-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IjWH6qSZWsmw6q9ZBEyEiBgTYkrcWP+Xdh/UlHKCENNBmOITY19HtbgYZupBxpgD feRoBS1pQmjmZJ/fXKZJzg== 0000950123-10-038998.txt : 20100428 0000950123-10-038998.hdr.sgml : 20100428 20100427185126 ACCESSION NUMBER: 0000950123-10-038998 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 6 FILED AS OF DATE: 20100428 DATE AS OF CHANGE: 20100427 EFFECTIVENESS DATE: 20100430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVERSOURCE VARIABLE ACCOUNT 10 CENTRAL INDEX KEY: 0001000191 IRS NUMBER: 000000000 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-79311 FILM NUMBER: 10774756 BUSINESS ADDRESS: STREET 1: 50605 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5229 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 6126784177 MAIL ADDRESS: STREET 1: 50605 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5229 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: IDS LIFE VARIABLE ACCOUNT 10 DATE OF NAME CHANGE: 19950906 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVERSOURCE VARIABLE ACCOUNT 10 CENTRAL INDEX KEY: 0001000191 IRS NUMBER: 000000000 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07355 FILM NUMBER: 10774757 BUSINESS ADDRESS: STREET 1: 50605 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5229 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 6126784177 MAIL ADDRESS: STREET 1: 50605 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5229 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: IDS LIFE VARIABLE ACCOUNT 10 DATE OF NAME CHANGE: 19950906 0001000191 S000003522 RIVERSOURCE VARIABLE ACCOUNT 10 C000009760 RiverSource Retirement Advisor Variable Annuity C000009762 RiverSource Retirement Advisor Advantage Variable Annuity/RiverSource Retirement Advisor Select Variable Annuity C000009764 RiverSource Retirement Advisor Advantage Plus Variable Annuity/RiverSource Retirement Advisor Select Plus Variable Annuity C000034183 RiverSource Retirement Advisor 4 Advantage VA/RiverSource Retirement Advisor 4 Select VA/RiverSource Retirement Advisor 4 Access VA 485BPOS 1 c56120be485bpos.txt 485BPOS SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Pre-Effective Amendment No. _____________ [ ] Post-Effective Amendment No. 57 (File No. 333-79311) [X] and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 58 (File No. 811-07355) [X] (Check appropriate box or boxes) RIVERSOURCE VARIABLE ACCOUNT 10 (previously IDS LIFE VARIABLE ACCOUNT 10) (Exact Name of Registrant) RiverSource Life Insurance Company (previously IDS Life Insurance Company) (Name of Depositor) 70100 Ameriprise Financial Center, Minneapolis, MN 55474 (Address of Depositor's Principal Executive Offices) (Zip Code) Depositor's Telephone Number, including Area Code (612) 671-2237 Rodney J. Vessels, 50605 Ameriprise Financial Center, Minneapolis, MN 55474 (Name and Address of Agent for Service) It is proposed that this filing will become effective (check appropriate box) [ ] immediately upon filing pursuant to paragraph (b) of Rule 485 [X] on April 30, 2010 pursuant to paragraph (b) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [ ] on [date] pursuant to paragraph (a)(1) of Rule 485 If appropriate, check the following box: [ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. PART A. PROSPECTUS APRIL 30, 2010 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY(R) INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITY New RiverSource Retirement Advisor Variable Annuity contracts are not currently being offered. ISSUED BY: RIVERSOURCE LIFE INSURANCE COMPANY (RIVERSOURCE LIFE) 70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 ameriprise.com/variableannuities RIVERSOURCE VARIABLE ACCOUNT 10 This prospectus contains information that you should know before investing. Prospectuses are also available for: - - AllianceBernstein Variable Products Series Fund, Inc. - - American Century Variable Portfolios, Inc. - - Calvert Variable Series, Inc. - - Columbia Funds Variable Insurance Trust - - Credit Suisse Trust - - Eaton Vance Variable Trust - - Evergreen Variable Annuity Trust - - Fidelity(R) Variable Insurance Products - Service Class - - Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 - - Goldman Sachs Variable Insurance Trust (VIT) - - Invesco Variable Insurance Funds (previously AIM Variable Insurance Funds) - - Janus Aspen Series: Service Shares - - MFS(R) Variable Insurance Trust(SM) - - Neuberger Berman Advisers Management Trust - - Oppenheimer Variable Account Funds - Service Shares - - PIMCO Variable Insurance Trust (VIT) - - Putnam Variable Trust - Class IB Shares - - RiverSource Variable Series Trust (RVST) - - Royce Capital Fund - - Third Avenue Variable Series Trust - - The Universal Institutional Funds, Inc. - - Van Kampen Life Investment Trust - - Wanger Advisors Trust - - Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. The contract provides for purchase payment credits which we may reverse under certain circumstances. Surrender charges from contracts with purchase payment credits may be higher than surrender charges for contracts without such credits. The amount of the credit may be more than offset by additional surrender charges associated with the credit. THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THIS CONTRACT IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS CONTRACT INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). Variable annuities are insurance products that are complex investment vehicles. Be sure to ask your financial advisor about the variable annuity's features, benefits, risks and fees. This prospectus provides a general description of the contract. Your actual contract and any riders or endorsements are the controlling documents. RiverSource Life has not authorized any person to give any information or to make any representations regarding the contract other than those contained in this prospectus or the Fund prospectuses. Do not rely on any such information or representations. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 1 RiverSource Life offers several different annuities which your financial advisor may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to annuity account values. The fees and charges may also be different between each annuity. TABLE OF CONTENTS KEY TERMS.................................... 3 THE CONTRACT IN BRIEF........................ 5 EXPENSE SUMMARY.............................. 6 CONDENSED FINANCIAL INFORMATION (UNAUDITED).. 12 FINANCIAL STATEMENTS......................... 12 THE VARIABLE ACCOUNT AND THE FUNDS........... 12 THE FIXED ACCOUNT............................ 22 BUYING YOUR CONTRACT......................... 23 CHARGES...................................... 25 VALUING YOUR INVESTMENT...................... 28 MAKING THE MOST OF YOUR CONTRACT............. 29 SURRENDERS................................... 38 TSA -- SPECIAL PROVISIONS.................... 38 CHANGING OWNERSHIP........................... 39 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT.................................... 40 OPTIONAL BENEFITS............................ 41 THE ANNUITY PAYOUT PERIOD.................... 45 TAXES........................................ 46 VOTING RIGHTS................................ 50 SUBSTITUTION OF INVESTMENTS.................. 50 ABOUT THE SERVICE PROVIDERS.................. 50 APPENDIX: CONDENSED FINANCIAL INFORMATION (UNAUDITED)................................ 52 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION........ 63
2 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS KEY TERMS These terms can help you understand details about your contract. ACCUMULATION UNIT: A measure of the value of each subaccount before annuity payouts begin. ANNUITANT: The person or persons on whose life or life expectancy the annuity payouts are based. ANNUITY PAYOUTS: An amount paid at regular intervals under one of several plans. ASSUMED INVESTMENT RATE: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. BENEFICIARY: The person you designate to receive benefits in case of the owner's or annuitant's death while the contract is in force. CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). CODE: The Internal Revenue Code of 1986, as amended. CONTRACT: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. CONTRACT VALUE: The total value of your contract before we deduct any applicable charges. CONTRACT YEAR: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. ENHANCED EARNINGS DEATH BENEFIT (EEB): This is an optional benefit you can add to your contract for an additional charge. It is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. FIXED ACCOUNT: An account to which you may allocate purchase payments. Amounts you allocate to this account earn interest at rates that we declare periodically. FUNDS: Investment options under your contract. Unless an asset allocation program is in effect, you may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. GOOD ORDER: We cannot process your transaction request relating to the contract until we have received the request in good order at our corporate office. "Good order" means the actual receipt of the requested transaction in writing, along with all information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes your completed request; the contract number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts and the fixed account affected by the requested transaction; the signatures of all contract owners, exactly as registered on the contract, if necessary; Social Security Number or Taxpayer Identification Number; and any other information or supporting documentation that we may require. With respect to purchase requests, "good order" also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV): This is an optional benefit you can add to your contract for an additional charge that is intended to provide additional death benefit protection in the event of fluctuating fund values. OWNER (YOU, YOUR): The person or persons who control the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM): This is an optional program in which you may elect to participate. Prior to May 10, 2010, the program required adding a rider for an additional charge. Beginning May 10, 2010, the rider is not required to select the PN program, and there is no additional charge. PURCHASE PAYMENT CREDITS: An addition we make to your contract value. We base the amount of the credit on the surrender charge schedule you elect and/or total purchase payments. QUALIFIED ANNUITY: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: - - Individual Retirement Annuities (IRAs) including the inherited IRAs under Section 408(b) of the Code - - Roth IRAs including inherited Roth IRAs under Section 408 A of the Code RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 3 - - SIMPLE IRAs under Section 408(p) of the Code - - Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code - - Plans under Section 401(k) of the Code - - Custodial and investment only accounts maintained for qualified retirement plans under Section 401(a) of the Code - - Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax deferred. All other contracts are considered NONQUALIFIED ANNUITIES. RIDER: You receive a rider when you purchase the EEB, MAV and/or PN. Beginning May 10, 2010, the PN rider is not required to select the PN program. The rider adds the terms of the optional benefit to your contract. RIDER EFFECTIVE DATE: The date a rider becomes effective as stated in the rider. RIVERSOURCE LIFE: In this prospectus, "we," "us," "our" and "RiverSource Life" refer to RiverSource Life Insurance Company. SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. SURRENDER VALUE: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. VALUATION DATE: Any normal business day, Monday through Friday, on which the NYSE is open, up to the close of business. At the close of business, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) in good order at our corporate office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other hand, if we receive your purchase payment or transaction request in good order at our corporate office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. VARIABLE ACCOUNT: Consists of separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. 4 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS THE CONTRACT IN BRIEF PURPOSE: The purpose of the contract is to allow you to accumulate money for retirement or a similar long-term goal. You do this by making one or more purchase payments. You may allocate your purchase payments to the fixed account and/or subaccounts under the contract; however, you risk losing amounts you invest in the subaccounts of the variable account. These accounts, in turn, may earn returns that increase the value of the contract. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payout of your contract value (less any applicable premium tax). TAX-DEFERRED RETIREMENT PLANS: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. A qualified annuity has features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions (RMDs). RMDs may reduce the value of certain death benefits and optional riders (see "Taxes -- Qualified Annuities - -- Required Minimum Distributions"). You should consult your tax advisor before you purchase the contract as a qualified annuity for an explanation of the potential tax implications to you. FREE LOOK PERIOD: You may return your contract to your financial advisor or to our corporate office within the time stated on the first page of your contract. You will receive a full refund of the contract value, less the amount of any purchase payment credits. (See "Valuing Your Investment -- Purchase payment credits.") We will not deduct any other charges. However, you bear the investment risk from the time of purchase until you return the contract; the refund amount may be more or less than the payment you made. (Exception: If the law requires, we will refund all of your purchase payments.) ACCOUNTS: Generally, you may allocate your purchase payments among any or all of: - - the subaccounts of the variable account, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (see "Variable Account and the Funds") - - the fixed account, which earns interest at a rate that we adjust periodically. Purchase payment allocations to the fixed account may be subject to special restrictions. (see "The Fixed Account") BUYING YOUR CONTRACT: We no longer offer new contracts. However, you have the option of making additional purchase payments in the future. (see "Buying Your Contract") TRANSFERS: Subject to certain restrictions, you currently may redistribute your contract value among the accounts until annuity payouts begin, and once per contract year among the subaccounts after annuity payouts begin. You may establish automated transfers among the accounts. Fixed account transfers are subject to special restrictions. (see "Making the Most of Your Contract -- Transferring Among Accounts") SURRENDERS: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences; also, certain restrictions apply. (see "Surrenders") BENEFITS IN CASE OF DEATH: If you or the annuitant die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value, except in the case of a purchase payment credit reversal. (see "Benefits in Case of Death -- Standard Death Benefit") OPTIONAL BENEFITS: This contract offers optional features that are available for additional charges if you meet certain criteria. (see "Optional Benefits") ANNUITY PAYOUTS: You can apply your contract value, after reflecting any adjustments, to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (see "The Annuity Payout Period") TAXES: Generally, income earned on your contract value grows tax-deferred until you surrender it or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and nonqualified annuities differs. Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. However, Roth IRAs may grow and be distributed tax free if you meet certain distribution requirements. (see "Taxes") RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 5 EXPENSE SUMMARY THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT ARE PAID WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU PAID AT THE TIME THAT YOU BOUGHT THE CONTRACT AND MAY PAY WHEN YOU SURRENDER THE CONTRACT. STATE PREMIUM TAXES ALSO MAY BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SURRENDER CHARGE (Contingent deferred sales load as a percentage of purchase payment surrendered) The owner selects either a seven-year or ten-year surrender charge schedule at the time of application.*
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED YEARS FROM SURRENDER CHARGE NUMBER OF COMPLETED YEARS FROM SURRENDER CHARGE DATE OF EACH PURCHASE PAYMENT PERCENTAGE DATE OF EACH PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7 0 7 4 8 3 9 2 10 0
* The ten-year surrender charge schedule is not available for contracts issued in Oregon. For contracts issued in Massachusetts, Oregon and Washington, surrender charges are waived after the tenth contract anniversary for all payments regardless of when payments are made. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.")
ASSUMED INVESTMENT RATE 3.50% 5.00% Qualified annuity discount rate 4.72% 6.22% Nonqualified annuity discount rate 4.92% 6.42%
THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL CONTRACT ADMINISTRATIVE CHARGE $30
(We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) OPTIONAL RIDER FEES (As a percentage of the contract value charged annually at the contract anniversary. The fee applies only if you elect the optional rider.) MAV RIDER FEE 0.15% EEB RIDER FEE 0.30% PN RIDER FEE* Maximum: 0.20% Current: 0.10%
* Beginning May 10, 2010 the rider is not required to select the PN program and this fee will no longer apply. For contact holders who currently participate in the PN program, beginning May 10, 2010, the PN rider fee will be $0. 6 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value.)
MORTALITY AND EXPENSE RISK FEE FOR NONQUALIFIED ANNUITIES 0.95% FOR QUALIFIED ANNUITIES 0.75%
ANNUAL OPERATING EXPENSES OF THE FUNDS THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THESE OPERATING EXPENSES ARE FOR THE FISCAL YEAR ENDED DEC. 31, 2009, UNLESS OTHERWISE NOTED. THE FIRST TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE ACTUAL FEES AND EXPENSES CHARGED BY EACH FUND. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND. MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(A) (Including management fee, distribution and/or service (12b-1) fees and other expenses)
MINIMUM MAXIMUM Total expenses before fee waivers and/or expense reimbursements 0.50% 2.05%
(a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund's affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund's distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See "The Variable Account and the Funds" for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund's fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund's prospectus and SAI. TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AllianceBernstein VPS Global Thematic Growth 0.75% 0.25% 0.25% --% 1.25% Portfolio (Class B) (previously AllianceBernstein VPS Global Technology Portfolio (Class B)) AllianceBernstein VPS Growth and Income 0.55 0.25 0.08 -- 0.88 Portfolio (Class B) AllianceBernstein VPS International Value 0.75 0.25 0.08 -- 1.08 Portfolio (Class B) American Century VP International, Class I 1.36 -- 0.01 0.01 1.38 American Century VP Mid Cap Value, Class II 0.90 0.25 0.01 -- 1.16 American Century VP Ultra(R), Class II 0.90 0.25 0.01 -- 1.16 American Century VP Value, Class I 0.97 -- -- -- 0.97 Calvert Variable Series, Inc. VP SRI Social 0.70 -- 0.21 -- 0.91 Balanced Portfolio Columbia Marsico Growth Fund, Variable Series, 0.91 -- 0.02 -- 0.93(1) Class A Columbia Marsico International Opportunities 1.02 0.25 0.17 -- 1.44(1) Fund, Variable Series, Class B Credit Suisse Trust -- Commodity Return Strategy 0.50 0.25 0.45 -- 1.20(2) Portfolio Credit Suisse Trust -- U.S. Equity Flex I 0.70 -- 1.11 -- 1.81 Portfolio Eaton Vance VT Floating-Rate Income Fund 0.57 0.25 0.33 -- 1.15 Evergreen VA International Equity Fund -- Class 0.43 0.25 0.22 -- 0.90 2 Fidelity(R) VIP Contrafund(R) Portfolio Service 0.56 0.25 0.11 -- 0.92 Class 2 Fidelity(R) VIP Growth & Income Portfolio 0.46 0.10 0.14 -- 0.70 Service Class Fidelity(R) VIP Mid Cap Portfolio Service Class 0.56 0.10 0.12 -- 0.78 Fidelity(R) VIP Overseas Portfolio Service Class 0.71 0.10 0.17 -- 0.98 FTVIPT Franklin Global Real Estate Securities 0.80 0.25 0.31 -- 1.36(3) Fund -- Class 2 FTVIPT Franklin Small Cap Value Securities 0.52 0.25 0.18 0.03 0.98(4) Fund -- Class 2 Goldman Sachs VIT Mid Cap Value 0.80 -- 0.06 -- 0.86 Fund -- Institutional Shares Goldman Sachs VIT Structured Small Cap Equity 0.75 -- 0.27 -- 1.02(5) Fund -- Institutional Shares Goldman Sachs VIT Structured U.S. Equity 0.64 -- 0.08 -- 0.72(6) Fund -- Institutional Shares
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 7 TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Invesco V.I. Capital Appreciation Fund, Series I 0.62% --% 0.29% 0.01% 0.92 Shares % (previously AIM V.I. Capital Appreciation Fund, Series I Shares) Invesco V.I. Capital Development Fund, Series I 0.75 -- 0.36 0.01 1.12(7) Shares (previously AIM V.I. Capital Development Fund, Series I Shares) Invesco V.I. Global Health Care Fund, Series II 0.75 0.25 0.39 0.01 1.40 Shares (previously AIM V.I. Global Health Care Fund, Series II Shares) Invesco V.I. International Growth Fund, Series 0.71 0.25 0.33 0.02 1.31 II Shares (previously AIM V.I. International Growth Fund, Series II Shares) Janus Aspen Series Enterprise Portfolio: Service 0.64 0.25 0.06 -- 0.95 Shares Janus Aspen Series Global Technology Portfolio: 0.64 0.25 0.33 -- 1.22 Service Shares Janus Aspen Series Janus Portfolio: Service 0.64 0.25 0.03 -- 0.92 Shares Janus Aspen Series Overseas Portfolio: Service 0.64 0.25 0.06 -- 0.95 Shares MFS(R) Investors Growth Stock Series -- Service 0.75 0.25 0.11 -- 1.11 Class MFS(R) New Discovery Series -- Service Class 0.90 0.25 0.13 -- 1.28 MFS(R) Utilities Series -- Service Class 0.73 0.25 0.09 -- 1.07 Neuberger Berman Advisers Management Trust 1.15 0.25 0.26 0.01 1.67(8) International Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service 0.64 0.25 0.11 -- 1.00 Shares Oppenheimer Global Strategic Income Fund/VA, 0.55 0.25 0.10 0.03 0.93(9) Service Shares (previously Oppenheimer Strategic Bond Fund/VA, Service Shares) Oppenheimer Main Street Small Cap Fund/VA, 0.71 0.25 0.19 -- 1.15(10) Service Shares PIMCO VIT All Asset Portfolio, Advisor Share 0.43 0.25 -- 0.69 1.37 Class Putnam VT Vista Fund -- Class IB Shares 0.59 0.25 0.20 0.01 1.05(11) Royce Capital Fund -- Micro-Cap Portfolio, 1.25 -- 0.10 0.14 1.49 Investment Class RVST Disciplined Asset Allocation -- 0.25 0.32 0.69 1.26(12) Portfolios -- Aggressive RVST Disciplined Asset Allocation -- 0.25 0.21 0.63 1.09(12) Portfolios -- Conservative RVST Disciplined Asset Allocation -- 0.25 0.14 0.66 1.05(12) Portfolios -- Moderate RVST Disciplined Asset Allocation -- 0.25 0.17 0.67 1.09(12) Portfolios -- Moderately Aggressive RVST Disciplined Asset Allocation -- 0.25 0.19 0.64 1.08(12) Portfolios -- Moderately Conservative RVST RiverSource Variable Portfolio -- Balanced 0.46 0.13 0.14 -- 0.73 Fund (Class 3) RVST RiverSource Variable Portfolio -- Cash 0.33 0.13 0.18 -- 0.64 Management Fund (Class 3) RVST RiverSource Variable 0.44 0.13 0.14 -- 0.71 Portfolio -- Diversified Bond Fund (Class 3) RVST RiverSource Variable 0.50 0.13 0.13 -- 0.76 Portfolio -- Diversified Equity Income Fund (Class 3) RVST RiverSource Variable Portfolio -- Dynamic 0.44 0.13 0.14 0.01 0.72 Equity Fund (Class 3) RVST RiverSource Variable Portfolio -- Global 0.66 0.13 0.18 -- 0.97(13) Bond Fund (Class 3) RVST RiverSource Variable Portfolio -- Global 0.43 0.13 0.15 -- 0.71(13) Inflation Protected Securities Fund (Class 3) RVST RiverSource Variable Portfolio -- High 0.59 0.13 0.14 -- 0.86 Yield Bond Fund (Class 3) RVST RiverSource Variable Portfolio -- Income 0.60 0.13 0.15 -- 0.88 Opportunities Fund (Class 3) RVST RiverSource Variable Portfolio -- Mid Cap 0.80 0.13 0.14 -- 1.07(13) Growth Fund (Class 3) RVST RiverSource Variable Portfolio -- Mid Cap 0.58 0.13 0.14 -- 0.85 Value Fund (Class 3) RVST RiverSource Variable Portfolio -- S&P 500 0.22 0.13 0.15 -- 0.50(13) Index Fund (Class 3) RVST RiverSource Variable Portfolio -- Short 0.48 0.13 0.15 -- 0.76 Duration U.S. Government Fund (Class 3) RVST Seligman Variable Portfolio -- Growth Fund 0.52 0.13 0.15 -- 0.80 (Class 3) RVST Seligman Variable Portfolio -- Larger-Cap 0.61 0.13 0.50 -- 1.24(13) Value Fund (Class 3) RVST Seligman Variable Portfolio -- Smaller-Cap 0.80 0.13 0.16 -- 1.09(13) Value Fund (Class 3) RVST Threadneedle Variable Portfolio -- Emerging 1.08 0.13 0.21 -- 1.42(13) Markets Fund (Class 3) RVST Threadneedle Variable 0.85 0.13 0.18 -- 1.16 Portfolio -- International Opportunity Fund (Class 3) RVST Variable Portfolio -- Davis New York 0.68 0.13 0.13 -- 0.94(13) Venture Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio -- Fundamental Value Fund)
8 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES RVST Variable Portfolio -- Goldman Sachs Mid Cap 0.81% 0.13% 0.62% --% 1.56%(13) Value Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio -- Select Value Fund) RVST Variable Portfolio -- Partners Small Cap 0.99 0.13 0.15 0.02 1.29(13) Value Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio -- Small Cap Value Fund) RVST Variable Portfolio -- Aggressive Portfolio -- 0.25 0.04 0.77 1.06(14) (Class 2) RVST Variable Portfolio -- Aggressive Portfolio -- 0.25 0.04 0.77 1.06(14),(15) (Class 4) RVST Variable Portfolio -- Conservative -- 0.25 0.04 0.62 0.91(14) Portfolio (Class 2) RVST Variable Portfolio -- Conservative -- 0.25 0.04 0.62 0.91(14),(15) Portfolio (Class 4) RVST Variable Portfolio -- Moderate Portfolio -- 0.25 0.04 0.70 0.99(14) (Class 2) RVST Variable Portfolio -- Moderate Portfolio -- 0.25 0.04 0.70 0.99(14),(15) (Class 4) RVST Variable Portfolio -- Moderately Aggressive -- 0.25 0.04 0.74 1.03(14) Portfolio (Class 2) RVST Variable Portfolio -- Moderately Aggressive -- 0.25 0.04 0.74 1.03(14),(15) Portfolio (Class 4) RVST Variable Portfolio -- Moderately -- 0.25 0.04 0.66 0.95(14) Conservative Portfolio (Class 2) RVST Variable Portfolio -- Moderately -- 0.25 0.04 0.66 0.95(14),(15) Conservative Portfolio (Class 4) Third Avenue Value Portfolio 0.90 -- 0.43 -- 1.33(16) Van Kampen Life Investment Trust Comstock 0.56 0.25 0.06 -- 0.87 Portfolio, Class II Shares Van Kampen's UIF Global Real Estate Portfolio, 0.85 0.35 0.36 0.01 1.57 Class II Shares Van Kampen's UIF Mid Cap Growth Portfolio, Class 0.75 0.35 0.31 0.01 1.42 II Shares Wanger International 0.85 -- 0.20 -- 1.05 Wanger USA 0.86 -- 0.12 -- 0.98 Wells Fargo Advantage VT Index Asset Allocation 0.55 0.25 0.27 -- 1.07(17) Fund (previously Wells Fargo Advantage VT Asset Allocation Fund) Wells Fargo Advantage VT International Core Fund 0.75 0.25 1.04 0.01 2.05(17) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.26 0.01 1.27(17)
* The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) The Advisor has voluntarily agreed to reimburse a portion of the Fund's expenses so that the Fund's ordinary operating expenses (excluding any distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but including custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian, do not exceed 1.05% for Columbia Marsico Growth Fund, Variable Series, Class A and 1.20% for Columbia Marsico International Opportunities Fund, Variable Series, Class B, of the Fund's average daily net assets on an annualized basis. These arrangements may be modified or terminated by the Advisor at any time. (2) Credit Suisse fee waivers and expense reimbursements are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements, net expenses would be 0.95%. (3) The investment manager and administrator have contractually agreed to waive or limit their respective fees so that the increase in investment management and fund administration fees paid by the Fund is phased in over a five year period, starting on May 1, 2007, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of four years thereafter through April 30, 2012, the investment manager and administrator will receive one-fifth of the increase in the rate of fees. After fee reductions net expenses would be 1.15%. (4) The manager and administrator have agreed in advance to reduce their fees as a result of the Fund's investment in a Franklin Templeton money market fund. This reduction is required by the Trust's board of trustees and an exemptive order by the Securities and Exchange Commission; this arrangement will continue as long as the exemptive order is relied upon. After fee reductions net expenses would be 0.96%. (5) The Investment Adviser has voluntarily agreed to waive a portion of its management fee equal to 0.02% of the Fund's average daily net assets. In addition, the Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.114% of the Fund's average daily net assets. The expense reductions may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. (6) The Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.004% of the Fund's average daily net assets. Prior to July 1, 2009, this fee as a percentage of average daily net assets was 0.044% of the Fund. The expense reductions may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. (7) The Advisor has contractually agreed, through at least April 30, 2011, to waive a portion of its advisory fees to the extent necessary so that the advisory fees payable by the Fund does not exceed a specified maximum annual advisory fee rate, wherein the fee rate includes breakpoints and is based upon net asset levels. After fee waivers and expense reimbursements net expenses would be 1.11%. The Board of Trustees or Invesco Advisers, Inc. may mutually agree to terminate the fee waiver agreement at any time. (8) Neuberger Berman Management LLC ("NBM") has undertaken through Dec. 31, 2013, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 2.00% of the average daily net asset value. NBM has also voluntarily committed to reimburse certain expenses for an additional 0.50% per annum of the Portfolio's average daily net assets to maintain the Portfolio's operating expenses at 1.50%. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. After fee waiver and expense reimbursements net expenses would be 1.52%. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 9 TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets) (9) The Manager will voluntarily waive and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund, Oppenheimer Master Loan Fund, LLC and Oppenheimer Master Event-Linked Bond Fund, LLC. (10) The Manager has voluntarily undertaken to limit the Fund's total annual operating expenses so that the expenses, as percentages of daily net assets will not exceed the annual rate of 1.05%. This voluntary undertaking may be amended or withdrawn at any time. (11) The fees reflect projected expenses under a new management contract effective Jan. 1, 2010, changes in the fund's investor servicing contract and a new expense arrangement, which gives effect to changes in the allocation of certain expenses among the Putnam funds. (12) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses of the Fund until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board of Trustees. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (excluding fees and expenses of acquired funds) will not exceed 0.41% for each of the RVST Disciplined Asset Allocation Portfolios. (13) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board of Trustees. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net fund expenses (excluding acquired fund fees and expenses, if any), before giving effect to any performance incentive adjustment, will not exceed 0.97% for RVST RiverSource Variable Portfolio -- Global Bond Fund (Class 3), 0.76% for RVST RiverSource Variable Portfolio -- Global Inflation Protected Securities Fund (Class 3), 1.08% for RVST RiverSource Variable Portfolio -- Mid Cap Growth Fund (Class 3), 0.53% for RVST RiverSource Variable Portfolio -- S&P 500 Index Fund (Class 3), 1.05% for RVST Seligman Variable Portfolio -- Larger-Cap Value Fund (Class 3), 1.15% for RVST Seligman Variable Portfolio -- Smaller-Cap Value Fund (Class 3), 1.53% for RVST Threadneedle Variable Portfolio -- Emerging Markets Fund (Class 3), 0.99% for RVST Variable Portfolio -- Davis New York Venture Fund (Class 3), 1.20% for RVST Variable Portfolio -- Goldman Sachs Mid Cap Value Fund (Class 3) and 1.20% for RVST Variable Portfolio -- Partners Small Cap Value Fund (Class 3). (14) Other expenses and acquired fund fees and expenses are based on estimated amounts for the current fiscal year. RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses for Class 2 and Class 4 shares of the Fund until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (excluding acquired fund fees and expenses) will not exceed 0.32% for each of the Class 2 and Class 4 shares of the Fund's. (15) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses for Class 4 shares of the Fund until April 30, 2012, unless sooner terminated at the sole discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (including acquired fund fees and expenses) will not exceed 0.99% for RVST Variable Portfolio -- Aggressive Portfolio (Class 4), 0.86% for RVST Variable Portfolio -- Conservative Portfolio (Class 4), 0.94% for RVST Variable Portfolio -- Moderate Portfolio (Class 4), 0.98% RVST Variable Portfolio -- Moderately Aggressive Portfolio (Class 4) and 0.90% for RVST Variable Portfolio -- Moderately Conservative Portfolio (Class 4). (16) The Fund's advisor has contractually agreed, for two years from March 1, 2009, to defer receipt of advisory fees and/or reimburse Fund expenses in order to limit total annual expenses (exclusive of taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary items) to 1.30% of average daily net assets, subject to later reimbursement in certain circumstances. After fee waivers and expense reimbursements net expenses would be 1.30%. (17) Expenses have been adjusted from amounts incurred during the Fund's most recent fiscal year to reflect current fees and expenses. The adviser has contractually agreed through April 30, 2011 to waive fees and/or reimburse expenses to the extent necessary to ensure that the Fund's net operating expenses, including the underlying master portfolio's fees and expenses and excluding brokerage commissions, interest, taxes and extraordinary expenses, do not exceed: 1.00% for Wells Fargo Advantage VT Index Asset Allocation Fund, 1.01% for Wells Fargo Advantage VT International Core Fund and 1.21% for Wells Fargo Advantage VT Small Cap Growth Fund. The committed net operating expense ratio may be increased or terminated only with approval of the Board of Trustees. 10 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THE CONTRACT WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CONTRACT ADMINISTRATIVE CHARGES*, VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES. THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR. MAXIMUM EXPENSES. These examples assume the most expensive combination of contract features and benefits and the maximum fees and expense of any of the funds. They assume that you select both the optional MAV, EEB and PN**. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN NONQUALIFIED AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA with a ten- year surrender charge schedule $1,204 $2,022 $2,755 $4,405 $404 $1,222 $2,055 $4,205 RAVA with a seven-year surrender charge schedule 1,104 1,922 2,555 4,205 404 1,222 2,055 4,205 QUALIFIED ANNUITY RAVA with a ten- year surrender charge schedule $1,183 $1,963 $2,659 $4,227 $383 $1,163 $1,959 $4,027 RAVA with a seven-year surrender charge schedule 1,083 1,863 2,459 4,027 383 1,163 1,959 4,027
MINIMUM EXPENSES. These examples assume the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. They assume that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN NONQUALIFIED AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA with a ten- year surrender charge schedule $979 $1,350 $1,643 $2,223 $179 $550 $943 $2,023 RAVA with a seven-year surrender charge schedule 879 1,250 1,443 2,023 179 550 943 2,023 QUALIFIED ANNUITY RAVA with a ten- year surrender charge schedule $958 $1,288 $1,536 $1,999 $158 $488 $836 $1,799 RAVA with a seven-year surrender charge schedule 858 1,188 1,336 1,799 158 488 836 1,799
* In these examples, the contract administrative charge is $30. ** Because these examples are intended to illustrate the most expensive combination of contract features, the maximum annual fee for the optional rider is reflected rather than the fee that is currently being charged. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 11 CONDENSED FINANCIAL INFORMATION You can find unaudited condensed financial information of the subaccounts in the Appendix. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the divisions, which are comprised of subaccounts, in the SAI. The SAI does not include audited financial statements for divisions that are new and have no activity as of the financial statement date. THE VARIABLE ACCOUNT AND THE FUNDS THE VARIABLE ACCOUNT: The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of RiverSource Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the Internal Revenue Service (IRS) has issued some guidance on investor control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. THE FUNDS: The contract currently offers subaccounts investing in shares of the funds listed in the table below. - - INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. - - FUND NAME AND MANAGEMENT: A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. - - ELIGIBLE PURCHASERS: All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The funds are not available to the public (see "Fund name and management" above). Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although we and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of each fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each fund intends to comply with the diversification requirements under Section 817(h) of the Code. - - ASSET ALLOCATION PROGRAMS MAY IMPACT FUND PERFORMANCE: Asset allocation programs in general may negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a fund in which your subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or reallocation under the terms of the asset allocation program may cause a fund to lose money if it must sell large amounts of securities to meet a 12 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS redemption request. These losses can be greater if the fund holds securities that are not as liquid as others; for example, various types of bonds, shares of smaller companies and securities of foreign issuers. A fund may also experience higher expenses because it must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the asset allocation program we offer (see "Making the Most of Your Contract - Portfolio Navigator Program") or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the funds. - - FUNDS AVAILABLE UNDER THE CONTRACT: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each fund and the contract charges we impose. We select the underlying funds in which the subaccounts initially invest and when there is substitution (see "Substitution of Investments"). We also make all decisions regarding which funds to retain in a contract, which funds to add to a contract and which funds will no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to fund performance, fund expenses, classes of fund shares available, size of the fund and investment objectives and investing style of the fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds and portfolio concentration and sector weightings. We also consider the levels and types of revenue including but not limited to expense payments and non-cash compensation a fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the fund and support of marketing and distribution expenses incurred with respect to the fund. - - REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST: We or our affiliates receive from each of the funds, or the funds' affiliates, varying levels and types of revenue including expense payments and non-cash compensation. The amount and percentage of revenue we and our affiliates receive comes from assets allocated to subaccounts investing in the RiverSource Variable Series Trust funds (affiliated funds) that are managed by RiverSource Investments, LLC (RiverSource Investments), one of our affiliates RiverSource Variable Series Trust funds include the RiverSource Variable Portfolio funds, Variable Portfolio funds, Threadneedle Variable Portfolio funds, Seligman Variable Portfolio funds, Variable Portfolio funds of funds and Disciplined Asset Allocation Portfolio funds. In addition, on Sept. 29, 2009, Ameriprise Financial, Inc. entered into an agreement with Bank of America Corporation to buy a portion of the asset management business of Columbia Management Group, LLC, including Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC (the "Transaction"). The Transaction is subject to certain approvals and other conditions to closing, and is currently expected to close in the second quarter of 2010. Certain separate accounts invest in funds sponsored by Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC. Employee compensation and operating goals at all levels are tied to the success of Ameriprise Financial, Inc. and its affiliates, including us. Certain employees may receive higher compensation and other benefits based, in part, on contract values that are invested in the RiverSource Variable Series Trust funds. We or our affiliates receive revenue which ranges up to 0.60% of the average daily net assets invested in the non-RiverSource Variable Series Trust funds (unaffiliated funds) through this and other contracts we and our affiliate issue. We or our affiliates may also receive revenue which ranges up to 0.04% of aggregate, net or anticipated sales of unaffiliated funds through this and other contracts we and our affiliate issue. Please see the SAI for a table that ranks the unaffiliated funds according to total dollar amounts they and their affiliates paid us or our affiliates in the prior calendar year. Expense payments, non-cash compensation and other forms of revenue may influence recommendations your investment professional makes regarding whether you should invest in the contract, and whether you should allocate purchase payments or contract value to a subaccount that invests in a particular fund (see "About the Service Providers"). The revenue we or our affiliates receive from a fund or its affiliates is in addition to revenue we receive from the charges you pay when buying, owning and surrendering the contract (see "Expense Summary"). However, the revenue we or our affiliates receive from a fund or its affiliates may come, at least in part, from the fund's fees and expenses you pay indirectly when you allocate contract value to the subaccount that invests in that fund. - - WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive these revenues including but not limited to expense payments and non-cash compensation for various purposes: - Compensating, training and educating financial advisors who sell the contracts. - Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their financial advisors, and granting access to financial advisors of our affiliated selling firms. - Activities or services we or our affiliates provide that assist in the promotion and distribution of the contracts including promoting the funds available under the contracts to prospective and existing contract owners, authorized selling firms and financial advisors. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 13 - Providing sub-transfer agency and shareholder servicing to contract owners. - Promoting, including and/or retaining the fund's investment portfolios as underlying investment options in the contracts. - Advertising, printing and mailing sales literature, and printing and distributing prospectuses and reports. - Furnishing personal services to contract owners, including education of contract owners, answering routine inquiries regarding a fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA). - Subaccounting, transaction processing, recordkeeping and administration. - - SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are managed by RiverSource Investments. The sources of revenue we receive from these affiliated funds, or from affiliates of these funds, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser and transfer agent or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the fund or on the actual cost of certain services we provide with respect to the fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. - - SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these unaffiliated funds, or the funds' affiliates, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser, subadviser, transfer agent or an affiliate of these and assets of the fund's distributor or an affiliate. The revenue resulting from these sources usually is based on a percentage of average daily net assets of the fund but there may be other types of payment arrangements. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. 14 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS UNLESS THE PN PROGRAM IS IN EFFECT, YOU MAY ALLOCATE PURCHASE PAYMENTS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:
- ----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ----------------------------------------------------------------------------------------------- AllianceBernstein VPS Seeks long-term growth of capital AllianceBernstein L.P. Global Thematic Growth Portfolio (Class B) (previously AllianceBernstein VPS Global Technology Portfolio (Class B)) - ----------------------------------------------------------------------------------------------- AllianceBernstein VPS Seeks long-term growth of capital AllianceBernstein L.P. Growth and Income Portfolio (Class B) - ----------------------------------------------------------------------------------------------- AllianceBernstein VPS Seeks long-term growth of capital AllianceBernstein L.P. International Value Portfolio (Class B) - ----------------------------------------------------------------------------------------------- American Century VP Seeks capital growth American Century Global International, Class I Investment Management, Inc. - ----------------------------------------------------------------------------------------------- American Century VP Mid Seeks long-term capital growth. Income is a American Century Cap Value, Class II secondary objective Investment Management, Inc. - ----------------------------------------------------------------------------------------------- American Century VP Seeks long-term capital growth American Century Ultra(R), Class II Investment Management, Inc. - ----------------------------------------------------------------------------------------------- American Century VP Seeks long-term capital growth. Income is a American Century Value, Class I secondary objective Investment Management, Inc. - ----------------------------------------------------------------------------------------------- Calvert Variable Series, Seeks competitive total return through Calvert Asset Management Inc. VP SRI Social actively managed portfolio of stocks, bonds Company, Inc., adviser. Balanced Portfolio and money market instruments which offer New Amsterdam Partners, income and capital growth opportunity and LLP, subadviser on which satisfy Portfolio's investment and equity portion; no social criteria subadviser on fixed- income portion. - ----------------------------------------------------------------------------------------------- Columbia Marsico Growth Seeks long-term growth of capital Columbia Management Fund, Variable Series, Investment Advisers, Class A LLC, adviser; Marsico Capital Management, LLC, sub-adviser. - ----------------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital Columbia Management International Investment Advisers, Opportunities Fund, LLC, adviser; Marsico Variable Series, Class B Capital Management, LLC, sub-adviser. - ----------------------------------------------------------------------------------------------- Credit Suisse Seeks total return Credit Suisse Asset Trust - Commodity Return Management, LLC Strategy Portfolio - ----------------------------------------------------------------------------------------------- Credit Suisse Seeks long-term capital appreciation Credit Suisse Asset Trust - U.S. Equity Flex Management, LLC I Portfolio - ----------------------------------------------------------------------------------------------- Eaton Vance VT Floating- Seeks high level of current income Eaton Vance Management Rate Income Fund - ----------------------------------------------------------------------------------------------- Evergreen VA Seeks long-term capital growth and Evergreen Investment International Equity secondarily, modest income Management Company, LLC Fund - Class 2 - -----------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 15
- ----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ----------------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term capital appreciation. Fidelity Management & Contrafund(R) Portfolio Normally invests primarily in common Research Company (FMR), Service Class 2 stocks. Invests in securities of companies investment manager; FMR whose value it believes is not fully U.K. and FMR Far East, recognized by the public. Invests in either sub-advisers. "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers - ----------------------------------------------------------------------------------------------- Fidelity(R) VIP Growth & Seeks high total return through a FMR, investment manager; Income Portfolio Service combination of current income and capital FMR U.K., FMR Far East, Class appreciation. Normally invests a majority sub-advisers. of assets in common stocks with a focus on those that pay current dividends and show potential for capital appreciation. Invests in domestic and foreign issuers. The Fund invests in either "growth" stocks or "value" stocks or both - ----------------------------------------------------------------------------------------------- Fidelity(R) VIP Mid Cap Seeks long-term growth of capital. Normally FMR, investment manager; Portfolio Service Class invests primarily in common stocks. FMR U.K., FMR Far East, Normally invests at least 80% of assets in sub-advisers. securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. Invests in domestic and foreign issuers. The Fund invests in either "growth" or "value" common stocks or both - ----------------------------------------------------------------------------------------------- Fidelity(R) VIP Overseas Seeks long-term growth of capital. Normally FMR, investment manager; Portfolio Service Class invests primarily in common stocks FMR U.K., FMR Far East, allocating investments across different Fidelity International countries and regions. Normally invests at Investment Advisors least 80% of assets in non-U.S. securities (FIIA) and FIIA U.K., sub-advisers. - ----------------------------------------------------------------------------------------------- FTVIPT Franklin Global Seeks high total return Franklin Templeton Real Estate Securities Institutional, LLC Fund - Class 2 - ----------------------------------------------------------------------------------------------- FTVIPT Franklin Small Seeks long-term total return Franklin Advisory Cap Value Securities Services, LLC Fund - Class 2 - ----------------------------------------------------------------------------------------------- Goldman Sachs VIT Mid Seeks long-term capital appreciation Goldman Sachs Asset Cap Value Management, L.P. Fund - Institutional Shares - ----------------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital through a Goldman Sachs Asset Structured Small Cap broadly diversified portfolio of equity Management, L.P. Equity investments in U.S. issuers Fund - Institutional Shares - ----------------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital and Goldman Sachs Asset Structured U.S. Equity dividend income Management, L.P. Fund - Institutional Shares - ----------------------------------------------------------------------------------------------- Invesco V.I. Capital Seeks growth of capital Invesco Advisers, Inc. Appreciation Fund, Series I Shares (previously AIM V.I. Capital Appreciation Fund, Series I Shares) - ----------------------------------------------------------------------------------------------- Invesco V.I. Capital Seeks long-term growth of capital Invesco Advisers, Inc. Development Fund, Series I Shares (previously AIM V.I. Capital Development Fund, Series I Shares) - -----------------------------------------------------------------------------------------------
16 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
- ----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ----------------------------------------------------------------------------------------------- Invesco V.I. Global Seeks capital growth Invesco Advisers, Inc. Health Care Fund, Series II Shares (previously AIM V.I. Global Health Care Fund, Series II Shares) - ----------------------------------------------------------------------------------------------- Invesco V.I. Seeks long-term growth of capital Invesco Advisers, Inc. International Growth Fund, Series II Shares (previously AIM V.I. International Growth Fund, Series II Shares) - ----------------------------------------------------------------------------------------------- Janus Aspen Series Seeks long-term growth of capital Janus Capital Management Enterprise Portfolio: LLC Service Shares - ----------------------------------------------------------------------------------------------- Janus Aspen Series Seeks long-term growth of capital Janus Capital Management Global Technology LLC Portfolio: Service Shares - ----------------------------------------------------------------------------------------------- Janus Aspen Series Janus Seeks long-term growth of capital in a Janus Capital Management Portfolio: Service manner consistent with the preservation of LLC Shares capital - ----------------------------------------------------------------------------------------------- Janus Aspen Series Seeks long-term growth of capital Janus Capital Management Overseas Portfolio: LLC Service Shares - ----------------------------------------------------------------------------------------------- MFS(R) Investors Growth Seeks capital appreciation MFS Investment Stock Series - Service Management(R) Class - ----------------------------------------------------------------------------------------------- MFS(R) New Discovery Seeks capital appreciation MFS Investment Series - Service Class Management(R) - ----------------------------------------------------------------------------------------------- MFS(R) Utilities Seeks total return MFS Investment Series - Service Class Management(R) - ----------------------------------------------------------------------------------------------- Neuberger Berman Seeks long-term growth of capital by Neuberger Berman Advisers Management investing primarily in common stocks of Management LLC Trust International foreign companies Portfolio (Class S) - ----------------------------------------------------------------------------------------------- Oppenheimer Global Seeks long-term capital appreciation OppenheimerFunds, Inc. Securities Fund/VA, Service Shares - ----------------------------------------------------------------------------------------------- Oppenheimer Global Seeks high level of current income OppenheimerFunds, Inc. Strategic Income principally derived from interest on debt Fund/VA, Service Shares securities (previously Oppenheimer Strategic Bond Fund/VA, Service Shares) - ----------------------------------------------------------------------------------------------- Oppenheimer Main Street Seeks capital appreciation OppenheimerFunds, Inc. Small Cap Fund/VA, Service Shares - ----------------------------------------------------------------------------------------------- PIMCO VIT All Asset Seeks maximum real return consistent with Pacific Investment Portfolio, Advisor Share preservation of real capital and prudent Management Company LLC Class investment management - ----------------------------------------------------------------------------------------------- Putnam VT Vista Seeks capital appreciation Putnam Investment Fund - Class IB Shares Management, LLC - -----------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 17
- ----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ----------------------------------------------------------------------------------------------- Royce Capital Seeks long-term growth of capital Royce & Associates, LLC Fund - Micro-Cap Portfolio, Investment Class - ----------------------------------------------------------------------------------------------- RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with an aggressive level of LLC Portfolios - Aggressive risk. This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund - ----------------------------------------------------------------------------------------------- RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with a conservative level of LLC Portfolios - Conservati- risk. This is a "fund of funds" and seeks ve to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund - ----------------------------------------------------------------------------------------------- RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with a moderate level of risk. LLC Portfolios - Moderate This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund - ----------------------------------------------------------------------------------------------- RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with a moderate aggressive level LLC Portfolios - Moderately of risk. This is a "fund of funds" and Aggressive seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund - ----------------------------------------------------------------------------------------------- RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with a moderate conservative LLC Portfolios - Moderately level of risk. This is a "fund of funds" Conservative and seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund - ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum total investment return RiverSource Investments, Variable through a combination of capital growth and LLC Portfolio - Balanced current income Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum current income consistent RiverSource Investments, Variable with liquidity and stability of principal LLC Portfolio - Cash Management Fund (Class 3) - -----------------------------------------------------------------------------------------------
