDS Life Series Fund International Equity Portfolio IDS Life Insurance Company(1)
YGI AIM V.I. Growth and Income Fund AIM Management Group Inc.
YNO Putnam VT New Opportunities Fund Putnam Investment Management, Inc.
Y04 2004 Trust Smith Barney Inc.
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>

(1)American Express Financial Corporation (AEFC) is the investment advisor.

The assets of each subaccount of the Variable Account are not chargeable with
liabilities arising out of the business conducted by any other segregated asset
account or by IDS Life of New York.

IDS Life of New York serves as distributor of the Flexible Premium Variable Life
Policy.

- --------------------------------------------------------------------------------
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INVESTMENTS IN THE FUNDS
Investments in shares of the Funds are stated at market value which is the net
asset value per share as determined by the respective Fund. 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 Funds are reinvested in
additional shares of the Funds and are recorded as income by the subaccounts on
the ex-dividend date.

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

INVESTMENTS IN THE TRUST
Investments in units of the Trust are stated at market value which is the net
asset value per unit as determined by the respective Trust. Investment
transactions are accounted for on the date the units are purchased and sold. The
cost of investments sold and redeemed is determined on the average cost method.

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

74 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM
VARIABLE LIFE SUBACCOUNTS

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

USE OF ESTIMATES
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 disclosures of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets from operations
during the period. Actual results could differ from those estimates.

FEDERAL INCOME TAXES
IDS Life of New York is taxed as a life insurance company. The Variable Account
is treated as part of IDS Life of New York for federal income tax purposes.
Under existing federal income tax law, no income taxes are payable with respect
to any investment income of the Variable Account.

- --------------------------------------------------------------------------------
3. MORTALITY AND EXPENSE RISK FEE AND POLICY CHARGES

IDS Life of New York makes contractual assurances to the Variable Account that
possible future adverse changes in administrative expenses and mortality
experience of the policy owners and beneficiaries will not affect the Variable
Account. The mortality and expense risk fee paid to IDS Life of New York is
computed daily and is equal on an annual basis to 0.9% of the daily net asset
value of the subaccount. A monthly deduction is made for the cost of insurance
and the policy fee. The cost of insurance for the policy month is determined on
the monthly date by determining the net amount at risk, as of that day, and by
then applying the cost of insurance rates to the net amount at risk which IDS
Life of New York is assuming for the succeeding month. The monthly deduction
will be taken from the subaccounts as specified in the application for the
policy.

IDS Life of New York deducts a policy fee of $5 per month. This charge
reimburses IDS Life of New York for expenses incurred in administering the
policy, such as processing claims, maintaining records, making policy changes
and communicating with owners of policies. IDS Life of New York does not
anticipate that it will make any profit on this charge. IDS Life of New York
reserves the right to change this charge in the future, but guarantees that it
will never exceed $7.50 per month.

- --------------------------------------------------------------------------------
4. DEATH BENEFIT GUARANTEE CHARGE AND OPTIONAL INSURANCE BENEFIT CHARGE

For each policy month the death benefit guarantee is in effect, IDS Life of New
York deducts a charge of $.01 per $1,000 of the amount used to determine the
death benefit (specified amount) and $.01 per $1,000 coverage under the other
insured rider to
compensate it for the risk assumed in providing the death benefit guarantee.

Each month IDS Life of New York deducts charges for any optional insurance
benefits added to the policy by rider.

- --------------------------------------------------------------------------------
5. PREMIUM EXPENSE CHARGE

IDS Life of New York deducts charges for two separate items from each premium
payment. The total of these charges is called the premium expense charge.
Details regarding these two charges follows.

A sales charge of 2.5% of each premium payment will be deducted to compensate
IDS Life of New York for expenses in distributing the policy, including agents'
compensation, advertising and printing the prospectus and sales literature.

The policy provides that a charge of 1% of each premium payment will be deducted
to cover the premium taxes imposed by the state of New York.

75 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM
VARIABLE LIFE SUBACCOUNTS

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

6. TRANSACTION CHARGE

IDS Life of New York makes a daily charge against the assets of each subaccount
investing in the Trust. This charge is intended to reimburse IDS Life of New
York for the transaction charge paid directly by IDS Life of New York to Smith
Barney Inc. on the sale of the Trust units to the Variable Account. IDS Life of
New York pays these amounts from its general account assets. The amount of the
asset charge is equivalent to an effective annual rate of 0.25% of the account
value invested in the Trust. This amount may be increased in the future but in
no event will it exceed an effective annual rate of 0.5% of the account value.
The charge will be cost-based (taking into account a loss of interest) with no
anticipated element of profit for IDS Life of New York.

- --------------------------------------------------------------------------------
7. SURRENDER CHARGE

There are surrender charges for full surrenders in the first 10 years of the
policy and for 10 years following an increase in specified amount. They are
generally level for 5 years and decreasing the next 5 years. The surrender
charge is based on the specified amount, the insured's age, sex and smoker class
and the total gross premium paid. Charges by IDS Life of New York for surrenders
are not identified on an individual segregated asset account basis. Charges for
all segregated asset accounts amounted to $886,431 in 1998, $688,445 in 1997 and
$551,374 in 1996. Such charges are not treated as a separate expense of the
subaccounts or Variable Account. They are ultimately deducted from surrender
benefits paid by IDS Life of New York.

- --------------------------------------------------------------------------------
8. INVESTMENT IN SHARES/UNITS

The subaccounts' investment in shares of the Funds and units of the Trust as of
Dec. 31, 1998 were as follows:

<TABLE>
<CAPTION>
SUBACCOUNT INVESTMENT SHARES/UNITS NAV
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
YEQ IDS Life Series Fund Equity Portfolio.................. 2,010,564 $ 27.54
YIN IDS Life Series Fund Income Portfolio.................. 581,642 10.03
YMM IDS Life Series Fund Money Market Portfolio............ 1,723,247 1.00
YMA IDS Life Series Fund Managed Portfolio................. 2,062,547 19.10
YGS IDS Life Series Fund Government Securities Portfolio... 65,425 10.37
YIT IDS Life Series Fund International Equity Portfolio.... 722,032 18.05
YGI AIM V.I. Growth and Income Fund........................ 412,593 23.75
YNO Putnam VT New Opportunities Fund....................... 309,227 26.06
Y04 2004 Trust............................................. 990,990 0.76
- -------------------------------------------------------------------------------------------
</TABLE>

76 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM
VARIABLE LIFE SUBACCOUNTS

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

9. INVESTMENT TRANSACTIONS

The subaccounts' purchases of the Funds' shares or Trust units, including
reinvestment of dividend distributions, were as follows:

<TABLE>
<CAPTION>
YEAR ENDED DEC. 31,
-------------------------------
<S> <C> <C> <C> <C>
SUBACCOUNT INVESTMENT 1998 1997 1996
- ----------------------------------------------------------------------------------------------------
YEQ IDS Life Series Fund Equity Portfolio.................. $14,149,333 $7,620,803 $12,711,900
YIN IDS Life Series Fund Income Portfolio.................. 1,624,048 1,092,864 1,362,573
YMM IDS Life Series Fund Money Market Portfolio............ 2,410,705 1,784,114 1,273,437
YMA IDS Life Series Fund Managed Portfolio................. 6,658,468 6,573,036 5,602,928
YGS IDS Life Series Fund Government Securities Portfolio... 247,569 172,859 150,485
YIT IDS Life Series Fund International Equity Portfolio.... 3,401,869 4,017,372 4,543,458
YGI AIM V.I. Growth and Income Fund........................ 5,153,905 2,798,870 146,590*
YNO Putnam VT New Opportunities Fund....................... 4,188,738 2,378,386 81,922*
Y04 2004 Trust............................................. 76,978 53,932 122,983
- ----------------------------------------------------------------------------------------------------
Combined Variable Account $37,911,613 $26,492,236 $25,996,276
- ----------------------------------------------------------------------------------------------------
</TABLE>

*Commenced operations Nov. 22, 1996.

