Supplement dated June 16, 2004*
       to the Prospectuses and Statements of Additional Information dated
                                 April 30, 2004



                                                                                                   Prospectus           SAI
Product Name                                                                                         Form #           Form #
                                                                                                            
American Express Retirement Advisor Variable Annuity(R)                                          S-6467 H (4/04)  S-6325 A (4/04)

American Express Retirement Advisor Variable Annuity(R) - Band 3                                 S-6477 H (4/04)  S-6325 A (4/04)



At a special meeting of the AXP Variable Portfolio Funds' shareholders held on
June 9, 2004, the merger of AXP(R) Variable Portfolio - Blue Chip Advantage Fund
into the AXP(R) Variable Portfolio - Capital Resource Fund was approved. The
merger is expected to take place on July 9, 2004. Upon the merger, AXP(R)
Variable Portfolio - Capital Resource Fund will change its name to AXP(R)
Variable Portfolio - Large Cap Equity Fund.




S-6467-2 A (6/04)

* Valid until next prospectus update.
Destroy May 1, 2005