18 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
- ----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income while RiverSource Investments, Variable attempting to conserve the value of the LLC Portfolio - Diversified investment for the longest period of time Bond Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and, as RiverSource Investments, Variable a secondary goal, steady growth of capital LLC Portfolio - Diversified Equity Income Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks capital appreciation RiverSource Investments, Variable LLC Portfolio - Dynamic Equity Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks high total RiverSource Investments, Variable return through income and growth of capital LLC Portfolio - Global Bond Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks total RiverSource Investments, Variable return that exceeds the rate of inflation LLC Portfolio - Global over the long-term Inflation Protected Securities Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks high current income, with capital RiverSource Investments, Variable growth as a secondary objective LLC Portfolio - High Yield Bond Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks high total return through current RiverSource Investments, Variable income and capital appreciation LLC Portfolio - Income Opportunities Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks growth of capital RiverSource Investments, Variable Portfolio - Mid LLC Cap Growth Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital RiverSource Investments, Variable Portfolio - Mid LLC Cap Value Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation RiverSource Investments, Variable Portfolio - S&P LLC 500 Index Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and RiverSource Investments, Variable safety of principal consistent with LLC Portfolio - Short investment in U.S. government and Duration U.S. Government government agency securities Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST Seligman Variable Seeks long-term capital growth RiverSource Investments, Portfolio - Growth Fund LLC (Class 3) - ----------------------------------------------------------------------------------------------- RVST Seligman Variable Seeks long-term growth of capital RiverSource Investments, Portfolio - Larger-Cap LLC Value Fund (Class 3) - ----------------------------------------------------------------------------------------------- RVST Seligman Variable Seeks long-term capital growth RiverSource Investments, Portfolio - Smaller-Cap LLC, adviser; Kenwood Value Fund (Class 3) Capital Management LLC, sub-adviser. - -----------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 19
- ----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ----------------------------------------------------------------------------------------------- RVST Threadneedle Seeks long-term capital growth RiverSource Investments, Variable LLC, adviser; Portfolio - Emerging Threadneedle Markets Fund (Class 3) International Limited, an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. - ----------------------------------------------------------------------------------------------- RVST Threadneedle Seeks capital appreciation RiverSource Investments, Variable LLC, adviser; Portfolio - In- Threadneedle ternational Opportunity International Limited, Fund (Class 3) an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. - ----------------------------------------------------------------------------------------------- RVST Variable Seeks long-term capital growth RiverSource Investments, Portfolio - Davis New LLC, adviser; Davis York Venture Fund (Class Selected Advisers, L.P., 3) (previously RVST subadviser. RiverSource Partners Variable Portfolio - Fundamental Value Fund) - ----------------------------------------------------------------------------------------------- RVST Variable Seeks long-term growth of capital RiverSource Investments, Portfolio - Goldman LLC, adviser; Systematic Sachs Mid Cap Value Fund Financial Management, (Class 3) (previously L.P. and WEDGE Capital RVST RiverSource Management L.L.P., sub- Partners Variable advisers. Portfolio - Select Value Fund) - ----------------------------------------------------------------------------------------------- RVST Variable Seeks long-term capital appreciation RiverSource Investments, Portfolio - Partners LLC, adviser; Barrow, Small Cap Value Fund Hanley, Mewhinney & (Class 3) (previously Strauss, Inc., Denver RVST RiverSource Investment Advisors LLC, Partners Variable Donald Smith & Co., Portfolio - Small Cap Inc., River Road Asset Value Fund) Management, LLC and Turner Investment Partners, Inc., subadvisers. - ----------------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Aggressive consistent with an aggressive level of LLC Portfolio (Class 2) risk. This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a small amount in underlying funds that invest in fixed income securities - ----------------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Aggressive consistent with an aggressive level of LLC Portfolio (Class 4) risk. This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a small amount in underlying funds that invest in fixed income securities - ----------------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Conservative consistent with a conservative level of LLC Portfolio (Class 2) risk. This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in fixed income securities - -----------------------------------------------------------------------------------------------
20 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
- ----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ----------------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Conservative consistent with a conservative level of LLC Portfolio (Class 4) risk. This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in fixed income securities - ----------------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Moderate consistent with a moderate level of risk. LLC Portfolio (Class 2) This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in a balance of underlying funds that invest in fixed income securities and underlying funds that invest in equity securities - ----------------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Moderate consistent with a moderate level of risk. LLC Portfolio (Class 4) This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in a balance of underlying funds that invest in fixed income securities and underlying funds that invest in equity securities - ----------------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Moderately consistent with a moderately aggressive LLC Aggressive Portfolio level of risk. This is a "fund of funds" (Class 2) and seeks to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a moderate amount in underlying funds that invest in fixed income securities - ----------------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Moderately consistent with a moderately aggressive LLC Aggressive Portfolio level of risk. This is a "fund of funds" (Class 4) and seeks to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a moderate amount in underlying funds that invest in fixed income securities - ----------------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Moderately consistent with a moderately conservative LLC Conservative Portfolio level of risk. This is a "fund of funds" (Class 2) and seeks to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in fixed income securities and also invests a moderate amount in underlying funds that invest in equity securities - ----------------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Moderately consistent with a moderately conservative LLC Conservative Portfolio level of risk. This is a "fund of funds" (Class 4) and seeks to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in fixed income securities and also invests a moderate amount in underlying funds that invest in equity securities - ----------------------------------------------------------------------------------------------- Third Avenue Value Seeks long-term capital appreciation Third Avenue Management Portfolio LLC - -----------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 21
- ----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ----------------------------------------------------------------------------------------------- Van Kampen Life Seeks capital growth and income through Van Kampen Asset Investment Trust investments in equity securities, including Management Comstock Portfolio, common stocks, preferred stocks and Class II Shares securities convertible into common and preferred stocks - ----------------------------------------------------------------------------------------------- Van Kampen's UIF Global Seeks current income and capital Morgan Stanley Real Estate Portfolio, appreciation Investment Management Class II Shares Inc., doing business as Van Kampen, adviser; Morgan Stanley Investment Management Limited and Morgan Stanley Investment Management Company, sub- advisers. - ----------------------------------------------------------------------------------------------- Van Kampen's UIF Mid Cap Seeks long-term capital growth Morgan Stanley Growth Portfolio, Class Investment Management II Shares Inc., doing business as Van Kampen. - ----------------------------------------------------------------------------------------------- Wanger International Seeks long-term growth of capital Columbia Wanger Asset Management, L.P. - ----------------------------------------------------------------------------------------------- Wanger USA Seeks long-term capital appreciation Columbia Wanger Asset Management, L.P. - ----------------------------------------------------------------------------------------------- Wells Fargo Advantage VT Seeks long-term total return, consisting of Wells Fargo Funds Index Asset Allocation capital appreciation and current income Management, LLC, Fund (previously Wells adviser; Wells Capital Fargo Advantage VT Asset Management Incorporated, Allocation Fund) sub-adviser. - ----------------------------------------------------------------------------------------------- Wells Fargo Advantage VT Seeks long-term total return, consisting of Wells Fargo Funds International Core Fund capital appreciation and current income Management, LLC, adviser; Wells Capital Management Incorporated, sub-adviser. - ----------------------------------------------------------------------------------------------- Wells Fargo Advantage VT Seeks long-term total return, consisting of Wells Fargo Funds Small Cap Growth Fund capital appreciation and current income Management, LLC, adviser; Wells Capital Management Incorporated, sub-adviser. - -----------------------------------------------------------------------------------------------
THE FIXED ACCOUNT You also may allocate purchase payments and purchase payment credits or transfer contract value to the fixed account. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of the company. The value of the fixed account increases as we credit interest to the account. Purchase payments and transfers to the fixed account become part of our general account. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. You should also be aware that we issue other types of insurance and financial products as well, and we also pay our obligations under these products from assets in our general account. Our general account is not segregated or insulated from the claims of our creditors. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment or transfer to the fixed account is guaranteed for one year. Thereafter, we will change the rates from time to time at our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and the RiverSource Life's revenues and expenses. Interests in the fixed account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account. Disclosures regarding the fixed account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract - Transfer policies" for restrictions on transfers involving the fixed account.) 22 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS BUYING YOUR CONTRACT New contracts are not currently being offered. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can become an owner or an annuitant if you are 90 or younger. The contract provides for allocation of purchase payments and purchase payment credits to the subaccounts of the variable account and/or to the fixed account in tenth of a percent increments. We reserve the right to not accept purchase payments allocated to the fixed account for twelve months following: (1) a partial surrender from the fixed account; or (2) a lump sum from the fixed account to the subaccounts. We applied your initial purchase payment within two business days after we received it at our corporate office. However, we will credit additional purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our corporate office before the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we receive an additional purchase payment at our corporate office at or after the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment. THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. This means that the contract will be annuitized (converted to a stream of monthly payments), and the first payment will be sent on the settlement date. If your contract is annuitized, the contract goes into payout mode and only annuity payout provisions continue. Unless Annuity Payout Plan E is elected, you will no longer have access to your contract value. In addition, the death benefit and any optional benefits you have elected will end. When we processed your application, we established the settlement date as the maximum age (or contract anniversary, if applicable). We have established a new maximum age (or contract anniversary) as described below. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. Generally, the settlement date must be no later than the annuitant's 95th birthday or the tenth contract anniversary. If the annuitant was age 95 or older and past the tenth contract anniversary when the new maximum was established, the new settlement date was set to a birthday later than age 95. You can also choose to delay the annuitization of your contract beyond age 95 indefinitely, to the extent allowed by applicable tax laws. Six months prior to your settlement date, we will contact you with your options, including the option to postpone your annuitization start date to a future date. If you do not make an election, annuity payouts using the contract's default option of Annuity Payout Plan B -- life annuity with 10 years certain will begin on the settlement date, and your monthly annuity payments will continue for as long as the annuitant lives. If the annuitant does not survive 10 years, payments will continue until 10 years of payments have been made. If you own a qualified annuity (for example, an IRA) and tax laws require that you take distributions from your annuity prior to your new settlement date, your contract will not be automatically annuitized. If you satisfy your RMDs for a qualified annuity in the form of partial surrenders from this contract, you are electing to defer annuitizing your contract. Contract owners of IRAs and TSAs may also be able to satisfy RMDs by electing other IRAs or TSAs, and in that case, will delay the start of annuity payouts for these contracts. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay the death benefit to your named beneficiary. If there is more than one beneficiary we will pay each beneficiary's designated share when we receive their completed claim. A beneficiary will bear the investment risk of the variable account until we receive the beneficiary's completed claim. If there is no named beneficiary, then the default provisions of your contract apply. (See "Benefits in Case of Death" for more about beneficiaries.) PURCHASE PAYMENTS MINIMUM ALLOWABLE PURCHASE PAYMENTS(1) If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month If paying by any other method: $50 (1) If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in New Jersey. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 23 MAXIMUM ALLOWABLE ANNUAL PURCHASE PAYMENTS(2) $100,000 for ages through 85 $50,000 for ages 86 to 90 (2) These limits to annual contributions apply in total to all RiverSource Life annuities you own. We reserve the right to increase maximum annual limits. For qualified annuities the tax-deferred retirement plan's or the Code's limits on annual contributions also apply. We will consider your contract void from the start if we do not receive your initial purchase payment within 180 days of the application signed date. Except for TSAs, purchase payments are limited and may not be made after the third contract anniversary in Massachusetts, Washington and Oregon. We reserve the right to not accept purchase payments allocated to the fixed account for twelve months following either: 1. a partial surrender from the fixed account; or 2. a lump sum transfer from the fixed account to a subaccount. HOW TO MAKE PURCHASE PAYMENTS 1 BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 2 BY SCHEDULED PAYMENT PLAN We can help you set up: - - an automatic payroll deduction, salary reduction or other group billing arrangement; or - - a bank authorization. PURCHASE PAYMENT CREDITS We add a credit to your contract in the amount of: - - 1% of each purchase payment received: - if you elect the ten-year surrender charge schedule* for your contract; OR - if you elect the seven-year surrender charge schedule for your contract AND your initial purchase payment to the contract is at least $100,000. - - 2% of each purchase payment received if you elect the ten-year surrender charge schedule* for your contract and your initial purchase payment to the contract is at least $100,000. We fund the credit from our general account. We do not consider credits to be "investments" for income tax purposes. (See "Taxes.") We allocate each credit to your contract value when the applicable purchase payment is applied to your contract value. We allocate such credits to your contract value according to allocation instructions in effect for your purchase payments. We will reverse credits from the contract value for any purchase payment that is not honored. The amount returned to you under the free look provision also will not include any credits applied to your contract. (See "The Contract in Brief -- Free look period.") * The ten-year surrender charge is not available in Oregon. Contracts purchased in Oregon are only eligible for a 1% purchase payment credit if the initial purchase payment is at least $100,000. To the extent a death benefit or surrender payment includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a lump sum death benefit under this contract; or (2) a request for surrender charge waiver due to Nursing Home Confinement, we will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits**. Surrender charges under the contract may be higher than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated them. Because of higher charges, there could be circumstances where you may be worse off purchasing this contract with the credits than purchasing other contracts. All things being equal (such as fund performance and availability), this may occur if you select the ten-year surrender charge and you make a full withdrawal in years five through ten. We pay for the credits primarily through revenue from a higher and 24 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS longer withdrawal charge schedule and through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. We reserve the right to increase the amount of the credit for certain groups of contract owners. The increase will not be greater than 8% of total net purchase payments. We would pay for increases in credit amounts primarily through reduced expenses expected from such groups. ** For contracts purchased in Oregon, we will not assess a charge equal to the amount of the purchase payment credits upon payment of a death benefit or surrender. LIMITATIONS ON USE OF CONTRACT If mandated by applicable law, including but not limited to, federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner's access to contract values and satisfy other statutory obligations. Under these circumstances, we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate governmental authority or court of competent jurisdiction. CHARGES CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. We deduct $30 from the contract value on your contract anniversary at the end of each contract year. Subject to state regulatory requirements, we prorate this charge among the subaccounts and the fixed account in the same proportion your interest in each account bears to your total contract value. We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the charge at the time of surrender regardless of the contract value or purchase payments made. We cannot increase the annual contract administrative charge and it does not apply after annuity payouts begin or when we pay death benefits. MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee. For nonqualified annuities the fee totals 0.95% of the average daily net assets on an annual basis. For qualified annuities the fee totals 0.75% of the average daily net assets on an annual basis. This fee covers the mortality and expense risk that we assume. This fee does not apply to the fixed account. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner or annuitant lives and no matter how long our entire group of owners or annuitants live. If, as a group, owners or annuitants outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners or annuitants do not live as long as expected, we could profit from the mortality risk fee. We deduct the mortality risk fee from the subaccounts during the annuity payout period even if the annuity payout plan does not involve a life contingency. Expense risk arises because we cannot increase the contract administrative charge and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. The subaccounts pay us the mortality and expense risk fee they accrued as follows: - - first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; - - then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. We do not expect that the surrender charge, discussed in the following paragraphs, will cover sales and distribution expenses. MAV RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.15% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 25 EEB RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.30% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you chose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. (1) You may select either the MAV or EEB riders. Or you may select the MAV and the EEB. Riders may not be available in all states. The MAV and EEB are only available if you and the annuitant are 75 or younger at the rider effective date. PN RIDER FEE Before May 10, 2010, we deducted an annual charge of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. This fee will no longer apply beginning May 10, 2010. SURRENDER CHARGE If you surrender all or part of your contract, you may be subject to a surrender charge. A surrender charge applies if all or part of the surrender amount is from purchase payments we received within seven or ten years before surrender. You select the surrender charge period at the time of your application for the contract. The surrender charge percentages that apply to you are shown in your contract. You may surrender an amount during any contract year without a surrender charge. We call this amount the Total Free Amount (TFA). The TFA is defined as the greater of: - - 10% of the contract value on the prior contract anniversary; or - - current contract earnings. NOTE: We determine current contract earnings by looking at the entire contract value, not the earnings of any particular subaccount, or the fixed account. Amounts surrendered in excess of the TFA may be subject to a surrender charge as described below. 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next we surrender purchase payments received prior to the surrender charge period you selected and shown in your contract. We do not assess a surrender charge on these purchase payments. 3. Finally, if necessary, we surrender purchase payments received that are still within the surrender charge period you selected and shown in your contract. We surrender these payments on a first-in, first-out (FIFO) basis. We do assess a surrender charge on these payments. We determine your surrender charge by multiplying each of your payments surrendered by the applicable surrender charge percentage, and then adding the total surrender charges. The surrender charge percentage depends on the number of years since you made the payments that are surrendered, depending on the schedule you selected*:
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED YEARS FROM SURRENDER CHARGE NUMBER OF COMPLETED YEARS FROM SURRENDER CHARGE DATE OF EACH PURCHASE PAYMENT PERCENTAGE DATE OF EACH PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7 0 7 4 8 3 9 2 10 0
26 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS * The ten-year surrender charge schedule is not available in Oregon. For contracts issued in Massachusetts, Oregon and Washington, surrender charges are waived after the tenth contract anniversary for all payments regardless of when payments are made. PARTIAL SURRENDERS For a partial surrender that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. The surrender charge percentage is applied to this total amount. We pay you the amount you requested. EXAMPLE: Assume you requested a surrender of $1,000 and there is a surrender charge of 7%. The total amount we actually deduct from your contract is $1,075.27. We determine this amount as follows: AMOUNT REQUESTED $1,000 - ----------------------- OR ------ = $1,075.27 1.00 - SURRENDER CHARGE .93
By applying the 7% surrender charge to $1,075.27, the surrender charge is $75.27. We pay you the $1,000 you requested. If you make a full surrender of your contract, we also will deduct the applicable contract administrative charge. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate.
ASSUMED INVESTMENT RATE 3.50% 5.00% Qualified annuity discount rate 4.72% 6.22% Nonqualified annuity discount rate 4.92% 6.42%
SURRENDER CHARGE CALCULATION EXAMPLE The following is an example of the calculation we would make to determine the surrender charge on a contract that contains a seven-year surrender charge schedule with this history: - - We received these payments: - $10,000 paid on the contract date; - $8,000 paid during the sixth contract year; - $6,000 paid during the eighth contract year; and - - The owner surrenders the contract for its total contract value of $26,500 during the tenth contract year and had not made any other surrenders during that contract year; and - - The contract value was $28,000 on the ninth contract anniversary.
SURRENDER CHARGE EXPLANATION $ 0 $2,500 is contract earnings surrendered without charge; and 0 $300 is 10% of the prior anniversary's contract value that is in excess of contract earnings surrendered without charge (from above). 10% of $28,000 = $2,800 - $2,500 = $300 0 $10,000 purchase payment was received eight or more years before surrender and is surrendered without surrender charge; and 480 $8,000 purchase payment is surrendered with a 6% surrender charge since there have been 3 completed years from date of purchase payment; and 420 $6,000 purchase payment is surrendered with a 7% surrender charge since there has been 1 completed year from date of purchase payment. ---- $900
WAIVER OF SURRENDER CHARGES We do not assess surrender charges for: - - surrenders of any contract earnings; - - surrenders of amounts totaling up to 10% of the contract value on the prior contract anniversary to the extent it exceeds contract earnings; - - amounts surrendered after the tenth contract anniversary in Massachusetts, Washington and Oregon regardless of when payments are made. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 27 - - to the extent that they exceed the greater of contract earnings or 10% of the contract value on the prior contract anniversary, required minimum distributions from a qualified annuity. The amount on which surrender charges are waived can be no greater than the RMD amount calculated under your specific contract currently in force; - - contracts settled using an annuity payout plan, unless an Annuity Payout Plan E is later surrendered; - - amounts we refund to you during the free look period*; - - death benefits*; and - - surrenders you make under your contract's "Waiver of Surrender Charges for Nursing Home Confinement" provision*. To the extent permitted by state law, this provision applies when you are under age 76 at contract issue. Under this provision, we will waive surrender charges that we normally assess upon full or partial surrender if you provide proof satisfactory to us that, as of the date you request the surrender, you or the annuitant are confined to a nursing home and have been for the prior 90 days and the confinement began after the contract date. (See your contract for additional conditions and restrictions on this waiver.) * However, we will reverse certain purchase payment credits. (See "Buying your contract -- Purchase payment credits.") OTHER INFORMATION ON CHARGES: Ameriprise Financial, Inc. makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 1/2 (fee waived in case of death or disability). POSSIBLE GROUP REDUCTIONS: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate the contract administrative and surrender charges. However, we expect this to occur infrequently. FUND FEES AND EXPENSES There are deductions from and expenses paid out of the assets of the funds that are described in the prospectus for those funds. (See "Annual Operating Expenses of the Funds.") PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon your state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you surrender your contract. VALUING YOUR INVESTMENT We value your accounts as follows: FIXED ACCOUNT We value the amounts allocated to the fixed account directly in dollars. The fixed account value equals: - - the sum of your purchase payments and purchase payment credits and transfer amounts allocated to the fixed account; - - plus interest credited; - - minus the sum of amounts surrendered (including any applicable surrender charges) and amounts transferred out, - - minus any prorated portion of the contract administrative charge; - - minus any prorated portion of the MAV rider fee (if selected); and - - minus any prorated portion of the EEB rider fee (if selected). SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts or we apply any purchase payments credits to a subaccount, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each time you take a partial surrender, transfer amounts out of a subaccount or we assess a contract administrative charge, surrender charge or fee for any optional riders with annual charges (if applicable). The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: NUMBER OF UNITS: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. 28 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. WE DETERMINE THE NET INVESTMENT FACTOR BY: - - adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - - dividing that sum by the previous adjusted net asset value per share; and - - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: - - additional purchase payments you allocate to the subaccounts; - - any purchase payment credits allocated to the subaccounts; - - transfers into or out of the subaccounts; - - partial surrenders; - - surrender charges; and a deduction of: - - a prorated portion of the contract administrative charge; - - a prorated portion of the MAV rider charge (if selected); and/or - - a prorated portion of the EEB rider charge (if selected). Accumulation unit values will fluctuate due to: - - changes in fund net asset value; - - fund dividends distributed to the subaccounts; - - fund capital gains or losses; - - fund operating expenses; and/or - - mortality and expense risk fees. MAKING THE MOST OF YOUR CONTRACT AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the fixed account to one or more subaccounts. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. You may not set up an automated transfer if the PN program is selected. The potential effect is to lower your average cost per unit. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 29 HOW DOLLAR-COST AVERAGING WORKS
By investing an equal number of NUMBER dollars each AMOUNT ACCUMULATION OF UNITS month ... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 you automatically (ARROW) Feb 100 18 5.56 buy more units when Mar 100 17 5.88 the per unit market price is low ... Apr 100 15 6.67 May 100 16 6.25 Jun 100 18 5.56 Jul 100 17 5.88 and fewer units (ARROW) Aug 100 19 5.26 when the per unit Sept 100 21 4.76 market price is high ... Oct 100 20 5.00
You paid an average price of $17.91 per unit over the 10 months, while the average market price actually was $18.10. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success 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. For specific features contact your financial advisor. ASSET REBALANCING You can ask us in writing to have the variable subaccount portion of your contract value allocated according to the percentages (in tenth of a percent amounts ) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semiannually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be in numbers no more than one digit past the decimal. Asset rebalancing does not apply to the fixed account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing or by any other method acceptable to us, to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor. Different rules apply to asset rebalancing under the Portfolio Navigator Program, (See "Portfolio Navigator Program" below). PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM) THE FOLLOWING INFORMATION ABOUT THE PN PROGRAM APPLIES TO ALL CONTRACTS. FOR ADDITIONAL INFORMATION ABOUT THE PN PROGRAM FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010, ALSO SEE BELOW "PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM) FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010." The PN program is available for nonqualified annuities and for qualified annuities. The PN program allows you to allocate your contract value to a PN program investment option. The PN program investment options are currently five funds of funds, each of which has a particular investment objective and invests in underlying funds. The PN program also allows those who participated in the PN program and who exercised an "opt-out" right applicable through April 23, 2010 (to be in this group, you must have purchased your contract on or before April 23, 2010) to remain invested in a "static" PN program model portfolio (not subject to further updating or reallocation, as described under "Portfolio Navigator Program (PN program) for contracts purchased before May 10, 2010"). You may elect to participate in the PN program by adding the optional PN program to your contract at no additional charge. You can elect to participate in the PN program at any time, and you may transfer all or part of your assets from a PN program investment option or transfer your contract assets so that they are not invested in accordance with a model portfolio at any time. If you transfer contract assets so that they are no longer invested in accordance with a PN program model portfolio or investment option, automated rebalancing associated with the model portfolio or investment option will end. Each of the PN program fund of funds investment options has the investment objective of seeking a high level of total return consistent with a certain level of risk by investing in various underlying funds. RiverSource Investments is the investment adviser of each of the PN program investment options, but does not serve as investment adviser under the PN program 30 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS (regardless of whether you have selected a PN program investment option or remained in a model portfolio). Morningstar Associates, LLC serves as an independent consultant to RiverSource Investments to provide recommendations regarding portfolio construction and ongoing analysis of the PN program investment options, but does not provide any services in connection with the model portfolios. RiverSource Investments or an affiliate will serve as investment adviser for all of the underlying funds in which the investment options invest. However, some of the underlying funds will be managed on a day- to-day basis directly by RiverSource Investments and some will be managed by one or more affiliated or unaffiliated sub-advisers, subject to the oversight of RiverSource Investments and the fund's board of trustees. The new funds of funds have objectives ranging from Conservative to Aggressive, and are managed within asset class allocation targets and with a broad multi-manager approach. Below are the asset allocation weights (between equity and fixed income/cash underlying funds) for each of the funds of funds: 1. Variable Portfolio -- Aggressive Portfolio: 80% Equity / 20% Fixed Income 2. Variable Portfolio -- Moderately Aggressive Portfolio: 65% Equity / 35% Fixed Income 3. Variable Portfolio -- Moderate Portfolio: 50% Equity / 50% Fixed Income 4. Variable Portfolio -- Moderately Conservative Portfolio: 35% Equity / 65% Fixed Income 5. Variable Portfolio -- Conservative Portfolio: 20% Equity / 80% Fixed Income POTENTIAL CONFLICTS OF INTEREST. In identifying the universe of investment options and providing investment advisory services for the PN program investment options and certain of the funds underlying the investment options and model portfolios, RiverSource Investments is, together with its affiliates, including us, subject to competing interests that may influence its decisions. These competing interests typically arise because RiverSource Investments or one of its affiliates serves as the investment adviser to the underlying funds invested in the investment options and to certain underlying funds to which assets are allocated under the model portfolios, because we or an affiliate of ours may provide other services in connection with such underlying funds, and because the compensation we and our affiliates receive for providing these investment advisory and other services varies depending on the underlying fund. For additional information about the conflicts of interest which RiverSource Investments and its affiliates are subject to in connection with a PN program investment option, see the prospectus for such investment option. For additional information about the conflicts of interest which RiverSource Investments and its affiliates are subject to in connection with a PN program model portfolio, see "Portfolio Navigator Program (PN program) for contracts purchased before May 10, 2010." PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which investment option is best for you or whether to remain in a model portfolio or investment option. Your financial advisor can help you make this determination. In addition, your financial advisor may provide you with an investor questionnaire, a tool to help define your investing style which is based on factors such as your investment goals, your tolerance for risk and how long you intend to invest. Your responses to the investor questionnaire can help you determine which model portfolio or investment option most closely matches your investing style. While the scoring of the investor questionnaire is objective, there is no guarantee that your responses to the investor questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the investment option (or the asset mix reflected in the model portfolio, if applicable) you select or selected after completing the investor questionnaire is appropriate to your ability to withstand investment risk. RiverSource Life is not responsible for your decision to participate in the PN program, your selection of a specific investment option or model portfolio, if applicable, or your decision to change to a different investment option. Currently, there are five PN program investment options, and five model portfolios, ranging from conservative to aggressive. You may not use more than one investment option or model portfolio at a time. Each investment option is a fund of funds. Each model portfolio consists of subaccounts and/or the regular fixed account (if included) according to the allocation percentages stated for the model portfolio. If you are participating in the PN program in a model portfolio, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. You may request a change to your investment option (or a transfer from your model portfolio to an investment option) up to twice per contract year by written request on an authorized form or by another method agreed to by us. We reserve the right to change the terms and conditions of the PN program upon written notice to you. This includes but is not limited to the right to: - - limit your choice of investment options based on the amount of your initial purchase payment we accept or when you take a withdrawal; - - substitute a fund of funds for your model portfolio if permitted under applicable securities law; and - - discontinue the PN program. We will give you 30 days' written notice of any such change. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 31 RISKS. Asset allocation through the PN program does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By investment in a PN program investment option or in accordance with a model portfolio, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. For additional information about the risks of investing in a PN program investment option, see the prospectus for such investment option. For additional information about the risks of investing in accordance with a PN program model portfolio, see "Portfolio Navigator Program (PN program) for contracts purchased before May 10, 2010" below. PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM) FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010 As of the Transfer Date (defined below), your contract assets invested in accordance with a model portfolio under the PN program will be transferred based on the recommendation of RiverSource Investments, LLC ("RiverSource Investments"), the investment adviser under the PN program, to a fund of funds investment option that corresponds to your model portfolio unless you informed us on or before April 23, 2010 that you did not want your assets so transferred (unless you "opt out"). The actual date of transfer to the fund of funds or the date upon which your opt out becomes effective (the "Transfer Date") will occur no earlier than May 7, 2010 and no later than June 30, 2010, and will depend on the contract you own and the month that you purchased your contract. If you opt out of the transfer, you will remain invested in accordance with the asset allocation currently specified for your model portfolio and you will not receive any further reallocation recommendations from RiverSource Investments (although your assets will be rebalanced back to the current allocation quarterly). As of the Transfer Date, RiverSource Investments will no longer review the model portfolios or make changes to them as part of the PN program, and the investment advisory agreement you have previously entered into with RiverSource Investments will terminate. If you have chosen to remain invested in a "static" PN program model portfolio, your assets will remain invested in accordance with your current model portfolio, and you will not be provided with any future updates to the model portfolio or reallocation recommendations. RiverSource Investments and its affiliates have committed to a two-year cap on PN program investment option expenses for contract owners who purchased a contract before May 10, 2010, as set forth in disclosure previously sent to such contract owners. Specifically, expense waivers and reimbursements will be applied to the PN program investment options and to the underlying funds so that total fees and expenses paid by investors in the PN program investment options will approximate the total fees and expenses of the underlying funds borne by participants in the corresponding PN program model portfolio, based on 2009 fiscal year end expenses. After two years these expense caps will no longer be in place and total expenses will likely be higher. SERVICE PROVIDERS IN CONNECTION WITH THE PN PROGRAM MODEL PORTFOLIOS. RiverSource Investments, an affiliate of ours, has served as non-discretionary investment adviser for PN program model portfolio participants solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments has entered into an investment advisory agreement with each contract owner participating in the PN program prior to the program changes described in this prospectus. In its role as investment adviser to the PN program, RiverSource Investments relied upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviewed the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducted periodic due diligence and provided ongoing oversight with respect to the process utilized by the third party service provider. For more information on RiverSource Investments' role as investment adviser for the PN program, please see the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document, which is based on Part II of RiverSource Investments' Form ADV, the SEC investment adviser registration form. The Disclosure Document was delivered to contract owners enrolled in the PN program prior to May 10, 2010 at or before the time they enrolled. The PN program model portfolios were designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. The criteria used in developing and updating the model portfolios do not guarantee or predict future performance. Neither Morningstar Associates nor RiverSource Investments, in connection with their respective roles, provided or provides any individualized investment advice to contract owners regarding the application of a particular model portfolio to his or her circumstances. Contract owners are solely responsible for determining whether any model portfolio is appropriate. We identified to Morningstar Associates the universe of allocation options that could be included in the model portfolios (the universe of allocation options). Once we identified this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictated to Morningstar Associates the number of allocation options that should be included in a model portfolio, the percentage that any allocation option represents in a model portfolio, or whether a particular allocation option may be included in a model portfolio. However, as described below under "Potential conflicts of interest", there are certain conflicts of interest associated with RiverSource Investments and its affiliates' influence over the development and updating of the model portfolios. 32 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS POTENTIAL CONFLICTS OF INTEREST. Although RiverSource Investment will no longer maintain the model portfolios on an ongoing basis, the asset allocations in the current model portfolios may have been affected by the following conflicts of interest. In identifying the universe of allocation options for a model portfolio, we and our affiliates, including RiverSource Investments, were subject to competing interests that may have influenced the allocation options we proposed. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to certain underlying funds in the model portfolios as well as compensation we or an affiliate of ours may receive for providing services in connection with such underlying funds or their corresponding sub-accounts. These competing interests also involve compensation we or an affiliate of ours receive if certain funds that RiverSource Investments does not advise were included as underlying funds in model portfolios. The inclusion of funds that pay compensation to RiverSource Investments or an affiliate may have a positive or negative impact on performance. As an affiliate of RiverSource Investments, we had an incentive to identify the RiverSource Variable Series Trust funds for consideration as part of a model portfolio over unaffiliated funds. In addition, RiverSource Investments, in its capacity as investment adviser to the RiverSource Variable Series Trust funds, monitors the performance of the RiverSource Variable Series Trust funds. In this role RiverSource Investments may, from time to time, have recommended certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may have included a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may have believed that certain RiverSource Variable Series Trust funds would have benefited from additional assets or could have been harmed by redemptions. All of these factors may have impacted RiverSource Investments' view regarding the composition and allocation of a model portfolio. RiverSource Investments' role as investment adviser to the PN program in connection with the development and updating of the model portfolios, and our identification of the universe of allocation options to Morningstar Associates for consideration, may have influenced the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. We, RiverSource Investments, or another affiliate of ours may receive higher compensation from certain unaffiliated funds that RiverSource Investments does not advise or manage. (See "Expense Summary -- Annual Operating Expenses of the Funds" and "The Variable Account and the Funds -- The Funds.") Therefore, we may have had an incentive to identify these unaffiliated funds to Morningstar Associates for inclusion in the model portfolios. In addition, we or an affiliate of ours may receive higher compensation from the fixed account than from other allocation options. We therefore may have had an incentive to identify these allocation options to Morningstar Associates for inclusion in the model portfolios. Some officers and employees of RiverSource Investments are also officers or employees of us or our affiliates which may be involved in, and/or benefit from, your participation in the PN program. These officers and employees may have had an incentive to make recommendations, or take actions, that benefit one or more of the entities they represent, rather than participants in the PN program. MODEL PORTFOLIO RISKS. Asset allocation through a PN program model portfolio does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By spreading your contract value among various allocation options under the PN program, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. Although each model portfolio is intended to optimize returns given various levels of risk tolerance, a model portfolio may not perform as intended. A model portfolio, the allocation options and market performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause the model portfolio to be ineffective or less effective in reducing volatility. In the future, the model portfolios will not be updated periodically, and the investments and investment styles and policies of the current allocation options may change. Accordingly, your model portfolio may change so that it is no longer appropriate for your needs. Furthermore, the absence of periodic updating means that existing allocation options will not be replaced as may be appropriate due to poor performance, changes in management personnel, or other factors. Investment performance of your contract value could be better or worse by participating in the PN program than if you had not participated. A model portfolio may perform better or worse than any single fund or allocation option or any other combination of funds or allocation options. The performance of a model portfolio depends on the performance of the component funds. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing of the model portfolios can cause their component funds to incur transactional expenses to raise cash for money flowing out of the funds or to buy securities with money flowing into the funds. Moreover, a large outflow of money from the funds may increase the expenses attributable to the assets remaining in the funds. These expenses can adversely affect the performance of the relevant funds and of the model portfolios. In addition, when a particular fund needs to buy or sell securities due to quarterly rebalancing of a model portfolio, it may hold a large cash position. A large cash position could RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 33 detract from the achievement of the fund's investment objective in a period of rising market prices; conversely, a large cash position would reduce the fund's magnitude of loss in the event of falling market prices and provide the fund with liquidity to make additional investments or to meet redemptions. (See also the description of competing interests in the section titled "Service Providers to the PN Program" above.) For additional information regarding the risks of investing in a particular fund, see that fund's prospectus. TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while the PN program is in effect. You may transfer contract value from any one subaccount, or the fixed account, to another subaccount before annuity payouts begin. Certain restrictions apply to transfers involving the fixed account. When your request to transfer will be processed depends on when we receive it: - - If we receive your transfer request at our corporate office in good order before the close of business, we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request. - - If we receive your transfer request at our corporate office in good order at or after the close of business, we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. Subject to state regulatory requirements, we may suspend or modify transfer privileges at any time. For information on transfers after annuity payouts begin, see "Transfer policies" below. TRANSFER POLICIES - - Before annuity payouts begin, you may transfer contract values between the subaccounts. You may also transfer contract values from the subaccounts to the fixed account. However, if you made a transfer from the fixed account to the subaccounts, you may not make a transfer from any subaccount back to the fixed account until the next contract anniversary. - - You may transfer contract values from the fixed account to the subaccounts once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). - - If we receive your request within 30 days before the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the anniversary. - - If we receive your request on or within 30 days after the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the valuation date we receive it. - - We will not accept requests for transfers from the fixed account at any other time. - - Once annuity payouts begin, you may not make transfers to or from the fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. MARKET TIMING Market timing can reduce the value of your investment in the contract. If market timing causes the returns of an underlying fund to suffer, contract value you have allocated to a subaccount that invests in that underlying fund will be lower too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a financial loss. WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. DO NOT INVEST IN THIS CONTRACT IF YOU WISH TO USE SHORT-TERM TRADING STRATEGIES TO MANAGE YOUR INVESTMENT. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CONTRACT. THE UNDERLYING FUNDS IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO TRANSFERS AMONG THE SUBACCOUNTS OF THE CONTRACT, AND MAY INCLUDE REDEMPTION FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE TO YOU Market timing may hurt the performance of an underlying fund in which a subaccount invests in several ways, including but not necessarily limited to: - - diluting the value of an investment in an underlying fund in which a subaccount invests; - - increasing the transaction costs and expenses of an underlying fund in which a subaccount invests; and, - - preventing the investment adviser(s) of an underlying fund in which a subaccount invests from fully investing the assets of the fund in accordance with the fund's investment objectives. 34 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS Funds available as investment options under the contract that invest in securities that trade in overseas securities markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently. IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY HARMFUL EFFECTS OF MARKET TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CONTRACT VALUE AMONG THE SUBACCOUNTS OF THE VARIABLE ACCOUNT: We try to distinguish market timing from transfers that we believe are not harmful, such as periodic rebalancing for purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three subaccount transfers in any 90 day period. We also reserve the right to refuse any transfer requests, if, in our sole judgment, the dollar amount of the transfer request would adversely affect unit values. If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to: - - requiring transfer requests to be submitted only by first-class U.S. mail; - - not accepting hand-delivered transfer requests or requests made by overnight mail; - - not accepting telephone or electronic transfer requests; - - requiring a minimum time period between each transfer; - - not accepting transfer requests of an agent acting under power of attorney; - - limiting the dollar amount that you may transfer at any one time; - - suspending the transfer privilege; or - - modifying instructions under an automated transfer program to exclude a restricted fund if you do not provide new instructions. Subject to applicable state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights. We cannot guarantee that we will be able to identify and restrict all market timing activity. Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values. IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT, YOU SHOULD CAREFULLY REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS, WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE AND EXCHANGE OF FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION NUMBER OR OTHER UNITED STATES GOVERNMENT-ISSUED IDENTIFIER AND THE DETAILS OF YOUR CONTRACT TRANSACTIONS INVOLVING THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CONTRACT VALUE TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY REDEMPTION FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE CONTRACT IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO: - - Each fund may restrict or refuse trading activity that the fund determines, in its sole discretion, represents market timing. - - Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund's market timing policies and procedures, including instructions we receive from a fund, may require us to reject your transfer request. For example, while we disregard transfers permitted under any asset allocation, dollar-cost averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an underlying fund's market timing policies RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 35 and procedures will do so. Orders we place to purchase fund shares for the variable account are subject to acceptance by the fund. We reserve the right to reject without prior notice to you any transfer request if the fund does not accept our order. - - Each underlying fund is responsible for its own market timing policies, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a fund has adopted. As a result, a fund's returns might be adversely affected, and a fund might terminate our right to offer its shares through the variable account. - - Funds that are available as investment options under the contract may also be offered to other intermediaries who are eligible to purchase and hold shares of the fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a fund's market timing policies, we cannot guarantee that other intermediaries purchasing that same fund's shares will do so, and the returns of that fund could be adversely affected as a result. FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSE TO THAT FUND, AND TO DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT FUND'S PROSPECTUS. 36 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS HOW TO REQUEST A TRANSFER OR SURRENDER 1 BY LETTER Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: RIVERSOURCE LIFE INSURANCE COMPANY 70100 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers or surrenders: Contract value or entire account balance * Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution. 2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS Your financial advisor can help you set up automated transfers among your subaccounts or fixed account or partial surrenders from the accounts. You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. - - Automated transfers from the fixed account to any one of the subaccounts may not exceed an amount that, if continued, would deplete the fixed account within 12 months. - - Automated surrenders may be restricted by applicable law under some contracts. - - You may not make additional purchase payments if automated partial surrenders are in effect. - - Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. - - The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. - - If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. - - If the PN program is in effect, you are not allowed to set up automated transfers. MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the fixed account) 3 BY TELEPHONE Call: TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and tape recording calls. We will not allow a telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 37 Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. SURRENDERS You may surrender all or part of your contract at any time before annuity payouts begin by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. If we receive your surrender request in good order at our corporate office before the close of business, we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender request. If we receive your surrender request at our corporate office at or after the close of business, we will process your surrender using the accumulation unit value we calculate on the next valuation date after we received your surrender request. We may ask you to return the contract. You may have to pay contract administrative charges, surrender charges, or any applicable optional rider charges (see "Charges"), and IRS taxes and penalties (see "Taxes"). You cannot make surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period -- Annuity Payout Plans"). Any partial surrenders you take under the contract will reduce your contract value. As a result, the value of your death benefit or any optional benefits you have elected also will be reduced. In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain death benefits and optional benefits (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the fixed account in the same proportion as your value in each account correlates to your total contract value, unless you request otherwise. The minimum contract value after partial surrender is $600. RECEIVING PAYMENT 1 BY REGULAR OR EXPRESS MAIL - - payable to you; - - mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. 2 BY WIRE - - request that payment be wired to your bank; - - bank account must be in the same ownership as your contract; and - - pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your financial advisor. Normally, we will send the payment within seven days after receiving your request in good order. However, we may postpone the payment if: - the surrender amount includes a purchase payment check that has not cleared; - the NYSE is closed, except for normal holiday and weekend closings; - trading on the NYSE is restricted, according to SEC rules; - an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or - the SEC permits us to delay payment for the protection of security holders. TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES If the contract is intended to be used in connection with an employer sponsored 403(b) plan, additional rules relating to this contract can be found in the annuity endorsement for tax sheltered 403(b) annuities. Unless we have made special arrangements with your employer, the contract is not intended for use in connection with an employer sponsored 403(b) plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event that the employer either by affirmative election or inadvertent action causes contributions under a plan that is subject to ERISA to be made to this contract, we will not be responsible for any obligations and requirements under ERISA and the regulations 38 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS thereunder, unless we have a prior written agreement with the employer. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. In the event we have a written agreement with your employer to administer the plan pursuant to ERISA, special rules apply as set forth in the TSA endorsement. The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. The Code imposes certain restrictions on your right to receive early distributions from a TSA: - - Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: - you are at least age 59 1/2; - you are disabled as defined in the Code; - you severed employment with the employer who purchased the contract; - the distribution is because of your death; - the distribution is due to plan termination; or - you are a military reservist. - - If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. - - Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). - - The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. - - If the contract has a loan provision, the right to receive a loan is described in detail in your contract. CHANGING OWNERSHIP You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our corporate office. The change will become binding on us when we receive and record it. We will honor any change of ownership request received in good order that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the MAV or EEB. The terms of the EEB and the MAV will change due to a change of ownership. If either the new owner or the annuitant is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over". We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If either the new owner or the annuitant is older than age 75, the MAV will terminate. If the MAV on the date of ownership change is greater than the account value on the date of the ownership change, we will set the MAV equal to the account value. Otherwise, the MAV value will not change due to a change in ownership. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in a similar capacity, ownership of the contract may be transferred to the annuitant. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 39 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT We will pay the death benefit to your beneficiary upon the earlier of your death or the annuitant's death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner or the annuitant. If you or the annuitant die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If both you and the annuitant are age 80 or younger on the date of death, the beneficiary receives the greatest of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; - - purchase payments minus adjusted partial surrenders; or - - the contract value as of the most recent sixth contract anniversary, preceding the date of death, plus any purchase payments since that anniversary, minus adjusted partial surrenders since that anniversary. If either you or the annuitant are age 81 or older on the date of death, the beneficiary receives the greater of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders. PS X DB ------- ADJUSTED PARTIAL SURRENDERS = CV
PS = the amount by which the contract value is reduced as a result of the partial surrender. DB = is the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. EXAMPLE OF STANDARD DEATH BENEFIT CALCULATION WHEN YOU AND THE ANNUITANT ARE AGE 80 OR YOUNGER: - - You purchase the contract with a payment of $20,000. - - On the sixth contract anniversary the contract value grows to $30,000. - - During the seventh contract year the contract value falls to $28,000 at which point you take a $1,500 partial surrender, leaving a contract value of $26,500. We calculate the death benefit as follows: The contract value on the most recent sixth contract anniversary: $30,000.00 plus purchase payments made since that anniversary: +0.00 minus adjusted partial surrenders taken since that anniversary calculated as: $1,500 x $30,000 ---------------- $28,000 -1,607.14 ---------- for a death benefit of: $28,392.86
IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date our death claim requirements are fulfilled. We will determine the contract's value using the next accumulation unit value we calculate on that valuation date. We pay interest, if any, at a rate no less than required by law. If requested, we will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid. To do this your spouse must give us written instructions to continue the contract as owner. If you elected any optional contract features and riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. If your beneficiary is not your spouse, we will pay the beneficiary in a lump sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: - - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - - payouts begin no later than one year after your death, or other date as permitted by the IRS; and - - the payout period does not extend beyond the beneficiary's life or life expectancy. QUALIFIED ANNUITIES - - SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own, so long as he or she is eligible to do so, with the contract value equal to 40 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS the death benefit that would otherwise have been paid or elect an annuity payout plan or another plan agreed to by us. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. If you elected any optional contract features and riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. - - NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your beneficiary does not elect a five year payout, or if your death occurs after attaining age 70 1/2, we will pay the beneficiary in a lump sum unless the beneficiary elects to receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year following the year of your death; and - the payout period does not extend beyond the beneficiary's life or life expectancy. - - ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. Additionally, any optional riders, if selected, will terminate. In the event of your beneficiary's death, their beneficiary can elect to take a lump sum payment or to continue the alternative payment plan following the schedule of minimum withdrawals established based on the life expectancy of your beneficiary. DEATH BENEFIT PAYMENT IN A LUMP SUM: We may pay all or part of the death benefit to your beneficiary in a lump sum under either a nonqualified or qualified annuity. We pay all proceeds by check (unless the beneficiary has chosen to have death benefit proceeds directly deposited into another Ameriprise Financial, Inc. account). If the beneficiary chooses the checking account option, the proceeds will be deposited into an interest bearing checking account issued by Ameriprise Bank, FSB, member FDIC unless the beneficiary fails to meet the requirements of using this option. OPTIONAL BENEFITS The assets held in our general account support the guarantees under your contract, including optional death benefits and optional living benefits. To the extent that we are required to pay you amounts in addition to your contract value under these benefits, such amounts will come from our general account assets. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. You should also be aware that we issue other types of insurance and financial products as well, and we also pay our obligations under these products from assets in our general account. Our general account is not segregated or insulated from the claims of our creditors. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you or the annuitant is older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider fee continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to fixed account values during the time you have amounts allocated to the fixed account. Be sure to discuss with your financial advisor whether or not the MAV is appropriate for your situation. If both you and the annuitant are age 75 or younger at the rider effective date, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract. We will determine the rider effective date for the MAV added after we issue the contract according to terms determined by us and at our sole discretion. On the first contract anniversary after the rider effective date, we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every contract anniversary after that, through age 80, we compare the previous anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value if the current contract value is higher. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 41 If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - - contract value less any purchase payment credits, subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders; or - - the maximum anniversary value as calculated on the most recent contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. TERMINATING THE MAV - - You may terminate the MAV rider within 30 days of the first contract anniversary after the rider effective date. - - You may terminate the MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - - The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies. EXAMPLE - - You add the MAV when your contract value is $20,000. - - On the first contract anniversary after the rider effective date the contract value grows to $24,000. - - During the second contract year the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. We calculate the death benefit as follows: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $ 24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: ($1,500 x $24,000) ------------------ -1,636 $22,000 = -------- for a death benefit of: $ 22,364
IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to keep the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse at the time he or she elects to continue the contract has not yet reached age 76, he or she may choose to continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT (EEB) The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides reduced benefits if you or the annuitant is age 70 or older at the rider effective date and it does not provide any additional benefit before the first contract anniversary after the rider effective date. The EEB also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your financial advisor whether or not the EEB is appropriate for your situation. If both you and the annuitant are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract. We will determine the rider effective date for the EEB added after we issue the contract according to terms determined by us and at our sole discretion. 42 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS The EEB provides that if you or the annuitant dies after the first contract anniversary after the rider effective date, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - - the standard death benefit amount (see "Benefits in Case of Death -- Standard Benefit") or the MAV death benefit amount, if applicable, PLUS - - 40% of your earnings at death if you and the annuitant were under age 70 on the rider effective date; or - - 15% of your earnings at death if you or the annuitant were age 70 or older on the rider effective date. Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. EARNINGS AT DEATH FOR THE EEB: If the rider effective date for the EEB is the contract issue date, earnings at death is an amount equal to: - - the standard death benefit amount or the MAV death benefit amount, if applicable (the "death benefit amount") - - MINUS purchase payments not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount - - MINUS the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date. - - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% multiplied by: - - the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since the rider effective date - - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. TERMINATING THE EEB - - You may terminate the EEB rider within 30 days of the first contract anniversary after the rider effective date. - - You may terminate the EEB rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - - The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. EXAMPLE OF THE EEB - - You purchased the contract with a purchase payment of $100,000. You add the EEB rider when your contract value is $100,000 and both you and the annuitant are under age 70. You selected the seven-year surrender charge schedule, the MAV and the EEB. - - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit, which is the contract value, or $105,000. You have not reached the first contract anniversary after the rider effective date so the EEB does not provide any additional benefit at this time. - - On the first contract anniversary the contract value grows to $110,000. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 43 - - On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- - During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 5% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 5% surrender charge because your purchase payment is four years old, so we will surrender $39,500 ($37,525 + $1,975 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $48,025. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): $110,000 - ($50,000 x $110,000) = -------------------- $105,000$ $57,619 plus the EEB (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 ------- Total death benefit of: $58,667
- - On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58.667. The reduction in contract value has no effect. - - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death) .40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $255,000
- - During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,000. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB (40% of earnings at death, up to a maximum of 100% of purchase payments not previously surrendered that are one or more years old) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $305,000
- - During the eleventh contract year the contract value remains $250,000 and the "new" purchase payment is now one year old. The value of the EEB changes. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 x ($250,000 - $105,000) = +58,000 -------- Total death benefit of: $308,000
IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEB. If the spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your spouse is less than age 76 at the time he or she elects to continue the contract then he or she may choose to continue the EEB. In this case, the following conditions will apply: - - the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." 44 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS - - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - - the rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." THE ANNUITY PAYOUT PERIOD As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below except under Plan E. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date (less any applicable premium tax). During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. AMOUNTS OF FIXED AND VARIABLE PAYOUTS DEPEND ON: - - the annuity payout plan you select; - - the annuitant's age and, in most cases, the annuitant's sex; - - the annuity table in the contract; and - - the amounts you allocated to the accounts at settlement. In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. Fixed payouts remain the same from month to month. For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." ANNUITY TABLES The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of contract value according to the age and, when applicable, the sex of the annuitant. (Where required by law, we will use a unisex table of settlement rates.) Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment rate for the 5% Table A in the contract. The assumed investment rate affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment rate and payouts will decrease if the return is below the assumed investment rate. Using the 5% assumed interest rate Table A results in a higher initial payment, but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract value is used to purchase the payout plan: - - PLAN A -- LIFE ANNUITY -- NO REFUND: We make monthly payouts until the annuitant's death. Payouts end with the last payout before the annuitant's death. We will not make any further payouts. This means that if the annuitant dies after we made only one monthly payout, we will not make any more payouts. - - PLAN B -- LIFE ANNUITY WITH FIVE, TEN OR 15 YEARS CERTAIN: We make monthly payouts for a guaranteed payout period of five, ten or 15 years that you elect. This election will determine the length of the payout period to the beneficiary if the annuitant should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant's death. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 45 - - PLAN C -- LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until the annuitant's death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living. - - PLAN D -- JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until the death of the surviving annuitant. Payouts end with the death of the second annuitant. - - PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether the annuitant is living or not. Depending on the selected time period, it is foreseeable that an annuitant can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the amount of the payout that would have been made 7 days prior to the date we determine the present value. For qualified annuities, the discount rate we use in the calculation will be either 4.72% or 6.22%, depending on the applicable assumed investment rate. For nonqualified annuities, the discount rate we use in the calculation will vary between 4.92% and 6.42%, depending on the applicable assumed investment rate. (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take a surrender. (See "Taxes.") ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your contract is a qualified annuity, you must select a payout plan as of the settlement date set forth in your contract. You have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will generally meet certain IRS regulations governing RMDs if the payout plan meets the incidental distribution benefit requirements, if any, and the payouts are made: - - in equal or substantially equal payments over a period not longer than your life or over the joint life of you and your designated beneficiary; or - - in equal or substantially equal payments over a period not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary; or - - over a period certain not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary. IF WE DO NOT RECEIVE INSTRUCTIONS: You must give us written instructions for the annuity payouts at least 30 days before the annuitant's settlement date. If you do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed. Contract values that you allocated to the fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of monthly payouts at the time amounts are applied to a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. DEATH AFTER ANNUITY PAYOUTS BEGIN: If you or the annuitant die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. TAXES Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay income tax until there is a taxable distribution (or deemed distribution) from the contract. We will send a tax information reporting form for any year in which we made a taxable or reportable distribution according to our records. NONQUALIFIED ANNUITIES Generally, only the increase in the value of a non-qualified annuity contract over the investment in the contract is taxable. Certain exceptions apply. Federal tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when distributions are taken from any one of those contracts. ANNUITY PAYOUTS: Generally, unlike surrenders described below, the taxation of annuity payouts are subject to exclusion ratios, i.e. a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of your investment in the contract and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity -- no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under all other annuity payout 46 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "The Annuity Payout Period -- Annuity Payout Plans.") SURRENDERS: Generally, if you surrender all or part of your nonqualified annuity before your annuity payouts begin, your surrender will be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. Different rules may apply if you exchange another contract into this contract. You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. WITHHOLDING: If you receive taxable income as a result of an annuity payout or surrender, we may deduct federal, and in some cases state withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, and you have a valid U.S. address, you may be able to elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. DEATH BENEFITS TO BENEFICIARIES: The death benefit under a nonqualified contract is not exempt from estate (federal or state) or income taxes. In addition, any amount your beneficiary receives that exceeds the investment in the contract is taxable as ordinary income to the beneficiary in the year he or she receives the payments. (See also "Benefits in Case of Death -- If You Die Before the Settlement Date"). ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR IRREVOCABLE TRUSTS: For nonqualified annuities, any annual increase in the value of annuities held by such entities (nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person only, the income will generally remain tax-deferred. PENALTIES: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: - - because of your death or in the event of nonnatural ownership, the death of the annuitant; - - because you become disabled (as defined in the Code); - - if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - - if it is allocable to an investment before Aug. 14, 1982; or - - if annuity payouts are made under immediate annuities as defined by the Code. TRANSFER OF OWNERSHIP: Generally, if you transfer ownership of a nonqualified annuity without receiving adequate consideration, the transfer may be treated as a surrender for federal income tax purposes. If the transfer is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Please consult your tax advisor for further details. 1035 EXCHANGES: Section 1035 of the Code permits nontaxable exchanges of certain insurance policies, endowment contracts, annuity contracts and qualified long- term care insurance contract while providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the cost basis from the old policy or contract to the new policy or contract. A 1035 exchange is a transfer from one policy or contract to another policy or contract. The following are nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment, annuity or qualified long-term care insurance contracts, (2) the exchange of an endowment contract for an annuity or qualified long-term care insurance contract, or for an endowment contract under which payments will begin no later than payments would have begun under the contract exchanged, (3) the exchange of an annuity contract for another annuity contract or for a qualified long-term care insurance contract, or (4) the exchange of a qualified long-term care insurance contract for a qualified long-term insurance contract. However, if the life insurance policy has an outstanding loan, there may be tax consequences. Depending on the issue date of your original policy or contract, there may be tax or other benefits that are given up to gain the benefits of the new RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 47 policy or contract. Consider whether the features and benefits of the new policy or contract outweigh any tax or other benefits of the old contract. For a partial exchange of an annuity contract for another annuity contract, the 1035 exchange is generally tax-free. The investment in the original contract and the earnings on the contract will be allocated proportionately between the original and new contracts. However, IRS Revenue Procedure 2008-24 states if withdrawals are taken from either contract within a 12 month period following a partial exchange, the 1035 exchange may be invalidated. In that case, the following will occur 1) the tax-free nature of the partial exchange can be lost, 2) the exchange will be retroactively treated as a taxable surrender on the lesser of the earnings in the original contract or the amount exchanged and 3) the entire amount of the exchange will be treated as a purchase into the second contract. You may receive an amended form 1099-R reporting an invalidated exchange. (If certain life events occur between the date of the partial exchange and the date of the withdrawal in the first 12 months, the partial exchange could remain valid.) You should consult your tax advisor before taking any surrender from either contract. ASSIGNMENT: If you assign or pledge your contract as collateral for a loan, earnings on purchase payments you made after Aug. 13, 1982 will be taxed as a deemed distribution and you may have to pay a 10% IRS penalty. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. When you use your contract to fund a retirement plan or IRA that is already tax- deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your right to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract. ANNUITY PAYOUTS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. ANNUITY PAYOUTS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. SURRENDERS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. SURRENDERS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans (except for Roth IRAs) are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. RMDs are based on the fair market value of your contract at year-end divided by life expectancy factor. Certain death benefits and optional riders may be considered in determining the fair market value of your contract for RMD purposes. This may cause your RMD to be higher. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. Inherited IRAs (including inherited Roth IRAs) are subject to special RMD rules. WITHHOLDING FOR IRAS, ROTH IRAS, SEPS AND SIMPLE IRAS: If you receive taxable income as a result of an annuity payout or a surrender, we may deduct withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. WITHHOLDING FOR ALL OTHER QUALIFIED ANNUITIES: If you receive directly all or part of the contract value from a qualified annuity, mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be 48 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS imposed at the time the payout is made from the plan. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. This mandatory withholding will not be imposed if instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan. Payments made to a surviving spouse instead of being directly rolled over to an IRA are also subject to mandatory 20% income tax withholding. In the below situations, the distribution is subject to an optional 10% withholding instead of the mandatory 20% withholding. We will withhold 10% of the distribution amount unless you elect otherwise. - - the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; - - the payout is a RMD as defined under the Code; - - the payout is made on account of an eligible hardship; or - - the payout is a corrective distribution. State withholding also may be imposed on taxable distributions. PENALTIES: If you receive amounts from your qualified contract before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received: - - because of your death; - - because you become disabled (as defined in the Code); - - if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - - if the distribution is made following severance from employment during the calendar year in which you attain age 55 (TSAs and annuities funding 401(a) plans only); - - to pay certain medical or education expenses (IRAs only); or - - if the distribution is made from an inherited IRA. DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he/she receives the payments from the qualified annuity. If you made non-deductible contributions to a traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. You are responsible for keeping all records tracking your non- deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are met. (See also "Benefits in Case of Death -- If you Die Before the Settlement Date"). ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. OTHER PURCHASE PAYMENT CREDITS: These are considered earnings and are taxed accordingly when surrendered or paid out. SPECIAL CONSIDERATIONS IF YOU SELECT ANY OPTIONAL RIDER: As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% tax penalty for surrenders before the age of 59 1/2, if applicable. We reserve the right to report charges for these riders as partial surrenders if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report any benefits attributable to these riders on the death of you or the annuitant as an annuity death benefit distribution, not as proceeds from life insurance. IMPORTANT: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. RIVERSOURCE LIFE'S TAX STATUS: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which each subaccount invests and becomes part of that subaccount's value. This investment income, including realized capital gains, is not subject to any withholding because of federal or state income taxes. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities or in our tax status as we then understand it. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 49 TAX QUALIFICATION: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. VOTING RIGHTS As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. After annuity payouts begin, the number of votes you have is equal to: - - the reserve held in each subaccount for your contract; divided by - - the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. SUBSTITUTION OF INVESTMENTS We may substitute the funds in which the subaccounts invest if: - - laws or regulations change; - - the existing funds become unavailable; or - - in our judgment, the funds no longer are suitable (or no longer the most suitable) for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute a fund currently listed in this prospectus (existing fund) for another fund (new fund). The new fund may have higher fees and/or operating expenses than the existing fund. Also, the new fund may have investment objectives and policies and/or investment advisers which differ from the existing fund. We may also: - - add new subaccounts; - - combine any two or more subaccounts; - - transfer assets to and from the subaccounts or the variable account; and - - eliminate or close any subaccounts. We will notify you of any substitution or change. If we notify you that a subaccount will be eliminated or closed, you will have a certain period of time to tell us where to reallocate purchase payments or contract value currently allocated to that subaccount. If we do not receive your reallocation instructions by the due date, we automatically will reallocate to the subaccount investing in the RiverSource Variable Portfolio -- Cash Management Fund. You may then transfer this reallocated amount in accordance with the transfer provisions of your contract (see "Transferring Between Accounts" above). In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. ABOUT THE SERVICE PROVIDERS PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. ("RiverSource Distributors"), our affiliate, serves as the principal underwriter of the contract. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc. 50 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS Although we no longer offer the contract for sale, you may continue to make purchase payments if permitted under the terms of your contract. We pay commissions to an affiliated selling firm of up to 5.75% of purchase payments on the contract as well as service/trail commissions of up to 0.25% based on annual total contract value for as long as the contract remains in effect. We also may pay a temporary additional sales commission of up to 1.00% of purchase payments for a period of time we select. These commissions do not change depending on which subaccounts you choose to allocate your purchase payments. From time to time and in accordance with applicable laws and regulations, we may also pay or provide the selling firm with various cash and non-cash promotional incentives including, but not limited to bonuses, short-term sales incentive payments, marketing allowances, costs associated with sales conferences and educational seminars and sales recognition awards. A portion of the payments made to the selling firm may be passed on to its financial advisors in accordance with its internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Ask your financial advisor for further information about what your financial advisor and the selling firm for which he or she works may receive in connection with your contract. We pay the commissions and other compensation described above from our assets. Our assets include: - - revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see "Expense Summary"); - - compensation we or an affiliate receive from the underlying funds in the form of distribution and services fees (see "The Variable Account and the Funds -- the funds"); - - compensation we or an affiliate receive from a fund's investment adviser, subadviser, distributor or an affiliate of any of these (see "The Variable Account and the Funds -- The funds"); and - - revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part of all of the commissions and other compensation described above indirectly through: - - fees and expenses we collect from contract owners, including surrender charges; and - - fees and expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated person. ISSUER We issue the contracts. We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc. We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts and life insurance policies. LEGAL PROCEEDINGS RiverSource Life is involved in the normal course of business in legal and regulatory proceedings, or regulatory requests for information, concerning matters arising in connection with the conduct of our general business activities as well as generally applicable to business practices in the insurance industry. From time to time, we receive requests for information from, or have been subject to examination by, the SEC, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities concerning our business activities and practices. These requests generally include suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements with respect to our annuity and insurance products. We have cooperated with and will continue to cooperate with the applicable regulators regarding their inquiries and examinations. RiverSource Life is involved in other proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material adverse impact on results of operations in any particular reporting period as the proceedings are resolved. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 51 APPENDIX: CONDENSED FINANCIAL INFORMATION (UNAUDITED) The following tables give per-unit information about the financial history of each subaccount. The date in which operations commenced in each subaccount is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2009.
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.71 $1.36 $1.14 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.07 $0.71 $1.36 $1.14 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,299 3,750 4,111 14,120 2,021 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $0.80 $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 $1.00 -- Accumulation unit value at end of period $0.95 $0.80 $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 68,595 84,420 116,725 135,093 149,316 125,010 82,114 43,189 5,550 -- - ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.23 $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 $1.00 -- Accumulation unit value at end of period $1.63 $1.23 $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 150,692 202,780 217,241 203,016 153,107 70,504 34,604 12,313 805 -- - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS I (09/15/1999) Accumulation unit value at beginning of period $0.83 $1.52 $1.30 $1.04 $0.93 $0.81 $0.66 $0.83 $1.19 $1.44 Accumulation unit value at end of period $1.10 $0.83 $1.52 $1.30 $1.04 $0.93 $0.81 $0.66 $0.83 $1.19 Number of accumulation units outstanding at end of period (000 omitted) 12,855 16,842 22,009 24,450 28,073 28,284 27,256 26,878 25,459 15,533 - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.68 $0.90 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.68 $0.90 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 48,044 54,402 56,815 -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.69 $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.92 $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,805 12,809 13,321 78,916 10,074 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS I (09/15/1999) Accumulation unit value at beginning of period $1.28 $1.76 $1.87 $1.59 $1.52 $1.34 $1.05 $1.21 $1.08 $0.92 Accumulation unit value at end of period $1.52 $1.28 $1.76 $1.87 $1.59 $1.52 $1.34 $1.05 $1.21 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 24,377 28,576 41,125 47,446 53,724 50,678 46,232 43,222 35,248 14,536 - ----------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $0.78 $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 $1.00 Accumulation unit value at end of period $0.97 $0.78 $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 15,940 18,431 21,893 24,975 23,850 20,551 15,315 9,520 4,490 1,283 - ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.72 $1.19 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.90 $0.72 $1.19 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 378,240 310,527 204,077 121,798 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.65 $1.27 $1.07 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.65 $1.27 $1.07 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,788 41,006 32,112 59,299 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.74 $1.13 $0.97 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.74 $1.13 $0.97 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 39,767 30,400 17,045 51,380 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - U.S. EQUITY FLEX I PORTFOLIO*(10/02/2009) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.09 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,200 -- -- -- -- -- -- -- -- -- *Credit Suisse Trust - U.S. Equity Flex III Portfolio reorganized into Credit Suisse Trust - U.S. Equity Flex I Portfolio on Oct. 2, 2009. - ----------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.75 $1.04 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.08 $0.75 $1.04 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 162,181 119,741 111,086 103,830 -- -- -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
52 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.06 $1.83 $1.61 $1.32 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.22 $1.06 $1.83 $1.61 $1.32 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,414 12,645 16,521 19,055 15,273 4,245 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.68 $1.20 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.92 $0.68 $1.20 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 269,589 398,515 294,643 244,121 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $0.74 $1.28 $1.15 $1.03 $0.96 $0.92 $0.75 $0.90 $1.00 $1.05 Accumulation unit value at end of period $0.93 $0.74 $1.28 $1.15 $1.03 $0.96 $0.92 $0.75 $0.90 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 48,395 58,690 78,090 92,368 107,380 122,387 119,334 108,027 103,719 63,414 - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $2.17 $3.61 $3.15 $2.82 $2.41 $1.94 $1.41 $1.58 $1.65 $1.24 Accumulation unit value at end of period $3.02 $2.17 $3.61 $3.15 $2.82 $2.41 $1.94 $1.41 $1.58 $1.65 Number of accumulation units outstanding at end of period (000 omitted) 35,956 44,234 56,323 67,426 72,759 73,206 67,863 63,268 59,393 38,193 - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $0.87 $1.57 $1.35 $1.15 $0.97 $0.86 $0.61 $0.77 $0.98 $1.23 Accumulation unit value at end of period $1.10 $0.87 $1.57 $1.35 $1.15 $0.97 $0.86 $0.61 $0.77 $0.98 Number of accumulation units outstanding at end of period (000 omitted) 20,415 25,280 33,656 38,789 40,988 42,151 31,628 28,991 27,850 18,802 - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.45 $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 Accumulation unit value at end of period $1.71 $1.45 $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 Number of accumulation units outstanding at end of period (000 omitted) 50,767 62,873 93,100 128,540 139,618 120,456 87,330 59,317 24,477 6,879 - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.58 $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 Accumulation unit value at end of period $2.02 $1.58 $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 Number of accumulation units outstanding at end of period (000 omitted) 42,025 52,033 66,946 78,886 78,073 59,293 43,978 29,743 10,800 2,846 - ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.71 $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 Accumulation unit value at end of period $2.26 $1.71 $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 78,043 97,291 139,637 163,687 174,918 115,616 83,015 56,079 23,748 7,622 - ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED SMALL CAP EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.07 $1.63 $1.97 $1.76 $1.68 $1.45 $1.00 $1.19 $1.14 $1.13 Accumulation unit value at end of period $1.35 $1.07 $1.63 $1.97 $1.76 $1.68 $1.45 $1.00 $1.19 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 3,757 4,574 6,389 8,977 10,823 12,173 13,511 14,285 14,153 10,252 - ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $0.71 $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 Accumulation unit value at end of period $0.85 $0.71 $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 Number of accumulation units outstanding at end of period (000 omitted) 108,298 131,282 187,585 231,223 248,935 128,074 83,166 71,820 60,343 42,626 - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES I SHARES (09/15/1999) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.65 $1.15 $1.03 $0.98 $0.90 $0.85 $0.66 $0.88 $1.16 $1.31 Accumulation unit value at end of period $0.79 $0.65 $1.15 $1.03 $0.98 $0.90 $0.85 $0.66 $0.88 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 17,247 21,777 30,209 38,671 42,185 44,154 44,599 46,932 49,574 37,379 - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES I SHARES (09/15/1999) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES I SHARES) Accumulation unit value at beginning of period $1.09 $2.08 $1.89 $1.64 $1.50 $1.31 $0.98 $1.25 $1.37 $1.26 Accumulation unit value at end of period $1.55 $1.09 $2.08 $1.89 $1.64 $1.50 $1.31 $0.98 $1.25 $1.37 Number of accumulation units outstanding at end of period (000 omitted) 6,556 8,210 11,683 13,834 16,329 18,834 19,915 21,745 23,324 16,977 - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.80 $1.13 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.01 $0.80 $1.13 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,089 8,014 5,881 33,923 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.93 $1.57 $1.39 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.24 $0.93 $1.57 $1.39 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 128,526 99,290 48,018 1,744 127 -- -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 53
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES ENTERPRISE PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.41 $0.73 $0.60 $0.54 $0.48 $0.40 $0.30 $0.42 $0.70 $1.00 Accumulation unit value at end of period $0.58 $0.41 $0.73 $0.60 $0.54 $0.48 $0.40 $0.30 $0.42 $0.70 Number of accumulation units outstanding at end of period (000 omitted) 19,522 23,257 27,632 29,699 34,555 40,872 48,862 52,428 54,805 29,626 - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.29 $0.52 $0.43 $0.40 $0.36 $0.36 $0.25 $0.43 $0.68 $1.00 Accumulation unit value at end of period $0.45 $0.29 $0.52 $0.43 $0.40 $0.36 $0.36 $0.25 $0.43 $0.68 Number of accumulation units outstanding at end of period (000 omitted) 27,957 23,828 28,860 30,606 32,606 37,258 40,520 37,200 34,767 20,288 - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.85 $0.63 $1.06 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 305,123 238,472 154,650 -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.81 $1.71 $1.34 $0.92 $0.70 $0.60 $0.45 $0.61 $0.80 $1.00 Accumulation unit value at end of period $1.44 $0.81 $1.71 $1.34 $0.92 $0.70 $0.60 $0.45 $0.61 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 61,696 69,375 80,158 77,239 72,832 75,760 81,742 81,189 60,527 25,763 - ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.48 $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 $1.00 Accumulation unit value at end of period $0.67 $0.48 $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 67,421 63,755 80,158 100,533 117,493 108,239 91,666 69,576 50,212 19,521 - ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.61 $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 $1.00 Accumulation unit value at end of period $0.98 $0.61 $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 28,887 32,039 42,261 51,188 62,995 77,406 74,690 59,272 34,072 12,308 - ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.39 $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 $1.00 -- Accumulation unit value at end of period $1.83 $1.39 $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 -- Number of accumulation units outstanding at end of period (000 omitted) 56,324 67,989 78,212 71,164 55,870 28,362 18,051 10,543 2,997 -- - ----------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.57 $1.07 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.76 $0.57 $1.07 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 75,726 78,811 64,614 57,067 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.95 $1.60 $1.52 $1.31 $1.16 $1.00 -- -- -- -- Accumulation unit value at end of period $1.31 $0.95 $1.60 $1.52 $1.31 $1.16 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 31,543 36,705 48,173 51,514 33,811 11,540 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.07 $1.26 $1.16 $1.09 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.25 $1.07 $1.26 $1.16 $1.09 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 519,119 569,070 536,032 339,587 150,945 22,945 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.86 $1.40 $1.43 $1.26 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.17 $0.86 $1.40 $1.43 $1.26 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,658 27,205 34,265 34,462 18,592 7,652 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.93 $1.12 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.93 $1.12 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 218,702 228,912 161,214 154,199 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $0.59 $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 Accumulation unit value at end of period $0.82 $0.59 $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 Number of accumulation units outstanding at end of period (000 omitted) 21,581 25,511 33,551 42,808 49,747 57,095 67,224 72,033 74,819 49,764 - ----------------------------------------------------------------------------------------------------------------------------------- ROYCE CAPITAL FUND - MICRO-CAP PORTFOLIO, INVESTMENT CLASS (09/15/1999) Accumulation unit value at beginning of period $1.95 $3.47 $3.36 $2.80 $2.53 $2.24 $1.51 $1.75 $1.36 $1.15 Accumulation unit value at end of period $3.07 $1.95 $3.47 $3.36 $2.80 $2.53 $2.24 $1.51 $1.75 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 10,284 12,388 16,842 20,156 22,799 26,803 26,590 25,593 20,056 8,005 - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.71 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,669 6,188 -- -- -- -- -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
54 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.98 $0.84 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,032 11,487 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 45,180 25,617 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.74 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.74 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,720 16,958 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.80 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.94 $0.80 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,560 11,805 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.86 $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 Accumulation unit value at end of period $1.07 $0.86 $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 74,529 61,707 86,628 89,309 92,705 84,704 79,035 64,273 37,760 28,348 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(09/15/1999) Accumulation unit value at beginning of period $1.22 $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 Accumulation unit value at end of period $1.22 $1.22 $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 197,288 399,214 286,121 258,492 193,996 187,100 203,753 255,251 243,870 171,785 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (0.76%) and (0.76%), respectively. - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.30 $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 Accumulation unit value at end of period $1.48 $1.30 $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 638,984 610,707 599,680 511,100 332,677 221,377 188,939 154,530 83,968 30,783 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.15 $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 Accumulation unit value at end of period $1.45 $1.15 $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 508,061 530,216 560,416 585,144 408,559 255,776 134,486 86,442 43,328 12,124 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.56 $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 Accumulation unit value at end of period $0.69 $0.56 $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 257,537 301,682 383,078 450,207 263,828 130,790 69,981 52,124 26,327 24,003 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.52 $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 Accumulation unit value at end of period $1.68 $1.52 $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 195,536 201,728 204,316 169,931 130,135 82,347 51,936 31,133 16,572 8,968 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.12 $1.13 $1.05 $1.05 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.19 $1.12 $1.13 $1.05 $1.05 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 302,524 171,393 147,400 161,490 91,038 2,274 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.03 $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 Accumulation unit value at end of period $1.57 $1.03 $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 137,350 147,297 218,538 251,768 262,154 242,254 177,150 93,845 58,348 31,722 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.94 $1.16 $1.14 $1.07 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.33 $0.94 $1.16 $1.14 $1.07 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 229,076 128,653 116,516 109,316 29,477 1,052 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (05/01/2001) Accumulation unit value at beginning of period $0.75 $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 $1.00 -- Accumulation unit value at end of period $1.22 $0.75 $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 -- Number of accumulation units outstanding at end of period (000 omitted) 40,215 38,730 50,337 62,826 47,283 53,376 42,780 16,388 2,489 -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.81 $1.49 $1.36 $1.19 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.14 $0.81 $1.49 $1.36 $1.19 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 57,405 76,989 71,709 101,239 6,605 -- -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 55