77 PROSPECTUS
<PAGE>
IDS LIFE OF NEW YORK ACCOUNT 8 -- FLEXIBLE PREMIUM
VARIABLE LIFE SUBACCOUNTS

- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------

The following table gives per-unit information about the financial history of
each subaccount.
<TABLE>
<CAPTION>
Year ended Dec. 31,
---------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT YEQ (INVESTING IN SHARES OF IDS LIFE
SERIES FUND EQUITY PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... $3.80 $3.17 $2.66 $1.94 $1.91 $1.70 $1.63
Accumulation unit value at end of period........ $4.11 $3.80 $3.17 $2.66 $1.94 $1.91 $1.70
Number of accumulation units outstanding at end
of period (000 omitted)......................... 13,469 11,924 10,219 7,545 6,265 4,382 2,916
- -----------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT YIN (INVESTING IN SHARES OF IDS LIFE
SERIES FUND INCOME PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... $2.26 $2.11 $2.06 $1.72 $1.81 $1.59 $1.47
Accumulation unit value at end of period........ $2.37 $2.26 $2.11 $2.06 $1.72 $1.81 $1.59
Number of accumulation units outstanding at end
of period (000 omitted)......................... 2,466 2,184 2,032 1,614 1,408 1,308 744
- -----------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT YMM (INVESTING IN SHARES OF IDS LIFE
SERIES FUND MONEY MARKET PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... $1.57 $1.52 $1.46 $1.39 $1.35 $1.33 $1.29
Accumulation unit value at end of period........ $1.63 $1.57 $1.52 $1.46 $1.39 $1.35 $1.33
Number of accumulation units outstanding at end
of period (000 omitted)......................... 1,055 735 605 352 196 193 147
- -----------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT YMA (INVESTING IN SHARES OF IDS LIFE
SERIES FUND MANAGED PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... $3.50 $2.99 $2.64 $2.24 $2.24 $1.89 $1.73
Accumulation unit value at end of period........ $3.97 $3.50 $2.99 $2.64 $2.24 $2.24 $1.89
Number of accumulation units outstanding at end
of period (000 omitted)......................... 9,923 9,079 8,043 6,737 6,000 4,308 2,720
- -----------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT YGS (INVESTING IN SHARES OF IDS LIFE
SERIES FUND GOVERNMENT SECURITIES PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... $2.11 $1.96 $1.94 $1.66 $1.76 $1.58 $1.50
Accumulation unit value at end of period........ $2.26 $2.11 $1.96 $1.94 $1.66 $1.76 $1.58
Number of accumulation units outstanding at end
of period (000 omitted)......................... 300 256 295 301 284 244 159
- -----------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT YIT(1) (INVESTING IN SHARES OF IDS
LIFE SERIES FUND INTERNATIONAL EQUITY PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... $1.75 $1.66 $1.36 $0.98 $1.00 -- --
Accumulation unit value at end of period........ $2.11 $1.75 $1.66 $1.36 $0.98 -- --
Number of accumulation units outstanding at end
of period (000 omitted)......................... 6,173 4,820 2,922 759 130 -- --
- -----------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT YGI(2) (INVESTING IN SHARES OF AIM
V.I. GROWTH AND INCOME FUND)
Accumulation unit value at beginning of
period.......................................... $1.25 $1.00 $1.00 -- -- -- --
Accumulation unit value at end of period........ $1.58 $1.25 $1.00 -- -- -- --
Number of accumulation units outstanding at end
of period (000 omitted)......................... 6,206 2,465 148 -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT YNO(2) (INVESTING IN SHARES OF PUTNAM
VT NEW OPPORTUNITIES FUND)
Accumulation unit value at beginning of
period.......................................... $1.19 $0.98 $1.00 -- -- -- --
Accumulation unit value at end of period........ $1.47 $1.19 $0.98 -- -- -- --
Number of accumulation units outstanding at end
of period (000 omitted)......................... 5,472 2,226 84 -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT Y04 (INVESTING IN SHARES OF 2004
TRUST)
Accumulation unit value at beginning of
period.......................................... $3.01 $2.71 $2.79 $2.16 $2.41 $2.00 $1.85
Accumulation unit value at end of period........ $3.29 $3.01 $2.71 $2.79 $2.16 $2.41 $2.00
Number of accumulation units outstanding at end
of period (000 omitted)......................... 229 258 291 279 248 207 183
- -----------------------------------------------------------------------------------------------------------------------------

1991 1990 1989
<S> <C> <C> <C>
- ------------------------------------------------
SUBACCOUNT YEQ (INVESTING IN SHARES OF IDS LIFE
SERIES FUND EQUITY PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... $0.98 $1.04 $0.85
Accumulation unit value at end of period........ $1.63 $0.98 $1.04
Number of accumulation units outstanding at end
of period (000 omitted)......................... 1,668 1,061 572
- ------------------------------------------------
SUBACCOUNT YIN (INVESTING IN SHARES OF IDS LIFE
SERIES FUND INCOME PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... $1.29 $1.23 $1.10
Accumulation unit value at end of period........ $1.47 $1.29 $1.23
Number of accumulation units outstanding at end
of period (000 omitted)......................... 517 369 215
- ------------------------------------------------
SUBACCOUNT YMM (INVESTING IN SHARES OF IDS LIFE
SERIES FUND MONEY MARKET PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... $1.24 $1.16 $1.07
Accumulation unit value at end of period........ $1.29 $1.24 $1.16
Number of accumulation units outstanding at end
of period (000 omitted)......................... 191 167 119
- ------------------------------------------------
SUBACCOUNT YMA (INVESTING IN SHARES OF IDS LIFE
SERIES FUND MANAGED PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... $1.32 $1.23 $0.96
Accumulation unit value at end of period........ $1.73 $1.32 $1.23
Number of accumulation units outstanding at end
of period (000 omitted)......................... 1,912 1,236 679
- ------------------------------------------------
SUBACCOUNT YGS (INVESTING IN SHARES OF IDS LIFE
SERIES FUND GOVERNMENT SECURITIES PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... $1.30 $1.23 $1.09
Accumulation unit value at end of period........ $1.50 $1.30 $1.23
Number of accumulation units outstanding at end
of period (000 omitted)......................... 112 69 33
- ------------------------------------------------
SUBACCOUNT YIT(1) (INVESTING IN SHARES OF IDS
LIFE SERIES FUND INTERNATIONAL EQUITY PORTFOLIO)
Accumulation unit value at beginning of
period.......................................... -- -- --
Accumulation unit value at end of period........ -- -- --
Number of accumulation units outstanding at end
of period (000 omitted)......................... -- -- --
- ------------------------------------------------
SUBACCOUNT YGI(2) (INVESTING IN SHARES OF AIM
V.I. GROWTH AND INCOME FUND)
Accumulation unit value at beginning of
period.......................................... -- -- --
Accumulation unit value at end of period........ -- -- --
Number of accumulation units outstanding at end
of period (000 omitted)......................... -- -- --
- ------------------------------------------------
SUBACCOUNT YNO(2) (INVESTING IN SHARES OF PUTNAM
VT NEW OPPORTUNITIES FUND)
Accumulation unit value at beginning of
period.......................................... -- -- --
Accumulation unit value at end of period........ -- -- --
Number of accumulation units outstanding at end
of period (000 omitted)......................... -- -- --
- ------------------------------------------------
SUBACCOUNT Y04 (INVESTING IN SHARES OF 2004
TRUST)
Accumulation unit value at beginning of
period.......................................... $1.55 $1.51 $1.23
Accumulation unit value at end of period........ $1.85 $1.55 $1.51
Number of accumulation units outstanding at end
of period (000 omitted)......................... 153 146 105
- ------------------------------------------------
</TABLE>

(1)Operations commenced on Oct. 28, 1994.
(2)Operations commenced on Nov. 22, 1996.

78 PROSPECTUS
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)
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
- -----------------------------------------------------------------

<TABLE>
<CAPTION>
BALANCE SHEETS DEC. 31, 1998 DEC. 31, 1997
ASSETS (thousands)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------
Investments:
Fixed maturities:
Held to maturity, at amortized cost (fair value: 1998, $503,909;
1997, $562,979).................................................. $ 473,592 $ 535,651
Available for sale, at fair value (amortized cost: 1998,
$561,325; 1997, $582,962)........................................ 578,591 603,576
Mortgage loans on real estate.................................... 166,835 178,826
Policy loans..................................................... 25,421 23,349
Other investments................................................ 566 970
- -------------------------------------------------------------------------------------------------
Total investments................................................ 1,245,005 1,342,372
- -------------------------------------------------------------------------------------------------
Cash and cash equivalents........................................ 3,007 --
Amounts recoverable from reinsurers.............................. 4,077 2,317
Accounts receivable.............................................. 842 723
Premiums due..................................................... 204 192
Accrued investment income........................................ 19,893 20,205
Deferred policy acquisition costs................................ 129,477 126,614
Other assets..................................................... 1,042 995
Separate account assets.......................................... 1,491,679 1,236,759
- -------------------------------------------------------------------------------------------------
Total assets..................................................... $ 2,895,226 $ 2,730,177
- -------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDER'S EQUITY
<S> <C> <C>
- -------------------------------------------------------------------------------------------------
Liabilities:
Future policy benefits:
Fixed annuities.................................................. $ 875,507 $ 964,483
Universal life-type insurance.................................... 152,195 147,744
Traditional life, disability income and long-term care
insurance........................................................ 55,910 50,469
Policy claims and other policyholders' funds..................... 3,105 4,013
Deferred income taxes............................................ 7,912 11,445
Amounts due to brokers........................................... 4,507 29,054
Other liabilities................................................ 24,945 28,931
Separate account liabilities..................................... 1,491,679 1,236,759
- -------------------------------------------------------------------------------------------------
Total liabilities................................................ 2,615,760 2,472,898
- -------------------------------------------------------------------------------------------------
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
Accumulated other comprehensive income:
Net unrealized securities gains.................................. 11,014 13,175
Retained earnings................................................ 217,452 193,104
- -------------------------------------------------------------------------------------------------
Total stockholder's equity....................................... 279,466 257,279
- -------------------------------------------------------------------------------------------------
Total liabilities and stockholder's equity....................... $ 2,895,226 $ 2,730,177
- -------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes.