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $0.65 $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 $1.00 Accumulation unit value at end of period $0.81 $0.65 $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 91,208 100,420 127,010 139,008 154,949 144,039 103,587 64,771 35,957 9,812 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.27 $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 Accumulation unit value at end of period $1.33 $1.27 $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 109,059 125,698 120,018 125,729 145,087 160,725 155,718 124,866 50,510 16,258 - ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.41 $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 Accumulation unit value at end of period $0.56 $0.41 $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 147,034 180,650 283,769 326,108 323,849 191,140 192,314 135,693 129,186 97,754 - ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.80 $1.33 $1.34 $1.14 $1.10 $1.00 -- -- -- -- Accumulation unit value at end of period $1.00 $0.80 $1.33 $1.34 $1.14 $1.10 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,269 5,696 7,988 7,937 6,232 3,498 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.03 $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 Accumulation unit value at end of period $1.42 $1.03 $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 21,859 26,621 38,095 49,721 59,243 61,563 44,627 29,202 22,792 14,830 - ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $1.29 $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 $1.00 Accumulation unit value at end of period $2.23 $1.29 $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 Number of accumulation units outstanding at end of period (000 omitted) 80,593 111,551 89,546 89,672 75,520 22,549 8,256 4,750 1,789 906 - ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.74 $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 Accumulation unit value at end of period $0.94 $0.74 $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 48,442 55,412 75,421 80,961 77,787 51,446 23,614 20,012 15,821 13,967 - ----------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.68 $1.12 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.68 $1.12 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 303,537 183,635 117,605 123,150 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.85 $1.36 $1.29 $1.12 $1.12 $1.00 -- -- -- -- Accumulation unit value at end of period $1.16 $0.85 $1.36 $1.29 $1.12 $1.12 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,203 6,409 9,188 9,786 10,247 4,730 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (08/14/2001) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.22 $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 $1.00 -- Accumulation unit value at end of period $1.66 $1.22 $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 -- Number of accumulation units outstanding at end of period (000 omitted) 149,191 156,845 148,793 126,637 127,559 90,541 67,609 43,199 6,885 -- - ----------------------------------------------------------------------------------------------------------------------------------- THIRD AVENUE VALUE PORTFOLIO (09/21/1999) Accumulation unit value at beginning of period $1.75 $3.14 $3.32 $2.89 $2.54 $2.13 $1.51 $1.70 $1.51 $1.08 Accumulation unit value at end of period $2.53 $1.75 $3.14 $3.32 $2.89 $2.54 $2.13 $1.51 $1.70 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 12,740 16,209 23,692 28,765 31,916 32,334 31,927 31,335 27,040 8,231 - ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.85 $1.33 $1.37 $1.19 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.08 $0.85 $1.33 $1.37 $1.19 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 178,986 227,595 224,730 258,223 203,272 36,974 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.61 $1.11 $1.23 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.61 $1.11 $1.23 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67,174 88,969 51,109 51,499 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.64 $1.20 $0.99 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.99 $0.64 $1.20 $0.99 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,479 17,546 14,940 37,273 -- -- -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
56 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $1.42 $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 Accumulation unit value at end of period $2.11 $1.42 $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 131,326 142,736 164,570 186,862 170,230 104,567 66,022 43,554 27,818 18,245 - ----------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.18 $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 Accumulation unit value at end of period $1.67 $1.18 $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 155,213 176,483 212,646 235,960 241,623 184,961 129,824 78,311 40,791 23,813 - ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INDEX ASSET ALLOCATION FUND (05/01/2001) (PREVIOUSLY WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND) Accumulation unit value at beginning of period $0.96 $1.37 $1.28 $1.15 $1.10 $1.02 $0.84 $0.97 $1.00 -- Accumulation unit value at end of period $1.10 $0.96 $1.37 $1.28 $1.15 $1.10 $1.02 $0.84 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 19,120 25,423 37,314 40,046 43,629 41,656 30,948 14,864 3,799 -- - ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $0.80 $1.43 $1.28 $1.06 $0.98 $0.90 $0.69 $0.90 $1.00 -- Accumulation unit value at end of period $0.90 $0.80 $1.43 $1.28 $1.06 $0.98 $0.90 $0.69 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 4,273 5,126 7,327 8,088 9,021 10,390 8,227 4,703 1,200 -- - ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $0.78 $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 $1.00 -- Accumulation unit value at end of period $1.18 $0.78 $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 -- Number of accumulation units outstanding at end of period (000 omitted) 31,042 29,488 35,670 25,726 19,618 22,185 19,289 9,992 2,060 -- - -----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.70 $1.35 $1.14 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.07 $0.70 $1.35 $1.14 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,654 2,593 2,415 5,609 801 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $0.78 $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 $1.00 -- Accumulation unit value at end of period $0.93 $0.78 $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 41,871 53,105 74,246 84,552 91,924 75,935 54,358 29,770 4,363 -- - ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.21 $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 $1.00 -- Accumulation unit value at end of period $1.61 $1.21 $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 93,058 122,930 135,634 127,479 94,909 44,705 24,114 9,270 790 -- - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS I (09/15/1999) Accumulation unit value at beginning of period $0.82 $1.49 $1.28 $1.03 $0.92 $0.81 $0.66 $0.83 $1.18 $1.44 Accumulation unit value at end of period $1.08 $0.82 $1.49 $1.28 $1.03 $0.92 $0.81 $0.66 $0.83 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 13,469 17,171 22,876 26,483 30,007 30,595 30,150 31,512 32,127 20,591 - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.67 $0.90 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.67 $0.90 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,355 30,504 28,466 -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.69 $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,957 7,931 8,170 35,411 4,856 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS I (09/15/1999) Accumulation unit value at beginning of period $1.25 $1.73 $1.84 $1.57 $1.51 $1.33 $1.04 $1.20 $1.08 $0.92 Accumulation unit value at end of period $1.49 $1.25 $1.73 $1.84 $1.57 $1.51 $1.33 $1.04 $1.20 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 22,547 27,547 40,862 47,256 53,403 50,775 49,145 49,161 41,460 21,041 - ----------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $0.76 $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 $1.00 Accumulation unit value at end of period $0.95 $0.76 $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 9,852 12,240 17,034 19,334 19,301 17,682 14,100 9,832 6,090 1,693 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 57
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.71 $1.19 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.71 $1.19 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 214,161 176,791 113,001 66,352 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.65 $1.26 $1.07 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.65 $1.26 $1.07 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,723 26,849 22,702 32,712 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.74 $1.13 $0.97 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.74 $1.13 $0.97 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,662 22,011 12,631 26,224 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - U.S. EQUITY FLEX I PORTFOLIO*(10/02/2009) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.08 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,478 -- -- -- -- -- -- -- -- -- *Credit Suisse Trust - U.S. Equity Flex III Portfolio reorganized into Credit Suisse Trust - U.S. Equity Flex I Portfolio on Oct. 2, 2009. - ----------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.75 $1.04 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $0.75 $1.04 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 105,964 79,727 71,987 59,159 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.82 $1.60 $1.31 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.20 $1.05 $1.82 $1.60 $1.31 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 69,836 8,283 11,475 12,674 9,815 2,086 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.68 $1.20 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.68 $1.20 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 167,696 237,020 166,815 127,364 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $0.73 $1.26 $1.14 $1.01 $0.95 $0.91 $0.74 $0.90 $1.00 $1.04 Accumulation unit value at end of period $0.91 $0.73 $1.26 $1.14 $1.01 $0.95 $0.91 $0.74 $0.90 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 43,167 55,844 75,513 89,221 108,101 127,378 125,390 117,223 119,736 77,558 - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $2.13 $3.56 $3.11 $2.79 $2.38 $1.93 $1.40 $1.57 $1.64 $1.24 Accumulation unit value at end of period $2.95 $2.13 $3.56 $3.11 $2.79 $2.38 $1.93 $1.40 $1.57 $1.64 Number of accumulation units outstanding at end of period (000 omitted) 32,282 41,030 52,936 63,504 70,537 72,884 69,808 68,203 67,132 48,251 - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $0.86 $1.54 $1.33 $1.14 $0.96 $0.86 $0.60 $0.77 $0.98 $1.23 Accumulation unit value at end of period $1.07 $0.86 $1.54 $1.33 $1.14 $0.96 $0.86 $0.60 $0.77 $0.98 Number of accumulation units outstanding at end of period (000 omitted) 19,097 24,686 32,307 37,262 40,363 43,553 34,462 33,063 32,758 22,910 - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.42 $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 Accumulation unit value at end of period $1.68 $1.42 $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 Number of accumulation units outstanding at end of period (000 omitted) 31,073 39,491 59,503 81,589 88,911 80,587 63,047 44,591 19,803 6,181 - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.55 $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 Accumulation unit value at end of period $1.98 $1.55 $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 Number of accumulation units outstanding at end of period (000 omitted) 28,730 36,256 46,935 55,078 55,521 44,541 34,639 23,553 9,584 2,897 - ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.68 $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 Accumulation unit value at end of period $2.21 $1.68 $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 51,883 65,990 96,413 112,452 117,932 84,473 65,106 47,539 24,711 10,265 - ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED SMALL CAP EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.05 $1.60 $1.94 $1.74 $1.66 $1.44 $1.00 $1.18 $1.14 $1.13 Accumulation unit value at end of period $1.32 $1.05 $1.60 $1.94 $1.74 $1.66 $1.44 $1.00 $1.18 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 3,988 5,064 7,429 9,981 12,490 14,537 16,300 17,792 18,974 14,809 - ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $0.70 $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 Accumulation unit value at end of period $0.84 $0.70 $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 Number of accumulation units outstanding at end of period (000 omitted) 70,758 87,685 126,734 160,736 168,697 108,140 80,350 75,489 71,185 55,239 - -----------------------------------------------------------------------------------------------------------------------------------
58 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES I SHARES (09/15/1999) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.64 $1.13 $1.02 $0.96 $0.89 $0.85 $0.66 $0.88 $1.16 $1.31 Accumulation unit value at end of period $0.77 $0.64 $1.13 $1.02 $0.96 $0.89 $0.85 $0.66 $0.88 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 14,514 19,004 26,499 33,759 37,608 41,803 44,130 48,704 55,044 46,419 - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES I SHARES (09/15/1999) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES I SHARES) Accumulation unit value at beginning of period $1.07 $2.05 $1.86 $1.62 $1.49 $1.30 $0.97 $1.25 $1.37 $1.26 Accumulation unit value at end of period $1.52 $1.07 $2.05 $1.86 $1.62 $1.49 $1.30 $0.97 $1.25 $1.37 Number of accumulation units outstanding at end of period (000 omitted) 6,328 8,402 11,661 14,226 16,359 19,515 20,889 23,015 25,531 19,878 - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.80 $1.13 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.01 $0.80 $1.13 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,414 5,240 3,964 15,226 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.92 $1.57 $1.38 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.23 $0.92 $1.57 $1.38 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 76,801 53,711 23,729 1,198 107 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES ENTERPRISE PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.40 $0.72 $0.59 $0.53 $0.48 $0.40 $0.30 $0.42 $0.70 $1.00 Accumulation unit value at end of period $0.57 $0.40 $0.72 $0.59 $0.53 $0.48 $0.40 $0.30 $0.42 $0.70 Number of accumulation units outstanding at end of period (000 omitted) 12,181 15,191 18,083 20,670 24,803 30,043 36,658 42,883 51,500 33,689 - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.28 $0.51 $0.42 $0.40 $0.36 $0.36 $0.25 $0.42 $0.68 $1.00 Accumulation unit value at end of period $0.44 $0.28 $0.51 $0.42 $0.40 $0.36 $0.36 $0.25 $0.42 $0.68 Number of accumulation units outstanding at end of period (000 omitted) 19,312 16,671 19,559 22,668 24,131 27,479 30,159 31,354 34,050 22,949 - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.85 $0.63 $1.06 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 168,562 128,192 72,177 -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.80 $1.68 $1.33 $0.91 $0.70 $0.59 $0.45 $0.61 $0.80 $1.00 Accumulation unit value at end of period $1.41 $0.80 $1.68 $1.33 $0.91 $0.70 $0.59 $0.45 $0.61 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 46,612 54,116 64,174 61,879 59,325 61,390 68,389 74,111 64,147 29,251 - ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.48 $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 $1.00 Accumulation unit value at end of period $0.66 $0.48 $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 44,235 44,360 58,819 73,300 84,506 78,223 74,564 62,663 51,051 21,973 - ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.60 $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 $1.00 Accumulation unit value at end of period $0.96 $0.60 $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 20,432 22,831 31,915 38,120 48,503 60,214 61,988 53,383 36,822 15,060 - ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.37 $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 $1.00 -- Accumulation unit value at end of period $1.80 $1.37 $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 -- Number of accumulation units outstanding at end of period (000 omitted) 35,891 43,832 51,479 45,869 35,163 18,264 12,519 7,093 2,778 -- - ----------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.57 $1.07 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $0.57 $1.07 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 40,525 41,079 30,611 26,517 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.94 $1.59 $1.51 $1.30 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.30 $0.94 $1.59 $1.51 $1.30 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 21,263 24,950 32,187 34,962 20,721 6,121 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.25 $1.15 $1.08 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.24 $1.06 $1.25 $1.15 $1.08 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 350,910 395,298 360,480 226,000 94,657 11,924 -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 59
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.85 $1.39 $1.42 $1.25 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.16 $0.85 $1.39 $1.42 $1.25 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,634 18,861 23,107 22,606 12,037 4,085 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.93 $1.12 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $0.93 $1.12 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 127,629 131,661 82,318 76,067 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $0.58 $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 Accumulation unit value at end of period $0.80 $0.58 $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 Number of accumulation units outstanding at end of period (000 omitted) 15,529 20,077 26,405 34,609 42,680 51,579 63,075 73,930 87,722 68,407 - ----------------------------------------------------------------------------------------------------------------------------------- ROYCE CAPITAL FUND - MICRO-CAP PORTFOLIO, INVESTMENT CLASS (09/15/1999) Accumulation unit value at beginning of period $1.92 $3.41 $3.32 $2.76 $2.50 $2.22 $1.50 $1.74 $1.35 $1.15 Accumulation unit value at end of period $3.00 $1.92 $3.41 $3.32 $2.76 $2.50 $2.22 $1.50 $1.74 $1.35 Number of accumulation units outstanding at end of period (000 omitted) 9,775 11,919 16,534 20,055 22,867 27,132 27,838 27,063 23,583 11,880 - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.71 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,500 3,115 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,467 7,436 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,565 15,034 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,191 9,299 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.94 $0.79 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,602 8,524 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.85 $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 Accumulation unit value at end of period $1.04 $0.85 $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 55,353 51,095 74,966 74,221 77,525 74,540 73,310 64,613 53,096 39,810 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(09/15/1999) Accumulation unit value at beginning of period $1.20 $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 Accumulation unit value at end of period $1.19 $1.20 $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 140,419 290,095 247,870 211,744 147,452 148,915 178,580 228,237 265,455 203,922 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (0.98%) and (0.98%), respectively. - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.28 $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 Accumulation unit value at end of period $1.45 $1.28 $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 447,493 430,993 408,270 351,043 257,273 190,125 176,013 159,405 106,760 43,920 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.13 $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 Accumulation unit value at end of period $1.42 $1.13 $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 307,581 329,220 363,274 383,460 278,737 181,318 99,776 67,958 41,299 14,227 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.55 $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 Accumulation unit value at end of period $0.68 $0.55 $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 147,939 180,807 242,876 290,744 144,230 94,730 45,599 34,956 26,779 22,159 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.49 $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 Accumulation unit value at end of period $1.65 $1.49 $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 137,253 142,773 141,675 123,834 102,876 72,702 54,100 36,626 23,970 14,137 - -----------------------------------------------------------------------------------------------------------------------------------
60 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.11 $1.12 $1.05 $1.05 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.18 $1.11 $1.12 $1.05 $1.05 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 192,220 113,444 88,734 95,224 51,906 1,504 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.01 $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 Accumulation unit value at end of period $1.54 $1.01 $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 111,734 125,862 186,775 221,767 237,711 236,566 197,358 122,784 88,813 52,655 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.93 $1.16 $1.14 $1.06 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.31 $0.93 $1.16 $1.14 $1.06 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 141,698 76,770 65,977 61,812 18,068 783 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (05/01/2001) Accumulation unit value at beginning of period $0.74 $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 $1.00 -- Accumulation unit value at end of period $1.20 $0.74 $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 -- Number of accumulation units outstanding at end of period (000 omitted) 26,343 25,504 35,043 43,939 31,419 35,498 29,450 12,145 2,238 -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.81 $1.48 $1.36 $1.19 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.81 $1.48 $1.36 $1.19 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,037 45,362 43,555 54,642 4,982 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $0.64 $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 $1.00 Accumulation unit value at end of period $0.80 $0.64 $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 65,626 73,795 92,416 104,302 122,070 117,372 91,398 65,011 40,575 14,084 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 Accumulation unit value at end of period $1.30 $1.24 $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 88,306 108,778 104,637 108,222 121,249 130,386 135,202 116,147 56,966 24,654 - ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.41 $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 Accumulation unit value at end of period $0.55 $0.41 $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 90,930 116,110 186,447 216,237 212,229 135,373 147,485 118,986 130,764 106,410 - ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.79 $1.32 $1.34 $1.13 $1.09 $1.00 -- -- -- -- Accumulation unit value at end of period $0.99 $0.79 $1.32 $1.34 $1.13 $1.09 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,736 2,900 4,152 4,707 3,594 2,030 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.01 $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 Accumulation unit value at end of period $1.39 $1.01 $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 15,189 18,734 28,329 38,372 46,718 51,057 39,709 29,341 24,346 16,349 - ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $1.27 $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 $1.00 Accumulation unit value at end of period $2.19 $1.27 $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 Number of accumulation units outstanding at end of period (000 omitted) 47,289 61,879 50,491 51,867 44,244 16,315 6,501 3,888 1,542 693 - ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.73 $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 Accumulation unit value at end of period $0.92 $0.73 $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 35,421 42,730 58,762 64,541 61,793 40,351 21,462 19,189 18,664 15,670 - ----------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.68 $1.11 $1.08 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.68 $1.11 $1.08 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 163,841 98,708 55,721 57,963 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.84 $1.34 $1.28 $1.12 $1.12 $1.00 -- -- -- -- Accumulation unit value at end of period $1.14 $0.84 $1.34 $1.28 $1.12 $1.12 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,165 3,807 5,203 5,724 5,777 2,540 -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 61
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (08/14/2001) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.21 $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 $1.00 -- Accumulation unit value at end of period $1.63 $1.21 $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 -- Number of accumulation units outstanding at end of period (000 omitted) 81,111 85,345 79,474 69,587 72,463 57,581 44,918 28,099 6,314 -- - ----------------------------------------------------------------------------------------------------------------------------------- THIRD AVENUE VALUE PORTFOLIO (09/21/1999) Accumulation unit value at beginning of period $1.72 $3.08 $3.27 $2.85 $2.51 $2.12 $1.50 $1.69 $1.50 $1.08 Accumulation unit value at end of period $2.48 $1.72 $3.08 $3.27 $2.85 $2.51 $2.12 $1.50 $1.69 $1.50 Number of accumulation units outstanding at end of period (000 omitted) 12,094 15,600 23,616 28,313 32,580 33,905 34,897 35,110 31,848 11,524 - ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.84 $1.32 $1.36 $1.18 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.07 $0.84 $1.32 $1.36 $1.18 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 95,224 120,656 113,380 130,395 96,755 18,714 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.61 $1.11 $1.22 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.61 $1.11 $1.22 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,794 50,326 29,814 27,318 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.63 $1.20 $0.99 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.98 $0.63 $1.20 $0.99 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,049 11,266 9,199 17,529 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $1.39 $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 Accumulation unit value at end of period $2.06 $1.39 $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 80,522 88,899 108,613 122,718 114,381 79,981 56,466 42,309 30,297 21,844 - ----------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 Accumulation unit value at end of period $1.64 $1.16 $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 100,879 117,299 145,262 164,257 169,886 140,320 108,046 72,853 46,456 29,881 - ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INDEX ASSET ALLOCATION FUND (05/01/2001) (PREVIOUSLY WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND) Accumulation unit value at beginning of period $0.95 $1.35 $1.26 $1.14 $1.09 $1.01 $0.84 $0.97 $1.00 -- Accumulation unit value at end of period $1.08 $0.95 $1.35 $1.26 $1.14 $1.09 $1.01 $0.84 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 15,303 19,992 28,981 29,215 32,466 31,201 22,278 11,859 3,224 -- - ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $0.79 $1.41 $1.26 $1.05 $0.97 $0.89 $0.69 $0.90 $1.00 -- Accumulation unit value at end of period $0.88 $0.79 $1.41 $1.26 $1.05 $0.97 $0.89 $0.69 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 3,263 3,897 5,538 6,052 6,690 7,049 5,248 2,781 1,031 -- - ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $0.76 $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 $1.00 -- Accumulation unit value at end of period $1.16 $0.76 $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 -- Number of accumulation units outstanding at end of period (000 omitted) 20,853 19,000 23,653 17,655 14,334 16,103 13,800 7,655 2,230 -- - -----------------------------------------------------------------------------------------------------------------------------------
62 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts.............. p. 3 Rating Agencies.......................... p. 4 Revenues Received During Calendar Year 2009................................... p. 4 Principal Underwriter.................... p. 5 Independent Registered Public Accounting Firm................................... p. 5 Financial Statements
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 63 (RIVERSOURCE ANNUITIES LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 1 (800) 862-7919 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc. (C) 2008-2010 RiverSource Life Insurance Company. All rights reserved. S-6467 P (4/10) PROSPECTUS APRIL 30, 2010 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR SELECT(R) VARIABLE ANNUITY INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITIES New contracts are not currently being offered. ISSUED BY: RIVERSOURCE LIFE INSURANCE COMPANY (RIVERSOURCE LIFE) 70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 ameriprise.com/variableannuities RIVERSOURCE VARIABLE ACCOUNT 10 This prospectus contains information that you should know before investing in the RiverSource Retirement Advisor Advantage Variable Annuity (RAVA Advantage) or the RiverSource Retirement Advisor Select Variable Annuity (RAVA Select). Prospectuses are also available for: - - AllianceBernstein Variable Products Series Fund, Inc. - - American Century Variable Portfolios, Inc. - - Calvert Variable Series, Inc. - - Columbia Funds Variable Insurance Trust - - Credit Suisse Trust - - Eaton Vance Variable Trust - - Evergreen Variable Annuity Trust - - Fidelity(R) Variable Insurance Products - Service Class 2 - - Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 - - Goldman Sachs Variable Insurance Trust (VIT) - - Invesco Variable Insurance Funds - - Janus Aspen Series: Service Shares - - MFS(R) Variable Insurance Trust(SM) - - Neuberger Berman Advisers Management Trust - - Oppenheimer Variable Account Funds - Service Shares - - PIMCO Variable Insurance Trust (VIT) - - Putnam Variable Trust - Class IB Shares - - RiverSource Variable Series Trust (RVST) - - The Universal Institutional Funds, Inc. - - Van Kampen Life Investment Trust - - Wanger Advisors Trust - - Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. The contracts provide for purchase payment credits which we may reverse under certain circumstances. Expenses and surrender charges from contracts with purchase payment credits may be higher than those for contracts without such credits. The amount of the credit may be more than offset by additional charges associated with the credit. THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THIS CONTRACT IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS CONTRACT INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). Variable annuities are insurance products that are complex investment vehicles. Be sure to ask your financial advisor about the variable annuities' features, benefits, risks and fees, and whether the variable annuity is appropriate for you, based upon your financial situation and objectives. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 1 This prospectus provides a general description of the contract. Your actual contract and any riders or endorsements are the controlling documents. RiverSource Life has not authorized any person to give any information or to make any representations regarding the contract other than those contained in this prospectus or the fund prospectuses. Do not rely on any such information or representations. RiverSource Life offers several different annuities which your financial advisor may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to annuity account values. The fees and charges may also be different between each annuity. TABLE OF CONTENTS KEY TERMS.............................................. 3 THE CONTRACT IN BRIEF.................................. 5 EXPENSE SUMMARY........................................ 7 CONDENSED FINANCIAL INFORMATION (UNAUDITED)............ 15 FINANCIAL STATEMENTS................................... 15 THE VARIABLE ACCOUNT AND THE FUNDS..................... 15 THE FIXED ACCOUNT...................................... 26 BUYING YOUR CONTRACT................................... 27 CHARGES................................................ 29 VALUING YOUR INVESTMENT................................ 34 MAKING THE MOST OF YOUR CONTRACT....................... 35 SURRENDERS............................................. 43 TSA -- SPECIAL PROVISIONS.............................. 44 CHANGING OWNERSHIP..................................... 45 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT.... 45 OPTIONAL BENEFITS...................................... 47 THE ANNUITY PAYOUT PERIOD.............................. 50 TAXES.................................................. 52 VOTING RIGHTS.......................................... 56 SUBSTITUTION OF INVESTMENTS............................ 56 ABOUT THE SERVICE PROVIDERS............................ 57 APPENDIX A: EXAMPLE -- SURRENDER CHARGES............... 60 APPENDIX B: EXAMPLE -- OPTIONAL BENEFITS............... 61 APPENDIX C: CONDENSED FINANCIAL INFORMATION (UNAUDITED).......................................... 65 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION.................. 91
2 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS KEY TERMS These terms can help you understand details about your contract. ACCUMULATION UNIT: A measure of the value of each subaccount before annuity payouts begin. ANNUITANT: The person or persons on whose life or life expectancy the annuity payouts are based. ANNUITY PAYOUTS: An amount paid at regular intervals under one of several plans. ASSUMED INVESTMENT RATE: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. BENEFICIARY: The person you designate to receive benefits in case of the owner's or annuitant's death while the contract is in force. CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). CODE: The Internal Revenue Code of 1986, as amended. CONTRACT: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. CONTRACT VALUE: The total value of your contract before we deduct any applicable charges. CONTRACT YEAR: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. ENHANCED EARNINGS DEATH BENEFIT (EEB) AND ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. You can elect to purchase either the EEB or the EEP. FIXED ACCOUNT: An account to which you may allocate purchase payments. Amounts you allocate to this account earn interest at rates that we declare periodically. FUNDS: Investment options under your contract. Unless an asset allocation program is in effect, you may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. GOOD ORDER: We cannot process your transaction request relating to the contract until we have received the request in good order at our corporate office. "Good order" means the actual receipt of the requested transaction in writing, along with all information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes your completed request; the contract number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts and the fixed account affected by the requested transaction; the signatures of all contracts owners, exactly as registered on the contract, if necessary; Social Security Number or Taxpayer Identification Number; and any other information or supporting documentation that we may require. With respect to purchase requests, "good order" also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV): This is an optional benefit you can add to your contract for an additional charge that is intended to provide additional death benefit protection in the event of fluctuating fund values. OWNER (YOU, YOUR): The person or persons who control the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM): This is an optional program in which you may elect to participate. Prior to May 10, 2010 the program required adding a rider for an additional charge. Beginning May 10, 2010, the rider is not required to select the PN program, and there is no additional charge. PURCHASE PAYMENT CREDITS: An addition we make to your contract value. We base the amount of the credit on the surrender charge schedule you elect and/or total purchase payments. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 3 QUALIFIED ANNUITY: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: - - Individual Retirement Annuities (IRAs) including inherited IRAs under Section 408(b) of the Code - - Roth IRAs under including inherited Roth IRAs Section 408A of the Code - - SIMPLE IRAs under Section 408(p) of the Code - - Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code - - Plans under Section 401(k) of the Code - - Custodial and investment only accounts maintained for qualified retirement plans under Section 401(a) of the Code - - Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax-deferred. All other contracts are considered NONQUALIFIED ANNUITIES. RIDER: You receive a rider when you purchase the EEB, EEP, MAV and/or PN. Beginning May 10, 2010, the PN rider is not required to select the PN program. The rider adds the terms of the optional benefit to your contract. RIDER EFFECTIVE DATE: The date a rider becomes effective as stated in the rider. RIVERSOURCE LIFE: In this prospectus, "we," "us," "our" and "RiverSource Life" refer to RiverSource Life Insurance Company. SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. SURRENDER VALUE: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. VALUATION DATE: Any normal business day, Monday through Friday, on which the NYSE is open, up to the close of business. At the close of business, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) in good order at our corporate office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other hand, if we receive your purchase payment or transaction request in good order at our corporate office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. VARIABLE ACCOUNT: Consists of separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. 4 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS THE CONTRACT IN BRIEF This prospectus describes two contracts. RAVA Advantage offers a choice of a seven-year or a ten-year surrender charge schedule and relatively lower expenses. RAVA Select offers a three-year surrender charge schedule and relatively higher expenses. The information in this prospectus applies to both contracts unless stated otherwise. PURPOSE: The purpose of each contract is to allow you to accumulate money for retirement or a similar long-term goal. You do this by making one or more purchase payments. You may allocate your purchase payments to the fixed accounts and/or subaccounts under the contract; however, you risk losing amounts you invest in the subaccounts of the variable account. These accounts, in turn, may earn returns that increase the value of the contract. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payouts of your contract value (less any applicable premium tax). It may not be advantageous for you to purchase this contract in exchange for, or in addition to, an existing annuity or life insurance policy. Generally, you can exchange one annuity for another or for a long-term care policy in a "tax-free" exchange under Section 1035 of the Code. You also generally can exchange a life insurance policy for an annuity. However, before making an exchange, you should compare both contracts carefully because the features and benefits may be different. Fees and charges may be higher or lower on your old contract than on this contract. You may have to pay a surrender charge when you exchange out of your old contract and a new surrender charge period will begin when you exchange into this contract. If the exchange does not qualify for Section 1035 treatment, you also may have to pay federal income tax on the exchange. State income taxes may also apply. You should not exchange your old contract for this contract, or buy this contract in addition to your old contract, unless you determine it is in your best interest. TAX-DEFERRED RETIREMENT PLANS: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. A qualified annuity has features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions (RMDs). RMDs may reduce the value of certain death benefits and optional riders (see "Taxes -- Qualified Annuities - -- Required Minimum Distributions"). You should consult your tax advisor before you purchase the contract as a qualified annuity for an explanation of the potential tax implications to you. FREE LOOK PERIOD: You may return your contract to your financial advisor or to our corporate office within the time stated on the first page of your contract. Under RAVA Advantage you will receive a full refund of the contract value, less the amount of any purchase payment credits. (See "Valuing Your Investment - Purchase payment credits.") We will not deduct any other charges. Under RAVA Select you will receive a refund of your contract value less the value of the purchase payment credit. However, you bear the investment risk from the time of purchase until you return the contract; the refund amount may be more or less than the payment you made. (Exception: If the law requires, we will refund all of your purchase payments.) ACCOUNTS: Generally, you may allocate your purchase payments among any or all of: - - the subaccounts of the variable account, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (see "The Variable Account and the Funds") - - the fixed account, which earns interest at a rate that we adjust periodically. Purchase payment allocations to the fixed account may be subject to special restrictions. (see "The Fixed Account") BUYING YOUR CONTRACT: We no longer offer new contracts. However, you have the option of making additional purchase payments in the future. (see "Buying Your Contract") TRANSFERS: Subject to certain restrictions, you currently may redistribute your contract value among the accounts until annuity payouts begin, and once per contract year among the subaccounts after annuity payouts begin. You may establish automated transfers among the accounts. Fixed account transfers are subject to special restrictions. (see "Making the Most of Your Contract -- Transferring Among Accounts") SURRENDERS: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences; also, certain restrictions apply. (see "Surrenders") RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 5 BENEFITS IN CASE OF DEATH: If you or the annuitant die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value, except in the case of a purchase payment credit reversal. (see "Benefits in Case of Death -- Standard Death Benefit") OPTIONAL BENEFITS: These contracts offer optional features that are available for additional charges if you meet certain criteria. (see "Optional Benefits") ANNUITY PAYOUTS: You can apply your contract value, after reflecting any adjustments, to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (see "The Annuity Payout Period") TAXES: Generally, income earned on your contract value grows tax-deferred until you surrender it or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and nonqualified annuities differs. Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. However, Roth IRAs may grow and be distributed tax free if you meet certain distribution requirements. (see "Taxes") 6 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS EXPENSE SUMMARY THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT ARE PAID WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU PAID AT THE TIME THAT YOU BOUGHT THE CONTRACT AND MAY PAY WHEN YOU SURRENDER THE CONTRACT. STATE PREMIUM TAXES ALSO MAY BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SURRENDER CHARGE FOR RAVA ADVANTAGE (Contingent deferred sales load as a percentage of purchase payment surrendered) You select either a seven-year or ten-year surrender charge schedule at the time of application.*
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF NUMBER OF COMPLETED YEARS COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7 0 7 4 8 3 9 2 10 0
* The ten-year surrender charge schedule is not available for contracts issued in Oregon. For contracts issued in Massachusetts, Oregon and Washington, surrender charges are waived after the tenth contract anniversary for all payments regardless of when payments are made. SURRENDER CHARGE FOR RAVA SELECT AND TEXAS CONTRACTS ISSUED PRIOR TO 11/7/2002 (Contingent deferred sales load as a percentage of purchase payment surrendered)
YEARS FROM SURRENDER CHARGE CONTRACT DATE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE FOR RAVA SELECT IN TEXAS CONTRACTS ISSUED ON OR AFTER 11/7/2002 (Contingent deferred sales load)
SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 1 2 3 THEREAFTER 1 8% 7% 6% 0% 2 8 7 0 3 8 0 Thereafter 0
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 7 SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.")
ASSUMED INVESTMENT RATE 3.50% 5.00% Qualified annuity discount rate 4.72% 6.22% Nonqualified annuity discount rate 4.92% 6.42%
THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL CONTRACT ADMINISTRATIVE CHARGE $30
(We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) OPTIONAL RIDER FEES (As a percentage of the contract value charged annually at the contract anniversary. The fee applies only if you elect the optional rider.) MAV RIDER FEE 0.25%* EEB RIDER FEE 0.30% EEP RIDER FEE 0.40% PN RIDER FEE** MAXIMUM: 0.20% CURRENT: 0.10%
* For contracts purchased before May 1, 2003, the MAV rider fee is 0.15%. ** Beginning May 10, 2010, the rider is not required to select the PN program and this fee will no longer apply. For contract holders who currently participate in the PN program, beginning May 10, 2010, the PN rider fee will be $0. ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value)
MORTALITY AND EXPENSE RISK FEE: RAVA ADVANTAGE RAVA SELECT For nonqualified annuities 0.95% 1.20% For qualified annuities 0.75% 1.00%
8 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS ANNUAL OPERATING EXPENSES OF THE FUNDS THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THESE OPERATING EXPENSES ARE FOR THE FISCAL YEAR ENDED DEC. 31, 2009, UNLESS OTHERWISE NOTED. THE FIRST TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE FEES AND EXPENSES CHARGED BY EACH FUND. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND. MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(A) (Including management fee, distribution and/or service (12b-1) fees and other expenses)
MINIMUM MAXIMUM Total expenses before fee waivers and/or expense reimbursements 0.50% 2.05%
(a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund's affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund's distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See "The Variable Account and the Funds" for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund's fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund's prospectus and SAI. TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE AND RAVA SELECT* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND MANAGEMENT 12B-1 OTHER FEES AND GROSS TOTAL ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AllianceBernstein VPS Global Thematic Growth 0.75% 0.25% 0.25% --% 1.25% Portfolio (Class B) (previously AllianceBernstein VPS Global Technology Portfolio (Class B)) AllianceBernstein VPS Growth and Income 0.55 0.25 0.08 -- 0.88 Portfolio (Class B) AllianceBernstein VPS International Value 0.75 0.25 0.08 -- 1.08 Portfolio (Class B) American Century VP International, Class II 1.26 0.25 0.01 0.01 1.53 American Century VP Mid Cap Value, Class II 0.90 0.25 0.01 -- 1.16 American Century VP Ultra(R), Class II 0.90 0.25 0.01 -- 1.16 American Century VP Value, Class II 0.87 0.25 -- -- 1.12 Calvert Variable Series, Inc. VP SRI Social 0.70 -- 0.21 -- 0.91 Balanced Portfolio Columbia Marsico Growth Fund, Variable Series, 0.91 -- 0.02 -- 0.93(1) Class A Columbia Marsico International Opportunities 1.02 0.25 0.17 -- 1.44(1) Fund, Variable Series, Class B Credit Suisse Trust - Commodity Return 0.50 0.25 0.45 -- 1.20(2) Strategy Portfolio Eaton Vance VT Floating-Rate Income Fund 0.57 0.25 0.33 -- 1.15 Evergreen VA Fundamental Large Cap 0.63 0.25 0.22 -- 1.10 Fund - Class 2 Evergreen VA International Equity Fund - Class 0.43 0.25 0.22 -- 0.90 2 Fidelity(R) VIP Contrafund(R) Portfolio 0.56 0.25 0.11 -- 0.92 Service Class 2 Fidelity(R) VIP Growth & Income Portfolio 0.46 0.25 0.14 -- 0.85 Service Class 2 Fidelity(R) VIP Mid Cap Portfolio Service 0.56 0.25 0.12 -- 0.93 Class 2 Fidelity(R) VIP Overseas Portfolio Service 0.71 0.25 0.16 -- 1.12 Class 2 FTVIPT Franklin Global Real Estate Securities 0.80 0.25 0.31 -- 1.36(3) Fund - Class 2 FTVIPT Franklin Small Cap Value Securities 0.52 0.25 0.18 0.03 0.98(4) Fund - Class 2 FTVIPT Mutual Shares Securities Fund - Class 2 0.60 0.25 0.18 -- 1.03 Goldman Sachs VIT Mid Cap Value 0.80 -- 0.06 -- 0.86 Fund - Institutional Shares Goldman Sachs VIT Structured U.S. Equity 0.64 -- 0.08 -- 0.72(5) Fund - Institutional Shares Invesco V.I. Capital Appreciation Fund, Series 0.62 0.25 0.29 0.01 1.17 II Shares (previously AIM V.I. Capital Appreciation Fund, Series II Shares)
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 9 TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE AND RAVA SELECT* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND MANAGEMENT 12B-1 OTHER FEES AND GROSS TOTAL ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Invesco V.I. Capital Development Fund, Series 0.75% 0.25% 0.36% 0.01% 1.37%((6)) II Shares (previously AIM V.I. Capital Development Fund, Series II Shares) Invesco V.I. Dynamics Fund, Series I Shares 0.75 -- 0.58 0.01 1.34(7) (previously AIM V.I. Dynamics Fund, Series I Shares) Invesco V.I. Financial Services Fund, Series I 0.75 -- 0.53 0.01 1.29 Shares (previously AIM V.I. Financial Services Fund, Series I Shares) Invesco V.I. Global Health Care Fund, Series 0.75 0.25 0.39 0.01 1.40 II Shares (previously AIM V.I. Global Health Care Fund, Series II Shares) Invesco V.I. International Growth Fund, Series 0.71 0.25 0.33 0.02 1.31 II Shares (previously AIM V.I. International Growth Fund, Series II Shares) Invesco V.I. Technology Fund, Series I Shares 0.75 -- 0.44 0.01 1.20 (previously AIM V.I. Technology Fund, Series I Shares) Janus Aspen Series Global Technology 0.64 0.25 0.33 -- 1.22 Portfolio: Service Shares Janus Aspen Series Janus Portfolio: Service 0.64 0.25 0.03 -- 0.92 Shares Janus Aspen Series Overseas Portfolio: Service 0.64 0.25 0.06 -- 0.95 Shares MFS(R) Investors Growth Stock Series - Service 0.75 0.25 0.11 -- 1.11 Class MFS(R) New Discovery Series - Service Class 0.90 0.25 0.13 -- 1.28 MFS(R) Utilities Series - Service Class 0.73 0.25 0.09 -- 1.07 Neuberger Berman Advisers Management Trust 1.15 0.25 0.26 0.01 1.67(8) International Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service 0.64 0.25 0.11 -- 1.00 Shares Oppenheimer Global Strategic Income Fund/VA, 0.55 0.25 0.10 0.03 0.93(9) Service Shares (previously Oppenheimer Strategic Bond Fund/VA, Service Shares) Oppenheimer Main Street Small Cap Fund/VA, 0.71 0.25 0.19 -- 1.15(10) Service Shares PIMCO VIT All Asset Portfolio, Advisor Share 0.43 0.25 -- 0.69 1.37 Class Putnam VT Global Health Care Fund - Class IB 0.63 0.25 0.19 0.01 1.08(11) Shares Putnam VT International Equity Fund - Class IB 0.70 0.25 0.20 -- 1.15(12) Shares Putnam VT Vista Fund - Class IB Shares 0.59 0.25 0.20 0.01 1.05(11) RVST Disciplined Asset Allocation -- 0.25 0.32 0.69 1.26(13) Portfolios - Aggressive RVST Disciplined Asset Allocation -- 0.25 0.21 0.63 1.09(13) Portfolios - Conservative RVST Disciplined Asset Allocation -- 0.25 0.14 0.66 1.05(13) Portfolios - Moderate RVST Disciplined Asset Allocation -- 0.25 0.17 0.67 1.09(13) Portfolios - Moderately Aggressive RVST Disciplined Asset Allocation -- 0.25 0.19 0.64 1.08(13) Portfolios - Moderately Conservative RVST RiverSource Variable Portfolio - Balanced 0.46 0.13 0.14 -- 0.73 Fund (Class 3) RVST RiverSource Variable Portfolio - Cash 0.33 0.13 0.18 -- 0.64 Management Fund (Class 3) RVST RiverSource Variable 0.44 0.13 0.14 -- 0.71 Portfolio - Diversified Bond Fund (Class 3) RVST RiverSource Variable 0.50 0.13 0.13 -- 0.76 Portfolio - Diversified Equity Income Fund (Class 3) RVST RiverSource Variable Portfolio - Dynamic 0.44 0.13 0.14 0.01 0.72 Equity Fund (Class 3) RVST RiverSource Variable Portfolio - Global 0.66 0.13 0.18 -- 0.97(14) Bond Fund (Class 3) RVST RiverSource Variable Portfolio - Global 0.43 0.13 0.15 -- 0.71(14) Inflation Protected Securities Fund (Class 3) RVST RiverSource Variable Portfolio - High 0.59 0.13 0.14 -- 0.86 Yield Bond Fund (Class 3) RVST RiverSource Variable Portfolio - Income 0.60 0.13 0.15 -- 0.88 Opportunities Fund (Class 3) RVST RiverSource Variable Portfolio - Mid Cap 0.80 0.13 0.14 -- 1.07(14) Growth Fund (Class 3)
10 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE AND RAVA SELECT* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND MANAGEMENT 12B-1 OTHER FEES AND GROSS TOTAL ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES RVST RiverSource Variable Portfolio - Mid Cap 0.58% 0.13% 0.14% --% 0.85% Value Fund (Class 3) RVST RiverSource Variable Portfolio - S&P 500 0.22 0.13 0.15 -- 0.50(14) Index Fund (Class 3) RVST RiverSource Variable Portfolio - Short 0.48 0.13 0.15 -- 0.76 Duration U.S. Government Fund (Class 3) RVST Seligman Variable Portfolio - Growth Fund 0.52 0.13 0.15 -- 0.80 (Class 3) RVST Seligman Variable Portfolio - Larger-Cap 0.61 0.13 0.50 -- 1.24(14) Value Fund (Class 3) RVST Seligman Variable Portfolio - Smaller-Cap 0.80 0.13 0.16 -- 1.09(14) Value Fund (Class 3) RVST Threadneedle Variable 1.08 0.13 0.21 -- 1.42(14) Portfolio - Emerging Markets Fund (Class 3) RVST Threadneedle Variable 0.85 0.13 0.18 -- 1.16 Portfolio - International Opportunity Fund (Class 3) RVST Variable Portfolio - Davis New York 0.68 0.13 0.13 -- 0.94(14) Venture Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund) RVST Variable Portfolio - Goldman Sachs Mid 0.81 0.13 0.62 -- 1.56(14) Cap Value Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Select Value Fund) RVST Variable Portfolio - Partners Small Cap 0.99 0.13 0.15 0.02 1.29(14) Value Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund) RVST Variable Portfolio - Aggressive Portfolio -- 0.25 0.04 0.77 1.06(15) (Class 2) RVST Variable Portfolio - Aggressive Portfolio -- 0.25 0.04 0.77 1.06(15),(16) (Class 4) RVST Variable Portfolio - Conservative -- 0.25 0.04 0.62 0.91(15) Portfolio (Class 2) RVST Variable Portfolio - Conservative -- 0.25 0.04 0.62 0.91(15),(16) Portfolio (Class 4) RVST Variable Portfolio - Moderate Portfolio -- 0.25 0.04 0.70 0.99(15) (Class 2) RVST Variable Portfolio - Moderate Portfolio -- 0.25 0.04 0.70 0.99(15),(16) (Class 4) RVST Variable Portfolio - Moderately -- 0.25 0.04 0.74 1.03(15) Aggressive Portfolio (Class 2) RVST Variable Portfolio - Moderately -- 0.25 0.04 0.74 1.03(15),(16) Aggressive Portfolio (Class 4) RVST Variable Portfolio - Moderately -- 0.25 0.04 0.66 0.95(15) Conservative Portfolio (Class 2) RVST Variable Portfolio - Moderately -- 0.25 0.04 0.66 0.95(15),(16) Conservative Portfolio (Class 4) Van Kampen Life Investment Trust Comstock 0.56 0.25 0.06 -- 0.87 Portfolio, Class II Shares Van Kampen's UIF Global Real Estate Portfolio, 0.85 0.35 0.36 0.01 1.57 Class II Shares Van Kampen's UIF Mid Cap Growth Portfolio, 0.75 0.35 0.31 0.01 1.42 Class II Shares Wanger International 0.85 -- 0.20 -- 1.05 Wanger USA 0.86 -- 0.12 -- 0.98 Wells Fargo Advantage VT Index Asset 0.55 0.25 0.27 -- 1.07(17) Allocation Fund (previously Wells Fargo Advantage VT Asset Allocation Fund) Wells Fargo Advantage VT International Core 0.75 0.25 1.04 0.01 2.05(17) Fund Wells Fargo Advantage VT Opportunity Fund 0.75 0.25 0.32 0.02 1.34(17) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.26 0.01 1.27(17)