F-1
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

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

<TABLE>
<CAPTION>
YEARS ENDED DEC. 31,
1998 1997 1996
STATEMENTS OF INCOME (thousands)
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
Revenues:
Traditional life, disability income and long-term care insurance
premiums......................................................... $ 13,852 $ 12,376 $ 10,931
Policyholder and contractholder charges.......................... 20,467 18,319 15,832
Mortality and expense risk fees.................................. 13,980 11,312 8,574
Net investment income............................................ 100,871 106,274 109,468
Net realized gains (losses) on investments....................... 2,163 547 (1,424)
- --------------------------------------------------------------------------------------------------------
Total revenues................................................... 151,333 148,828 143,381
- --------------------------------------------------------------------------------------------------------
Benefits and expenses:
Death and other benefits: Traditional life, disability income and
long-term care insurance......................................... 5,553 3,633 4,182
Universal life-type insurance and investment contracts........... 4,320 3,852 4,409
Increase in liabilities for future policy benefits for
traditional life, disability income and long-term care
insurance........................................................ 3,662 3,979 2,324
Interest credited on universal life-type insurance and investment
contracts........................................................ 55,073 62,294 65,099
Amortization of deferred policy acquisition costs................ 18,362 17,201 16,071
Other insurance and operating expenses........................... 8,917 10,220 8,972
- --------------------------------------------------------------------------------------------------------
Total benefits and expenses...................................... 95,887 101,179 101,057
- --------------------------------------------------------------------------------------------------------
Income before income taxes....................................... 55,446 47,649 42,324
Income taxes..................................................... 19,098 16,471 14,640
- --------------------------------------------------------------------------------------------------------
Net income....................................................... $ 36,348 $ 31,178 $ 27,684
- --------------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes.

F-2
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

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

<TABLE>
<CAPTION>
THREE YEARS ENDED DEC. 31, 1998
(thousands) ACCUMULATED
OTHER
TOTAL COMPREHENSIVE
STOCKHOLDER'S CAPITAL INCOME, RETAINED
STATEMENTS OF STOCKHOLDER'S EQUITY EQUITY STOCK ADDITIONAL NET OF TAX EARNINGS
PAID-IN
CAPITAL
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
Balance, Dec. 31, 1995.................................... $218,583 $2,000 $49,000 $ 15,341 $152,242
Comprehensive income:
Net income............................................ 27,684 -- -- -- 27,684
Unrealized holding losses arising during the year, net
of effect on deferred policy acquisition costs of $296
and taxes of $5,055................................... (9,387) -- -- (9,387) --
Reclassification adjustment for losses included in net
income, net of tax of $(530).......................... 983 -- -- 983 --
------------- -------------
Other comprehensive loss.................................. (8,404) -- -- (8,404) --
-------------
Comprehensive income...................................... 19,280
Cash dividends to parent.................................. (8,000) -- -- -- (8,000)
----------------------------------------------------------------
Balance, Dec. 31, 1996.................................... 229,863 2,000 49,000 6,937 171,926
Comprehensive income:
Net income............................................ 31,178 -- -- -- 31,178
Unrealized holding gains arising during the year, net
of effect on deferred policy acquisition costs of $(1)
and taxes of $(3,412)................................. 6,337 -- -- 6,337 --
Reclassification adjustment for gains included in net
income, net of tax of $54............................. (99) -- -- (99) --
------------- -------------
Other comprehensive income................................ 6,238 -- -- 6,238 --
-------------
Comprehensive income...................................... 37,416
Cash dividends to parent.................................. (10,000) -- -- -- (10,000)
----------------------------------------------------------------
Balance, Dec. 31, 1997.................................... 257,279 2,000 49,000 13,175 193,104
Comprehensive income:
Net income............................................ 36,348 -- -- -- 36,348
Unrealized holding losses arising during the year, net
of effect on deferred policy acquisition costs of $22
and taxes of $1,415................................... (2,628) -- -- (2,628) --
Reclassification adjustment for gains included in net
income, net of tax of $(252).......................... 467 -- -- 467 --
------------- -------------
Other comprehensive loss.................................. (2,161) -- -- (2,161) --
-------------
Comprehensive income...................................... 34,187
Cash dividends to parent.................................. (12,000) -- -- -- (12,000)
----------------------------------------------------------------
Balance, Dec. 31, 1998.................................... $279,466 $2,000 $49,000 $ 11,014 $217,452
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes.

F-3
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

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

<TABLE>
<CAPTION>
YEARS ENDED DEC. 31,
1998 1997 1996
STATEMENTS OF CASH FLOWS (thousands)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income....................................................... $ 36,348 $ 31,178 $ 27,684
Adjustments to reconcile net income to net cash provided by
operating activities:
Policy loan issuance, excluding universal life-type insurance.... (3,110) (3,073) (2,473)
Policy loan repayment, excluding universal life-type insurance... 2,660 1,897 1,571
Change in accrued investment income.............................. 312 863 1,504
Change in amounts recoverable from reinsurer..................... (1,760) (1,345) (460)
Change in premiums due........................................... (12) (50) 25
Change in accounts receivable.................................... (119) 218 (83)
Change in other assets........................................... (47) (95) (328)
Change in deferred policy acquisition costs, net................. (2,841) (7,431) (9,087)
Change in liabilities for future policy benefits for traditional
life, disability income and long-term care insurance............. 5,441 5,131 2,861
Change in policy claims and other policyholders' funds........... (908) 858 (489)
Deferred income tax benefit...................................... (2,369) (960) (2,095)
Change in other liabilities...................................... (3,986) 3,468 4,434
Accretion of discount, net....................................... (342) (352) (652)
Net realized (gain) loss on investments.......................... (2,163) (547) 1,424
Policyholder and contractholder charges, non-cash................ (9,661) (8,772) (7,831)
Other, net....................................................... 118 715 (935)
- ---------------------------------------------------------------------------------------------------------
Net cash provided by operating activities........................ 17,561 21,703 15,070
- ---------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Fixed maturities held to maturity:
Maturities, sinking fund payments and calls...................... 46,629 36,511 39,082
Sales............................................................ 16,173 12,616 14,465
Fixed maturities available for sale:
Purchases........................................................ (86,072) (101,818) (97,370)
Maturities, sinking fund payments and calls...................... 96,578 84,229 71,939
Sales............................................................ 13,180 27,055 15,669
Other investments, excluding policy loans:
Purchases........................................................ (9,121) (33,243) (14,802)
Sales............................................................ 21,113 14,233 12,659
Change in amounts due from broker................................ -- 995 --
Change in amounts due to broker.................................. (24,547) 26,047 (6,993)
- ---------------------------------------------------------------------------------------------------------
Net cash provided by investing activities........................ 73,933 66,625 34,649
- ---------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Activity related to universal life-type insurance and investment
contracts:
Considerations received.......................................... 76,009 112,732 131,011
Surrenders and death benefits.................................... (205,946) (251,259) (236,689)
Interest credited to account balances............................ 55,073 62,294 65,099
Universal life-type insurance policy loans:
Issuance......................................................... (5,222) (4,848) (4,490)
Repayment........................................................ 3,599 2,753 3,350
Cash dividend to parent.......................................... (12,000) (10,000) (8,000)
- ---------------------------------------------------------------------------------------------------------
Net cash used in financing activities............................ (88,487) (88,328) (49,719)
- ---------------------------------------------------------------------------------------------------------
Net increase in cash and cash equivalents........................ 3,007 -- --
Cash and cash equivalents at beginning of year................... -- -- --
- ---------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of year......................... $ 3,007 $ -- $ --
- ---------------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes.

F-4
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)
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 (AEFC), 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 reported as a separate
component of accumulated other comprehensive income, net of deferred policy
acquisition costs and deferred income taxes.