* The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) The Advisor has voluntarily agreed to reimburse a portion of the Fund's expenses so that the Fund's ordinary operating expenses (excluding any distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but including custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian, do not exceed 1.05% for Columbia Marsico Growth Fund, Variable Series, Class A and 1.20% for Columbia Marsico International Opportunities Fund, Variable Series, Class B, of the Fund's average daily net assets on an annualized basis. These arrangements may be modified or terminated by the Advisor at any time. (2) Credit Suisse fee waivers and expense reimbursements are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements, net expenses would be 0.95%. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 11 (3) The investment manager and administrator have contractually agreed to waive or limit their respective fees so that the increase in investment management and fund administration fees paid by the Fund is phased in over a five year period, starting on May 1, 2007, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of four years thereafter through April 30, 2012, the investment manager and administrator will receive one-fifth of the increase in the rate of fees. After fee reductions net expenses would be 1.15%. (4) The manager and administrator have agreed in advance to reduce their fees as a result of the Fund's investment in a Franklin Templeton money market fund. This reduction is required by the Trust's board of trustees and an exemptive order by the Securities and Exchange Commission; this arrangement will continue as long as the exemptive order is relied upon. After fee reductions net expenses would be 0.96%. (5) The Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.004% of the Fund's average daily net assets. Prior to July 1, 2009, this fee as a percentage of average daily net assets was 0.044% of the Fund. The expense reductions may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. (6) The Advisor has contractually agreed, through at least April 30, 2011, to waive a portion of its advisory fees to the extent necessary so that the advisory fees payable by the Fund does not exceed a specified maximum annual advisory fee rate, wherein the fee rate includes breakpoints and is based upon net asset levels. After fee waivers and expense reimbursements net expenses would be 1.36%. The Board of Trustees or Invesco Advisers, Inc. may mutually agree to terminate the fee waiver agreement at any time. (7) The Advisor has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of Series I shares to the extent necessary to limit total annual operating expenses (subject to certain exclusions) to 1.30% of average daily net assets. After fee waivers and expense reimbursements net expenses would be 1.31%. The Board of Trustees or Invesco Advisers, Inc. may mutually agree to terminate the fee waiver agreement at any time. (8) Neuberger Berman Management LLC ("NBM") has undertaken through Dec. 31, 2013, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 2.00% of the average daily net asset value. NBM has also voluntarily committed to reimburse certain expenses for an additional 0.50% per annum of the Portfolio's average daily net assets to maintain the Portfolio's operating expenses at 1.50%. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. After fee waiver and expense reimbursements net expenses would be 1.52%. (9) The Manager will voluntarily waive and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund, Oppenheimer Master Loan Fund, LLC and Oppenheimer Master Event-Linked Bond Fund, LLC. (10) The Manager has voluntarily undertaken to limit the Fund's total annual operating expenses so that the expenses, as percentages of daily net assets will not exceed the annual rate of 1.05%. This voluntary undertaking may be amended or withdrawn at any time. (11) The fees reflect projected expenses under a new management contract effective Jan. 1, 2010, changes in the fund's investor servicing contract and a new expense arrangement, which gives effect to changes in the allocation of certain expenses among the Putnam funds. (12) The fees reflect projected expenses under a new management contract effective Jan. 1, 2010 and changes in the fund's investor servicing contract. (13) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses of the Fund until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board of Trustees. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (excluding fees and expenses of acquired funds) will not exceed 0.41% for each of the RVST Disciplined Asset Allocation Portfolios. (14) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board of Trustees. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net fund expenses (excluding acquired fund fees and expenses, if any), before giving effect to any performance incentive adjustment, will not exceed 0.97% for RVST RiverSource Variable Portfolio - Global Bond Fund (Class 3), 0.76% for RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Fund (Class 3), 1.08% for RVST RiverSource Variable Portfolio - Mid Cap Growth Fund (Class 3), 0.53% for RVST RiverSource Variable Portfolio - S&P 500 Index Fund (Class 3), 1.05% for RVST Seligman Variable Portfolio - Larger-Cap Value Fund (Class 3), 1.15% for RVST Seligman Variable Portfolio - Smaller-Cap Value Fund (Class 3), 1.53% for RVST Threadneedle Variable Portfolio - Emerging Markets Fund (Class 3), 0.99% for RVST Variable Portfolio - Davis New York Venture Fund (Class 3), 1.20% for RVST Variable Portfolio - Goldman Sachs Mid Cap Value Fund (Class 3) and 1.20% for RVST Variable Portfolio - Partners Small Cap Value Fund (Class 3). (15) Other expenses and acquired fund fees and expenses are based on estimated amounts for the current fiscal year. RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses for Class 2 and Class 4 shares of the Fund until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (excluding acquired fund fees and expenses) will not exceed 0.32% for each of the Class 2 and Class 4 shares of the Fund's. (16) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses for Class 4 shares of the Fund until April 30, 2012, unless sooner terminated at the sole discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (including acquired fund fees and expenses) will not exceed 0.99% for RVST Variable Portfolio - Aggressive Portfolio (Class 4), 0.86% for RVST Variable Portfolio - Conservative Portfolio (Class 4), 0.94% for RVST Variable Portfolio - Moderate Portfolio (Class 4), 0.98% RVST Variable Portfolio - Moderately Aggressive Portfolio (Class 4) and 0.90% for RVST Variable Portfolio - Moderately Conservative Portfolio (Class 4). (17) Expenses have been adjusted from amounts incurred during the Fund's most recent fiscal year to reflect current fees and expenses. The adviser has contractually agreed through April 30, 2011 to waive fees and/or reimburse expenses to the extent necessary to ensure that the Fund's net operating expenses, including the underlying master portfolio's fees and expenses and excluding brokerage commissions, interest, taxes and extraordinary expenses, do not exceed: 1.00% for Wells Fargo Advantage VT Index Asset Allocation Fund, 1.01% for Wells Fargo Advantage VT International Core Fund, 1.09% for Wells Fargo Advantage VT Opportunity Fund and 1.21% for Wells Fargo Advantage VT Small Cap Growth Fund. The committed net operating expense ratio may be increased or terminated only with approval of the Board of Trustees. 12 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THESE CONTRACTS WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CONTRACT ADMINISTRATIVE CHARGES*, VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES. THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR. MAXIMUM EXPENSES. These examples assume the most expensive combination of contract features and benefits and the maximum fees and expense of any of the funds. They assume that you select the optional MAV, EEP and PN**. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR IF YOU SURRENDER YOUR CONTRACT AT CONTRACT OR IF YOU SELECT AN THE END OF THE APPLICABLE TIME ANNUITY PAYOUT PLAN AT THE END OF PERIOD: THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE With a ten-year surrender charge schedule $1,224 $2,081 $2,851 $4,580 $424 $1,281 $2,151 $4,380 RAVA ADVANTAGE With a seven-year surrender charge schedule 1,124 1,981 2,651 4,380 424 1,281 2,151 4,380 RAVA SELECT 1,150 2,055 2,269 4,593 450 1,355 2,269 4,593 RAVA SELECT - TEXAS 1,250 1,955 2,269 4,593 450 1,355 2,269 4,593 IF YOU DO NOT SURRENDER YOUR IF YOU SURRENDER YOUR CONTRACT AT CONTRACT OR IF YOU SELECT AN THE END OF THE APPLICABLE TIME ANNUITY PAYOUT PLAN AT THE END OF PERIOD: THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE With a ten-year surrender charge schedule $1,204 $2,022 $2,755 $4,405 $404 $1,222 $2,055 $4,205 RAVA ADVANTAGE With a seven-year surrender charge schedule 1,104 1,922 2,555 4,205 404 1,222 2,055 4,205 RAVA SELECT 1,129 1,996 2,175 4,423 429 1,296 2,175 4,423 RAVA SELECT - TEXAS 1,229 1,896 2,175 4,423 429 1,296 2,175 4,423
MINIMUM EXPENSES. These examples assume the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. They assume that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR IF YOU SURRENDER YOUR CONTRACT AT CONTRACT OR IF YOU SELECT AN THE END OF THE APPLICABLE TIME ANNUITY PAYOUT PLAN AT THE END OF PERIOD: THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE With a ten-year surrender charge schedule $ 979 $1,350 $1,643 $2,223 $179 $550 $ 943 $2,023 RAVA ADVANTAGE With a seven-year surrender charge schedule 879 1,250 1,443 2,023 179 550 943 2,023 RAVA SELECT 904 1,328 1,074 2,296 204 628 1,074 2,296 RAVA SELECT - TEXAS 1,004 1,228 1,074 2,296 204 628 1,074 2,296
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 13
IF YOU DO NOT SURRENDER YOUR IF YOU SURRENDER YOUR CONTRACT AT CONTRACT OR IF YOU SELECT AN THE END OF THE APPLICABLE TIME ANNUITY PAYOUT PLAN AT THE END OF PERIOD: THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE With a ten-year surrender charge schedule $958 $1,288 $1,536 $1,999 $158 $488 $836 $1,799 RAVA ADVANTAGE With a seven-year surrender charge schedule 858 1,188 1,336 1,799 158 488 836 1,799 RAVA SELECT 884 1,266 969 2,078 184 566 969 2,078 RAVA SELECT - TEXAS 984 1,166 969 2,078 184 566 969 2,078
* In these examples, the contract administrative charge is $30. ** Because these examples are intended to illustrate the most expensive combination of contract features, the maximum annual fee for the optional rider is reflected rather than the fee that is currently being charged. 14 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS CONDENSED FINANCIAL INFORMATION (Unaudited) You can find unaudited condensed financial information for the subaccounts in Appendix C. We do not include any condensed financial information for subaccounts that are new and did not have any activity as of the financial statement date. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the divisions, which are comprised of subaccounts, in the SAI. The SAI does not include audited financial statements for divisions that are new and did not have any activity as of the financial statement date. THE VARIABLE ACCOUNT AND THE FUNDS THE VARIABLE ACCOUNT: The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of RiverSource Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the Internal Revenue Service (IRS) has issued some guidance on investor control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. THE FUNDS: The contract currently offers subaccounts investing in shares of the funds listed in the table below. - - INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. - - FUND NAME AND MANAGEMENT: A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. - - ELIGIBLE PURCHASERS: All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The funds are not available to the public (see "Fund name and management" above). Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although we and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of each fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 15 establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each fund intends to comply with the diversification requirements under Section 817(h) of the Code. - - ASSET ALLOCATION PROGRAMS MAY IMPACT FUND PERFORMANCE: Asset allocation programs in general may negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a fund in which your subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or reallocation under the terms of the asset allocation program may cause a fund to lose money if it must sell large amounts of securities to meet a redemption request. These losses can be greater if the fund holds securities that are not as liquid as others; for example, various types of bonds, shares of smaller companies and securities of foreign issuers. A fund may also experience higher expenses because it must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the asset allocation program we offer (see "Making the Most of Your Contract -- Portfolio Navigator Program") or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the funds. - - FUNDS AVAILABLE UNDER THE CONTRACT: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each fund and the contract charges we impose. We select the underlying funds in which the subaccounts initially invest and when there is substitution (see "Substitution of Investments"). We also make all decisions regarding which funds to retain in a contract, which funds to add to a contract and which funds will no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to fund performance, fund expenses, classes of fund shares available, size of the fund and investment objectives and investing style of the fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds and portfolio concentration and sector weightings. We also consider the levels and types of revenue, including but not limited to expense payments and non-cash compensation a fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the fund and support of marketing and distribution expenses incurred with respect to the fund. - - REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST: We or our affiliates receive from each of the funds, or the funds' affiliates, varying levels and types of revenue including expense payments and non-cash compensation. The amount and percentage of revenue we and our affiliates receive comes from assets allocated to subaccounts investing in the RiverSource Variable Series Trust funds (affiliated funds) that are managed by RiverSource Investments, LLC (RiverSource Investments), one of our affiliates. RiverSource Variable Series Trust funds include the RiverSource Variable Portfolio funds, Variable Portfolio funds, Threadneedle Variable Portfolio funds, Seligman Variable Portfolio funds, Variable Portfolio Partners Fund, Variable Portfolio funds of funds and Disciplined Asset Allocation Portfolio funds. In addition, on Sept. 29, 2009, Ameriprise Financial, Inc. entered into an agreement with Bank of America Corporation to buy a portion of the asset management business of Columbia Management Group, LLC, including Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC (the "Transaction"). The Transaction is subject to certain approvals and other conditions to closing, and is currently expected to close in the second quarter of 2010. Certain separate accounts invest in funds sponsored by Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC. Employee compensation and operating goals at all levels are tied to the success of Ameriprise Financial, Inc. and its affiliates, including us. Certain employees may receive higher compensation and other benefits based, in part, on contract values that are invested in the RiverSource Variable Series Trust funds. We or our affiliates receive revenue which ranges up to 0.60% of the average daily net assets invested in the non-RiverSource Variable Series Trust funds (unaffiliated funds) through this and other contracts we and our affiliate issue. We or our affiliates may also receive revenue which ranges up to 0.04% of aggregate, net or anticipated sales of unaffiliated funds through this and other contracts we and our affiliate issue. Please see the SAI for a table that ranks the unaffiliated funds according to total dollar amounts they and their affiliates paid us or our affiliates in the prior calendar year. Expense payments, non-cash compensation and other forms of revenue may influence recommendations your investment professional makes regarding whether you should invest in the contract, and whether you should allocate purchase payments or contract value to a subaccount that invests in a particular fund (see "About the Service Providers"). The revenue we or our affiliates receive from a fund or its affiliates is in addition to revenue we receive from the charges you pay when buying, owning and surrendering the contract (see "Expense Summary"). However, the revenue we or our affiliates receive from a fund or its affiliates may come, at least in part, from the fund's fees and expenses you pay indirectly when you allocate contract value to the subaccount that invests in that fund. 16 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS - - WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive these revenues including but not limited to expense payments and non-cash compensation for various purposes: - Compensating, training and educating financial advisors who sell the contracts. - Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their financial advisors, and granting access to financial advisors of our affiliated selling firms. - Activities or services we or our affiliates provide that assist in the promotion and distribution of the contracts including promoting the funds available under the contracts to prospective and existing contract owners, authorized selling firms and financial advisors. - Providing sub-transfer agency and shareholder servicing to contract owners. - Promoting, including and/or retaining the fund's investment portfolios as underlying investment options in the contracts. - Advertising, printing and mailing sales literature, and printing and distributing prospectuses and reports. - Furnishing personal services to contract owners, including education of contract owners, answering routine inquiries regarding a fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA). - Subaccounting, transaction processing, recordkeeping and administration. - - SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are managed by RiverSource Investments. The sources of revenue we receive from these affiliated funds, or from affiliates of these funds, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser and transfer agent or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the fund or on the actual cost of certain services we provide with respect to the fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. - - SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these unaffiliated funds, or the funds' affiliates, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser, subadviser, transfer agent or an affiliate of these and assets of the fund's distributor or an affiliate. The revenue resulting from these sources usually is based on a percentage of average daily net assets of the fund but there may be other types of payment arrangements. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 17 UNLESS THE PN PROGRAM IS IN EFFECT, YOU MAY ALLOCATE PURCHASE PAYMENTS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Global Thematic Growth Portfolio (Class B) (previously AllianceBernstein VPS Global Technology Portfolio (Class B)) - ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Growth and Income Portfolio (Class B) - ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS International Value Portfolio (Class B) - ---------------------------------------------------------------------------------------- American Century Seeks capital growth. American Century Global VP International, Investment Management, Class II Inc. - ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Mid Cap Value, secondary objective. Investment Management, Class II Inc. - ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. American Century VP Ultra(R), Investment Management, Class II Inc. - ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Value, Class secondary objective. Investment Management, II Inc. - ---------------------------------------------------------------------------------------- Calvert Variable Seeks competitive total return through Calvert Asset Management Series, Inc. VP actively managed portfolio of stocks, bonds Company, Inc., adviser. SRI Social and money market instruments which offer New Amsterdam Partners, Balanced income and capital growth opportunity and LLP, subadviser on Portfolio which satisfy Portfolio's investment and equity portion; no social criteria. subadviser on fixed- income portion. - ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management Growth Fund, Investment Advisers, Variable Series, LLC, adviser; Marsico Class A Capital Management, LLC, sub-adviser. - ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management International Investment Advisers, Opportunities LLC, adviser; Marsico Fund, Variable Capital Management, LLC, Series, Class B sub-adviser. - ---------------------------------------------------------------------------------------- Credit Suisse Seeks total return. Credit Suisse Asset Trust - Commodity Management, LLC Return Strategy Portfolio - ---------------------------------------------------------------------------------------- Eaton Vance VT Seeks high level of current income. Eaton Vance Management Floating-Rate Income Fund - ---------------------------------------------------------------------------------------- Evergreen VA Seeks capital growth with the potential for Evergreen Investment Fundamental Large current income. Management Company, LLC Cap Fund - Class 2 - ---------------------------------------------------------------------------------------- Evergreen VA Seeks long-term capital growth and Evergreen Investment International secondarily, modest income. Management Company, LLC Equity Fund - Class 2 - ----------------------------------------------------------------------------------------
18 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term capital appreciation. Fidelity Management & Contrafund(R) Normally invests primarily in common Research Company (FMR), Portfolio Service stocks. Invests in securities of companies investment manager; FMR Class 2 whose value it believes is not fully U.K. and FMR Far East, recognized by the public. Invests in either sub-advisers. "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. - ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks high total return through a FMR, investment manager; Growth & Income combination of current income and capital FMR U.K., FMR Far East, Portfolio Service appreciation. Normally invests a majority sub-advisers. Class 2 of assets in common stocks with a focus on those that pay current dividends and show potential for capital appreciation. Invests in domestic and foreign issuers. The Fund invests in either "growth" stocks or "value" stocks or both. - ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Mid Cap Portfolio invests primarily in common stocks. FMR U.K., FMR Far East, Service Class 2 Normally invests at least 80% of assets in sub-advisers. securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. Invests in domestic and foreign issuers. The Fund invests in either "growth" or "value" common stocks or both. - ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Overseas invests primarily in common stocks FMR U.K., FMR Far East, Portfolio Service allocating investments across different Fidelity International Class 2 countries and regions. Normally invests at Investment Advisors least 80% of assets in non-U.S. securities. (FIIA) and FIIA U.K., sub-advisers. - ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks high total return. Franklin Templeton Global Real Institutional, LLC Estate Securities Fund - Class 2 - ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks long-term total return. Franklin Advisory Small Cap Value Services, LLC Securities Fund - Class 2 - ---------------------------------------------------------------------------------------- FTVIPT Mutual Seeks capital appreciation, with income as Franklin Mutual Shares Securities a secondary goal. Advisers, LLC Fund - Class 2 - ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term capital appreciation. Goldman Sachs Asset Mid Cap Value Management, L.P. Fund - Institutional Shares - ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital and Goldman Sachs Asset Structured U.S. dividend income. Management, L.P. Equity Fund - Institutional Shares - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks growth of capital. Invesco Advisers, Inc. Capital Appreciation Fund, Series II Shares (previously AIM V.I. Capital Appreciation Fund, Series II Shares) - ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 19
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks long-term growth of capital. Invesco Advisers, Inc. Capital Development Fund, Series II Shares (previously AIM V.I. Capital Development Fund, Series II Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks long-term capital growth. Invesco Advisers, Inc. Dynamics Fund, Series I Shares (previously AIM V.I. Dynamics Fund, Series I Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks capital growth. Invesco Advisers, Inc. Financial Services Fund, Series I Shares (previously AIM V.I. Financial Services Fund, Series I Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks capital growth. Invesco Advisers, Inc. Global Health Care Fund, Series II Shares (previously AIM V.I. Global Health Care Fund, Series II Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks long-term growth of capital. Invesco Advisers, Inc. International Growth Fund, Series II Shares (previously AIM V.I. International Growth Fund, Series II Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks capital growth. Invesco Advisers, Inc. Technology Fund, Series I Shares (previously AIM V.I. Technology Fund, Series I Shares) - ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital. Janus Capital Management Series Global LLC Technology Portfolio: Service Shares - ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital in a Janus Capital Management Series Janus manner consistent with the preservation of LLC Portfolio: capital. Service Shares - ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital. Janus Capital Management Series Overseas LLC Portfolio: Service Shares - ---------------------------------------------------------------------------------------- MFS(R) Investors Seeks capital appreciation. MFS Investment Growth Stock Management(R) Series - Service Class - ---------------------------------------------------------------------------------------- MFS(R) New Seeks capital appreciation. MFS Investment Discovery Management(R) Series - Service Class - ---------------------------------------------------------------------------------------- MFS(R) Utilities Seeks total return. MFS Investment Series - Service Management(R) Class - ----------------------------------------------------------------------------------------
20 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- Neuberger Berman Seeks long-term growth of capital by Neuberger Berman Advisers investing primarily in common stocks of Management LLC Management Trust foreign companies. International Portfolio (Class S) - ---------------------------------------------------------------------------------------- Oppenheimer Seeks long-term capital appreciation. OppenheimerFunds, Inc. Global Securities Fund/VA, Service Shares - ---------------------------------------------------------------------------------------- Oppenheimer Seeks high level of current income OppenheimerFunds, Inc. Global Strategic principally derived from interest on debt Income Fund/VA, securities. Service Shares (previously Oppenheimer Strategic Bond Fund/VA, Service Shares) - ---------------------------------------------------------------------------------------- Oppenheimer Main Seeks capital appreciation. OppenheimerFunds, Inc. Street Small Cap Fund/VA, Service Shares - ---------------------------------------------------------------------------------------- PIMCO VIT All Seeks maximum real return consistent with Pacific Investment Asset Portfolio, preservation of real capital and prudent Management Company LLC Advisor Share investment management. Class - ---------------------------------------------------------------------------------------- Putnam VT Global Seeks capital appreciation. Putnam Investment Health Care Management, LLC Fund - Class IB Shares - ---------------------------------------------------------------------------------------- Putnam VT Seeks capital appreciation. Putnam Investment International Management, LLC Equity Fund - Class IB Shares - ---------------------------------------------------------------------------------------- Putnam VT Vista Seeks capital appreciation. Putnam Investment Fund - Class IB Management, LLC Shares - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with an aggressive level of LLC Portfolios - risk. This is a "fund of funds" and seeks Aggressive to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a conservative level of LLC Portfolios - risk. This is a "fund of funds" and seeks Conservative to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 21
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate level of risk. LLC Portfolios - This is a "fund of funds" and seeks to Moderate achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate aggressive level LLC Portfolios - of risk. This is a "fund of funds" and Moderately seeks to achieve its objective by investing Aggressive in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate conservative LLC Portfolios - level of risk. This is a "fund of funds" Moderately and seeks to achieve its objective by Conservative investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum total investment return RiverSource Investments, Variable through a combination of capital growth and LLC Portfolio - current income. Balanced Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum current income consistent RiverSource Investments, Variable with liquidity and stability of principal. LLC Portfolio - Cash Management Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income while RiverSource Investments, Variable attempting to conserve the value of the LLC Portfolio - investment for the longest period of time. Diversified Bond Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and, as RiverSource Investments, Variable a secondary goal, steady growth of capital. LLC Portfolio - Diversified Equity Income Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks capital appreciation. RiverSource Investments, Variable LLC Portfolio - Dynamic Equity Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks high total RiverSource Investments, Variable return through income and growth of LLC Portfolio - capital. Global Bond Fund (Class 3) - ----------------------------------------------------------------------------------------
22 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks total RiverSource Investments, Variable return that exceeds the rate of inflation LLC Portfolio - over the long-term. Global Inflation Protected Securities Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high current income, with capital RiverSource Investments, Variable growth as a secondary objective. LLC Portfolio - High Yield Bond Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high total return through current RiverSource Investments, Variable income and capital appreciation. LLC Portfolio - Income Opportunities Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Growth Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Value Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Variable LLC Portfolio - S&P 500 Index Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and RiverSource Investments, Variable safety of principal consistent with LLC Portfolio - Short investment in U.S. government and Duration U.S. government agency securities. Government Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC Portfolio - Growth Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Larger-Cap Value Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Kenwood Portfolio - Capital Management LLC, Smaller-Cap sub-adviser. Value Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Portfolio - Threadneedle Emerging Markets International Limited, Fund (Class 3) an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. - ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks capital appreciation. RiverSource Investments, Variable LLC, adviser; Portfolio - Threadneedle International International Limited, Opportunity Fund an indirect wholly-owned (Class 3) subsidiary of Ameriprise Financial, sub-adviser. - ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 23
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST Variable Seeks long-term capital growth. RiverSource Investments, Portfolio - Davis LLC, adviser; Davis New York Venture Selected Advisers, L.P., Fund (Class 3) subadviser. (previously RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund) - ---------------------------------------------------------------------------------------- RVST Variable Seeks long-term growth of capital. RiverSource Investments, Portfolio - LLC, adviser; Systematic Goldman Sachs Mid Financial Management, Cap Value Fund L.P. and WEDGE Capital (Class 3) Management L.L.P., sub- (previously RVST advisers. RiverSource Partners Variable Portfolio - Select Value Fund) - ---------------------------------------------------------------------------------------- RVST Variable Seeks long-term capital appreciation. RiverSource Investments, Portfolio - LLC, adviser; Barrow, Partners Small Hanley, Mewhinney & Cap Value Fund Strauss, Inc., Denver (Class 3) Investment Advisors LLC, (previously RVST Donald Smith & Co., RiverSource Inc., River Road Asset Partners Variable Management, LLC and Portfolio - Small Turner Investment Cap Value Fund) Partners, Inc., subadvisers. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with an aggressive level of LLC Aggressive risk. This is a "fund of funds" and seeks Portfolio (Class to achieve its objective by investing in a 2) combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a small amount in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with an aggressive level of LLC Aggressive risk. This is a "fund of funds" and seeks Portfolio (Class to achieve its objective by investing in a 4) combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a small amount in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a conservative level of LLC Conservative risk. This is a "fund of funds" and seeks Portfolio (Class to achieve its objective by investing in a 2) combination of underlying funds. The fund invests primarily in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a conservative level of LLC Conservative risk. This is a "fund of funds" and seeks Portfolio (Class to achieve its objective by investing in a 4) combination of underlying funds. The fund invests primarily in underlying funds that invest in fixed income securities. - ----------------------------------------------------------------------------------------
24 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderate level of risk. LLC Moderate Portfolio This is a "fund of funds" and seeks to (Class 2) achieve its objective by investing in a combination of underlying funds. The fund invests primarily in a balance of underlying funds that invest in fixed income securities and underlying funds that invest in equity securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderate level of risk. LLC Moderate Portfolio This is a "fund of funds" and seeks to (Class 4) achieve its objective by investing in a combination of underlying funds. The fund invests primarily in a balance of underlying funds that invest in fixed income securities and underlying funds that invest in equity securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderately aggressive LLC Moderately level of risk. This is a "fund of funds" Aggressive and seeks to achieve its objective by Portfolio (Class investing in a combination of underlying 2) funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a moderate amount in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderately aggressive LLC Moderately level of risk. This is a "fund of funds" Aggressive and seeks to achieve its objective by Portfolio (Class investing in a combination of underlying 4) funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a moderate amount in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderately conservative LLC Moderately level of risk. This is a "fund of funds" Conservative and seeks to achieve its objective by Portfolio (Class investing in a combination of underlying 2) funds. The fund invests primarily in underlying funds that invest in fixed income securities and also invests a moderate amount in underlying funds that invest in equity securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderately conservative LLC Moderately level of risk. This is a "fund of funds" Conservative and seeks to achieve its objective by Portfolio (Class investing in a combination of underlying 4) funds. The fund invests primarily in underlying funds that invest in fixed income securities and also invests a moderate amount in underlying funds that invest in equity securities. - ---------------------------------------------------------------------------------------- Van Kampen Life Seeks capital growth and income through Van Kampen Asset Investment Trust investments in equity securities, including Management Comstock common stocks, preferred stocks and Portfolio, Class securities convertible into common and II Shares preferred stocks. - ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 25
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- Van Kampen's UIF Seeks current income and capital Morgan Stanley Global Real appreciation. Investment Management Estate Portfolio, Inc., doing business as Class II Shares Van Kampen, adviser; Morgan Stanley Investment Management Limited and Morgan Stanley Investment Management Company, sub- advisers. - ---------------------------------------------------------------------------------------- Van Kampen's UIF Seeks long-term capital growth. Morgan Stanley Mid Cap Growth Investment Management Portfolio, Class Inc., doing business as II Shares Van Kampen. - ---------------------------------------------------------------------------------------- Wanger Seeks long-term growth of capital. Columbia Wanger Asset International Management L.P. - ---------------------------------------------------------------------------------------- Wanger USA Seeks long-term capital appreciation. Columbia Wanger Asset Management L.P. - ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Index Asset adviser; Wells Capital Allocation Fund Management Incorporated, (previously Wells sub-adviser. Fargo Advantage VT Asset Allocation Fund) - ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, International adviser; Wells Capital Core Fund Management Incorporated, sub-adviser. - ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Opportunity Fund adviser; Wells Capital Management Incorporated, sub-adviser. - ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Small Cap Growth adviser; Wells Capital Fund Management Incorporated, sub-adviser. - ----------------------------------------------------------------------------------------
THE FIXED ACCOUNT You also may allocate purchase payments and purchase payment credits or transfer contract value to the fixed account. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of the company. The value of the fixed account increases as we credit interest to the account. Purchase payments and transfers to the fixed account become part of our general account. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. You should also be aware that we issue other types of insurance and financial products as well, and we also pay our obligations under these products from assets in our general account. Our general account is not segregated or insulated from the claims of our creditors. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment or transfer to the fixed account is guaranteed for one year. Thereafter, we will change the rates from time to time at our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and RiverSource Life's revenues and expenses. Interests in the fixed account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account. Disclosures regarding the fixed account, however, may be subject to certain generally 26 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract -- Transfer policies" for restrictions on transfers involving the fixed account.) BUYING YOUR CONTRACT New contracts are not currently being offered. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can become an annuitant if you are 90 or younger. The contract provides for allocation of purchase payments and purchase payment credits to the subaccounts of the variable account and/or to the fixed account in tenth of percent increments. For contracts issued on or after July 1, 2003, we reserve the right to limit the amount of any purchase payment allocated to the fixed account to 30% of the purchase payment although currently we allow more than 30% of a purchase payment to be so allocated to the fixed account. We applied your initial purchase payment and purchase payment credits to the fixed account and subaccounts you selected within two business days after we received it at our corporate office. We will credit additional purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our corporate office before the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we receive an additional purchase payment at our corporate office at or after the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment. THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. This means that the contract will be annuitized (converted to a stream of monthly payments), and the first payment will be sent on the settlement date. If your contract is annuitized, the contract goes into payout mode and only the annuity payout provisions continue. Unless Annuity Payout Plan E is elected, you will no longer have access to your contract value. In addition, the death benefit and any optional benefits you have elected will end. When we processed your application, we established the settlement date as the maximum age (or contract anniversary, if applicable). We have established a new maximum age (or contract anniversary) as described below. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. Generally, the settlement date must be no later than the annuitant's 95th birthday or the tenth contract anniversary. If the annuitant was age 95 or older and past the tenth contract anniversary when the new maximum was established, the new settlement date was set to a birthday later than age 95. You can also choose to delay the annuitization of your contract beyond age 95 indefinitely, to the extent allowed by applicable tax laws. Six months prior to your settlement date, we will contact you with your options, including the option to postpone your annuitization start date to a future date. If you do not make an election, annuity payouts, using the contract's default option of Annuity Payout Plan B -- life annuity with 10 years certain will begin on the settlement date and your monthly annuity payments will continue for as long as you live. If the annuitant does not survive 10 years, payments will continue until 10 years of payments have been made. If you own a qualified annuity (for example, an IRA) and tax laws require that you take distributions from your annuity prior to your new settlement date, your contract will not be automatically annuitized. If you satisfy your RMDs for a qualified annuity in the form of partial surrenders from this contract, you are electing to defer annuitizing your contract. Contract owners of IRAs and TSAs may also be able to satisfy RMDs by electing other IRAs or TSAs, and in that case, will delay the start of annuity payouts for these contracts. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay the death benefit to your named beneficiary. If there is more than one beneficiary we will pay each beneficiary's designated share when we receive their complete claim. A beneficiary will bear the investment risk of the variable account until we receive the beneficiary's complete claim. If there is no named beneficiary, then the default provisions of your contract will apply. (See "Benefits in Case of Death" for more about beneficiaries.) RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 27 PURCHASE PAYMENTS MINIMUM ALLOWABLE PURCHASE PAYMENTS* If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month
RAVA ADVANTAGE RAVA SELECT If paying by any other method: initial payment for qualified annuities $1,000 $ 2,000 initial payment for nonqualified annuities 2,000 10,000 for any additional payments 50 50
* Installments must total at least $600 in the first year. If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in Illinois and New Jersey. MAXIMUM ALLOWABLE ANNUAL PURCHASE PAYMENTS** based on the age of you or the annuitant, whoever is older, on the effective date of the contract:
RAVA ADVANTAGE RAVA SELECT through age 85 100,000 100,000 for ages 86 to 90 50,000 50,000
** These annual contribution limits apply in total to all RiverSource Life annuities you own. We reserve the right to increase maximum limits. For qualified annuities the tax-deferred retirement plan's or the Code's limits on annual contributions also apply. We will consider your contract void from the start if we do not receive initial purchase payment within 180 days of the application signed date. Purchase payment amounts and purchase payment timing may vary by state and may be limited under the terms of your contract. For RAVA Advantage, except for TSAs, purchase payments are limited and may not be made after the third contract anniversary in Massachusetts, Washington and Oregon. Subject to state law limitations, we reserve the right to not accept purchase payments allocated to the fixed account for twelve months following either: 1. a partial surrender from the fixed account; or 2. a lump sum transfer from the fixed account to a subaccount. HOW TO MAKE PURCHASE PAYMENTS 1 BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 2 BY SCHEDULED PAYMENT PLAN We can help you set up: - - an automatic payroll deduction, salary reduction or other group billing arrangement; or - - a bank authorization. PURCHASE PAYMENT CREDITS FOR RAVA ADVANTAGE: we add a credit to your contract in the amount of: - - 1% of each purchase payment received: - if you elect the ten-year surrender charge schedule for your contract*; OR - if you elect the seven-year surrender charge schedule for your contract AND your initial purchase payment to the contract is at least $100,000. 28 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS - - 2% of each purchase payment received if you elect the ten-year surrender charge schedule for your contract* AND your initial purchase payment to the contract is at least $100,000. To the extent a death benefit or surrender payment includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a lump sum death benefit under this contract; or (2) a request for surrender charge waiver due to Nursing Home Confinement, we will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits.* Surrender charges under RAVA Advantage may be higher and longer than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, there could be circumstances where you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. All things being equal (such as fund performance and availability), this may occur if you select the ten-year surrender charge and you make a full surrender in years five through ten. We pay for the credits under RAVA Advantage primarily through revenue from a higher and longer surrender charge schedule and through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. FOR RAVA SELECT: we add a credit to your contract in the amount of 1% of each purchase payment received in the first contract year if your initial purchase payment to the contract is at least $250,000. To the extent a death benefit or surrender payment includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a lump sum death benefit under this contract; or (2) a request for surrender charge waiver due to Hospital or Nursing Home Confinement, we will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits.* The amount we pay to you under these circumstances will always equal or exceed your surrender value. Expenses under RAVA Select may be higher than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, you may be worse off purchasing this contract. We pay for the credits under RAVA Select primarily through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. We fund all credits from our general account. We do not consider credits to be "investments" for income tax purposes. (See "Taxes.") We allocate each credit to your contract value when the applicable purchase payment is applied to your contract value. We allocate such credits to your contract value according to allocation instructions in effect for your purchase payments. * The ten-year surrender charge under RAVA Advantage is not available in Oregon. Contracts purchased in Oregon are only eligible for a 1% purchase payment credit if the initial purchase payment is at least $100,000. For contracts purchased in Oregon, we will not assess a charge equal to the amount of the purchase payment credits upon payment of a death benefit or surrender. We will reverse credits from the contract value for any purchase payment that is not honored. The amount returned to you under the free look provision also will not include any credits applied to your contract. (See "The Contract in Brief -- Free look period.") We reserve the right to increase the amount of the credit for certain groups of contract owners. The increase will not be greater than 8% of total net purchase payments. We would pay for increases in credit amounts primarily through reduced expenses expected from such groups. LIMITATIONS ON THE USE OF CONTRACTS If mandated by applicable law, including, but not limited to, federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner's access to contract values or to satisfy other statutory obligations. Under these circumstances we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate governmental authority or a court of competent jurisdiction. CHARGES CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. We deduct $30 from the contract value of RAVA Advantage or RAVA Select on your contract anniversary at the end of each contract year. Subject to state regulatory requirements, we prorate this charge among the subaccounts and the fixed account in the same proportion your interest in each account bears to your total contract value. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 29 We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the charge at the time of surrender regardless of the contract value or purchase payments made. We cannot increase the annual contract administrative charge and it does not apply after annuity payouts begin or when we pay death benefits. MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee, which is a percentage of their average daily net assets, on an annual basis as follows:
RAVA ADVANTAGE RAVA SELECT For nonqualified annuities 0.95% 1.20% For qualified annuities 0.75% 1.00%
This fee covers the mortality and expense risk that we assume. This fee does not apply to the fixed account. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner or annuitant lives and no matter how long our entire group of owners or annuitants live. If, as a group, owners or annuitants outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners or annuitants do not live as long as expected, we could profit from the mortality risk fee. We deduct the mortality risk fee from the subaccounts during the annuity payout period even if the annuity payout plan does not involve a life contingency. Expense risk arises because we cannot increase the contract administrative charge and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. The subaccounts pay us the mortality and expense risk fee they accrued as follows: - - first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; - - then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. We do not expect that the surrender charge, discussed in the following paragraphs, will cover sales and distribution expenses. MAV RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.25%(2) of your contract value of RAVA Advantage or RAVA Select on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date, and it does not apply after annuity payouts begin or when we pay death benefits. EEB RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.30% of your contract value of RAVA Advantage or RAVA Select on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. 30 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS EEP RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.40% of your contract value of RAVA Advantage or RAVA Select on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. (1) You may select any one of the MAV, EEB or EEP riders. Or you may select the MAV and either the EEB or the EEP. However, you cannot select both the EEB and the EEP. Riders may not be available in all states. The MAV, EEB and EEP riders are only available if you and the annuitant are age 75 or younger at the rider effective date. EEP is only available on contracts purchased through a transfer or exchange. (2) For contracts purchased before May 1, 2003, the MAV rider fee for RAVA Advantage and RAVA Select is 0.15%. PN RIDER FEE Before May 10, 2010, we deducted our annual charge of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. This fee will no longer apply beginning May 10, 2010. SURRENDER CHARGE If you surrender all or part of your contract, you may be subject to a surrender charge. For RAVA Advantage, a surrender charge applies if all or part of the surrender amount is from purchase payments we received within seven or ten years before surrender. For RAVA Select, a surrender charge applies if you surrender all or part of your purchase payments in the first three contract years. You select the surrender charge period at the time of your application for the contract. The surrender charge percentages that apply to you are shown in your contract. You may surrender an amount during any contract year without a surrender charge. We call this amount the Total Free Amount (TFA). The TFA is defined as the greater of: - - 10% of the contract value on the prior contract anniversary, and - - current contract earnings. NOTE: We determine current contract earnings by looking at the entire contract value, not the earnings of any particular subaccount or the fixed account. Amounts surrendered in excess of the TFA may be subject to a surrender charge as described below. SURRENDER CHARGE UNDER RAVA ADVANTAGE: For purposes of calculating any surrender charge under RAVA Advantage, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, we surrender purchase payments received prior to the surrender charge period you selected and shown in your contract. We do not assess a surrender charge on these purchase payments. 3. Finally, if necessary, we surrender purchase payments received that are still within the surrender charge period you selected and shown in your contract. We surrender these payments on a first-in, first-out (FIFO) basis. We do assess a surrender charge on these payments. We determine your surrender charge by multiplying each of your payments surrendered by the applicable surrender charge percentage, and then adding the total surrender charges. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 31 The surrender charge percentage depends on the number of years since you made the payments that are surrendered, depending on the schedule you selected*:
TEN-YEAR SCHEDULE* NUMBER OF COMPLETED YEARS SEVEN-YEAR SCHEDULE FROM DATE SURRENDER CHARGE NUMBER OF COMPLETED YEARS FROM SURRENDER CHARGE OF EACH PERCENTAGE DATE OF EACH PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7 0 7 4 8 3 9 2 10 0
* The ten-year surrender charge schedule under RAVA Advantage is not available in Oregon. For contracts issued in Massachusetts, Oregon and Washington, we waive surrender charges after the tenth contract anniversary regardless of when payments are made. SURRENDER CHARGE UNDER RAVA SELECT (IN TEXAS RAVA SELECT CONTRACTS ISSUED PRIOR TO 11/7/2002): For purposes of calculating any surrender charge under RAVA Select, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, if necessary, we surrender purchase payments. We do assess a surrender charge on these payments during the first three contract years as follows:
CONTRACT YEAR SURRENDER CHARGE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE UNDER RAVA SELECT CONTRACTS ISSUED IN TEXAS ON OR AFTER 11/7/2002: For purposes of calculating any surrender charge under RAVA Select in Texas, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, if necessary, we surrender purchase payments. We surrender amounts from the oldest purchase payments first. We do assess a surrender charge on these payments during the first three contract years as follows:
SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 1 2 3 THEREAFTER 1 8% 7% 6% 0% 2 8 7 0 3 8 0 Thereafter 0
32 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS PARTIAL SURRENDERS UNDER RAVA ADVANTAGE AND RAVA SELECT For a partial surrender that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. The surrender charge percentage is applied to this total amount. We pay you the amount you requested. For an example, see Appendix A. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate.
ASSUMED INVESTMENT RATE 3.50% 5.00% Qualified annuity discount rate 4.72% 6.22% Nonqualified annuity discount rate 4.92% 6.42%
WAIVER OF SURRENDER CHARGES We do not assess surrender charges for: - - surrenders of any contract earnings; - - surrenders of amounts totaling up to 10% of the contract value on the prior contract anniversary to the extent it exceeds contract earnings; - - For RAVA Advantage, amounts surrendered after the tenth contract anniversary in Massachusetts, Washington and Oregon; - - to the extent that they exceed the greater of contract earnings or 10% of the contract value on the prior contract anniversary, required minimum distributions from a qualified annuity. The amount on which surrender charges are waived can be no greater than the RMD amount calculated under your specific contract currently in force; - - contracts settled using an annuity payout plan, unless an Annuity Payout Plan E is later surrendered; - - amounts we refund to you during the free look period*; - - death benefits*; and - - surrenders you make under your contract's "Waiver of Surrender Charges for Hospital or Nursing Home Confinement" provision*. To the extent permitted by state law, this provision applies when you are under age 76 on the date that we issue the contract. Under this provision, we will waive surrender charges that we normally assess upon full or partial surrender. Under RAVA Advantage, you must provide proof satisfactory to us that, as of the date you request the surrender, you or the annuitant are confined to a nursing home and have been for the prior 90 days and the confinement began after the contract date. Under RAVA Select, you must provide proof satisfactory to us that, as of the date you request the surrender, you or your spouse are confined to a nursing home or hospital and have been for 90 straight days and the confinement began after the contract date. (See your contract for additional conditions and restrictions on this waiver.) * However, we will reverse certain purchase payment credits. (See "Buying your contract -- Purchase payment credits.") OTHER INFORMATION ON CHARGES: Ameriprise Financial, Inc. makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 1/2 (fee waived in case of death or disability). POSSIBLE GROUP REDUCTIONS: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate the contract administrative and surrender charges. However, we expect this to occur infrequently. FUND FEES AND EXPENSES There are deductions from and expenses paid out of the assets of the funds that are described in the prospectuses for those funds. (See "Annual Operating Expenses of the Funds.") PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon your state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you surrender your contract. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 33 VALUING YOUR INVESTMENT We value your accounts as follows: FIXED ACCOUNT We value the amounts you allocated to the fixed account directly in dollars. The fixed account value equals: - - the sum of your purchase payments and purchase payment credits and transfer amounts allocated to the fixed account; - - plus interest credited; - - minus the sum of amounts surrendered (including any applicable surrender charges) and amounts transferred out; - - minus any prorated portion of the contract administrative charge; - - minus any prorated portion of the MAV rider charge (if selected); - - minus any prorated portion of the EEB rider charge (if selected); and - - minus any prorated portion of the EEP rider charge (if selected). SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts or we apply any purchase payment credits to a subaccount, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each time you take a partial surrender, transfer amounts out of a subaccount, or we assess a contract administrative charge or charge for any optional riders with annual charges (if applicable). The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: NUMBER OF UNITS: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. WE DETERMINE THE NET INVESTMENT FACTOR BY: - - adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - - dividing that sum by the previous adjusted net asset value per share; and - - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: - - additional purchase payments you allocate to the subaccounts; - - any purchase payment credits allocated to the subaccounts; - - transfers into or out of the subaccounts; - - partial surrenders; - - surrender charges; and a deduction of: - - a prorated portion of the contract administrative charge; - - a prorated portion of the MAV rider charge (if selected); - - a prorated portion of the EEB rider charge (if selected); and/or - - a prorated portion of the EEP rider charge (if selected). 34 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS Accumulation unit values will fluctuate due to: - - changes in fund net asset value; - - fund dividends distributed to the subaccounts; - - fund capital gains or losses; - - fund operating expenses; and - - mortality and expense risk fees. MAKING THE MOST OF YOUR CONTRACT AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the fixed account to one or more subaccounts. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. You may not set up automated transfer if the PN program is selected. The potential effect is to lower your average cost per unit. HOW DOLLAR-COST AVERAGING WORKS
ACCUMULATION NUMBER By investing an equal number of dollars AMOUNT UNIT OF UNITS each month... MONTH INVESTED VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy Mar 100 17 5.88 more units when the (ARROW) Apr 100 15 6.67 per unit market price is low... May 100 16 6.25 Jun 100 18 5.56 Jul 100 17 5.88 and fewer units Aug 100 19 5.26 when the per unit (ARROW) Sept 100 21 4.76 market price is high. Oct 100 20 5.00
You paid an average price of $17.91 per unit over the 10 months, while the average market price actually was $18.10. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success 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. For specific features contact your sales representative. ASSET REBALANCING You can ask us in writing to have the variable subaccount portion of your contract value allocated according to the percentages (in tenth of a percent amounts) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semiannually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be in numbers with no more than one digit past the decimal. Asset rebalancing does not apply to the fixed account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing or by any other method acceptable to us, to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 35 Different rules apply to asset rebalancing under the Portfolio Navigator program (see "Portfolio Navigator Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) THE FOLLOWING INFORMATION ABOUT THE PN PROGRAM APPLIES TO ALL CONTRACTS. FOR ADDITIONAL INFORMATION ABOUT THE PN PROGRAM FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010, ALSO SEE BELOW "PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM) FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010." The PN program is available for nonqualified annuities and for qualified annuities. The PN program allows you to allocate your contract value to a PN program investment option. The PN program investment options are currently five funds of funds, each of which has a particular investment objective and invests in underlying funds. The PN program also allows those who participated in the PN program and who exercised an "opt-out" right applicable through April 23, 2010 (to be in this group, you must have purchased your contract on or before April 23, 2010) to remain invested in a "static" PN program model portfolio (not subject to further updating or reallocation, as described under "Portfolio Navigator Program (PN program) for contracts purchased before May 10, 2010"). You may elect to participate in the PN program by adding the optional PN program to your contract at no additional charge. You can elect to participate in the PN program at any time, and you may transfer all or part of your assets from a PN program investment option or transfer your contract assets so that they are not invested in accordance with a model portfolio at any time. If you transfer contract assets so that they are no longer invested in accordance with a PN program model portfolio or investment option, automated rebalancing associated with the model portfolio or investment option will end. Each of the PN program fund of funds investment options has the investment objective of seeking a high level of total return consistent with a certain level of risk by investing in various underlying funds. RiverSource Investments is the investment adviser of each of the PN program investment options, but does not serve as investment adviser under the PN program (regardless of whether you have selected a PN program investment option or remained in a model portfolio). Morningstar Associates, LLC serves as an independent consultant to RiverSource Investments to provide recommendations regarding portfolio construction and ongoing analysis of the PN program investment options, but does not provide any services in connection with the model portfolios. RiverSource Investments or an affiliate will serve as investment adviser for all of the underlying funds in which the investment options invest. However, some of the underlying funds will be managed on a day-to-day basis directly by RiverSource Investments and some will be managed by one or more affiliated or unaffiliated sub-advisers, subject to the oversight of RiverSource Investments and the fund's board of trustees. The new funds of funds have objectives ranging from Conservative to Aggressive, and are managed within asset class allocation targets and with a broad multi- manager approach. Below are the asset allocation weights (between equity and fixed income/cash underlying funds) for each of the funds of funds: 1. Variable Portfolio -- Aggressive Portfolio: 80% Equity / 20% Fixed Income 2. Variable Portfolio -- Moderately Aggressive Portfolio: 65% Equity / 35% Fixed Income 3. Variable Portfolio -- Moderate Portfolio: 50% Equity / 50% Fixed Income 4. Variable Portfolio -- Moderately Conservative Portfolio: 35% Equity / 65% Fixed Income 5. Variable Portfolio -- Conservative Portfolio: 20% Equity / 80% Fixed Income POTENTIAL CONFLICTS OF INTEREST. In identifying the universe of investment options and providing investment advisory services for the PN program investment options and certain of the funds underlying the investment options and model portfolios, RiverSource Investments is, together with its affiliates, including us, subject to competing interests that may influence its decisions. These competing interests typically arise because RiverSource Investments or one of its affiliates serves as the investment adviser to the underlying funds invested in the investment options and to certain underlying funds to which assets are allocated under the model portfolios, because we or an affiliate of ours may provide other services in connection with such underlying funds, and because the compensation we and our affiliates receive for providing these investment advisory and other services varies depending on the underlying fund. For additional information about the conflicts of interest which RiverSource Investments and its affiliates are subject to in connection with a PN program investment option, see the prospectus for such investment option. For additional information about the conflicts of interest which RiverSource Investments and its affiliates are subject to in connection with a PN program model portfolio, see "Portfolio Navigator Program (PN program) for contracts purchased before May 10, 2010." PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which investment option is best for you or whether to remain in a model portfolio or investment option. Your financial advisor can 36 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS help you make this determination. In addition, your financial advisor may provide you with an investor questionnaire, a tool to help define your investing style which is based on factors such as your investment goals, your tolerance for risk and how long you intend to invest. Your responses to the investor questionnaire can help you determine which model portfolio or investment option most closely matches your investing style. While the scoring of the investor questionnaire is objective, there is no guarantee that your responses to the investor questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the investment option (or the asset mix reflected in the model portfolio, if applicable) you select or selected after completing the investor questionnaire is appropriate to your ability to withstand investment risk. RiverSource Life is not responsible for your decision to participate in the PN program, your selection of a specific investment option or model portfolio, if applicable, or your decision to change to a different investment option. Currently, there are five PN program investment options, and five model portfolios, ranging from conservative to aggressive. You may not use more than one investment option or model portfolio at a time. Each investment option is a fund of funds. Each model portfolio consists of subaccounts and/or the fixed account (if included) according to the allocation percentages stated for the model portfolio. If you are participating in the PN program in a model portfolio, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. You may request a change to your investment option (or a transfer from your model portfolio to an investment option) up to twice per contract year by written request on an authorized form or by another method agreed to by us. We reserve the right to change the terms and conditions of the PN program upon written notice to you. This includes but is not limited to the right to: - - limit your choice of investment options based on the amount of your initial purchase payment we accept or when you take a withdrawal; - - substitute a fund of funds for your model portfolio if permitted under applicable securities law; and - - discontinue the PN program. We will give you 30 days' written notice of any such change. RISKS. Asset allocation through the PN program does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By investment in a PN program investment option or in accordance with a model portfolio, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. For additional information about the risks of investing in a PN program investment option, see the prospectus for such investment option. For additional information about the risks of investing in accordance with a PN program model portfolio, see "Portfolio Navigator Program (PN program) for contracts purchased before May 10, 2010" below. PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM) FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010 As of the Transfer Date (defined below), your contract assets invested in accordance with a model portfolio under the PN program will be transferred based on the recommendation of RiverSource Investments, LLC ("RiverSource Investments"), the investment adviser under the PN program, to a fund of funds investment option that corresponds to your model portfolio unless you informed us on or before April 23, 2010 that you did not want your assets so transferred (unless you "opt out"). The actual date of transfer to the fund of funds or the date upon which your opt out becomes effective (the "Transfer Date") will occur no earlier than May 7, 2010 and no later than June 30, 2010, and will depend on the contract you own and the month that you purchased your contract. If you opt out of the transfer, you will remain invested in accordance with the asset allocation currently specified for your model portfolio and you will not receive any further reallocation recommendations from RiverSource Investments (although your assets will be rebalanced back to the current allocation quarterly). As of the Transfer Date, RiverSource Investments will no longer review the model portfolios or make changes to them as part of the PN program, and the investment advisory agreement you have previously entered into with RiverSource Investments will terminate. If you have chosen to remain invested in a "static" PN program model portfolio, your assets will remain invested in accordance with your current model portfolio, and you will not be provided with any future updates to the model portfolio or reallocation recommendations. RiverSource Investments and its affiliates have committed to a two-year cap on PN program investment option expenses for contract owners who purchased a contract before May 10, 2010, as set forth in disclosure previously sent to such contract owners. Specifically, expense waivers and reimbursements will be applied to the PN program investment options and to the underlying funds so that total fees and expenses paid by investors in the PN program investment options will approximate the total fees and expenses of the underlying funds borne by participants in the corresponding PN program model portfolio, based on 2009 fiscal year end expenses. After two years these expense caps will no longer be in place and total expenses will likely be higher. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 37 SERVICE PROVIDERS IN CONNECTION WITH THE PN PROGRAM MODEL PORTFOLIOS. RiverSource Investments, an affiliate of ours, has served as non-discretionary investment adviser for PN program model portfolio participants solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments has entered into an investment advisory agreement with each contract owner participating in the PN program prior to the program changes described in this prospectus. In its role as investment adviser to the PN program, RiverSource Investments relied upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviewed the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducted periodic due diligence and provided ongoing oversight with respect to the process utilized by the third party service provider. For more information on RiverSource Investment's role as investment adviser for the PN program, please see the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document, which is based on Part II of RiverSource Investments' Form ADV, the SEC investment adviser registration form. The Disclosure Document was delivered to contract owners enrolled in the PN program prior to May 10, 2010 at or before the time they enrolled. The PN program model portfolios were designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. The criteria used in developing and updating the model portfolios do not guarantee or predict future performance. Neither Morningstar Associates nor RiverSource Investments, in connection with their respective roles, provided or provides any individualized investment advice to contract owners regarding the application of a particular model portfolio to his or her circumstances. Contract owners are solely responsible for determining whether any model portfolio is appropriate. We identified to Morningstar Associates the universe of allocation options that could be included in the model portfolios (the universe of allocation options). Once we identified this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictated to Morningstar Associates the number of allocation options that should be included in a model portfolio, the percentage that any allocation option represents in a model portfolio, or whether a particular allocation option may be included in a model portfolio. However, as described below under "Potential conflicts of interest", there are certain conflicts of interest associated with RiverSource Investments and its affiliates' influence over the development and updating of the model portfolios. POTENTIAL CONFLICTS OF INTEREST. Although RiverSource Investment will no longer maintain the model portfolios on an ongoing basis, the asset allocations in the current model portfolios may have been affected by the following conflicts of interest. In identifying the universe of allocation options for a model portfolio, we and our affiliates, including RiverSource Investments, were subject to competing interests that may have influenced the allocation options we proposed. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to certain underlying funds in the model portfolios as well as compensation we or an affiliate of ours may receive for providing services in connection with such underlying funds or their corresponding sub-accounts. These competing interests also involve compensation we or an affiliate of ours receive if certain funds that RiverSource Investments does not advise were included as underlying funds in model portfolios. The inclusion of funds that pay compensation to RiverSource Investments or an affiliate may have a positive or negative impact on performance. As an affiliate of RiverSource Investments, we had an incentive to identify the RiverSource Variable Series Trust funds for consideration as part of a model portfolio over unaffiliated funds. In addition, RiverSource Investments, in its capacity as investment adviser to the RiverSource Variable Series Trust funds, monitors the performance of the RiverSource Variable Series Trust funds. In this role RiverSource Investments may, from time to time, have recommended certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may have included a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may have believed that certain RiverSource Variable Series Trust funds would have benefited from additional assets or could have been harmed by redemptions. All of these factors may have impacted RiverSource Investments' view regarding the composition and allocation of a model portfolio. RiverSource Investments' role as investment adviser to the PN program in connection with the development and updating of the model portfolios, and our identification of the universe of allocation options to Morningstar Associates for consideration, may have influenced the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. We, RiverSource Investments, or another affiliate of ours may receive higher compensation from certain unaffiliated funds that RiverSource Investments does not advise or manage. (See "Expense Summary -- Annual Operating Expenses of the Funds" and "The Variable Account and the Funds -- The Funds.") Therefore, we may have had an incentive to identify these 38 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS unaffiliated funds to Morningstar Associates for inclusion in the model portfolios. In addition, we or an affiliate of ours may receive higher compensation from the fixed account than from other allocation options. We therefore may have had an incentive to identify these allocation options to Morningstar Associates for inclusion in the model portfolios. Some officers and employees of RiverSource Investments are also officers or employees of us or our affiliates which may be involved in, and/or benefit from, your participation in the PN program. These officers and employees may have had an incentive to make recommendations, or take actions, that benefit one or more of the entities they represent, rather than participants in the PN program. MODEL PORTFOLIO RISKS. Asset allocation through a PN program model portfolio does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By spreading your contract value among various allocation options under the PN program, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. Although each model portfolio is intended to optimize returns given various levels of risk tolerance, a model portfolio may not perform as intended. A model portfolio, the allocation options and market performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause the model portfolio to be ineffective or less effective in reducing volatility. In the future, the model portfolios will not be updated periodically, and the investments and investment styles and policies of the current allocation options may change. Accordingly, your model portfolio may change so that it is no longer appropriate for your needs. Furthermore, the absence of periodic updating means that existing allocation options will not be replaced as may be appropriate due to poor performance, changes in management personnel, or other factors. Investment performance of your contract value could be better or worse by participating in the PN program than if you had not participated. A model portfolio may perform better or worse than any single fund or allocation option or any other combination of funds or allocation options. The performance of a model portfolio depends on the performance of the component funds. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing of the model portfolios can cause their component funds to incur transactional expenses to raise cash for money flowing out of the funds or to buy securities with money flowing into the funds. Moreover, a large outflow of money from the funds may increase the expenses attributable to the assets remaining in the funds. These expenses can adversely affect the performance of the relevant funds and of the model portfolios. In addition, when a particular fund needs to buy or sell securities due to quarterly rebalancing of a model portfolio, it may hold a large cash position. A large cash position could detract from the achievement of the fund's investment objective in a period of rising market prices; conversely, a large cash position would reduce the fund's magnitude of loss in the event of falling market prices and provide the fund with liquidity to make additional investments or to meet redemptions. (See also the description of competing interests in the section titled "Service Providers to the PN Program" above.) For additional information regarding the risks of investing in a particular fund, see that fund's prospectus. TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while the PN program is in effect. You may transfer contract value from any one subaccount, or the fixed account, to another subaccount before annuity payouts begin. Certain restrictions apply to transfers involving the fixed account. When your request to transfer will be processed depends on when we receive it: - - If we receive your transfer request at our corporate office in good order before the close of business, we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request. - - If we receive your transfer request at our corporate office in good order at or after the close of business, we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. Subject to state regulatory requirements, we may suspend or modify transfer privileges at any time. For more information on transfers after annuity payments begin, see "Transfer Policies" below. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 39 TRANSFER POLICIES - - Before annuity payouts begin, you may transfer contract values between the subaccounts. You may also transfer contract values from the subaccounts to the fixed account. However, if you made a transfer from the fixed account to the subaccounts, you may not make a transfer from any subaccount back to the fixed account until the next contract anniversary. For contracts issued on or after July 1, 2003, currently you may transfer any amount of contract value to the fixed account. However, we reserve the right to limit the amount transferred to the fixed account so that the value of the fixed account after the transfer is not greater than 30% of the contract value. - - You may transfer contract values from the fixed account to the subaccounts once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). For contracts issued on or after July 1, 2003, the transfers out of the fixed account are limited to the greater of: a) 30% of the fixed account value at the beginning of the contract year, or b) the amount transferred out of the fixed account in the previous contract year, excluding any automated transfer amounts. - - If we receive your request within 30 days before the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the anniversary. - - If we receive your request on or within 30 days after the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the valuation date we receive it. - - We will not accept requests for transfers from the fixed account at any other time. - - Once annuity payouts begin, you may not make transfers to or from the fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. MARKET TIMING Market timing can reduce the value of your investment in the contract. If market timing causes the returns of an underlying fund to suffer, contract value you have allocated to a subaccount that invests in that underlying fund will be lower too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a financial loss. WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. DO NOT BUY A CONTRACT IF YOU WISH TO USE SHORT-TERM TRADING STRATEGIES TO MANAGE YOUR INVESTMENT. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CONTRACT. THE UNDERLYING FUNDS IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO TRANSFERS AMONG THE SUBACCOUNTS OF THE CONTRACT, AND MAY INCLUDE REDEMPTION FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE TO YOU. Market timing may hurt the performance of an underlying fund in which a subaccount invests in several ways, including but not necessarily limited to: - - diluting the value of an investment in an underlying fund in which a subaccount invests; - - increasing the transaction costs and expenses of an underlying fund in which a subaccount invests; and, - - preventing the investment adviser(s) of an underlying fund in which a subaccount invests from fully investing the assets of the fund in accordance with the fund's investment objectives. Funds available as investment options under the contract that invest in securities that trade in overseas securities markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently. 40 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY HARMFUL EFFECTS OF MARKET TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CONTRACT VALUE AMONG THE SUBACCOUNTS OF THE VARIABLE ACCOUNT: We try to distinguish market timing from transfers that we believe are not harmful, such as periodic rebalancing for purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three subaccount transfers in any 90 day period. We also reserve the right to refuse any transfer requests, if, in our sole judgment, the dollar amount of the transfer request would adversely affect unit values. If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to: - - requiring transfer requests to be submitted only by first-class U.S. mail; - - not accepting hand-delivered transfer requests or requests made by overnight mail; - - not accepting telephone or electronic transfer requests; - - requiring a minimum time period between each transfer; - - not accepting transfer requests of an agent acting under power of attorney; - - limiting the dollar amount that you may transfer at any one time; - - suspending the transfer privilege; or - - modifying instructions under any automated transfer program to exclude a restricted fund if you do not provide new instructions. Subject to applicable state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights. We cannot guarantee that we will be able to identify and restrict all market timing activity. Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values. IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT, YOU SHOULD CAREFULLY REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS, WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE AND EXCHANGE OF FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION NUMBER OR OTHER UNITED STATES GOVERNMENT-ISSUED IDENTIFIER AND THE DETAILS OF YOUR CONTRACT TRANSACTIONS INVOLVING THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CONTRACT VALUE TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY REDEMPTION FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE CONTRACT IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO: - - Each fund may restrict or refuse trading activity that the fund determines, in its sole discretion, represents market timing. - - Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund's market timing policies and procedures, including instructions we receive from a fund, may require us to reject your transfer request. For example, while we disregard transfers permitted under any asset allocation, dollar-cost averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an underlying fund's market timing policies and procedures will do so. Orders we place to purchase fund shares for the variable account are subject to acceptance by the fund. We reserve the right to reject without prior notice to you any transfer request if the fund does not accept our order. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 41 - - Each underlying fund is responsible for its own market timing policies, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a fund has adopted. As a result, a fund's returns might be adversely affected, and a fund might terminate our right to offer its shares through the variable account. - - Funds that are available as investment options under the contract may also be offered to other intermediaries who are eligible to purchase and hold shares of the fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a fund's market timing policies, we cannot guarantee that other intermediaries purchasing that same fund's shares will do so, and the returns of that fund could be adversely affected as a result. FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSE TO THAT FUND, AND TO DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT FUND'S PROSPECTUS. HOW TO REQUEST A TRANSFER OR SURRENDER 1 BY LETTER Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: RIVERSOURCE LIFE INSURANCE COMPANY 70100 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers or surrenders: Contract value or entire account balance * Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution. 2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS Your financial advisor can help you set up automated transfers among your subaccounts or fixed account or partial surrenders from the accounts. You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. - - Automated transfers from the fixed account to any one of the subaccounts may not exceed an amount that, if continued, would deplete the fixed account within 12 months. - - Automated surrenders may be restricted by applicable law under some contracts. - - You may not make additional purchase payments if automated partial surrenders are in effect. - - Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. - - The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. - - If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. - - If the PN program is in effect, you are not allowed to set up an automated transfer. MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the fixed account) 42 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 3 BY TELEPHONE Call: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and tape recording calls. We will not allow a telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. SURRENDERS You may surrender all or part of your contract at any time before annuity payouts begin by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. If we receive your surrender request in good order at our corporate office before the close of business, we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender request. If we receive your surrender request at our corporate office at or after the close of business, we will process your surrender using the accumulation unit value we calculate on the next valuation date after we received your surrender request. We may ask you to return the contract. You may have to pay contract administrative charges, surrender charges, or any applicable optional rider charges (see "Charges"), and IRS taxes and penalties (see "Taxes"). You cannot make surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period -- Annuity Payout Plans"). Any partial surrenders you take under the contract will reduce your contract value. As a result, the value of your death benefit or any optional benefits you have elected also will be reduced. In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain death benefits and optional benefits (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the fixed account in the same proportion as your value in each account correlates to your total contract value, unless you request otherwise. The minimum contract value after partial surrender is $600. RECEIVING PAYMENT 1 BY REGULAR OR EXPRESS MAIL - - payable to you; - - mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 43 2 BY WIRE - - request that payment be wired to your bank; - - bank account must be in the same ownership as your contract; and - - pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your financial advisor. Normally, we will send the payment within seven days after receiving your request in good order. However, we may postpone the payment if: - the surrender amount includes a purchase payment check that has not cleared; - the NYSE is closed, except for normal holiday and weekend closings; - trading on the NYSE is restricted, according to SEC rules; - an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or - the SEC permits us to delay payment for the protection of security holders. TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES If the contract is intended to be used in connection with an employer sponsored 403(b) plan, additional rules relating to this contract can be found in the annuity endorsement for tax sheltered 403(b) annuities. Unless we have made special arrangements with your employer, the contract is not intended for use in connection with an employer sponsored 403(b) plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event that the employer either by affirmative election or inadvertent action causes contributions under a plan that is subject to ERISA to be made to this contract, we will not be responsible for any obligations and requirements under ERISA and the regulations thereunder unless we have prior written agreement with the employer. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. In the event we have a written agreement with your employer to administer the plan pursuant to ERISA, special rules apply as set forth in the TSA endorsement. The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. The Code imposes certain restrictions on your right to receive early distributions from a TSA: - - Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: - you are at least age 59 1/2; - you are disabled as defined in the Code; - you severed employment with the employer who purchased the contract; - the distribution is because of your death; - distribution is due to plan termination; or - you are a military reservist. - - If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. - - Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). - - The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. - - If the contract has a loan provision, the right to receive a loan is described in detail in your contract. 44 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS CHANGING OWNERSHIP You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our corporate office. The change will become binding on us when we receive and record it. We will honor any change of ownership request in good order that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the MAV, EEB or EEP. If you change ownership of your contract, we will terminate the EEP. This includes both the EEP Part I benefits and the EEP Part II benefits. (See the description of these terms in "Optional Benefits.") In addition, the terms of the EEB and the MAV will change due to a change of ownership. If either the new owner or the annuitant is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over". We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If either the new owner or the annuitant is older than age 75, the MAV will terminate. If the MAV on the date of ownership change is greater than the account value on the date of the ownership change, the MAV will be set equal to the account value. Otherwise, the MAV value will not change due to a change in ownership. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in similar capacity, ownership of the contract may be transferred to the annuitant. BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT We will pay the death benefit to your beneficiary upon the earlier of your death or the annuitant's death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner or the annuitant. If you or the annuitant die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If both you and the annuitant are age 80 or younger on the date of death, the beneficiary receives the greatest of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; - - purchase payments minus adjusted partial surrenders; or - - the contract value as of the most recent sixth contract anniversary, preceding the date of death, plus any purchase payments since that anniversary, minus adjusted partial surrenders since that anniversary. If either you or the annuitant are age 81 or older on the date of death, the beneficiary receives the greater of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders. PS X DB -------- ADJUSTED PARTIAL SURRENDERS = CV
PS = the amount by which the contract value is reduced as a result of the partial surrender. DB = is the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. EXAMPLE OF STANDARD DEATH BENEFIT CALCULATION WHEN YOU AND THE ANNUITANT ARE AGE 80 OR YOUNGER: - - You purchase the contract with a payment of $20,000. - - On the sixth contract anniversary the contract value grows to $30,000. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 45 - - During the seventh contract year the contract value falls to $28,000 at which point you take a $1,500 partial surrender, leaving a contract value of $26,500. We calculate the death benefit as follows: The contract value on the most recent sixth contract anniversary: $30,000.00 plus purchase payments made since that anniversary: +0.00 minus adjusted partial surrenders taken since that anniversary calculated as: $1,500 x $30,000 ---------------- -1,607.14 $28,000 ---------- for a death benefit of: $28,392.86
IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date our death claim requirements are fulfilled. We will determine the contract's value using the next accumulation unit value we calculate on that valuation date. We pay interest, if any, at a rate no less than required by law. If requested, we will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid. To do this your spouse must, give us written instructions to continue the contract as owner. If you elected any optional contract features and riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. If your beneficiary is not your spouse, we will pay the beneficiary in a lump sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: - - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - - payouts begin no later than one year after your death, or other date as permitted by the IRS; and - - the payout period does not extend beyond the beneficiary's life or life expectancy. QUALIFIED ANNUITIES - - SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own, so long as he or she is eligible to do so, with the contract value equal to the death benefit that would otherwise have been paid or elect an annuity payout plan or another plan agreed to by us. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. If you elected any optional contract features and riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. - - NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your beneficiary does not elect a five year payout, or if your death occurs after attaining age 70 1/2, we will pay the beneficiary in a lump sum unless the beneficiary elects to receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year following the year of your death; and - the payout period does not extend beyond the beneficiary's life or life expectancy. Additionally, any optional riders, if selected, will terminate. In the event of your beneficiary's death, their beneficiary can elect to take a lump sum payment or to continue the alternative payment plan following the schedule of minimum withdrawals established based on the life expectancy of your beneficiary. - - ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. 46 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS DEATH BENEFIT PAYMENT IN A LUMP SUM: We may pay all or part of the death benefit to your beneficiary in a lump sum under either a nonqualified or qualified annuity. We pay all proceeds by check (unless the beneficiary has chosen to have death benefit proceeds directly deposited into another Ameriprise Financial, Inc. account). If the beneficiary chooses the checking account option, the proceeds will be deposited into an interest bearing checking account issued by Ameriprise Bank, FSB, member FDIC unless the beneficiary fails to meet the requirements of using this option. OPTIONAL BENEFITS The assets held in our general account support the guarantees under your contract, including optional death benefits. To the extent that we are required to pay you amounts in addition to your contract value under these benefits, such amounts will come from our general account assets. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. You should also be aware that we issue other types of insurance and financial products as well, and we also pay our obligations under these products from assets in our general account. Our general account is not segregated or insulated from the claims of our creditors. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you or the annuitant is older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider fee continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to fixed account values during the time you have amounts allocated to the fixed account. Be sure to discuss with your financial advisor whether or not the MAV is appropriate for your situation. If both you and the annuitant are age 75 or younger at contract issue, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract according to terms determined by us and at our sole discretion. On the first contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every contract anniversary after that, through age 80, we compare the previous anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value if the current contract value is higher. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders; or - - the maximum anniversary value as calculated on the most recent contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. TERMINATING THE MAV - - You may terminate the MAV rider within 30 days of the first contract anniversary after the rider effective date. - - You may terminate the MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - - The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies. For an example, see Appendix B. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 47 force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT (EEB) The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides for reduced benefits if you are or the annuitant is age 70 or older at the rider effective date and it does not provide any additional benefit before the first contract anniversary. The EEB also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEB is appropriate for your situation. If both you and the annuitant are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract according to terms determined by us and at our sole discretion. You may not select this rider if you select the EEP. The EEB provides that if you die or the annuitant dies after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - - the standard death benefit amount (see "Benefits in Case of Death -- Standard Benefit") or the MAV death benefit amount, if applicable, PLUS - - 40% of your earnings at death if you and the annuitant were under age 70 on the rider effective date; or - - 15% of your earnings at death if you or the annuitant were age 70 or older on the rider effective date. Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. EARNINGS AT DEATH FOR THE EEB AND EEP: If the rider effective date for the EEB or EEP is the contract issue date, earnings at death is an amount equal to: - - the standard death benefit amount or the MAV death benefit amount, if applicable (the "death benefit amount") - - MINUS purchase payments not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount - MINUS the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% multiplied by: - the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or 48 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. TERMINATING THE EEB - - You may terminate the EEB rider within 30 days of the first contract anniversary after the rider effective date. - - You may terminate the EEB rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - - The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. For an example, see Appendix B. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEB. If the spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your spouse is less than age 76 at the time he or she elects to continue the contract, he or she may choose to continue the EEB. In this case, the following conditions will apply: - - the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP) The EEP is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEP provides for reduced benefits if you or the annuitant is age 70 or older at the rider effective date. It does not provide any additional benefit before the first contract anniversary and it does not provide any benefit beyond what is offered under the EEB during the second contract year. The EEP also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because part of the benefit paid by the EEP is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEP is appropriate for your situation. If both you and the annuitant are age 75 or younger at contract issue, you may choose to add the EEP to your contract. You must elect the EEP at the time you purchase your contract and your rider effective date will be the contract issue date. THIS RIDER IS ONLY AVAILABLE UNDER ANNUITIES PURCHASED THROUGH AN EXCHANGE OR DIRECT TRANSFER FROM ANOTHER ANNUITY OR A LIFE INSURANCE POLICY. You may not select this rider if you select the EEB. The EEP provides that if you die or the annuitant dies after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - - EEP Part I benefits, which equal the benefits payable under the EEB described above; RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 49 PLUS - - EEP Part II benefits, which equal a percentage of exchange purchase payments identified at issue not previously surrendered as follows:
PERCENTAGE IF YOU AND THE ANNUITANT ARE PERCENTAGE IF YOU OR THE ANNUITANT ARE CONTRACT YEAR UNDER AGE 70 ON THE RIDER EFFECTIVE DATE 70 OR OLDER ON THE RIDER EFFECTIVE DATE One and Two 0% 0% Three and Four 10% 3.75% Five or more 20% 7.5%
Additional death benefits payable under the EEP are not included in the adjusted partial surrender calculation. If after 6 months, no exchange purchase payments have been received, we will contact you and you will have an additional 30 days to follow-up on exchange purchase payments identified at issue but not received by us. If after these 30 days we have not received any exchange purchase payments, we will convert the EEP rider into an EEB. Another way to describe the benefits payable under the EEP rider is as follows: - - the standard death benefit amount (see "Benefits in Case of Death -- Standard Death Benefit") or the MAV death benefit amount, if applicable PLUS
IF YOU AND THE ANNUITANT ARE UNDER CONTRACT YEAR AGE 70 ON THE RIDER EFFECTIVE DATE, ADD . . . 1 Zero 2 40% x earnings at death (see above) 3 & 4 40% x (earnings at death + 25% of exchange purchase payment*) 5+ 40% x (earnings at death + 50% of exchange purchase payment*) IF YOU OR THE ANNUITANT ARE AGE 70 CONTRACT YEAR OR OLDER ON THE RIDER EFFECTIVE DATE, ADD . . . 1 Zero 2 15% x earnings at death 3 & 4 15% x (earnings at death + 25% of exchange purchase payment*) 5+ 15% x (earnings at death + 50% of exchange purchase payment*)
* Exchange purchase payments are purchase payments exchanged from another contract that are identified at issue and not previously surrendered. We are not responsible for identifying exchange purchase payments if we did not receive proper notification from the company from which the purchase payments are exchanged. TERMINATING THE EEP - - You may terminate the EEP rider within 30 days of the first contract anniversary after the rider effective date. - - You may terminate the EEP rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - - The EEP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The EEP rider will terminate in the case of an ownership change. - - The EEP rider will terminate in the case of the spousal continuation if the new owner is age 76 or older. For an example, see Appendix B. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEP. If your spouse at the time he or she elects to continue the contract has reached age 76, the EEP rider will terminate. If your spouse at the time he or she elects to continue the contract has not yet reached age 76, he or she cannot continue the EEP. However, he or she may choose to convert the EEP rider into an EEB. In this case, the following conditions will apply: - - the EEB rider will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the EEB rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEP rider. If your spouse chooses not to convert the EEP rider into an EEB, the standard death benefit amount (or the MAV death benefit amount, if applicable) will apply. NOTE: For special tax considerations associated with the EEP, see "Taxes." 50 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS THE ANNUITY PAYOUT PERIOD As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below except under Plan E. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date (less any applicable premium tax). During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. AMOUNTS OF FIXED AND VARIABLE PAYOUTS DEPEND ON: - - the annuity payout plan you select; - - the annuitant's age and, in most cases, the annuitant's sex; - - the annuity table in the contract; and - - the amounts you allocated to the accounts at settlement. In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. Fixed payouts remain the same from month to month. For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." ANNUITY TABLES The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of contract value according to the age and, when applicable, the sex of the annuitant. (Where required by law, we will use a unisex table of settlement rates.) Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment rate for the 5% Table A in the contract. The assumed investment rate affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment rate and payouts will decrease if the return is below the assumed investment rate. Using the 5% assumed interest rate Table A results in a higher initial payment, but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract value is used to purchase the payout plan: - - PLAN A - LIFE ANNUITY -- NO REFUND: We make monthly payouts until the annuitant's death. Payouts end with the last payout before the annuitant's death. We will not make any further payouts. This means that if the annuitant dies after we made only one monthly payout, we will not make any more payouts. - - PLAN B - LIFE ANNUITY WITH FIVE, TEN OR 15 YEARS CERTAIN: We make monthly payouts for a guaranteed payout period of five, ten or 15 years that you elect. This election will determine the length of the payout period to the beneficiary if the annuitant should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant's death. - - PLAN C - LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until the annuitant's death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 51 - - PLAN D - JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until the death of the surviving annuitant. Payouts end with the death of the second annuitant. - - PLAN E - PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether the annuitant is living or not. Depending on the selected time period, it is foreseeable that an annuitant can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the amount of the payout that would have been made 7 days prior to the date we determine present value. For qualified annuities, the discount rate we use in the calculation will be either 4.72% or 6.22%, depending on the applicable assumed investment rate. For nonqualified annuities, the discount rate we use in the calculation will vary between 4.92% and 6.42%, depending on the applicable assumed investment rate. (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take a surrender. (See "Taxes.") ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your contract is a qualified annuity, you must select a payout plan as of the settlement date set forth in your contract. You have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will generally meet certain IRS regulations governing RMDs if the payout plan meets the incidental distribution benefit requirements, if any, and the payouts are made: - - in equal or substantially equal payments over a period not longer than your life or over the joint life of you and your designated beneficiary; or - - in equal or substantially equal payments over a period not longer than your life expectancy of the annuitant or over the joint life expectancy of you and your designated beneficiary; or - - over a period certain not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary. IF WE DO NOT RECEIVE INSTRUCTIONS: You must give us written instructions for the annuity payouts at least 30 days before the annuitant's settlement date. If you do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed. Contract values that you allocated to the fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of monthly payouts at the time amounts are applied to a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. DEATH AFTER ANNUITY PAYOUTS BEGIN: If you or the annuitant die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. TAXES Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay income tax until there is a taxable distribution (or deemed distribution) from the contract. We will send a tax information reporting form for any year in which we made a taxable or reportable distribution according to our records. NONQUALIFIED ANNUITIES Generally, only the increase in the value of a non-qualified annuity contract over the investment in the contract is taxable. Certain exceptions apply. Federal tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when distributions are taken from any one of those contracts. ANNUITY PAYOUTS: Generally, unlike surrenders described below, the taxation of annuity payouts is subject to exclusion ratios, i.e. a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of your investment in the contract and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity -- no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under all other annuity payout 52 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "The Annuity Payout Period -- Annuity Payout Plans.") SURRENDERS: Generally, if you surrender all or part of your nonqualified annuity before your annuity payouts begin, including withdrawals under any optional withdrawal benefit rider, your surrender will be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. Different rules may apply if you exchange another contract into this contract. You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. WITHHOLDING: If you receive taxable income as a result of an annuity payout or surrender, including surrenders under any optional withdrawal benefit rider, we may deduct federal, and in some cases state withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, and you have a valid U.S. address, you may be able to elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. DEATH BENEFITS TO BENEFICIARIES: The death benefit under a nonqualified contract is not exempt from estate (federal or state) or income taxes. In addition, any amount your beneficiary receives that exceeds the investment in the contract is taxable as ordinary income to the beneficiary in the year he or she receives the payments. (See also "Benefits in Case of Death -- If you Die Before the Settlement Date"). ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR IRREVOCABLE TRUSTS: For nonqualified annuities, any annual increase in the value of annuities held by such entities (nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person only, the income will generally remain tax-deferred. PENALTIES: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: - - because of your death or in the event of nonnatural ownership, the death of the annuitant; - - because you become disabled (as defined in the Code); - - if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - - if it is allocable to an investment before Aug. 14, 1982; or - - if annuity payouts are made under immediate annuities as defined by the Code. TRANSFER OF OWNERSHIP: Generally, if you transfer ownership of a nonqualified annuity without receiving adequate consideration, the transfer may be treated as a surrender for federal income tax purposes. If the transfer is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Please consult your tax advisor for further details. 1035 EXCHANGES: Section 1035 of the Code permits nontaxable exchanges of certain insurance policies, endowment contracts, annuity contracts and qualified long- term care insurance contract while providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the cost basis from the old policy or contract to the new policy or contract. A 1035 exchange is a transfer from one policy or contract to another policy or contract. The following are nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment, annuity or qualified long-term care insurance contracts, (2) the exchange of an endowment contract for an annuity or qualified long-term care insurance contract, or for an endowment contract under which payments will begin no later than payments would have begun under the contract exchanged, (3) the exchange of an annuity contract for another annuity contract or for a qualified long-term care RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 53 insurance contract, or (4) the exchange of a qualified long-term care insurance contract for a qualified long-term insurance contract. However, if the life insurance policy has an outstanding loan, there may be tax consequences. Depending on the issue date of your original policy or contract, there may be tax or other benefits that are given up to gain the benefits of the new policy or contract. Consider whether the features and benefits of the new policy or contract outweigh any tax or other benefits of the old contract. For a partial exchange of an annuity contract for another annuity contract, the 1035 exchange is generally tax-free. The investment in the original contract and the earnings on the contract will be allocated proportionately between the original and new contracts. However, IRS Revenue Procedure 2008-24 states if withdrawals are taken from either contract within a 12 month period following a partial exchange, the 1035 exchange may be invalidated. In that case, the following will occur 1) the tax-free nature of the partial exchange can be lost, 2) the exchange will be retroactively treated as a taxable surrender on the lesser of the earnings in the original contract or the amount exchanged and 3) the entire amount of the exchange will be treated as a purchase into the second contract. You may receive an amended form 1099-R reporting an invalidated exchange. (If certain life events occur between the date of the partial exchange and the date of the withdrawal in the first 12 months, the partial exchange could remain valid.) You should consult your tax advisor before taking any surrender from either contract. ASSIGNMENT: If you assign or pledge your contract as collateral for a loan, earnings on purchase payments you made after Aug. 13, 1982 will be taxed as a deemed distribution and you may have to pay a 10% IRS penalty. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. When you use your contract to fund a retirement plan or IRA that is already tax- deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your right to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract. ANNUITY PAYOUTS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. ANNUITY PAYOUTS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. SURRENDERS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. SURRENDERS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans (except for Roth IRAs) are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. RMDs are based on the fair market value of your contract at year-end divided by life expectancy factor. Certain death benefits and optional riders may be considered in determining the fair market value of your contract for RMD purposes. This may cause your RMD to be higher. Inherited IRAs (including inherited Roth IRAs) are subject to special RMD rules. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. WITHHOLDING FOR IRAS, ROTH IRAS, SEPS AND SIMPLE IRAS: If you receive taxable income as a result of an annuity payout or a surrender, including surrenders under any optional withdrawal benefit rider, we may deduct withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. 54 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. WITHHOLDING FOR ALL OTHER QUALIFIED ANNUITIES: If you receive directly all or part of the contract value from a qualified annuity, mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. This mandatory withholding will not be imposed if instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan. Payments made to a surviving spouse instead of being directly rolled over to an IRA are also subject to mandatory 20% income tax withholding. In the below situations, the distribution is subject to an optional 10% withholding instead of the mandatory 20% withholding. We will withhold 10% of the distribution amount unless you elect otherwise. - - the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; - - the payout is a RMD as defined under the Code; - - the payout is made on account of an eligible hardship; - - the payout is a corrective distribution; or - - if the distribution is made from an inherited IRA. State withholding also may be imposed on taxable distributions. PENALTIES: If you receive amounts from your qualified contract before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received: - - because of your death; - - because you become disabled (as defined in the Code); - - if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - - if the distribution is made following severance from employment during the calendar year in which you attain age 55 (TSAs and annuities funding 401(a) plans only); or - - to pay certain medical or education expenses (IRAs only). DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he/she receives the payments from the qualified annuity. If you made non-deductible contributions to a traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. You are responsible for keeping all records tracking your non- deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are met. (See also "Benefits in Case of Death -- If You Die Before the Settlement Date"). ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. OTHER PURCHASE PAYMENT CREDITS: These are considered earnings and are taxed accordingly when surrendered or paid out. SPECIAL CONSIDERATIONS IF YOU SELECT ANY OPTIONAL RIDER: As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% tax penalty for surrenders before the age of 59 1/2, if applicable. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 55 We reserve the right to report charges for these riders as partial surrenders if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report any benefits attributable to these riders on the death of you or the annuitant as an annuity death benefit distribution, not as proceeds from life insurance. IMPORTANT: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. RIVERSOURCE LIFE'S TAX STATUS: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which each subaccount invests and becomes part of that subaccount's value. This investment income, including realized capital gains, is not subject to any withholding because of federal or state income taxes. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities or in our tax status as we then understand it. TAX QUALIFICATION: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. VOTING RIGHTS As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. After annuity payouts begin, the number of votes you have is equal to: - - the reserve held in each subaccount for your contract; divided by - - the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. SUBSTITUTION OF INVESTMENTS We may substitute the funds in which the subaccounts invest if: - - laws or regulations change; - - the existing funds become unavailable; or - - in our judgment, the funds no longer are suitable (or no longer the most suitable) for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute a fund currently listed in this prospectus (existing fund) for another fund (new fund). The new fund may have higher fees and/or operating expenses than the existing fund. Also, the new fund may have investment objectives and policies and/or investment advisers which differ from the existing fund. We may also: - - add new subaccounts; - - combine any two or more subaccounts; - - transfer assets to and from the subaccounts or the variable account; and 56 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS - - eliminate or close any subaccounts. We will notify you of any substitution or change. If we notify you that a subaccount will be eliminated or closed, you will have a certain period of time to tell us where to reallocate purchase payments or contract value currently allocated to that subaccount. If we do not receive your reallocation instructions by the due date, we automatically will reallocate to the subaccount investing in the RiverSource Variable Portfolio -- Cash Management Fund. You may then transfer this reallocated amount in accordance with the transfer provisions of your contract (see "Transferring Between Accounts" above). In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. ABOUT THE SERVICE PROVIDERS PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. ("RiverSource Distributors"), our affiliate, serves as the principal underwriter of the contract. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc. Although we no longer offer the contract for sale, you may continue to make purchase payments if permitted under the terms of your contract. We pay commissions to an affiliated selling firm of up to 5.75% of purchase payments on the contract as well as service/trail commissions of up to 1.00% based on annual total contract value for as long as the contract remains in effect. We also may pay a temporary additional sales commission of up to 1.00% of purchase payments for a period of time we select. These commissions do not change depending on which subaccounts you choose to allocate your purchase payments. From time to time and in accordance with applicable laws and regulations, we may also pay or provide the selling firm with various cash and non-cash promotional incentives including, but not limited to bonuses, short-term sales incentive payments, marketing allowances, costs associated with sales conferences and educational seminars and sales recognition awards. A portion of the payments made to the selling firm may be passed on to its financial advisors in accordance with its internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Ask your financial advisor for further information about what your financial advisor and the selling firm for which he or she works may receive in connection with your contract. We pay the commissions and other compensation described above from our assets. Our assets include: - - revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see "Expense Summary"); - - compensation we or an affiliate receive from the underlying funds in the form of distribution and services fees (see "The Variable Account and the Funds -- the funds"); - - compensation we or an affiliate receive from a fund's investment adviser, subadviser, distributor or an affiliate of any of these (see "The Variable Account and the Funds -- The funds"); and - - revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part of all of the commissions and other compensation described above indirectly through: - - fees and expenses we collect from contract owners, including surrender charges; and - - fees and expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated person. ISSUER We issue the contracts. We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc. We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts and life insurance policies. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 57 LEGAL PROCEEDINGS RiverSource Life is involved in the normal course of business in legal and regulatory proceedings, or regulatory requests for information, concerning matters arising in connection with the conduct of our general business activities as well as generally applicable to business practices in the insurance industry. From time to time, we receive requests for information from, or have been subject to examination by, the SEC, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities concerning our business activities and practices. These requests generally include suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements with respect to our annuity and insurance products. We have cooperated with and will continue to cooperate with the applicable regulators regarding their inquiries and examinations. RiverSource Life is involved in other proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material adverse impact on results of operations in any particular reporting period as the proceedings are resolved. 58 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS APPENDICES THE PURPOSE OF THESE APPENDICES IS TO ILLUSTRATE THE OPERATION OF VARIOUS CONTRACT FEATURES AND RIDERS AND TO PROVIDE CONDENSED FINANCIAL HISTORY DISCLOSURE REGARDING THE SUBACCOUNTS. IN ORDER TO DEMONSTRATE THESE CONTRACT FEATURES AND RIDERS, AN EXAMPLE MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. THE EXAMPLES OF THE OPTIONAL DEATH BENEFITS IN APPENDIX B INCLUDE PARTIAL SURRENDERS TO ILLUSTRATE THE EFFECT OF THESE PARTIAL SURRENDERS ON THE PARTICULAR BENEFIT. THESE EXAMPLES ARE INTENDED TO SHOW HOW THE OPTIONAL DEATH BENEFITS OPERATE, AND DO NOT TAKE INTO ACCOUNT WHETHER A PARTICULAR OPTIONAL DEATH BENEFIT IS PART OF A QUALIFIED ANNUITY. QUALIFIED ANNUITIES ARE SUBJECT TO REQUIRED MINIMUM DISTRIBUTIONS AT CERTAIN AGES (SEE "TAXES -- QUALIFIED ANNUITIES -- REQUIRED MINIMUM DISTRIBUTIONS") WHICH MAY REQUIRE YOU TO TAKE PARTIAL SURRENDERS FROM THE CONTRACT. IF YOU ARE CONSIDERING THE ADDITION OF CERTAIN OPTIONAL DEATH BENEFITS TO A QUALIFIED ANNUITY, YOU SHOULD CONSULT YOUR TAX ADVISOR PRIOR TO MAKING A PURCHASE FOR AN EXPLANATION OF THE POTENTIAL TAX IMPLICATION TO YOU. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 59 APPENDIX A: EXAMPLE -- SURRENDER CHARGES PARTIAL SURRENDER CHARGE CALCULATION EXAMPLE Assume you requested a surrender of $1,000 and there is a surrender charge of 7%. The total amount we actually deduct from your contract is $1,075.27. We determine this amount as follows: AMOUNT REQUESTED $1,000 - ----------------------- OR ------ = $1,075.27 1.00 - SURRENDER CHARGE .93
By applying the 7% surrender charge to $1,075.27, the surrender charge is $75.27. We pay you the $1,000 you requested. If you make a full surrender of your contract, we also will deduct the applicable contract administrative charge and the applicable prorated MAV, EEB or EEP charge. SURRENDER CHARGE CALCULATION EXAMPLE The following is an example of the calculation we would make to determine the surrender charge on a RAVA Advantage contract that contains a seven-year surrender charge schedule with this history: - - We received these payments: - $10,000 paid on the contract date; - $8,000 paid on the sixth contract anniversary; - $6,000 paid on the eighth contract anniversary; and - - The owner surrenders the contract for its total contract value of $26,500 and had not made any other surrenders during that contract year; and - - The contract value was $28,000 on the ninth contract anniversary.