Realized investment gains or losses are 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.

F-5
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 an allowance for
mortgage loan losses. The allowance for mortgage loan losses is maintained at a
level that management believes is adequate to absorb estimated losses in the
portfolio. The level of the allowance 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
allowance 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
judgment 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 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 for the years ended
December 31 is summarized as follows:

<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
- --------------------------------------------------------------
CASH PAID DURING THE YEAR FOR:
Income taxes....................... $22,470 $17,811 $15,247
Interest on borrowings............. 1,600 1,026 777
- --------------------------------------------------------------
</TABLE>

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.

F-6
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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, issue and administrative fees and surrender charges. These charges also
include the minimum death benefit guarantee fees received from the variable life
insurance separate accounts. Mortality and expense fees are received from the
variable annuity and variable life insurance separate accounts.

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 primarily
using the interest method. 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 and deferred annuities are
accumulation values.

Liabilities for fixed annuities in a benefit status are based on mortality
tables with various interest rates ranging from 5% to 9.5%, depending on year of
issue.

Liabilities for future benefits on traditional life insurance are based on the
net level premium method, using anticipated mortality, policy persistency and
interest earning rates. Anticipated mortality rates are based on established
industry mortality tables. 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 range from 4% to 10%, depending on policy form, issue
year and policy duration.

Liabilities for future disability income and long-term care policy benefits
include both policy reserves and claim reserves. Policy reserves are based on
the net level premium method, using anticipated morbidity, mortality, policy
persistency and interest earning rates. Anticipated morbidity and mortality
rates are based on established industry morbidity and mortality tables.
Anticipated policy persistency rates vary by policy form, issue age, policy
duration and, for disability income policies, occupation class. Anticipated
interest rates for disability income and long-term care policy reserves are 3%
to 9.5% at policy issue and grade to ultimate rates of 5% to 7% over 4 to 10
years.

Claim reserves are calculated based on claim continuance tables and anticipated
interest earnings. Anticipated claim continuance rates are based on established
industry tables. Anticipated interest rates for claim reserves for both
disability income and long-term care range from 6% to 8%.

F-7
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
REINSURANCE
The maximum amount of life insurance risk retained by the Company on any one
life is $750 of life benefit plus $50 of accidental death benefits. The maximum
amount of life insurance risk retained on any joint-life combination is $1,500.
The excesses are reinsured with other life insurance companies, primarily on a
yearly renewable term basis. Long-term care policies are primarily reinsured on
a coinsurance basis. Beginning in 1998, the Company retains all disability
income and waiver of premium risk.

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 AEFC 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 AEFC and its
subsidiaries that AEFC will reimburse subsidiaries for all tax benefits.

Included in other liabilities at December 31, 1998 and 1997 are $3,647, and
$5,026, 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 receives mortality and expense risk fees from the variable
annuity separate accounts.

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 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. The Company also guarantees
that the rates at which insurance charges administrative fees are deducted from
contract funds will not exceed contractual maximums.

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
Effective January 1, 1998, the Company adopted SFAS No. 130, "Reporting
Comprehensive Income." SFAS No. 130 requires the reporting and display of
comprehensive income and its components. Comprehensive income is defined as the
aggregate change in stockholder's equity excluding changes in ownership
interests. For the Company, it is net income and the unrealized gains or losses
on available-for-sale securities net of the effect on deferred policy
acquisition costs, taxes and reclassification adjustment.

F-8
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In March 1998, the American Institute of Certified Public Accountants (AICPA)
issued Statement of Position (SOP) 98-1, "Accounting for Costs of Computer
Software Developed or Obtained for Internal Use." The SOP, which is effective
January 1, 1999, requires the capitalization of certain costs incurred after the
date of adoption to develop or obtain software for internal use. Software
utilized by the Company is owned by AEFC and will be capitalized on AEFC's
financial statements. As a result, the new rule will not have a material impact
on the Company's results of operations or financial condition.

In December 1997, the AICPA issued SOP 97-3, "Accounting by Insurance and Other
Enterprises for Insurance-Related Assessments," providing guidance for the
timing of recognition of liabilities related to guaranty fund assessments. The
Company will adopt the SOP on January 1, 1999. The Company has historically
carried a balance in other liabilities on the balance sheet for potential
guaranty fund assessment exposure. Adoption of the SOP will not have a material
impact on the Company's results of operations or financial condition.

In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities," which is effective January 1, 2000. This
Statement establishes accounting and reporting standards for derivative
instruments, including certain derivative instruments embedded in other
contracts, and for hedging activities. It requires that an entity recognize all
derivatives as either assets or liabilities in the balance sheet and measure
those instruments at fair value. The accounting for changes in the fair value of
a derivative depends on the intended use of the derivative and the resulting
designation. Earlier application of all of the provisions of this Statement is
encouraged, but it is permitted only as of the beginning of any fiscal quarter
that begins after issuance of the Statement. This Statement cannot be applied
retroactively. The ultimate financial impact of the new rule will be measured
based on the derivatives in place at adoption and cannot be estimated at this
time.

RECLASSIFICATIONS
Certain 1997 and 1996 amounts have been reclassified to conform to the 1998
presentation.

F-9
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

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.

The amortized cost, gross unrealized gains and losses and fair value of
investments in fixed maturities at December 31, 1998 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................... $ 2,871 $ 159 $ -- $ 3,030
Corporate bonds and
obligations................... 417,648 29,795 474 446,969
Mortgage-backed securities.... 53,073 844 7 53,910
- -----------------------------------------------------------------------------------
$473,592 $30,798 $ 481 $ 503,909
- -----------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED FAIR
AVAILABLE FOR SALE COST GAINS LOSSES VALUE
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------
State and municipal
obligations................... $ 105 $ 9 $ -- $ 114
Corporate bonds and
obligations................... 336,985 15,939 6,296 346,628
Mortgage-backed securities.... 224,235 7,614 -- 231,849
- -----------------------------------------------------------------------------------
$561,325 $23,562 $6,296 $ 578,591
- -----------------------------------------------------------------------------------
</TABLE>

The amortized cost, gross unrealized gains and losses and fair value of
investments in fixed maturities at December 31, 1997 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................... $ 3,690 $ 253 $ -- $ 3,943
Corporate bonds and
obligations................... 476,108 27,361 444 503,025
Mortgage-backed securities.... 55,853 452 294 56,011
- -----------------------------------------------------------------------------------
$535,651 $28,066 $ 738 $ 562,979
- -----------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED FAIR
AVAILABLE FOR SALE COST GAINS LOSSES VALUE
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------
State and municipal
obligations................... $ 104 $ 10 $ -- $ 114
Corporate bonds and
obligations................... 281,555 14,272 1,635 294,192
Mortgage-backed securities.... 301,303 8,253 286 309,270
- -----------------------------------------------------------------------------------
$582,962 $22,535 $1,921 $ 603,576
- -----------------------------------------------------------------------------------
</TABLE>

F-10
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

2. INVESTMENTS (CONTINUED)
The amortized cost and fair value of investments in fixed maturities at December
31, 1998 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.

<TABLE>
<CAPTION>
AMORTIZED FAIR
HELD TO MATURITY COST VALUE
<S> <C> <C>
- ----------------------------------------------------------------
Due in one year or less................. $ 22,671 $ 22,908
Due from one to five years.............. 152,766 162,929
Due from five to ten years.............. 183,198 195,428
Due in more than ten years.............. 61,884 68,733
Mortgage-backed securities.............. 53,073 53,911
- ----------------------------------------------------------------
$473,592 $ 503,909
- ----------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
AMORTIZED FAIR
AVAILABLE FOR SALE COST VALUE
<S> <C> <C>
- ----------------------------------------------------------------
Due in one year or less................. $ 8,512 $ 8,716
Due from one to five years.............. 40,511 43,188
Due from five to ten years.............. 191,185 197,625
Due in more than ten years.............. 96,881 97,213
Mortgage-backed securities.............. 224,236 231,849
- ----------------------------------------------------------------
$561,325 $ 578,591
- ----------------------------------------------------------------
</TABLE>

During the years ended December 31, 1998, 1997 and 1996, fixed maturities
classified as held to maturity were sold with amortized cost of $16,175, $12,737
and $14,507, 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.

Fixed maturities available for sale were sold during 1998 with proceeds of
$13,180 and gross realized gains and losses of $1,159 and $440, respectively.
Fixed maturities available for sale were sold during 1997 with proceeds of
$27,055 and gross realized gains and losses of $461 and $309, respectively.
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.

At December 31, 1998, bonds carried at $257 were on deposit with the state of
New York as required by law.