SURRENDER CHARGE EXPLANATION $ 0 $2,500 is contract earnings surrendered without charge; and 0 $300 is 10% of the prior anniversary contract value that is in excess of contract earnings surrendered without charge (from above). 10% of $28,000 = $2,800 - $2,500 = $300 0 $10,000 payment was received eight or more years before surrender and is surrendered without surrender charge; and 480 $8,000 payment is surrendered with a 6% surrender charge since there have been 3 completed years from date of purchase payment; and 420 $6,000 payment is surrendered with a 7% surrender charge since there has been 1 completed year from date of purchase payment. ---- $900
60 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS APPENDIX B: EXAMPLE -- OPTIONAL BENEFITS EXAMPLE -- MAV DEATH BENEFIT - - You purchase the contract (with the MAV rider) with a payment of $20,000. - - On the first contract anniversary the contract value grows to $24,000. - - During the second contract year the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as:
($1,500 x $24,000) -1,636 ------------ = ------------ $22,000 for a death benefit of: $ 22,364
EXAMPLE -- EEB DEATH BENEFIT - - You purchase the contract with a payment of $100,000 and both you and the annuitant are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEB. - - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit, which is the contract value, or $105,000. You have not reached the first contract anniversary so the EEB does not provide any additional benefit at this time. - - On the first contract anniversary the contract value grows to $110,000. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- - On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 61 - - During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $48,025. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): ($50,000 x $110,000) $110,000 - ------------ = $57,619 $105,000
plus the EEB (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 ------- Total death benefit of: $58,667
- - On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58,667. The reduction in contract value has no effect. - - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death): 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $255,000
- - During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,000. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB (40% of earnings at death): 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $305,000
- - During the eleventh contract year the contract value remains $250,000 and the "new" purchase payment is now one year old. The value of the EEB changes. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 x ($250,000 - $105,000) = +58,000 -------- Total death benefit of: $308,000
EXAMPLE -- EEP DEATH BENEFIT - - You purchase the contract with an exchange purchase payment of $100,000 and both you and the annuitant are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEP. - - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit amount, which is the contract value, or $105,000. You have not reached the first contract anniversary so neither the EEP Part I nor Part II provides any additional benefit at this time. 62 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS - - On the first contract anniversary the contract value grows to $110,000. You have not reached the second contract anniversary so the EEP Part II does not provide any additional benefit at this time. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit amount minus purchase payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- - On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $100,000 = +10,000 -------- Total death benefit of: $124,000
- - During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $47,235. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): ($50,000 x $110,000) $110,000 - ------------ = $57,619 $105,000
plus the EEP Part I (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $55,000 = +5,500 ------- Total death benefit of: $64,167
- - On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $64,167. The reduction in contract value has no effect. - - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. Because we are beyond the fourth contract anniversary the EEP also reaches its maximum of 20%. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEP Part I (40% of earnings at death): 0.40 x (2.50 x $55,000) = +55,000 plus the EEP Part II which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $266,000
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 63 - - During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,000. The new purchase payment is less than one year old and so it has no effect on either the EEP Part I or EEP Part II. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEP Part I (40% of earnings at death): 0.40 x (2.50 x $55,000) = +55,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $316,000
- - During the eleventh contract year the contract value remains $250,000 and the "new" purchase payment is now one year old. The value of the EEP Part I changes but the value of the EEP Part II remains constant. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit minus payments not previously surrendered): 0.40 x ($250,000 - $105,000) = +58,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $319,000
64 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS APPENDIX C: CONDENSED FINANCIAL INFORMATION (UNAUDITED) The following tables give per-unit information about the financial history of each subaccount. The date in which operations commenced in each subaccount is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2009.
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.71 $1.36 $1.14 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.07 $0.71 $1.36 $1.14 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,299 3,750 4,111 14,120 2,021 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $0.80 $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 $1.00 -- Accumulation unit value at end of period $0.95 $0.80 $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 -- Number of accumulation units outstanding at end of period (000 116,7- 135,0- 149,3- 125,0- omitted) 68,595 84,420 25 93 16 10 82,114 43,189 5,550 -- - ------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.23 $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 $1.00 -- Accumulation unit value at end of period $1.63 $1.23 $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 -- Number of accumulation units outstanding at end of period (000 150,6- 202,7- 217,2- 203,0- 153,1- omitted) 92 80 41 16 07 70,504 34,604 12,313 805 -- - ------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $0.92 $1.68 $1.44 $1.16 $1.03 $0.91 $0.73 $0.93 $1.00 -- Accumulation unit value at end of period $1.22 $0.92 $1.68 $1.44 $1.16 $1.03 $0.91 $0.73 $0.93 -- Number of accumulation units outstanding at end of period (000 omitted) 26,575 32,736 42,202 45,349 43,612 34,180 21,555 11,378 1,950 -- - ------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.68 $0.90 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.68 $0.90 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 48,044 54,402 56,815 -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.69 $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.92 $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,805 12,809 13,321 78,916 10,074 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.08 $1.49 $1.59 $1.35 $1.30 $1.15 $0.90 $1.04 $1.00 -- Accumulation unit value at end of period $1.29 $1.08 $1.49 $1.59 $1.35 $1.30 $1.15 $0.90 $1.04 -- Number of accumulation units outstanding at end of period (000 118,5- 136,1- 142,6- 110,6- omitted) 72,598 82,749 91 67 60 81 74,984 42,497 7,356 -- - ------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $0.78 $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 $1.00 Accumulation unit value at end of period $0.97 $0.78 $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 15,940 18,431 21,893 24,975 23,850 20,551 15,315 9,520 4,490 1,283 - ------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.72 $1.19 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.90 $0.72 $1.19 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 378,2- 310,5- 204,0- 121,7- omitted) 40 27 77 98 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.65 $1.27 $1.07 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.65 $1.27 $1.07 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,788 41,006 32,112 59,299 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 65
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.74 $1.13 $0.97 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.74 $1.13 $0.97 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 39,767 30,400 17,045 51,380 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.75 $1.04 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.08 $0.75 $1.04 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 162,1- 119,7- 111,0- 103,8- omitted) 81 41 86 30 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $0.80 $1.20 $1.12 $1.00 $0.93 $0.86 $0.83 -- -- -- Accumulation unit value at end of period $1.08 $0.80 $1.20 $1.12 $1.00 $0.93 $0.86 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,118 11,157 13,704 15,189 16,191 11,992 9,885 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.06 $1.83 $1.61 $1.32 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.22 $1.06 $1.83 $1.61 $1.32 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 113,4- omitted) 14 12,645 16,521 19,055 15,273 4,245 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.68 $1.20 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.92 $0.68 $1.20 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 269,5- 398,5- 294,6- 244,1- omitted) 89 15 43 21 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.81 $1.40 $1.26 $1.13 $1.06 $1.01 $0.82 $1.00 $1.00 -- Accumulation unit value at end of period $1.02 $0.81 $1.40 $1.26 $1.13 $1.06 $1.01 $0.82 $1.00 -- Number of accumulation units outstanding at end of period (000 113,6- 148,7- 173,8- 189,1- 187,3- 119,2- omitted) 92,559 90 43 61 09 51 84 48,686 6,363 -- - ------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.41 $2.36 $2.06 $1.85 $1.58 $1.27 $0.93 $1.04 $1.00 -- Accumulation unit value at end of period $1.96 $1.41 $2.36 $2.06 $1.85 $1.58 $1.27 $0.93 $1.04 -- Number of accumulation units outstanding at end of period (000 187,6- 236,3- 264,4- 290,6- 260,4- 188,5- 109,6- omitted) 52 46 23 78 92 65 47 50,458 6,903 -- - ------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.06 $1.91 $1.64 $1.40 $1.19 $1.06 $0.75 $0.95 $1.00 -- Accumulation unit value at end of period $1.33 $1.06 $1.91 $1.64 $1.40 $1.19 $1.06 $0.75 $0.95 -- Number of accumulation units outstanding at end of period (000 omitted) 43,314 53,513 66,434 74,339 70,878 66,935 31,322 13,157 2,147 -- - ------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.45 $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 Accumulation unit value at end of period $1.71 $1.45 $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 Number of accumulation units outstanding at end of period (000 128,5- 139,6- 120,4- omitted) 50,767 62,873 93,100 40 18 56 87,330 59,317 24,477 6,879 - ------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.58 $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 Accumulation unit value at end of period $2.02 $1.58 $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 Number of accumulation units outstanding at end of period (000 omitted) 42,025 52,033 66,946 78,886 78,073 59,293 43,978 29,743 10,800 2,846 - ------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.97 $1.55 $1.51 $1.29 $1.17 $1.05 $0.85 $0.97 $1.00 -- Accumulation unit value at end of period $1.21 $0.97 $1.55 $1.51 $1.29 $1.17 $1.05 $0.85 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 57,678 68,255 94,998 90,391 69,986 45,710 26,370 10,942 942 -- - ------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.71 $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 Accumulation unit value at end of period $2.26 $1.71 $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 Number of accumulation units outstanding at end of period (000 139,6- 163,6- 174,9- 115,6- omitted) 78,043 97,291 37 87 18 16 83,015 56,079 23,748 7,622 - -------------------------------------------------------------------------------------------------------------------------
66 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $0.71 $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 Accumulation unit value at end of period $0.85 $0.71 $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 Number of accumulation units outstanding at end of period (000 108,2- 131,2- 187,5- 231,2- 248,9- 128,0- omitted) 98 82 85 23 35 74 83,166 71,820 60,343 42,626 - ------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.71 $1.25 $1.12 $1.07 $0.99 $0.94 $0.73 $0.98 $1.00 -- Accumulation unit value at end of period $0.85 $0.71 $1.25 $1.12 $1.07 $0.99 $0.94 $0.73 $0.98 -- Number of accumulation units outstanding at end of period (000 109,9- 134,5- omitted) 67,782 76,677 90,475 52 91 39,117 20,015 11,313 1,710 -- - ------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.84 $1.61 $1.47 $1.27 $1.17 $1.02 $0.76 $0.98 $1.00 -- Accumulation unit value at end of period $1.19 $0.84 $1.61 $1.47 $1.27 $1.17 $1.02 $0.76 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 13,229 16,534 23,253 25,868 24,349 20,043 10,924 6,981 1,459 -- - ------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. DYNAMICS FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. DYNAMICS FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.73 $1.41 $1.27 $1.10 $1.00 $0.89 $0.65 $0.96 $1.00 -- Accumulation unit value at end of period $1.03 $0.73 $1.41 $1.27 $1.10 $1.00 $0.89 $0.65 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 3,764 4,639 6,317 7,291 8,602 10,118 10,880 6,887 1,550 -- - ------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.43 $1.06 $1.38 $1.19 $1.14 $1.05 $0.82 $0.97 $1.00 -- Accumulation unit value at end of period $0.54 $0.43 $1.06 $1.38 $1.19 $1.14 $1.05 $0.82 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 14,877 13,625 9,208 12,088 10,621 10,625 8,724 5,572 1,081 -- - ------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.80 $1.13 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.01 $0.80 $1.13 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,089 8,014 5,881 33,923 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.93 $1.57 $1.39 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.24 $0.93 $1.57 $1.39 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 128,5- omitted) 26 99,290 48,018 1,744 127 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. TECHNOLOGY FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.47 $0.85 $0.80 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- Accumulation unit value at end of period $0.73 $0.47 $0.85 $0.80 $0.73 $0.72 $0.69 $0.48 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 21,730 19,001 21,716 25,440 31,926 14,454 7,882 3,769 490 -- - ------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.29 $0.52 $0.43 $0.40 $0.36 $0.36 $0.25 $0.43 $0.68 $1.00 Accumulation unit value at end of period $0.45 $0.29 $0.52 $0.43 $0.40 $0.36 $0.36 $0.25 $0.43 $0.68 Number of accumulation units outstanding at end of period (000 omitted) 27,957 23,828 28,860 30,606 32,606 37,258 40,520 37,200 34,767 20,288 - ------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.85 $0.63 $1.06 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 305,1- 238,4- 154,6- omitted) 23 72 50 -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.81 $1.71 $1.34 $0.92 $0.70 $0.60 $0.45 $0.61 $0.80 $1.00 Accumulation unit value at end of period $1.44 $0.81 $1.71 $1.34 $0.92 $0.70 $0.60 $0.45 $0.61 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 61,696 69,375 80,158 77,239 72,832 75,760 81,742 81,189 60,527 25,763 - -------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 67
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.48 $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 $1.00 Accumulation unit value at end of period $0.67 $0.48 $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 Number of accumulation units outstanding at end of period (000 100,5- 117,4- 108,2- omitted) 67,421 63,755 80,158 33 93 39 91,666 69,576 50,212 19,521 - ------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.61 $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 $1.00 Accumulation unit value at end of period $0.98 $0.61 $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 28,887 32,039 42,261 51,188 62,995 77,406 74,690 59,272 34,072 12,308 - ------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.39 $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 $1.00 -- Accumulation unit value at end of period $1.83 $1.39 $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 -- Number of accumulation units outstanding at end of period (000 omitted) 56,324 67,989 78,212 71,164 55,870 28,362 18,051 10,543 2,997 -- - ------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.57 $1.07 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.76 $0.57 $1.07 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 75,726 78,811 64,614 57,067 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.95 $1.60 $1.52 $1.31 $1.16 $1.00 -- -- -- -- Accumulation unit value at end of period $1.31 $0.95 $1.60 $1.52 $1.31 $1.16 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 31,543 36,705 48,173 51,514 33,811 11,540 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.07 $1.26 $1.16 $1.09 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.25 $1.07 $1.26 $1.16 $1.09 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 519,1- 569,0- 536,0- 339,5- 150,9- omitted) 19 70 32 87 45 22,945 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.86 $1.40 $1.43 $1.26 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.17 $0.86 $1.40 $1.43 $1.26 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,658 27,205 34,265 34,462 18,592 7,652 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.93 $1.12 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.93 $1.12 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 218,7- 228,9- 161,2- 154,1- omitted) 02 12 14 99 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.90 $1.10 $1.11 $1.09 $0.97 $0.91 $0.78 $0.98 $1.00 -- Accumulation unit value at end of period $1.13 $0.90 $1.10 $1.11 $1.09 $0.97 $0.91 $0.78 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 12,725 15,248 19,770 25,848 27,299 21,518 18,023 11,416 2,137 -- - ------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.98 $1.75 $1.63 $1.29 $1.15 $1.00 $0.78 $0.96 $1.00 -- Accumulation unit value at end of period $1.21 $0.98 $1.75 $1.63 $1.29 $1.15 $1.00 $0.78 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 16,372 20,502 29,411 34,316 37,980 40,598 38,012 20,773 2,460 -- - ------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $0.59 $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 Accumulation unit value at end of period $0.82 $0.59 $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 Number of accumulation units outstanding at end of period (000 omitted) 21,581 25,511 33,551 42,808 49,747 57,095 67,224 72,033 74,819 49,764 - ------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.71 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,669 6,188 -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------
68 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.98 $0.84 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,032 11,487 -- -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 45,180 25,617 -- -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.74 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.74 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,720 16,958 -- -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.80 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.94 $0.80 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,560 11,805 -- -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.86 $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 Accumulation unit value at end of period $1.07 $0.86 $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 74,529 61,707 86,628 89,309 92,705 84,704 79,035 64,273 37,760 28,348 - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(09/15/1999) Accumulation unit value at beginning of period $1.22 $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 Accumulation unit value at end of period $1.22 $1.22 $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 Number of accumulation units outstanding at end of period (000 197,2- 399,2- 286,1- 258,4- 193,9- 187,1- 203,7- 255,2- 243,8- 171,7- omitted) 88 14 21 92 96 00 53 51 70 85 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (0.76%) and (0.76%), respectively. - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.30 $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 Accumulation unit value at end of period $1.48 $1.30 $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 Number of accumulation units outstanding at end of period (000 638,9- 610,7- 599,6- 511,1- 332,6- 221,3- 188,9- 154,5- omitted) 84 07 80 00 77 77 39 30 83,968 30,783 - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.15 $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 Accumulation unit value at end of period $1.45 $1.15 $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 Number of accumulation units outstanding at end of period (000 508,0- 530,2- 560,4- 585,1- 408,5- 255,7- 134,4- omitted) 61 16 16 44 59 76 86 86,442 43,328 12,124 - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.56 $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 Accumulation unit value at end of period $0.69 $0.56 $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 Number of accumulation units outstanding at end of period (000 257,5- 301,6- 383,0- 450,2- 263,8- 130,7- omitted) 37 82 78 07 28 90 69,981 52,124 26,327 24,003 - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.52 $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 Accumulation unit value at end of period $1.68 $1.52 $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 Number of accumulation units outstanding at end of period (000 195,5- 201,7- 204,3- 169,9- 130,1- omitted) 36 28 16 31 35 82,347 51,936 31,133 16,572 8,968 - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.12 $1.13 $1.05 $1.05 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.19 $1.12 $1.13 $1.05 $1.05 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 302,5- 171,3- 147,4- 161,4- omitted) 24 93 00 90 91,038 2,274 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.03 $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 Accumulation unit value at end of period $1.57 $1.03 $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 Number of accumulation units outstanding at end of period (000 137,3- 147,2- 218,5- 251,7- 262,1- 242,2- 177,1- omitted) 50 97 38 68 54 54 50 93,845 58,348 31,722 - -------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 69
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.94 $1.16 $1.14 $1.07 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.33 $0.94 $1.16 $1.14 $1.07 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 229,0- 128,6- 116,5- 109,3- omitted) 76 53 16 16 29,477 1,052 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (05/01/2001) Accumulation unit value at beginning of period $0.75 $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 $1.00 -- Accumulation unit value at end of period $1.22 $0.75 $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 -- Number of accumulation units outstanding at end of period (000 omitted) 40,215 38,730 50,337 62,826 47,283 53,376 42,780 16,388 2,489 -- - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.81 $1.49 $1.36 $1.19 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.14 $0.81 $1.49 $1.36 $1.19 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 101,2- omitted) 57,405 76,989 71,709 39 6,605 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $0.65 $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 $1.00 Accumulation unit value at end of period $0.81 $0.65 $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 Number of accumulation units outstanding at end of period (000 100,4- 127,0- 139,0- 154,9- 144,0- 103,5- omitted) 91,208 20 10 08 49 39 87 64,771 35,957 9,812 - ------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.27 $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 Accumulation unit value at end of period $1.33 $1.27 $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 Number of accumulation units outstanding at end of period (000 109,0- 125,6- 120,0- 125,7- 145,0- 160,7- 155,7- 124,8- omitted) 59 98 18 29 87 25 18 66 50,510 16,258 - ------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.41 $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 Accumulation unit value at end of period $0.56 $0.41 $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 Number of accumulation units outstanding at end of period (000 147,0- 180,6- 283,7- 326,1- 323,8- 191,1- 192,3- 135,6- 129,1- omitted) 34 50 69 08 49 40 14 93 86 97,754 - ------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.80 $1.33 $1.34 $1.14 $1.10 $1.00 -- -- -- -- Accumulation unit value at end of period $1.00 $0.80 $1.33 $1.34 $1.14 $1.10 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,269 5,696 7,988 7,937 6,232 3,498 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.03 $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 Accumulation unit value at end of period $1.42 $1.03 $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 21,859 26,621 38,095 49,721 59,243 61,563 44,627 29,202 22,792 14,830 - ------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $1.29 $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 $1.00 Accumulation unit value at end of period $2.23 $1.29 $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 Number of accumulation units outstanding at end of period (000 111,5- omitted) 80,593 51 89,546 89,672 75,520 22,549 8,256 4,750 1,789 906 - ------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.74 $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 Accumulation unit value at end of period $0.94 $0.74 $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 48,442 55,412 75,421 80,961 77,787 51,446 23,614 20,012 15,821 13,967 - ------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.68 $1.12 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.68 $1.12 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 303,5- 183,6- 117,6- 123,1- omitted) 37 35 05 50 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.85 $1.36 $1.29 $1.12 $1.12 $1.00 -- -- -- -- Accumulation unit value at end of period $1.16 $0.85 $1.36 $1.29 $1.12 $1.12 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,203 6,409 9,188 9,786 10,247 4,730 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------
70 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (08/14/2001) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.22 $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 $1.00 -- Accumulation unit value at end of period $1.66 $1.22 $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 -- Number of accumulation units outstanding at end of period (000 149,1- 156,8- 148,7- 126,6- 127,5- omitted) 91 45 93 37 59 90,541 67,609 43,199 6,885 -- - ------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.85 $1.33 $1.37 $1.19 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.08 $0.85 $1.33 $1.37 $1.19 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 178,9- 227,5- 224,7- 258,2- 203,2- omitted) 86 95 30 23 72 36,974 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.61 $1.11 $1.23 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.61 $1.11 $1.23 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67,174 88,969 51,109 51,499 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.64 $1.20 $0.99 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.99 $0.64 $1.20 $0.99 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,479 17,546 14,940 37,273 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $1.42 $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 Accumulation unit value at end of period $2.11 $1.42 $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 Number of accumulation units outstanding at end of period (000 131,3- 142,7- 164,5- 186,8- 170,2- 104,5- omitted) 26 36 70 62 30 67 66,022 43,554 27,818 18,245 - ------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.18 $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 Accumulation unit value at end of period $1.67 $1.18 $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 Number of accumulation units outstanding at end of period (000 155,2- 176,4- 212,6- 235,9- 241,6- 184,9- 129,8- omitted) 13 83 46 60 23 61 24 78,311 40,791 23,813 - ------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INDEX ASSET ALLOCATION FUND (05/01/2001) (PREVIOUSLY WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND) Accumulation unit value at beginning of period $0.96 $1.37 $1.28 $1.15 $1.10 $1.02 $0.84 $0.97 $1.00 -- Accumulation unit value at end of period $1.10 $0.96 $1.37 $1.28 $1.15 $1.10 $1.02 $0.84 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 19,120 25,423 37,314 40,046 43,629 41,656 30,948 14,864 3,799 -- - ------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $0.80 $1.43 $1.28 $1.06 $0.98 $0.90 $0.69 $0.90 $1.00 -- Accumulation unit value at end of period $0.90 $0.80 $1.43 $1.28 $1.06 $0.98 $0.90 $0.69 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 4,273 5,126 7,327 8,088 9,021 10,390 8,227 4,703 1,200 -- - ------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $0.86 $1.44 $1.36 $1.22 $1.14 $0.97 $0.72 $0.99 $1.00 -- Accumulation unit value at end of period $1.26 $0.86 $1.44 $1.36 $1.22 $1.14 $0.97 $0.72 $0.99 -- Number of accumulation units outstanding at end of period (000 omitted) 19,019 22,799 30,772 36,471 41,049 43,145 38,865 25,397 3,701 -- - ------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $0.78 $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 $1.00 -- Accumulation unit value at end of period $1.18 $0.78 $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 -- Number of accumulation units outstanding at end of period (000 omitted) 31,042 29,488 35,670 25,726 19,618 22,185 19,289 9,992 2,060 -- - -------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 71
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.70 $1.35 $1.14 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.07 $0.70 $1.35 $1.14 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,654 2,593 2,415 5,609 801 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $0.78 $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 $1.00 -- Accumulation unit value at end of period $0.93 $0.78 $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 41,871 53,105 74,246 84,552 91,924 75,935 54,358 29,770 4,363 -- - ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.21 $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 $1.00 -- Accumulation unit value at end of period $1.61 $1.21 $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 93,058 122,930 135,634 127,479 94,909 44,705 24,114 9,270 790 -- - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $0.91 $1.66 $1.42 $1.15 $1.03 $0.90 $0.73 $0.93 $1.00 -- Accumulation unit value at end of period $1.20 $0.91 $1.66 $1.42 $1.15 $1.03 $0.90 $0.73 $0.93 -- Number of accumulation units outstanding at end of period (000 omitted) 15,628 19,242 25,059 26,700 27,136 22,031 15,471 8,200 1,927 -- - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.67 $0.90 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.67 $0.90 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,355 30,504 28,466 -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.69 $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,957 7,931 8,170 35,411 4,856 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.07 $1.47 $1.57 $1.34 $1.29 $1.14 $0.89 $1.04 $1.00 -- Accumulation unit value at end of period $1.27 $1.07 $1.47 $1.57 $1.34 $1.29 $1.14 $0.89 $1.04 -- Number of accumulation units outstanding at end of period (000 omitted) 48,731 56,747 81,683 93,343 95,710 71,318 50,607 30,523 7,298 -- - ----------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $0.76 $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 $1.00 Accumulation unit value at end of period $0.95 $0.76 $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 9,852 12,240 17,034 19,334 19,301 17,682 14,100 9,832 6,090 1,693 - ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.71 $1.19 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.71 $1.19 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 214,161 176,791 113,001 66,352 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.65 $1.26 $1.07 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.65 $1.26 $1.07 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,723 26,849 22,702 32,712 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.74 $1.13 $0.97 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.74 $1.13 $0.97 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,662 22,011 12,631 26,224 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.75 $1.04 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $0.75 $1.04 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 105,964 79,727 71,987 59,159 -- -- -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
72 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $0.79 $1.19 $1.11 $1.00 $0.92 $0.86 $0.82 -- -- -- Accumulation unit value at end of period $1.06 $0.79 $1.19 $1.11 $1.00 $0.92 $0.86 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,199 8,059 8,609 9,669 10,001 8,036 6,384 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.82 $1.60 $1.31 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.20 $1.05 $1.82 $1.60 $1.31 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 69,836 8,283 11,475 12,674 9,815 2,086 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.68 $1.20 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.68 $1.20 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 167,696 237,020 166,815 127,364 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.80 $1.38 $1.25 $1.12 $1.05 $1.00 $0.82 $1.00 $1.00 -- Accumulation unit value at end of period $1.00 $0.80 $1.38 $1.25 $1.12 $1.05 $1.00 $0.82 $1.00 -- Number of accumulation units outstanding at end of period (000 omitted) 57,593 72,387 96,482 112,864 121,317 119,521 81,919 36,320 8,177 -- - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.39 $2.33 $2.04 $1.83 $1.57 $1.27 $0.93 $1.04 $1.00 -- Accumulation unit value at end of period $1.93 $1.39 $2.33 $2.04 $1.83 $1.57 $1.27 $0.93 $1.04 -- Number of accumulation units outstanding at end of period (000 omitted) 106,479 136,525 156,364 174,833 157,678 117,171 72,124 35,541 6,689 -- - ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.05 $1.88 $1.62 $1.39 $1.18 $1.05 $0.74 $0.94 $1.00 -- Accumulation unit value at end of period $1.31 $1.05 $1.88 $1.62 $1.39 $1.18 $1.05 $0.74 $0.94 -- Number of accumulation units outstanding at end of period (000 omitted) 29,954 37,943 48,192 52,627 48,642 42,672 21,405 10,123 2,157 -- - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.42 $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 Accumulation unit value at end of period $1.68 $1.42 $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 Number of accumulation units outstanding at end of period (000 omitted) 31,073 39,491 59,503 81,589 88,911 80,587 63,047 44,591 19,803 6,181 - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.55 $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 Accumulation unit value at end of period $1.98 $1.55 $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 Number of accumulation units outstanding at end of period (000 omitted) 28,730 36,256 46,935 55,078 55,521 44,541 34,639 23,553 9,584 2,897 - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.96 $1.53 $1.50 $1.28 $1.17 $1.04 $0.84 $0.96 $1.00 -- Accumulation unit value at end of period $1.19 $0.96 $1.53 $1.50 $1.28 $1.17 $1.04 $0.84 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 39,361 47,292 65,658 63,662 50,166 33,241 21,294 9,151 1,114 -- - ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.68 $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 Accumulation unit value at end of period $2.21 $1.68 $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 51,883 65,990 96,413 112,452 117,932 84,473 65,106 47,539 24,711 10,265 - ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $0.70 $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 Accumulation unit value at end of period $0.84 $0.70 $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 Number of accumulation units outstanding at end of period (000 omitted) 70,758 87,685 126,734 160,736 168,697 108,140 80,350 75,489 71,185 55,239 - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.70 $1.23 $1.11 $1.06 $0.98 $0.93 $0.73 $0.98 $1.00 -- Accumulation unit value at end of period $0.84 $0.70 $1.23 $1.11 $1.06 $0.98 $0.93 $0.73 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 33,205 38,700 46,783 56,007 64,800 21,785 12,215 7,624 1,711 -- - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 73
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.83 $1.59 $1.45 $1.26 $1.16 $1.02 $0.76 $0.98 $1.00 -- Accumulation unit value at end of period $1.17 $0.83 $1.59 $1.45 $1.26 $1.16 $1.02 $0.76 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 7,715 9,784 13,998 14,692 13,500 12,074 7,348 4,808 1,224 -- - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. DYNAMICS FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. DYNAMICS FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.72 $1.39 $1.25 $1.09 $0.99 $0.88 $0.65 $0.96 $1.00 -- Accumulation unit value at end of period $1.01 $0.72 $1.39 $1.25 $1.09 $0.99 $0.88 $0.65 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 2,073 2,583 3,800 4,211 4,924 5,936 6,700 4,845 1,426 -- - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.42 $1.05 $1.36 $1.18 $1.13 $1.05 $0.82 $0.96 $1.00 -- Accumulation unit value at end of period $0.53 $0.42 $1.05 $1.36 $1.18 $1.13 $1.05 $0.82 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 8,567 8,723 5,805 7,305 6,396 6,649 5,460 3,709 901 -- - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.80 $1.13 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.01 $0.80 $1.13 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,414 5,240 3,964 15,226 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.92 $1.57 $1.38 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.23 $0.92 $1.57 $1.38 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 76,801 53,711 23,729 1,198 107 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. TECHNOLOGY FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.46 $0.84 $0.79 $0.72 $0.71 $0.69 $0.48 $0.91 $1.00 -- Accumulation unit value at end of period $0.72 $0.46 $0.84 $0.79 $0.72 $0.71 $0.69 $0.48 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 11,446 8,853 10,072 12,094 14,960 8,076 5,212 2,845 911 -- - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.28 $0.51 $0.42 $0.40 $0.36 $0.36 $0.25 $0.42 $0.68 $1.00 Accumulation unit value at end of period $0.44 $0.28 $0.51 $0.42 $0.40 $0.36 $0.36 $0.25 $0.42 $0.68 Number of accumulation units outstanding at end of period (000 omitted) 19,312 16,671 19,559 22,668 24,131 27,479 30,159 31,354 34,050 22,949 - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.85 $0.63 $1.06 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 168,562 128,192 72,177 -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.80 $1.68 $1.33 $0.91 $0.70 $0.59 $0.45 $0.61 $0.80 $1.00 Accumulation unit value at end of period $1.41 $0.80 $1.68 $1.33 $0.91 $0.70 $0.59 $0.45 $0.61 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 46,612 54,116 64,174 61,879 59,325 61,390 68,389 74,111 64,147 29,251 - ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.48 $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 $1.00 Accumulation unit value at end of period $0.66 $0.48 $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 44,235 44,360 58,819 73,300 84,506 78,223 74,564 62,663 51,051 21,973 - ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.60 $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 $1.00 Accumulation unit value at end of period $0.96 $0.60 $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 20,432 22,831 31,915 38,120 48,503 60,214 61,988 53,383 36,822 15,060 - -----------------------------------------------------------------------------------------------------------------------------------
74 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.37 $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 $1.00 -- Accumulation unit value at end of period $1.80 $1.37 $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 -- Number of accumulation units outstanding at end of period (000 omitted) 35,891 43,832 51,479 45,869 35,163 18,264 12,519 7,093 2,778 -- - ----------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.57 $1.07 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $0.57 $1.07 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 40,525 41,079 30,611 26,517 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.94 $1.59 $1.51 $1.30 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.30 $0.94 $1.59 $1.51 $1.30 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 21,263 24,950 32,187 34,962 20,721 6,121 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.25 $1.15 $1.08 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.24 $1.06 $1.25 $1.15 $1.08 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 350,910 395,298 360,480 226,000 94,657 11,924 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.85 $1.39 $1.42 $1.25 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.16 $0.85 $1.39 $1.42 $1.25 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,634 18,861 23,107 22,606 12,037 4,085 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.93 $1.12 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $0.93 $1.12 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 127,629 131,661 82,318 76,067 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.89 $1.08 $1.10 $1.08 $0.96 $0.91 $0.77 $0.98 $1.00 -- Accumulation unit value at end of period $1.11 $0.89 $1.08 $1.10 $1.08 $0.96 $0.91 $0.77 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 7,349 8,551 11,073 13,569 14,517 11,248 9,676 6,574 1,743 -- - ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.96 $1.73 $1.61 $1.27 $1.15 $1.00 $0.78 $0.96 $1.00 -- Accumulation unit value at end of period $1.19 $0.96 $1.73 $1.61 $1.27 $1.15 $1.00 $0.78 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 10,504 13,381 18,697 21,524 23,458 24,819 24,880 15,138 2,180 -- - ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $0.58 $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 Accumulation unit value at end of period $0.80 $0.58 $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 Number of accumulation units outstanding at end of period (000 omitted) 15,529 20,077 26,405 34,609 42,680 51,579 63,075 73,930 87,722 68,407 - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.71 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,500 3,115 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,467 7,436 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,565 15,034 -- -- -- -- -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 75
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,191 9,299 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.94 $0.79 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,602 8,524 -- -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.85 $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 Accumulation unit value at end of period $1.04 $0.85 $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 55,353 51,095 74,966 74,221 77,525 74,540 73,310 64,613 53,096 39,810 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(09/15/1999) Accumulation unit value at beginning of period $1.20 $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 Accumulation unit value at end of period $1.19 $1.20 $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 140,419 290,095 247,870 211,744 147,452 148,915 178,580 228,237 265,455 203,922 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (0.95%) and (0.95%), respectively. - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.28 $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 Accumulation unit value at end of period $1.45 $1.28 $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 447,493 430,993 408,270 351,043 257,273 190,125 176,013 159,405 106,760 43,920 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.13 $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 Accumulation unit value at end of period $1.42 $1.13 $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 307,581 329,220 363,274 383,460 278,737 181,318 99,776 67,958 41,299 14,227 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.55 $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 Accumulation unit value at end of period $0.68 $0.55 $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 147,939 180,807 242,876 290,744 144,230 94,730 45,599 34,956 26,779 22,159 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.49 $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 Accumulation unit value at end of period $1.65 $1.49 $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 137,253 142,773 141,675 123,834 102,876 72,702 54,100 36,626 23,970 14,137 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.11 $1.12 $1.05 $1.05 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.18 $1.11 $1.12 $1.05 $1.05 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 192,220 113,444 88,734 95,224 51,906 1,504 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.01 $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 Accumulation unit value at end of period $1.54 $1.01 $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 111,734 125,862 186,775 221,767 237,711 236,566 197,358 122,784 88,813 52,655 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.93 $1.16 $1.14 $1.06 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.31 $0.93 $1.16 $1.14 $1.06 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 141,698 76,770 65,977 61,812 18,068 783 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (05/01/2001) Accumulation unit value at beginning of period $0.74 $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 $1.00 -- Accumulation unit value at end of period $1.20 $0.74 $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 -- Number of accumulation units outstanding at end of period (000 omitted) 26,343 25,504 35,043 43,939 31,419 35,498 29,450 12,145 2,238 -- - -----------------------------------------------------------------------------------------------------------------------------------
76 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.81 $1.48 $1.36 $1.19 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.81 $1.48 $1.36 $1.19 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,037 45,362 43,555 54,642 4,982 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $0.64 $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 $1.00 Accumulation unit value at end of period $0.80 $0.64 $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 65,626 73,795 92,416 104,302 122,070 117,372 91,398 65,011 40,575 14,084 - ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 Accumulation unit value at end of period $1.30 $1.24 $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 88,306 108,778 104,637 108,222 121,249 130,386 135,202 116,147 56,966 24,654 - ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.41 $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 Accumulation unit value at end of period $0.55 $0.41 $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 90,930 116,110 186,447 216,237 212,229 135,373 147,485 118,986 130,764 106,410 - ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.79 $1.32 $1.34 $1.13 $1.09 $1.00 -- -- -- -- Accumulation unit value at end of period $0.99 $0.79 $1.32 $1.34 $1.13 $1.09 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,736 2,900 4,152 4,707 3,594 2,030 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.01 $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 Accumulation unit value at end of period $1.39 $1.01 $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 15,189 18,734 28,329 38,372 46,718 51,057 39,709 29,341 24,346 16,349 - ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $1.27 $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 $1.00 Accumulation unit value at end of period $2.19 $1.27 $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 Number of accumulation units outstanding at end of period (000 omitted) 47,289 61,879 50,491 51,867 44,244 16,315 6,501 3,888 1,542 693 - ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.73 $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 Accumulation unit value at end of period $0.92 $0.73 $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 35,421 42,730 58,762 64,541 61,793 40,351 21,462 19,189 18,664 15,670 - ----------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.68 $1.11 $1.08 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.68 $1.11 $1.08 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 163,841 98,708 55,721 57,963 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.84 $1.34 $1.28 $1.12 $1.12 $1.00 -- -- -- -- Accumulation unit value at end of period $1.14 $0.84 $1.34 $1.28 $1.12 $1.12 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,165 3,807 5,203 5,724 5,777 2,540 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (08/14/2001) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.21 $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 $1.00 -- Accumulation unit value at end of period $1.63 $1.21 $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 -- Number of accumulation units outstanding at end of period (000 omitted) 81,111 85,345 79,474 69,587 72,463 57,581 44,918 28,099 6,314 -- - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 77