F-11
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

2. INVESTMENTS (CONTINUED)
At December 31, 1998, investments in fixed maturities comprised 85 percent of
the Company's total invested assets. These securities are rated by Moody's and
Standard & Poor's (S&P), except for securities carried at approximately $153
million which are rated by AEFC internal analysts using criteria similar to
Moody's and S&P. A summary of investments in fixed maturities, at amortized
cost, by rating on December 31 is as follows:

<TABLE>
<CAPTION>
RATING 1998 1997
<S> <C> <C>
- ----------------------------------------------------------------
Aaa/AAA................................. $ 280,669 $ 367,242
Aa/AA................................... 15,815 9,685
Aa/A.................................... 16,327 13,646
A/A..................................... 151,838 162,275
A/BBB................................... 68,640 81,463
Baa/BBB................................. 366,776 343,519
Baa/BB.................................. 39,666 21,519
Below investment grade.................. 95,186 119,264
- ----------------------------------------------------------------
$1,034,917 $1,118,613
- ----------------------------------------------------------------
</TABLE>

F-12
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

2. INVESTMENTS (CONTINUED)
At December 31, 1998, 98 percent of the securities rated Aaa/AAA are GNMA, FNMA
and FHLMC mortgage-backed securities. No holdings of any other issuer are
greater than one percent of the Company's total investments in fixed maturities.

At December 31, 1998, approximately 13 percent of the Company's investments were
mortgage loans on real estate. Summaries of mortgage loans by region of the
United States and by type of real estate are as follows:

<TABLE>
<CAPTION>
DECEMBER 31, 1998 DECEMBER 31, 1997
- ---------------------------------------------------------------------------------------
ON BALANCE COMMITMENTS ON BALANCE COMMITMENTS
REGION SHEET TO PURCHASE SHEET TO PURCHASE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
West North Central............ $ 24,725 $ -- $ 27,833 $ --
East North Central............ 29,134 59 33,515 --
South Atlantic................ 34,175 598 34,182 2,750
Middle Atlantic............... 18,350 -- 24,485 --
Pacific....................... 9,706 -- 9,873 --
Mountain...................... 36,636 -- 32,864 6,417
New England................... 7,851 -- 8,624 --
East South Central............ 7,521 -- 8,698 --
West South Central............ 237 -- 252 --
- ---------------------------------------------------------------------------------------
168,335 657 180,326 9,167
Less allowance for losses..... 1,500 -- 1,500 --
- ---------------------------------------------------------------------------------------
$166,835 $657 $178,826 $9,167
- ---------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
DECEMBER 31, 1998 DECEMBER 31, 1997
- ---------------------------------------------------------------------------------------
ON BALANCE COMMITMENTS ON BALANCE COMMITMENTS
PROPERTY TYPE SHEET TO PURCHASE SHEET TO PURCHASE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
Apartments.................... $ 59,019 $ -- $ 68,823 $ --
Department/retail stores...... 54,018 624 54,622 6,417
Office buildings.............. 23,902 -- 25,042 1,650
Industrial buildings.......... 18,590 33 17,975 1,100
Nursing/retirement............ 5,153 -- 6,035 --
Medical buildings............. 7,416 -- 7,577 --
Hotels/motels................. 237 -- 252 --
- ---------------------------------------------------------------------------------------
168,335 657 180,326 9,167
Less allowance for losses..... 1,500 -- 1,500 --
- ---------------------------------------------------------------------------------------
$166,835 $657 $178,826 $9,167
- ---------------------------------------------------------------------------------------
</TABLE>

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 it
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.

F-13
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

2. INVESTMENTS (CONTINUED)
At December 31, 1998 and 1997, the Company's recorded investment in impaired
loans was $1,268 and $1,299, with allowances of $300 and $300, respectively.
During 1998 and 1997, the average recorded investment in impaired loans was
$1,282 and $1,312, respectively.

The Company recognized $123, $126 and $152 of interest income related to
impaired loans for the years ended December 31, 1998, 1997 and 1996,
respectively.

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

<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
- -----------------------------------------------------------
Balance, January 1................. $1,500 $1,300 $ 445
Provision for investment losses.... -- 200 855
- -----------------------------------------------------------
Balance, December 31............... $1,500 $1,500 $1,300
- -----------------------------------------------------------
</TABLE>

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

<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
- -----------------------------------------------------------------
Interest on fixed maturities....... $ 85,164 $ 92,007 $ 95,574
Interest on mortgage loans......... 14,599 14,228 14,171
Other investment income............ 3,365 1,715 1,293
Interest on cash equivalents....... 64 91 67
- -----------------------------------------------------------------
103,192 108,041 111,105
Less investment expenses........... 2,321 1,767 1,637
- -----------------------------------------------------------------
$100,871 $106,274 $109,468
- -----------------------------------------------------------------
</TABLE>

Net realized gains (losses) on investments for the years ended December 31 is
summarized as follows:

<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
- -------------------------------------------------------------
Fixed maturities................... $2,018 $ 844 $ (572)
Mortgage loans..................... -- (200) (855)
Other investments.................. 145 (97) 3
- -------------------------------------------------------------
$2,163 $ 547 $(1,424)
- -------------------------------------------------------------
</TABLE>

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

<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
- --------------------------------------------------------------
Fixed maturities available for
sale............................... $(3,347) $9,599 $(13,215)
- --------------------------------------------------------------
</TABLE>

F-14
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)
NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------
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.

The income tax expense (benefit) for the years ending December 31 consists of
the following:

<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
- --------------------------------------------------------------
Federal income taxes:
Current............................ $20,192 $16,371 $15,735
Deferred........................... (2,369) (960) (2,095)
- --------------------------------------------------------------
17,823 15,411 13,640
State income taxes-current......... 1,275 1,060 1,000
- --------------------------------------------------------------
Income tax expense................. $19,098 $16,471 $14,640
- --------------------------------------------------------------
</TABLE>

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

<TABLE>
<CAPTION>
1998 1997 1996
- -----------------------------------------------------------------------------------------------
PROVISION RATE PROVISION RATE PROVISION RATE
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
Federal income taxes
based on the statutory
rate..................... $19,406 35.0% $16,677 35.0% $14,813 35.0%
Increases (decreases) are
attributable to:
Tax-excluded interest and
dividend income.......... (660) (1.2) (569) (1.2) (458) (1.1)
State tax, net of federal
benefit.................. 829 1.5 689 1.4 650 1.5
Other, net............... (477) (0.9) (326) (0.6) (365) (0.8)
- -----------------------------------------------------------------------------------------------
Federal income taxes..... $19,098 34.4% $16,471 34.6% $14,640 34.6%
- -----------------------------------------------------------------------------------------------
</TABLE>

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 December 31, 1998, 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 income tax assets and
liabilities as of December 31 are as follows:

<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
- ----------------------------------------------------------
Deferred income tax assets:
Policy reserves......................... $29,318 $28,922
Other................................... 6,502 5,467
- ----------------------------------------------------------
Total deferred income tax assets........ 35,820 34,389
- ----------------------------------------------------------
Deferred income tax liabilities:
Deferred policy acquisition costs....... 36,673 36,594
Investments............................. 7,059 9,240
- ----------------------------------------------------------
Total deferred income tax liabilities... 43,732 45,834
- ----------------------------------------------------------
Net deferred income tax liabilities..... $ 7,912 $11,445
- ----------------------------------------------------------
</TABLE>

F-15
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

3. INCOME TAXES (CONTINUED)
The Company is required to establish a valuation allowance for any portion of
the deferred income 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. All dividend
distributions must be approved by the New York Department of Insurance.
Statutory unassigned surplus aggregated $132,702 and $115,828 as of December 31,
1998 and 1997, respectively (see Note 3 with respect to the income tax effect of
certain distributions and Note 11 for a reconciliation of net income and
stockholder's equity per the accompanying financial statements to statutory net
income and surplus).

- --------------------------------------------------------------------------------
5. BENEFIT PLANS

The Company participates in the American Express Company Retirement Plan which
covers all permanent employees age 21 and over who have met certain employment
requirements. 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 $37, $39 and $34 in 1998, 1997 and 1996, respectively.

The Company has a "Sales Benefit Plan" which is an unfunded, noncontributory
retirement plan for all eligible financial advisors. Total plan costs for 1998,
1997 and 1996, which are calculated on the basis of commission earnings of the
individual financial advisors, were $1,480, $1,965 and $1,474, 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 1998, 1997 and 1996 were $252, $312 and $248,
respectively.

The Company participates in defined benefit health care plans of AEFC 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 AEFC. Costs of these plans charged to
operations in 1998, 1997 and 1996 were $nil.

F-16
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

6. INCENTIVE PLAN AND RELATED PARTY 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 1998, 1997 and
1996 were $140, $1,490 and $1,424, respectively. Such costs are included in
deferred policy acquisition costs.

Charges by IDS Life and AEFC for the use of joint facilities, marketing services
and other services aggregated $9,403, $11,589 and $12,389 for 1998, 1997 and
1996, respectively. Certain of these costs are included in deferred policy
acquisition costs.

- --------------------------------------------------------------------------------
7. COMMITMENTS AND CONTINGENCIES

A number of lawsuits have been filed against life and health insurers in
jurisdictions in which the Company conducts business involving insurers' sales
practices, alleged agent misconduct, failure to properly supervise agents, and
other matters. The Company, along with AEFC and its insurance subsidiaries, has
been named as a defendant in one of these types of actions.

The plaintiffs purport to represent a class consisting of all persons who
purchased policies or contracts from IDS Life and its subsidiaries. The
complaint puts at issue various alleged sales practices and misrepresentations,
alleged breaches of fiduciary duties and alleged violations of consumer fraud
statutes. IDS Life and its subsidiaries believe they have meritorious defenses
to the claims raised in this lawsuit.

The outcome of any litigation cannot be predicted with certainty. In the opinion
of management, however, the ultimate resolution of this lawsuit should not have
a material adverse effect on the Company's financial position.

At December 31, 1998 and 1997, traditional life insurance and universal
life-type insurance in force aggregated $4,941,727 and $4,513,251, respectively,
of which $248,280 and $221,798 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 $74, $115 and $98 for
the years ended December 31, 1998, 1997 and 1996, respectively. Claim recoveries
under the terms of this reinsurance agreement were $nil, $963 and $861 in 1998,
1997 and 1996, respectively.

Premiums ceded to reinsurers other than IDS Life amounted to $2,178, $1,583 and
$747 for the years ended December 31, 1998, 1997 and 1996, respectively. Claim
recoveries from reinsurers other than IDS Life amounted to $228, $1,366 and $66
for the years ended December 31, 1998, 1997 and 1996, respectively.

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
$267,806 and $303,263 at December 31, 1998 and 1997, respectively. The
accompanying statement of income includes premiums of $nil for the years ended
December 31, 1998, 1997 and 1996, and decreases in liabilities for future policy
benefits of $1,742, $1,889 and $2,010 related to this agreement for the years
ended December 31, 1998, 1997 and 1996, respectively.

F-17
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

8. LINES OF CREDIT

The Company has an available line of credit with AEFC aggregating $25,000. The
interest rate for the line of credit is AEFC's cost of funds, ranging from 20 to
45 basis points over an established index. There were no borrowings outstanding
under this agreement at December 31, 1998 or 1997.

- --------------------------------------------------------------------------------
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 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 risk 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 risk 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:

<TABLE>
<CAPTION>
DECEMBER 31, 1998 NOTIONAL CARRYING FAIR TOTAL CREDIT
ASSETS: AMOUNT AMOUNT VALUE EXPOSURE
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
Assets:
Interest rate caps............ $200,000 $566 $ 2 $ 2
- ----------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
DECEMBER 31, 1997 NOTIONAL CARRYING FAIR TOTAL CREDIT
ASSETS: AMOUNT AMOUNT VALUE EXPOSURE
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
Assets:
Interest rate caps............ $200,000 $970 $62 $62
- ----------------------------------------------------------------------------
</TABLE>

The fair values of derivative financial instruments are based on market values,
dealer quotes or pricing models. The interest rate caps expire in the year 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.

F-18
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

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 of the field force, are also excluded.
Management believes the value of excluded assets and liabilities is significant.
The fair value of the Company, therefore, cannot be estimated by aggregating the
amounts presented.

<TABLE>
<CAPTION>
1998 1997
- ------------------------------------------------------------------------------
CARRYING FAIR CARRYING FAIR
AMOUNT VALUE AMOUNT VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
FINANCIAL ASSETS:
Investments:
Fixed maturities (Note 2):
Held to maturity.............. $ 473,592 $ 503,909 $ 535,651 $ 562,979
Available for sale............ 578,591 578,591 603,576 603,576
Mortgage loans on real estate
(Note 2)...................... 166,835 178,559 178,826 187,992
Other:
Derivative financial
instruments (Note 9).......... 566 2 970 62
Separate accounts assets (Note
1)............................ 1,491,679 1,491,679 1,236,759 1,236,759

FINANCIAL LIABILITIES
Future policy benefits for
fixed annuities............... 788,780 765,430 880,809 852,391
Separate account
liabilities................... 1,355,430 1,302,422 1,136,408 1,086,565
- ------------------------------------------------------------------------------
</TABLE>

At December 31, 1998 and 1997, the carrying amount and fair value of future
policy benefits for fixed annuities exclude life insurance-related contracts
carried at $81,358 and $78,853, respectively, and policy loans of $5,369 and
$4,821, respectively. The fair value of these benefits is based on the status of
the annuities at December 31, 1998 and 1997. 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 1998 and 1997.

At December 31, 1998 and 1997, 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 $136,249 and $100,351,
respectively.

F-19
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

NOTES TO FINANCIAL STATEMENTS ($ THOUSANDS) (CONTINUED)
- --------------------------------------------------------------------------------

11. STATUTORY INSURANCE ACCOUNTING PRACTICES

Reconciliations of net income for the years ended December 31 and stockholder's
equity at December 31, as shown in the accompanying financial statements, to
that determined using statutory accounting practices are as follows:

<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
- --------------------------------------------------------------------
Net income, per accompanying
financial statements............... $ 36,348 $ 31,178 $ 27,684
Deferred policy acquisition
costs.............................. (2,841) (7,432) (9,087)
Adjustments of future policy
benefit liabilities................ (6,199) (4,928) (9,683)
Deferred income tax benefit........ (2,369) (960) (2,095)
Provision for losses on
investments........................ 862 296 877
IMR gain/loss transfer and
amortization....................... (1,451) (119) 1,010
Adjustment to separate account
reserves........................... 2,767 10,267 8,863
Other, net......................... (350) 430 116
- --------------------------------------------------------------------
Net income, on basis of statutory
accounting practices............... $ 26,767 $ 28,732 $ 17,685
- --------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
- --------------------------------------------------------------------
Stockholder's equity, per
accompanying financial
statements......................... $ 279,466 $ 257,279 $ 229,863
Deferred policy acquisition
costs.............................. (129,477) (126,614) (119,183)
Adjustments of future policy
benefit liabilities................ 4,697 9,452 13,458
Deferred income taxes.............. 7,912 11,445 9,046
Asset valuation reserve............ (15,516) (16,698) (19,446)
Adjustments of separate account
liabilities........................ 56,223 53,456 43,189
Adjustments of investments to
amortized cost..................... (17,266) (20,613) (11,016)
Premiums due, deferred and
advance............................ 1,381 1,237 1,149
Deferred revenue liability......... 2,482 1,941 1,342
Allowance for losses............... 1,500 1,645 1,349
Non-admitted assets................ (450) (552) (634)
Interest maintenance reserve....... (3,001) (1,551) (1,432)
Other, net......................... (2,915) (1,463) (281)
- --------------------------------------------------------------------
Stockholder's equity, on basis of
statutory accounting practices..... $ 185,036 $ 168,963 $ 147,404
- --------------------------------------------------------------------
</TABLE>

F-20
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF IDS LIFE INSURANCE COMPANY)

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

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, 1998 and 1997, and the related statements of income, stockholder's
equity and cash flows for each of the three years in the period ended December
31, 1998. 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, 1998 and 1997, and the results of its operations and
its cash flows for each of the three years in the period ended December 31,
1998, in conformity with generally accepted accounting principles.

Ernst & Young LLP
Minneapolis, Minnesota
February 4, 1999

F-21

<PAGE>

PART II

UNDERTAKINGS TO FILE REPORTS

Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned registrant hereby undertakes to file with
the Securities and Exchange Commission such supplementary and periodic
information, documents, and reports as may be prescribed by any rule or
regulation of the Commission hereto or hereafter duly adopted pursuant to
authority conferred in that section.

RULE 484 UNDERTAKING

The By-Laws of IDS Life Insurance Company of New York provide that:

To the extent permitted and in the manner prescribed by law, the
Corporation shall indemnify any person made, or threatened to be made,
a party to any action, suit or proceeding, civil or criminal, by reason
of the fact that he, his testator or intestate, is or was Director or
Officer of the Corporation or of any other corporation of any type or
kind, domestic or foreign, which he served in any capacity at the
request of the Corporation, against judgments, fines, amounts paid in
settlement and reasonable expenses (which the Corporation may advance),
including attorneys' fees, actually and necessarily incurred as a
result of such action, suit or proceeding, or any appeal therein.

Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.

REPRESENTATION PURSUANT TO SECTION 26(e) OF THE INVESTMENT COMPANY ACT OF 1940.

The sponsoring insurance company represents that the fees and charges deducted
under the contract, in the aggregate, are reasonable in relation to the services
rendered, the expenses expected to be incurred, and the risks assumed by the
insurance company.

<PAGE>

CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 18 TO REGISTRATION STATEMENT
NO. 33-15290

This Post-Effective Amendment No. 18 to Registration Statement No. 33-15290
comprises the following papers and documents:

The facing sheet.

The prospectus consisting of 78 pages.

The undertakings to file reports.

The signatures.
The following exhibits:

1 A. Copies of all exhibits required by paragraph A of instructions
for Exhibits in Form N-8B-2 to the Registration Statement.

(1) Resolution of Board of Directors of IDS Life of New
York authorizing the Trust, adopted September 12,
1985, filed electronically as Exhibit 1.A.(1) to
Registrant's Form N-8B-2 with Post-Effective
Amendment No. 11, File No. 33-15290 is incorporated
herein by reference.

(2) Not applicable.

(3) (a) Not applicable.

(b) i) Explanation of New York Sales
Agreements, filed electronically as
Exhibit 1.A.(3)(b)(i) to
Registrant's Form N-8B-2 with
Post-Effective Amendment No. 11,
File No. 33-15290 is incorporated
herein by reference.

ii) Form of Personal Financial Planner's
Agreement with IDS Financial
Services Inc., filed electronically
as Exhibit 1.A.(3)(b)(ii) to
Registrant's Form N-8B-2 with
Post-Effective Amendment No. 11,
File No. 33-15290 is incorporated
herein by reference.

iii) Form of Personal Financial Planner's
Agreement with IDS Life Insurance
Company of New York, filed
electronically as Exhibit
1.A.(3)(b)(iii) to Registrant's Form
N-8B-2 with Post-Effective Amendment
No. 11, File No. 33-15290 is
incorporated
herein by reference.

iv) Form of "Field Trainer's" Rider to
Personal Financial Planner's
Agreement, filed electronically as
Exhibit 1.A.(3)(b)(iv) to
Registrant's Form N-8B-2 with
Post-Effective Amendment No. 11,
File No. 33-15290 is incorporated
herein by reference.

v) Form of District Manager's Rider to
Personal Financial Planner's
Agreement, filed electronically as
Exhibit 1.A.(3)(b)(v) to
Registrant's Form N-8B-2 with
Post-Effective Amendment No. 11,
File No. 33-15290 is incorporated
herein by reference.

vi) Form of "New York District
Manager-Insurance" Rider to Personal
Financial Planner's Agreement, filed
electronically as Exhibit
1.A.(3)(b)(vi) to Registrant's Form
N-8B-2 with Post-Effective Amendment
No. 11, File No. 33-15290 is
incorporated herein by
reference.

<PAGE>

vii) Form of Division Manager's Agreement
with IDS Financial Services Inc.,
filed electronically as Exhibit
1.A.(3)(b)(vii) to Registrant's Form
N-8B-2 with Post-Effective Amendment
No. 11, File No. 33-15290 is
incorporated herein by reference.

viii) Form of "New York Division
Manager-Insurance" Rider to Division
Manager's Agreement with IDS
Financial Services Inc., filed
electronically as Exhibit
1.A.(3)(b)(viii) to Registrant's
Form N-8B-2 with Post-Effective
Amendment No. 11, File No. 33-15290
is incorporated herein by reference.

(c) Flexible Premium Variable Life Insurance
Compensation: IDS Life of New York, filed
electronically as Exhibit 1.A.(3)(c) to
Registrant's Form N-8B-2 with Post-Effective
Amendment No. 11, File No. 33-15290 is
incorporated herein by reference.

(4) Not applicable.

(5) Flexible Premium Variable Life Insurance Policy,
dated April 1, 1987, filed electronically as Exhibit
1.A.(5) to Registrant's Form N-8B-2 with
Post-Effective Amendment No. 11, File No. 33-15290 is
incorporated herein by reference.

(6) (a) Certificate of Amendment of the
Certificate of Incorporation of IDS Life
Insurance Company of New York, filed
electronically as Exhibit 1.A.(6)(a) to
Registrant's Form N-8B-2 with Post-Effective
Amendment No. 11, File No. 33-15290 is
incorporated herein by reference.

(b) Amended Bylaws of IDS Life Insurance Company
of New York, dated May 1992, filed
electronically as Exhibit 1.A.(6)(b) to
Post-Effective Amendment No. 12, File No.
33-15290 is incorporated herein by reference.

(7) Not applicable.

(8) (a) Investment Management and Services
Agreement between IDS Life Insurance Company
and IDS Life Series Fund, Inc., dated
December 17, 1985, filed electronically as
Exhibit 1.A.(8)(a) to Registrant's Form
N-8B-2 with Post-Effective Amendment No. 11,
File No. 33-15290 is incorporated herein by
reference.

(b) Investment Advisory Agreement between IDS
Life Insurance Company (IDS Life) and
IDS/American Express Inc. (IDS), dated July
11, 1984, filed electronically as Exhibit
1.A.(8)(b) to Registrant's Form N-8B-2 with
Post-Effective Amendment No. 11, File No.
33-15290 is incorporated herein by
reference.

(c) Reference Trust Indenture among Shearson
Lehman Brothers Inc., the Bank of New York
and Standard & Poor's Corporation, dated
August 4, 1986, filed electronically as
Exhibit 1.A.(8)(c) to Registrant's Form
N-8B-2 with Post-Effective Amendment No. 11,
File No. 33-15290 is incorporated herein by
reference.

(d) Standard Terms and Conditions of Trust,
effective August 4, 1986, filed
electronically as Exhibit 1.A.(8)(d) to
Registrant's Form N-8B-2 with Post-Effective
Amendment No. 11, File No. 33-15290 is
incorporated herein by reference.

(9) None.

<PAGE>

(10) Application form for the Flexible Premium Variable
Life Insurance Policy, filed electronically as
Exhibit 1.A.(10) to Registrant's Form N-8B-2 with
Post-Effective Amendment No. 11, File No. 33-15290 is
incorporated herein by reference.

(11) Description of Transfer and Redemption Procedures and
Method of Conversion to Fixed Benefit Policies, filed
electronically as Exhibit 1.A.(11) to Registrant's
Form N-8B-2 with Post-Effective Amendment No. 11,
File No. 33-15290 is incorporated herein by
reference.

B. (1) Not applicable.

(2) Not applicable.

C. Not applicable.

2. Opinion of counsel is filed electronically herewith.

3. Not applicable.

4. Not applicable.

5. Not applicable.

6. Actuarial Opinion of Mark Gorham, F.S.A., M.A.A.A., Actuarial Director
- Insurance Product Development is filed electronically herewith.

7 (a) Written actuarial consent of Mark Gorham, F.S.A., M.A.A.A.,
Actuarial Director - Insurance Product Development is filed
electronically herewith.

(b) Written auditor consent of Ernst & Young LLP is filed
electronically herewith.

(c) Power of Attorney to sign amendments to this Registration
Statement dated April 14, 1999, is filed electronically
herewith as Exhibit 7(c) to Registrant's Form S-6 with
Post-Effective Amendment No. 18, File No. 33-15290.

<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940 IDS Life Insurance Company of New York, on behalf of the
Registrant, certifies that it meets all of the requirements for effectiveness of
this Amendment to its Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1933 and has duly caused this Amendment to its Registration
Statement to be signed on behalf of the Registrant by the undersigned, thereunto
duly authorized, in this City of Minneapolis, and State of Minnesota on the 28th
day of April, 1999.

IDS Life of New York Account 8
(Registrant)

By IDS Life Insurance Company of New York
(Sponsor)

By /s/ Richard W. Kling*
Richard W. Kling, President

Pursuant to the requirements of the Securities Act of 1933, this Amendment to
the Registration Statement has been signed by the following persons in the
capacities indicated on the 28th day of April, 1999:

Signature Title

/s/ Richard W. Kling* Director and Chairman of the Board
Richard W. Kling

/s/ Timothy V. Bechtold* Director and President
Timothy V. Bechtold

/s/ Maureen A. Buckley* Director, Vice President, Chief Operating
Maureen A. Buckley Officer and Consumer Affairs Officer

/s/ Rodney P. Burwell* Director
Rodney P. Burwell

/s/ John R. Cattau* Director
John R. Cattau

/s/ Robert R. Grew* Director
Robert R. Grew

/s/ Jeffrey S. Horton* Vice President and Treasurer
Jeffrey S. Horton

/s/ Jean B. Keffeler* Director
Jean B. Keffeler

/s/ Thomas R. McBurney* Director
Thomas R. McBurney

<PAGE>

Signature Title

/s/ Edward J. Muhl* Director
Edward J. Muhl

/s/ Thomas V. Nicolosi* Director
Thomas V. Nicolosi

/s/ Stephen P. Norman* Director
Steven P. Norman

/s/ Richard M. Starr* Director
Richard M. Starr

/s/ Philip C. Wentzel* Vice President and Controller
Philip C. Wentzel

/s/ Michael R. Woodward* Director
Michael R. Woodward

*Signed pursuant to Power of Attorney dated April 14, 1999 filed electronically
herewith as Exhibit No. 7(c) to this Registration Statement No. 33-15290.

By: /s/ Mary Ellyn Minenko
Mary Ellyn Minenko

EXHIBIT INDEX

Exhibit 2: Opinion of counsel
Exhibit 6: Actuarial Opinion of Mark Gorham, F.S.A., M.A.A.A.
Exhibit 7a: Actuarial Consent of Mark Gorham, F.S.A., M.A.A.A.
Exhibit 7b: Auditor consent of Ernst & Young LLP
Exhibit 7c: Power of Attorney, date April 14, 1999

April 28, 1999

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

RE: IDS Life of New York Account 8, Form S-6
Post-Effective Amendment No. 18
File No. 33-15290/811-5213

Ladies and Gentlemen:

I am familiar with the establishment of the IDS Life of New York Account 8
("Account"), which is a separate account of IDS Life Insurance Company of New
York ("Company") established by the Company's Board of Directors according to
applicable insurance law. I also am familiar with the above-referenced
Registration Statement filed by the Company on behalf of the Account with the
Securities and Exchange Commission.

I have made such examination of law and examined such documents and records as
in my judgment are necessary and appropriate to enable me to give the following
opinion:

1. The Company is duly incorporated, validly existing and in good standing
under applicable state law and is duly licensed or qualified to do
business in each jurisdiction where it transacts business. The Company
has all corporate powers required to carry on its business and to issue
the contracts.

2. The Account is a validly created and existing separate account of the
Company and is duly authorized to issue the securities registered.

3. The contracts issued by the Company, when offered and sold in
accordance with the prospectus contained in the Registration Statement
and in compliance with applicable law, will be legally issued and
represent binding obligations of the Company in accordance with their
terms.

I hereby consent to the filing of this opinion as an exhibit to the Registration
Statement.

Sincerely

/S/ Mary Ellyn Minenko
Mary Ellyn Minenko
Group Counsel

April 26, 1999

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

Gentlemen:

This opinion is furnished in connection with Post-Effective Amendment No. 18 to
the registration by IDS Life Insurance Company of New York of a Flexible Premium
Variable Life Insurance Policy ("the Policy"), File No. 33-15290, under the
Securities Act of 1933. The prospectus included on Form S-6 in the
post-effective amendment to the registration statement describes the Policy. I
am familiar with the Policy, the Post-effective amendment, the registration
statement and the exhibits thereto. In my opinion, the illustrations of Death
Benefits, Policy Values, and Surrender Values included in the section of the
prospectus entitled "illustrations", under the assumptions stated in that
section, are consistent with the provisions of the Policy.

I hereby consent to the use of this opinion as an exhibit to the post-effective
amendment to the registration statement and to the reference of my name under
the heading "Experts" in this prospectus.

Very truly yours,

/s/ Mark Gorham
Mark Gorham, F.S.A., M.A.A.A.
Actuarial Director - Insurance Product Development
Minneapolis, Minnesota
April 26, 1999

CONSENT OF ACTUARY

The Board of Directors
IDS Life Insurance Company of New York

I consent to the reference to me under the caption "Experts" and to use the use
of my opinion dated April 26, 1999 on the illustrations used by IDS Life
Insurance Company of New York in the Prospectus for the Flexible Premium
Variable Life Insurance Policy offered by IDS Life Insurance Company of New York
as part of Post-Effective Amendment #18 to the Registration Statement being
filed under the Securities Act of 1933.

/s/ Mark Gorham
Mark Gorham, F.S.A., M.A.A.A.
Actuarial Director - Insurance Product Development

Minneapolis, Minnesota
April 26, 1999

Consent of Independent Auditors

We consent to the reference of our firm under the caption "Experts" and to the
use of our report dated February 4, 1999 on the financial statements IDS Life
Insurance Company of New York and our report dated March 12, 1999 on the
financial statements of IDS Life of New York Account 8 in Post-Effective
Amendment No. 18 to the Registration Statement (Form S-6, No. 33-15290) and
related Prospectus for the registration of the Flexible Premium Variable Life
Insurance Policies to be offered by IDS Life Insurance Company of New York.

/s/ Ernst & Young LLP
Ernst & Young LLP
Minneapolis, Minnesota
April 27, 1999

IDS LIFE INSURANCE COMPANY OF NEW YORK
POWER OF ATTORNEY

City of Albany

State of New York

Each of the undersigned, as officers and/or directors of IDS Life Insurance
Company of New York on behalf of the below listed registrants previously have
filed registration statements and amendments thereto pursuant to the
requirements of the Securities Act of 1933 and the Investment Company Act of
1940 with the Securities and Exchange Commission:

<TABLE>
<CAPTION>
<S> <C> <C>
1933 Act 1940 Act
Reg. Number Reg. Number

IDS Life of New York 4, 5, 6, 9, 10, 11, 12, 13 and 14 33-52567 811-3500
IDS Life of New York Employee Benefit Annuity (EBA-NY)
- -------------------------------------------------------------------------

IDS Life of New York Flexible Annuity (Flex-NY) 33-4174 811-3500
- -------------------------------------------------------------------------

IDS Life of New York Variable Retirement and Combination 2-78194 811-3500
Retirement Annuity (CRA-NY)
- -------------------------------------------------------------------------

IDS Life of New York Flexible Portfolio Annuity Account 333-03867 811-07623
IDS Life of New York Flexible Portfolio Annuity (FPA-NY)
- -------------------------------------------------------------------------

IDS Life of New York Account 8 33-15290 811-5213
Flexible Premium Variable Life Insurance Policy (VUL-NY)
- -------------------------------------------------------------------------

Flexible Premium Variable Life Insurance Policy (VUL-3-NY)
- -------------------------------------------------------------------------

Flexible Premium Survivorship Variable Life Insurance Policy 333-42257 811-5213
(V2D-NY)
- -------------------------------------------------------------------------

IDS Life of New York Account SBS 33-45776 811-6560
Symphony Annuity (SYMPHONY-NY)
- -------------------------------------------------------------------------

IDS Life of New York Account 7 33-10334 811-4913
Single Premium Variable Life Insurance Policy (SBS-SPVL-NY)
</TABLE>

hereby constitutes and appoints William A. Stoltzmann, Mary Ellyn Minenko,
Eileen J. Newhouse, Eric L. Marhoun, Christopher R. Long and Timothy S. Meehan
or any one of them, as her or his attorney-in-fact and agent, to sign for her or
him in her or his name, place and stead any and all filings, applications
(including applications for exemptive relief), periodic reports, registration
statements for existing or future products (with all exhibits and other
documents required or desirable in connection therewith) other documents, and
amendments thereto and to file such filings, applications, periodic reports,
registration statements other documents, and amendments thereto with the
Securities and Exchange Commission, and any necessary states, and grants to any
or all of them the full power and authority to do and perform each and every act
required or necessary in connection therewith.

<PAGE>

Dated the 14 day of April, 1999.

/s/ Timothy V. Bechtold /s/ Thomas R. McBurney
Timothy V. Bechtold Thomas R. McBurney
Director and President Director

/s/ Maureen A. Buckley /s/ Edward J. Muhl
Maureen A. Buckley Edward J. Muhl
Director, Vice President, Chief Operating Director
Officer and Consumer Affairs Officer

/s/ Rodney P. Burwell /s/ Thomas V. Nicolosi
Rodney P. Burwell Thomas V. Nicolosi
Director Director

/s/ John R. Cattau /s/ Stephen P. Norman
John R. Cattau Stephen P. Norman
Director Director

/s/ Robert R. Grew /s/ Richard M. Starr
Robert R. Grew Richard M. Starr
Director Director

/s/ Jeffrey S. Horton /s/ Philip C. Wentzel
Jeffrey S. Horton Philip C. Wentzel
Vice President and Treasurer Vice President and
Controller

/s/ Jean B. Keffeler /s/ Michael R. Woodward
Jean B. Keffeler Michael R. Woodward
Director Director

/s/ Richard W. Kling
Richard W. Kling
Director and Chairman of the Board