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.84 $1.32 $1.36 $1.18 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.07 $0.84 $1.32 $1.36 $1.18 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 95,224 120,656 113,380 130,395 96,755 18,714 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.61 $1.11 $1.22 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.61 $1.11 $1.22 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,794 50,326 29,814 27,318 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.63 $1.20 $0.99 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.98 $0.63 $1.20 $0.99 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,049 11,266 9,199 17,529 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $1.39 $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 Accumulation unit value at end of period $2.06 $1.39 $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 80,522 88,899 108,613 122,718 114,381 79,981 56,466 42,309 30,297 21,844 - ----------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 Accumulation unit value at end of period $1.64 $1.16 $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 100,879 117,299 145,262 164,257 169,886 140,320 108,046 72,853 46,456 29,881 - ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INDEX ASSET ALLOCATION FUND (05/01/2001) (PREVIOUSLY WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND) Accumulation unit value at beginning of period $0.95 $1.35 $1.26 $1.14 $1.09 $1.01 $0.84 $0.97 $1.00 -- Accumulation unit value at end of period $1.08 $0.95 $1.35 $1.26 $1.14 $1.09 $1.01 $0.84 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 15,303 19,992 28,981 29,215 32,466 31,201 22,278 11,859 3,224 -- - ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $0.79 $1.41 $1.26 $1.05 $0.97 $0.89 $0.69 $0.90 $1.00 -- Accumulation unit value at end of period $0.88 $0.79 $1.41 $1.26 $1.05 $0.97 $0.89 $0.69 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 3,263 3,897 5,538 6,052 6,690 7,049 5,248 2,781 1,031 -- - ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $0.84 $1.42 $1.35 $1.21 $1.13 $0.97 $0.72 $0.99 $1.00 -- Accumulation unit value at end of period $1.24 $0.84 $1.42 $1.35 $1.21 $1.13 $0.97 $0.72 $0.99 -- Number of accumulation units outstanding at end of period (000 omitted) 11,212 13,585 18,131 21,391 25,313 25,983 24,999 17,130 3,747 -- - ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $0.76 $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 $1.00 -- Accumulation unit value at end of period $1.16 $0.76 $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 -- Number of accumulation units outstanding at end of period (000 omitted) 20,853 19,000 23,653 17,655 14,334 16,103 13,800 7,655 2,230 -- - -----------------------------------------------------------------------------------------------------------------------------------
78 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.70 $1.35 $1.14 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $1.06 $0.70 $1.35 $1.14 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 609 425 664 2,023 333 -- -- -- - --------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $0.85 $1.45 $1.40 $1.21 $1.16 $1.06 $0.81 $1.00 Accumulation unit value at end of period $1.01 $0.85 $1.45 $1.40 $1.21 $1.16 $1.06 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 7,705 10,045 14,240 18,481 20,739 16,610 9,284 3,503 - --------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.25 $2.71 $2.59 $1.94 $1.68 $1.36 $0.95 $1.00 Accumulation unit value at end of period $1.67 $1.25 $2.71 $2.59 $1.94 $1.68 $1.36 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 19,906 29,486 32,186 31,867 25,568 11,679 5,621 1,417 - --------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.05 $1.92 $1.64 $1.33 $1.19 $1.05 $0.85 $1.00 Accumulation unit value at end of period $1.38 $1.05 $1.92 $1.64 $1.33 $1.19 $1.05 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,810 5,162 6,589 7,826 7,538 4,969 2,812 944 - --------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.67 $0.90 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.67 $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,341 7,412 9,862 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.68 $1.18 $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $0.91 $0.68 $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,815 2,188 2,203 12,931 2,015 -- -- -- - --------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.06 $1.46 $1.56 $1.33 $1.28 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.26 $1.06 $1.46 $1.56 $1.33 $1.28 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 11,068 13,643 20,382 24,433 25,428 16,423 8,977 2,837 - --------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $0.87 $1.28 $1.26 $1.17 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $1.08 $0.87 $1.28 $1.26 $1.17 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,706 1,873 2,380 3,270 3,186 2,458 1,272 211 - --------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.71 $1.19 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.89 $0.71 $1.19 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 47,208 42,915 31,378 21,100 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.64 $1.26 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $0.88 $0.64 $1.26 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,016 5,121 4,198 9,849 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.74 $1.13 $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $0.87 $0.74 $1.13 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,589 4,848 3,423 9,239 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.75 $1.03 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.07 $0.75 $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,977 18,362 19,211 18,826 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $0.87 $1.32 $1.23 $1.11 $1.03 $0.95 $0.93 -- Accumulation unit value at end of period $1.17 $0.87 $1.32 $1.23 $1.11 $1.03 $0.95 -- Number of accumulation units outstanding at end of period (000 omitted) 808 1,156 1,422 1,855 2,338 2,067 1,338 -- - --------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.81 $1.59 $1.31 $1.14 $1.00 -- -- Accumulation unit value at end of period $1.20 $1.05 $1.81 $1.59 $1.31 $1.14 -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,466 3,851 5,245 6,006 4,632 1,316 -- -- - --------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.68 $1.20 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.91 $0.68 $1.20 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,815 53,546 45,072 40,094 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 79
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $0.83 $1.44 $1.30 $1.16 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.04 $0.83 $1.44 $1.30 $1.16 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 10,988 14,570 20,111 25,441 28,158 27,602 15,940 3,592 - --------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.35 $2.25 $1.97 $1.77 $1.52 $1.23 $0.90 $1.00 Accumulation unit value at end of period $1.86 $1.35 $2.25 $1.97 $1.77 $1.52 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 28,494 38,797 44,787 53,339 46,944 30,787 15,111 4,182 - --------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.16 $2.09 $1.80 $1.55 $1.32 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.45 $1.16 $2.09 $1.80 $1.55 $1.32 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 5,075 6,432 8,255 10,330 9,686 7,474 2,900 553 - --------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.06 $1.86 $2.37 $1.99 $1.77 $1.36 $1.01 $1.00 Accumulation unit value at end of period $1.25 $1.06 $1.86 $2.37 $1.99 $1.77 $1.36 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 7,137 9,150 14,263 20,694 22,307 17,231 9,166 2,887 - --------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.18 $1.77 $1.84 $1.59 $1.47 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.51 $1.18 $1.77 $1.84 $1.59 $1.47 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 7,198 8,815 11,862 14,227 13,298 8,980 5,248 2,075 - --------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.01 $1.62 $1.58 $1.35 $1.23 $1.10 $0.89 $1.00 Accumulation unit value at end of period $1.26 $1.01 $1.62 $1.58 $1.35 $1.23 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 10,913 14,362 21,837 22,449 18,871 13,076 6,742 1,735 - --------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.24 $1.98 $1.94 $1.69 $1.51 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.63 $1.24 $1.98 $1.94 $1.69 $1.51 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 12,872 16,558 24,512 29,515 30,996 15,049 7,743 2,583 - --------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $0.84 $1.35 $1.38 $1.24 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $1.01 $0.84 $1.35 $1.38 $1.24 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 11,037 13,564 20,871 27,339 30,636 9,922 2,742 1,048 - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.74 $1.31 $1.18 $1.13 $1.05 $1.00 $0.78 $1.00 Accumulation unit value at end of period $0.89 $0.74 $1.31 $1.18 $1.13 $1.05 $1.00 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 10,744 12,622 15,385 19,282 24,536 5,492 1,386 379 - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.88 $1.67 $1.53 $1.33 $1.23 $1.07 $0.80 $1.00 Accumulation unit value at end of period $1.23 $0.88 $1.67 $1.53 $1.33 $1.23 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,576 2,199 3,003 3,321 2,836 2,429 1,198 552 - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. DYNAMICS FUND, SERIES I SHARES (02/13/2002) (PREVIOUSLY AIM V.I. DYNAMICS FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.78 $1.53 $1.37 $1.19 $1.09 $0.97 $0.71 $1.00 Accumulation unit value at end of period $1.11 $0.78 $1.53 $1.37 $1.19 $1.09 $0.97 $0.71 Number of accumulation units outstanding at end of period (000 omitted) 250 327 479 608 830 916 758 242 - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.45 $1.12 $1.45 $1.26 $1.20 $1.11 $0.87 $1.00 Accumulation unit value at end of period $0.56 $0.45 $1.12 $1.45 $1.26 $1.20 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 2,151 1,606 1,004 1,342 1,322 1,122 925 526 - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.80 $1.13 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.00 $0.80 $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 956 923 753 5,096 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------
80 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.92 $1.57 $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $1.23 $0.92 $1.57 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 14,695 14,785 8,000 503 2 -- -- -- - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) (PREVIOUSLY AIM V.I. TECHNOLOGY FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.54 $0.99 $0.93 $0.85 $0.84 $0.81 $0.56 $1.00 Accumulation unit value at end of period $0.84 $0.54 $0.99 $0.93 $0.85 $0.84 $0.81 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 2,935 2,808 2,913 3,543 4,728 1,650 851 192 - --------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $0.72 $1.30 $1.08 $1.01 $0.92 $0.92 $0.64 $1.00 Accumulation unit value at end of period $1.12 $0.72 $1.30 $1.08 $1.01 $0.92 $0.92 $0.64 Number of accumulation units outstanding at end of period (000 omitted) 384 367 507 505 468 467 428 68 - --------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $0.63 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,560 33,658 25,246 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $1.40 $2.97 $2.34 $1.61 $1.23 $1.05 $0.79 $1.00 Accumulation unit value at end of period $2.49 $1.40 $2.97 $2.34 $1.61 $1.23 $1.05 $0.79 Number of accumulation units outstanding at end of period (000 omitted) 1,272 1,603 1,484 1,656 1,555 1,500 1,254 681 - --------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $0.75 $1.20 $1.09 $1.03 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $1.03 $0.75 $1.20 $1.09 $1.03 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 4,222 4,927 5,932 8,628 8,658 5,399 2,971 1,088 - --------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $0.71 $1.18 $1.17 $1.04 $1.00 $0.96 $0.72 $1.00 Accumulation unit value at end of period $1.14 $0.71 $1.18 $1.17 $1.04 $1.00 $0.96 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 2,166 2,718 3,692 5,363 6,257 6,311 5,191 2,112 - --------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.71 $2.78 $2.20 $1.70 $1.47 $1.14 $0.85 $1.00 Accumulation unit value at end of period $2.25 $1.71 $2.78 $2.20 $1.70 $1.47 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 5,019 6,021 7,678 8,231 6,871 3,380 1,670 276 - --------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.56 $1.07 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.75 $0.56 $1.07 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,498 10,873 10,350 9,305 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.94 $1.59 $1.51 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.29 $0.94 $1.59 $1.51 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,423 8,456 11,884 14,402 11,208 4,318 -- -- - --------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.05 $1.24 $1.15 $1.08 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.24 $1.05 $1.24 $1.15 $1.08 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 70,681 82,157 92,164 64,615 34,899 7,003 -- -- - --------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.85 $1.38 $1.42 $1.25 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.15 $0.85 $1.38 $1.42 $1.25 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,663 7,256 9,606 10,328 6,924 2,998 -- -- - --------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.93 $1.11 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.12 $0.93 $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,403 31,669 27,066 26,857 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $0.92 $1.12 $1.14 $1.12 $1.00 $0.94 $0.81 $1.00 Accumulation unit value at end of period $1.15 $0.92 $1.12 $1.14 $1.12 $1.00 $0.94 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 2,116 2,705 3,423 4,490 4,351 2,530 1,776 617 - ---------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 81
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.05 $1.90 $1.77 $1.40 $1.26 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.30 $1.05 $1.90 $1.77 $1.40 $1.26 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 1,819 2,476 3,409 3,961 4,252 4,043 4,165 2,086 - --------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $0.73 $1.35 $1.31 $1.25 $1.13 $0.96 $0.73 $1.00 Accumulation unit value at end of period $1.00 $0.73 $1.35 $1.31 $1.25 $1.13 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 518 601 771 986 736 559 614 267 - --------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.71 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 897 88 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,849 1,582 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,698 2,013 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,942 1,762 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $0.79 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,685 829 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.94 $1.36 $1.35 $1.19 $1.16 $1.07 $0.90 $1.00 Accumulation unit value at end of period $1.16 $0.94 $1.36 $1.35 $1.19 $1.16 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 8,438 2,967 5,018 4,466 3,385 2,471 1,608 531 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(02/13/2002) Accumulation unit value at beginning of period $1.10 $1.08 $1.04 $1.01 $0.99 $1.00 $1.00 $1.00 Accumulation unit value at end of period $1.09 $1.10 $1.08 $1.04 $1.01 $0.99 $1.00 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 23,076 51,260 39,420 37,806 22,067 19,507 13,022 12,452 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (1.02%) and (1.01%), respectively. - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.12 $1.21 $1.16 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.27 $1.12 $1.21 $1.16 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 89,692 93,379 103,330 87,923 50,746 22,751 13,984 6,481 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.14 $1.94 $1.82 $1.53 $1.36 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.44 $1.14 $1.94 $1.82 $1.53 $1.36 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 59,080 64,717 69,629 75,610 47,282 24,579 8,342 3,101 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.70 $1.22 $1.20 $1.05 $1.00 $0.95 $0.75 $1.00 Accumulation unit value at end of period $0.86 $0.70 $1.22 $1.20 $1.05 $1.00 $0.95 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 16,370 18,986 23,697 27,942 27,550 4,862 1,779 291 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.45 $1.47 $1.38 $1.31 $1.39 $1.28 $1.14 $1.00 Accumulation unit value at end of period $1.60 $1.45 $1.47 $1.38 $1.31 $1.39 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 24,423 26,925 31,193 26,716 18,771 8,568 3,885 1,060 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.11 $1.12 $1.05 $1.05 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.17 $1.11 $1.12 $1.05 $1.05 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 40,367 23,321 26,608 31,048 20,279 653 -- -- - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.08 $1.46 $1.44 $1.32 $1.28 $1.16 $0.94 $1.00 Accumulation unit value at end of period $1.64 $1.08 $1.46 $1.44 $1.32 $1.28 $1.16 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 10,600 13,016 20,960 27,180 28,189 24,305 16,280 3,957 - ---------------------------------------------------------------------------------------------------------------------
82 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.93 $1.15 $1.14 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.31 $0.93 $1.15 $1.14 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,266 19,612 20,632 21,052 7,061 300 -- -- - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.76 $1.40 $1.24 $1.26 $1.15 $1.07 $0.88 $1.00 Accumulation unit value at end of period $1.24 $0.76 $1.40 $1.24 $1.26 $1.15 $1.07 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 2,137 2,135 2,984 4,676 5,505 5,961 4,649 1,153 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.81 $1.48 $1.36 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $1.12 $0.81 $1.48 $1.36 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,370 9,682 9,445 15,321 622 -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.84 $1.35 $1.30 $1.14 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $1.05 $0.84 $1.35 $1.30 $1.14 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 6,575 7,849 10,644 13,132 14,184 11,269 6,544 1,889 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.09 $1.13 $1.08 $1.05 $1.04 $1.05 $1.04 $1.00 Accumulation unit value at end of period $1.13 $1.09 $1.13 $1.08 $1.05 $1.04 $1.05 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 11,597 12,804 12,583 16,153 18,707 17,403 14,902 6,107 - --------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.66 $1.19 $1.17 $1.06 $0.99 $0.92 $0.77 $1.00 Accumulation unit value at end of period $0.89 $0.66 $1.19 $1.17 $1.06 $0.99 $0.92 $0.77 Number of accumulation units outstanding at end of period (000 omitted) 9,725 12,689 20,603 24,725 23,296 7,403 5,647 973 - --------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.79 $1.31 $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $0.98 $0.79 $1.31 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 520 582 925 1,124 921 450 -- -- - --------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.97 $1.59 $1.68 $1.52 $1.46 $1.25 $0.85 $1.00 Accumulation unit value at end of period $1.34 $0.97 $1.59 $1.68 $1.52 $1.46 $1.25 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 1,760 2,383 3,378 4,827 5,744 5,617 2,920 900 - --------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.69 $3.70 $2.70 $2.04 $1.54 $1.25 $0.90 $1.00 Accumulation unit value at end of period $2.92 $1.69 $3.70 $2.70 $2.04 $1.54 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 7,245 11,453 9,394 9,829 8,412 1,983 492 220 - --------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.15 $1.94 $1.74 $1.42 $1.26 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.45 $1.15 $1.94 $1.74 $1.42 $1.26 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,118 3,748 5,324 5,986 5,133 2,551 340 55 - --------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.68 $1.11 $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $0.88 $0.68 $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,320 25,636 18,675 20,639 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.84 $1.34 $1.28 $1.12 $1.12 $1.00 -- -- Accumulation unit value at end of period $1.14 $0.84 $1.34 $1.28 $1.12 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 522 766 1,469 1,490 1,493 840 -- -- - --------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.14 $1.68 $1.79 $1.50 $1.43 $1.21 $0.88 $1.00 Accumulation unit value at end of period $1.54 $1.14 $1.68 $1.79 $1.50 $1.43 $1.21 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 20,099 23,170 23,547 19,283 20,683 11,379 7,181 3,316 - --------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.84 $1.31 $1.36 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.06 $0.84 $1.31 $1.36 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,587 43,694 51,531 60,771 53,896 12,916 -- -- - ---------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 83
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.61 $1.11 $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $0.86 $0.61 $1.11 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 10,214 14,095 9,916 8,886 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.63 $1.20 $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $0.98 $0.63 $1.20 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,148 2,776 2,519 6,372 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (02/13/2002) Accumulation unit value at beginning of period $1.68 $3.12 $2.71 $1.99 $1.66 $1.28 $0.87 $1.00 Accumulation unit value at end of period $2.49 $1.68 $3.12 $2.71 $1.99 $1.66 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 14,208 16,311 18,491 21,367 19,260 9,273 4,376 1,523 - --------------------------------------------------------------------------------------------------------------------- WANGER USA (02/13/2002) Accumulation unit value at beginning of period $1.03 $1.73 $1.66 $1.56 $1.41 $1.21 $0.85 $1.00 Accumulation unit value at end of period $1.46 $1.03 $1.73 $1.66 $1.56 $1.41 $1.21 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 23,568 28,344 36,469 42,372 41,455 26,304 13,657 3,732 - --------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INDEX ASSET ALLOCATION FUND (02/13/2002) (PREVIOUSLY WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND) Accumulation unit value at beginning of period $1.00 $1.42 $1.33 $1.20 $1.16 $1.07 $0.88 $1.00 Accumulation unit value at end of period $1.14 $1.00 $1.42 $1.33 $1.20 $1.16 $1.07 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 2,083 2,739 3,917 4,549 5,289 5,233 3,858 1,279 - --------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (02/13/2002) Accumulation unit value at beginning of period $0.93 $1.65 $1.48 $1.24 $1.14 $1.05 $0.81 $1.00 Accumulation unit value at end of period $1.03 $0.93 $1.65 $1.48 $1.24 $1.14 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 375 498 589 856 1,179 1,653 832 81 - --------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $0.88 $1.48 $1.40 $1.26 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $1.29 $0.88 $1.48 $1.40 $1.26 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 2,701 3,344 4,587 6,324 7,621 6,990 5,557 2,340 - --------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $0.88 $1.52 $1.35 $1.11 $1.06 $0.94 $0.67 $1.00 Accumulation unit value at end of period $1.34 $0.88 $1.52 $1.35 $1.11 $1.06 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 2,879 3,050 3,223 2,943 2,596 2,735 1,772 662 - ---------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.70 $1.34 $1.13 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $1.05 $0.70 $1.34 $1.13 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 548 301 264 846 148 -- -- -- - --------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $0.84 $1.43 $1.38 $1.20 $1.16 $1.05 $0.81 $1.00 Accumulation unit value at end of period $1.00 $0.84 $1.43 $1.38 $1.20 $1.16 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 4,258 6,035 9,112 12,504 14,313 11,547 7,339 4,072 - --------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.24 $2.68 $2.57 $1.92 $1.67 $1.35 $0.95 $1.00 Accumulation unit value at end of period $1.64 $1.24 $2.68 $2.57 $1.92 $1.67 $1.35 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 9,981 15,720 18,897 19,979 16,470 7,898 3,918 1,371 - --------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.03 $1.90 $1.63 $1.32 $1.18 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.36 $1.03 $1.90 $1.63 $1.32 $1.18 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 2,015 2,795 3,680 4,188 3,768 2,448 1,128 448 - --------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.67 $0.90 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.67 $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,523 4,001 5,266 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.68 $1.18 $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $0.90 $0.68 $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,098 1,338 1,445 6,545 1,015 -- -- -- - ---------------------------------------------------------------------------------------------------------------------
84 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.05 $1.45 $1.54 $1.32 $1.27 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.24 $1.05 $1.45 $1.54 $1.32 $1.27 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 6,158 8,079 12,429 15,592 16,716 10,779 5,922 2,396 - --------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $0.86 $1.26 $1.24 $1.16 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $1.06 $0.86 $1.26 $1.24 $1.16 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 858 1,073 1,711 2,144 2,283 1,690 769 208 - --------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.71 $1.18 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.89 $0.71 $1.18 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,026 20,913 15,689 10,663 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.64 $1.26 $1.06 $1.00 -- -- -- -- Accumulation unit value at end of period $0.87 $0.64 $1.26 $1.06 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,195 2,857 2,426 5,251 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.73 $1.12 $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $0.87 $0.73 $1.12 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,966 2,963 1,728 4,962 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.74 $1.03 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.06 $0.74 $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,792 11,376 13,146 12,200 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $0.86 $1.30 $1.22 $1.10 $1.02 $0.95 $0.91 -- Accumulation unit value at end of period $1.16 $0.86 $1.30 $1.22 $1.10 $1.02 $0.95 -- Number of accumulation units outstanding at end of period (000 omitted) 797 823 954 1,268 1,570 1,304 1,011 -- - --------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.04 $1.80 $1.59 $1.31 $1.14 $1.00 -- -- Accumulation unit value at end of period $1.18 $1.04 $1.80 $1.59 $1.31 $1.14 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,152 2,508 3,470 4,047 3,150 728 -- -- - --------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.68 $1.19 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.90 $0.68 $1.19 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,949 27,515 23,069 20,348 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $0.81 $1.42 $1.28 $1.15 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.02 $0.81 $1.42 $1.28 $1.15 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 6,236 8,328 12,003 16,152 18,132 18,010 11,020 3,508 - --------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.33 $2.23 $1.95 $1.76 $1.51 $1.23 $0.90 $1.00 Accumulation unit value at end of period $1.84 $1.33 $2.23 $1.95 $1.76 $1.51 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 14,164 20,610 25,720 32,335 28,423 18,934 9,886 3,541 - --------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.14 $2.07 $1.79 $1.53 $1.31 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.43 $1.14 $2.07 $1.79 $1.53 $1.31 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 3,135 4,259 5,901 7,436 6,520 5,276 2,292 610 - --------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.05 $1.84 $2.35 $1.97 $1.76 $1.35 $1.01 $1.00 Accumulation unit value at end of period $1.23 $1.05 $1.84 $2.35 $1.97 $1.76 $1.35 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 4,145 5,481 8,852 13,498 15,139 12,119 6,601 2,989 - --------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.16 $1.75 $1.82 $1.57 $1.46 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.48 $1.16 $1.75 $1.82 $1.57 $1.46 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 3,457 4,647 7,056 8,954 8,682 5,338 3,257 1,610 - --------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $0.99 $1.60 $1.56 $1.34 $1.22 $1.10 $0.89 $1.00 Accumulation unit value at end of period $1.24 $0.99 $1.60 $1.56 $1.34 $1.22 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 5,705 8,193 12,837 13,922 11,400 7,311 3,856 1,418 - ---------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 85
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.22 $1.96 $1.92 $1.68 $1.50 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.60 $1.22 $1.96 $1.92 $1.68 $1.50 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 7,669 10,448 15,654 19,762 20,011 10,047 5,836 2,777 - --------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $0.83 $1.33 $1.37 $1.23 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $0.99 $0.83 $1.33 $1.37 $1.23 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 5,508 7,207 11,550 15,324 16,269 6,220 2,770 1,483 - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.73 $1.29 $1.17 $1.12 $1.04 $0.99 $0.78 $1.00 Accumulation unit value at end of period $0.88 $0.73 $1.29 $1.17 $1.12 $1.04 $0.99 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 4,612 5,453 7,314 10,002 11,202 2,736 978 447 - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.86 $1.65 $1.51 $1.32 $1.22 $1.07 $0.80 $1.00 Accumulation unit value at end of period $1.21 $0.86 $1.65 $1.51 $1.32 $1.22 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 992 1,232 1,796 2,051 1,835 1,591 774 463 - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. DYNAMICS FUND, SERIES I SHARES (02/13/2002) (PREVIOUSLY AIM V.I. DYNAMICS FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.77 $1.51 $1.36 $1.19 $1.08 $0.97 $0.71 $1.00 Accumulation unit value at end of period $1.09 $0.77 $1.51 $1.36 $1.19 $1.08 $0.97 $0.71 Number of accumulation units outstanding at end of period (000 omitted) 145 186 257 357 495 596 554 286 - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.44 $1.10 $1.43 $1.25 $1.19 $1.11 $0.87 $1.00 Accumulation unit value at end of period $0.56 $0.44 $1.10 $1.43 $1.25 $1.19 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 1,003 1,016 586 904 832 915 731 446 - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.79 $1.13 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.00 $0.79 $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 587 665 456 2,466 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.92 $1.56 $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $1.22 $0.92 $1.56 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,083 7,389 4,140 267 5 -- -- -- - --------------------------------------------------------------------------------------------------------------------- INVESCO V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) (PREVIOUSLY AIM V.I. TECHNOLOGY FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.53 $0.98 $0.92 $0.84 $0.83 $0.80 $0.56 $1.00 Accumulation unit value at end of period $0.83 $0.53 $0.98 $0.92 $0.84 $0.83 $0.80 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 1,450 1,188 1,544 1,896 2,168 923 573 157 - --------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $0.71 $1.29 $1.07 $1.01 $0.91 $0.92 $0.63 $1.00 Accumulation unit value at end of period $1.11 $0.71 $1.29 $1.07 $1.01 $0.91 $0.92 $0.63 Number of accumulation units outstanding at end of period (000 omitted) 178 134 206 215 230 249 279 112 - --------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.84 $0.63 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,450 16,906 12,686 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $1.38 $2.93 $2.32 $1.60 $1.23 $1.05 $0.79 $1.00 Accumulation unit value at end of period $2.45 $1.38 $2.93 $2.32 $1.60 $1.23 $1.05 $0.79 Number of accumulation units outstanding at end of period (000 omitted) 806 986 1,042 1,094 854 1,006 956 646 - --------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $0.74 $1.18 $1.08 $1.02 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $1.01 $0.74 $1.18 $1.08 $1.02 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 2,149 2,427 3,135 4,033 4,710 3,047 2,246 712 - ---------------------------------------------------------------------------------------------------------------------
86 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $0.70 $1.17 $1.16 $1.04 $1.00 $0.95 $0.72 $1.00 Accumulation unit value at end of period $1.12 $0.70 $1.17 $1.16 $1.04 $1.00 $0.95 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 1,542 1,851 2,675 3,472 4,247 4,567 3,912 1,784 - --------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.69 $2.74 $2.18 $1.68 $1.46 $1.14 $0.85 $1.00 Accumulation unit value at end of period $2.21 $1.69 $2.74 $2.18 $1.68 $1.46 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,343 4,698 6,370 6,302 5,189 2,575 1,371 431 - --------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.56 $1.06 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.75 $0.56 $1.06 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,088 5,048 4,922 4,471 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.93 $1.58 $1.50 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.28 $0.93 $1.58 $1.50 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,414 4,437 6,986 8,796 5,927 2,391 -- -- - --------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.04 $1.23 $1.14 $1.08 $1.06 $1.00 -- -- Accumulation unit value at end of period $1.22 $1.04 $1.23 $1.14 $1.08 $1.06 -- -- Number of accumulation units outstanding at end of period (000 omitted) 45,739 58,677 62,902 46,387 23,303 4,223 -- -- - --------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.84 $1.37 $1.41 $1.24 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.14 $0.84 $1.37 $1.41 $1.24 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,510 3,184 4,773 5,725 3,700 1,477 -- -- - --------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.92 $1.11 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $0.92 $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,667 18,406 14,755 14,860 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $0.91 $1.11 $1.13 $1.11 $1.00 $0.94 $0.80 $1.00 Accumulation unit value at end of period $1.13 $0.91 $1.11 $1.13 $1.11 $1.00 $0.94 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 936 1,192 1,630 2,416 2,388 1,649 1,108 583 - --------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.04 $1.87 $1.75 $1.39 $1.25 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.28 $1.04 $1.87 $1.75 $1.39 $1.25 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 1,046 1,497 2,184 2,660 3,019 2,995 2,797 1,392 - --------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $0.72 $1.33 $1.30 $1.24 $1.12 $0.96 $0.73 $1.00 Accumulation unit value at end of period $0.98 $0.72 $1.33 $1.30 $1.24 $1.12 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 186 264 448 706 598 413 417 192 - --------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.71 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 334 66 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,130 1,506 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.90 $0.76 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,219 1,184 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 873 466 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $0.79 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,964 993 -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 87
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.93 $1.35 $1.34 $1.18 $1.15 $1.07 $0.90 $1.00 Accumulation unit value at end of period $1.14 $0.93 $1.35 $1.34 $1.18 $1.15 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 6,111 2,378 4,008 3,764 3,085 2,273 1,117 462 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(02/13/2002) Accumulation unit value at beginning of period $1.08 $1.07 $1.03 $1.00 $0.99 $0.99 $1.00 $1.00 Accumulation unit value at end of period $1.07 $1.08 $1.07 $1.03 $1.00 $0.99 $0.99 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 14,861 39,094 33,791 33,401 18,979 15,014 12,047 12,148 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (1.23%) and (1.22%), respectively. - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.11 $1.20 $1.15 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.25 $1.11 $1.20 $1.15 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 58,421 63,728 68,622 60,502 37,023 19,654 12,452 5,971 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.12 $1.91 $1.79 $1.51 $1.35 $1.15 $0.83 $1.00 Accumulation unit value at end of period $1.41 $1.12 $1.91 $1.79 $1.51 $1.35 $1.15 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 30,183 36,755 43,798 50,646 33,232 17,932 5,976 2,058 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.75 $1.31 $1.29 $1.13 $1.08 $1.03 $0.81 $1.00 Accumulation unit value at end of period $0.92 $0.75 $1.31 $1.29 $1.13 $1.08 $1.03 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 6,295 7,479 10,299 12,875 11,604 2,482 744 96 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.43 $1.46 $1.37 $1.30 $1.38 $1.27 $1.14 $1.00 Accumulation unit value at end of period $1.58 $1.43 $1.46 $1.37 $1.30 $1.38 $1.27 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 16,121 18,675 22,272 19,781 15,541 8,857 4,839 1,529 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.10 $1.11 $1.04 $1.04 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.16 $1.10 $1.11 $1.04 $1.04 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,536 17,319 17,958 20,730 13,014 516 -- -- - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.06 $1.44 $1.43 $1.31 $1.27 $1.15 $0.93 $1.00 Accumulation unit value at end of period $1.62 $1.06 $1.44 $1.43 $1.31 $1.27 $1.15 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 9,680 11,973 19,687 25,271 27,474 25,456 15,576 4,269 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.92 $1.15 $1.13 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.29 $0.92 $1.15 $1.13 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,730 11,540 12,716 13,255 4,187 271 -- -- - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.75 $1.38 $1.23 $1.25 $1.15 $1.06 $0.88 $1.00 Accumulation unit value at end of period $1.22 $0.75 $1.38 $1.23 $1.25 $1.15 $1.06 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,372 1,170 1,887 2,741 2,961 3,400 2,602 889 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.80 $1.47 $1.35 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $1.11 $0.80 $1.47 $1.35 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,952 5,049 5,225 7,878 393 -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.83 $1.34 $1.29 $1.13 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $1.03 $0.83 $1.34 $1.29 $1.13 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 4,568 5,854 8,187 9,874 10,825 9,241 5,428 1,648 - --------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.07 $1.11 $1.07 $1.04 $1.04 $1.04 $1.04 $1.00 Accumulation unit value at end of period $1.12 $1.07 $1.11 $1.07 $1.04 $1.04 $1.04 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 11,135 13,972 12,745 15,464 16,802 16,700 13,079 7,646 - --------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.65 $1.18 $1.16 $1.05 $0.98 $0.92 $0.76 $1.00 Accumulation unit value at end of period $0.88 $0.65 $1.18 $1.16 $1.05 $0.98 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 4,530 6,110 10,992 13,741 13,519 4,079 2,868 392 - --------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.78 $1.30 $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $0.97 $0.78 $1.30 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 429 584 789 734 632 499 -- -- - ---------------------------------------------------------------------------------------------------------------------
88 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.95 $1.57 $1.66 $1.51 $1.45 $1.24 $0.85 $1.00 Accumulation unit value at end of period $1.32 $0.95 $1.57 $1.66 $1.51 $1.45 $1.24 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 971 1,315 2,098 3,358 3,917 3,802 2,139 516 - --------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.67 $3.65 $2.68 $2.02 $1.53 $1.25 $0.90 $1.00 Accumulation unit value at end of period $2.87 $1.67 $3.65 $2.68 $2.02 $1.53 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 3,600 5,787 5,242 5,716 4,677 1,199 318 121 - --------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.13 $1.92 $1.73 $1.41 $1.25 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.42 $1.13 $1.92 $1.73 $1.41 $1.25 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 1,829 2,197 3,162 3,800 3,647 2,172 496 105 - --------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.67 $1.11 $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $0.87 $0.67 $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,879 12,896 9,646 10,682 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.83 $1.33 $1.27 $1.11 $1.12 $1.00 -- -- Accumulation unit value at end of period $1.12 $0.83 $1.33 $1.27 $1.11 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 389 614 980 1,141 1,193 732 -- -- - --------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.66 $1.77 $1.49 $1.42 $1.20 $0.88 $1.00 Accumulation unit value at end of period $1.52 $1.12 $1.66 $1.77 $1.49 $1.42 $1.20 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 9,298 11,506 12,216 10,437 11,559 7,783 5,093 2,665 - --------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.83 $1.30 $1.35 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.05 $0.83 $1.30 $1.35 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,447 21,701 27,381 32,887 26,831 6,418 -- -- - --------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.61 $1.10 $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $0.85 $0.61 $1.10 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,848 7,113 4,961 4,670 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.63 $1.19 $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $0.98 $0.63 $1.19 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,240 1,487 1,490 3,111 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (02/13/2002) Accumulation unit value at beginning of period $1.66 $3.08 $2.68 $1.98 $1.65 $1.28 $0.87 $1.00 Accumulation unit value at end of period $2.45 $1.66 $3.08 $2.68 $1.98 $1.65 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 7,020 8,509 10,565 12,918 11,470 5,817 2,667 1,055 - --------------------------------------------------------------------------------------------------------------------- WANGER USA (02/13/2002) Accumulation unit value at beginning of period $1.02 $1.71 $1.64 $1.54 $1.40 $1.20 $0.85 $1.00 Accumulation unit value at end of period $1.43 $1.02 $1.71 $1.64 $1.54 $1.40 $1.20 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 11,266 14,444 19,504 23,503 23,080 15,408 8,442 3,131 - --------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INDEX ASSET ALLOCATION FUND (02/13/2002) (PREVIOUSLY WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND) Accumulation unit value at beginning of period $0.98 $1.40 $1.32 $1.19 $1.15 $1.06 $0.88 $1.00 Accumulation unit value at end of period $1.12 $0.98 $1.40 $1.32 $1.19 $1.15 $1.06 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,012 1,711 1,996 2,159 2,480 2,738 2,182 770 - --------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (02/13/2002) Accumulation unit value at beginning of period $0.91 $1.63 $1.47 $1.23 $1.13 $1.05 $0.81 $1.00 Accumulation unit value at end of period $1.02 $0.91 $1.63 $1.47 $1.23 $1.13 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 147 157 370 403 576 551 374 80 - --------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $0.87 $1.47 $1.39 $1.25 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $1.27 $0.87 $1.47 $1.39 $1.25 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 1,067 1,472 2,414 3,081 3,829 3,698 3,344 1,985 - ---------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 89
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - --------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $0.87 $1.51 $1.34 $1.10 $1.05 $0.94 $0.67 $1.00 Accumulation unit value at end of period $1.31 $0.87 $1.51 $1.34 $1.10 $1.05 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 1,388 1,360 1,799 1,527 1,557 1,643 1,441 387 - ---------------------------------------------------------------------------------------------------------------------
90 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts................. p. 3 Rating Agencies............................. p. 4 Revenues Received During Calendar Year 2009...................................... p. 4 Principal Underwriter....................... p. 5 Independent Registered Public Accounting Firm...................................... p. 5 Financial Statements
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 91 (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 1 (800) 862-7919 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc. (C) 2008-2010 RiverSource Life Insurance Company. All rights reserved. S-6406 N (4/10) PROSPECTUS APRIL 30, 2010 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR SELECT PLUS(R) VARIABLE ANNUITY INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITIES New RiverSource Retirement Advisor Advantage Plus and RiverSource Retirement Advisor Select Plus contracts are not currently being offered. ISSUED BY: RIVERSOURCE LIFE INSURANCE COMPANY (RIVERSOURCE LIFE) 70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 ameriprise.com/variableannuities RIVERSOURCE VARIABLE ACCOUNT 10/RIVERSOURCE ACCOUNT MGA This prospectus contains information that you should know before investing in the RiverSource Retirement Advisor Advantage Plus Variable Annuity (RAVA Advantage Plus), or the RiverSource Retirement Advisor Select Plus Variable Annuity (RAVA Select Plus). The information in this prospectus applies to both contracts unless stated otherwise. Prospectuses are also available for: Alliance Bernstein Variable Products Series Fund, Inc. American Century Variable Portfolios, Inc. Calvert Variable Series, Inc. Columbia Funds Variable Insurance Trust Credit Suisse Trust Eaton Vance Variable Trust Evergreen Variable Annuity Trust Fidelity(R) Variable Insurance Products - Service Class 2 Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 Goldman Sachs Variable Insurance Trust (VIT) Invesco Variable Insurance Funds (previously AIM Variable Insurance Funds) Janus Aspen Series: Service Shares Legg Mason Variable Portfolios I, Inc. MFS(R) Variable Insurance Trust(SM) Neuberger Berman Advisers Management Trust Oppenheimer Variable Account Funds - Service Shares PIMCO Variable Insurance Trust (VIT) Putnam Variable Trust - Class IB Shares RiverSource Variable Series Trust (RVST) The Universal Institutional Funds, Inc. Van Kampen Life Investment Trust Wanger Advisors Trust Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. The contracts provide for purchase payment credits which we may reverse under certain circumstances. Expenses may be higher and surrender charges may be higher and longer for contracts with purchase payment credits than for contracts without such credits. The amount of the credit may be more than offset by additional charges associated with the credit. THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THIS CONTRACT IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS CONTRACT INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 1 Variable annuities are insurance products that are complex investment vehicles. Be sure to ask your financial advisor about the contract features, benefits, risks and fees, and whether the contract is appropriate for you, based upon your financial situation and objectives. This prospectus provides a general description of the contracts. Your actual contract and any riders or endorsements are the controlling documents. RiverSource Life offers several different annuities which your financial advisor may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to your annuity account values. The fees and charges may also be different between each annuity. TABLE OF CONTENTS KEY TERMS................................... 3 THE CONTRACT IN BRIEF....................... 6 EXPENSE SUMMARY............................. 8 CONDENSED FINANCIAL INFORMATION (UNAUDITED)............................... 16 FINANCIAL STATEMENTS........................ 16 THE VARIABLE ACCOUNT AND THE FUNDS.......... 16 GUARANTEE PERIOD ACCOUNTS (GPAS)............ 27 THE FIXED ACCOUNT........................... 28 THE SPECIAL DCA ACCOUNT..................... 29 BUYING YOUR CONTRACT........................ 29 CHARGES..................................... 32 VALUING YOUR INVESTMENT..................... 38 MAKING THE MOST OF YOUR CONTRACT............ 40 SURRENDERS.................................. 50 TSA -- SPECIAL PROVISIONS................... 51 CHANGING OWNERSHIP.......................... 52 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT................................... 52 OPTIONAL BENEFITS........................... 54 THE ANNUITY PAYOUT PERIOD................... 67 TAXES....................................... 69 VOTING RIGHTS............................... 72 SUBSTITUTION OF INVESTMENTS................. 73 ABOUT THE SERVICE PROVIDERS................. 73 ADDITIONAL INFORMATION...................... 74 APPENDIX A: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA).......................... 76 APPENDIX B: EXAMPLE -- SURRENDER CHARGES.... 78 APPENDIX C: EXAMPLE -- OPTIONAL BENEFITS.... 82 APPENDIX D: CONDENSED FINANCIAL INFORMATION (UNAUDITED)............................... 87 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION.................... 116
2 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS KEY TERMS These terms can help you understand details about your contract. ACCUMULATION UNIT: A measure of the value of each subaccount before annuity payouts begin. ANNUITANT: The person or persons on whose life or life expectancy the annuity payouts are based. ANNUITY PAYOUTS: An amount paid at regular intervals under one of several plans. ASSUMED INVESTMENT RATE: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. BAND 3 ANNUITIES: RAVA Advantage Plus and RAVA Select Plus contracts that are available for: - - current or retired employees of Ameriprise Financial, Inc. or its subsidiaries and their spouses (employees), - - current or retired Ameriprise financial advisors and their spouses (advisors), or - - individuals investing an initial purchase payment of $1 million or more, with our approval (other individuals). BENEFICIARY: The person you designate to receive benefits in case of your death while the contract is in force. CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). CODE: The Internal Revenue Code of 1986, as amended. CONTRACT: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. CONTRACT VALUE: The total value of your contract before we deduct any applicable charges. CONTRACT YEAR: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. ENHANCED EARNINGS DEATH BENEFIT (EEB) AND ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. You can elect to purchase either the EEB or the EEP, subject to certain restrictions. FIXED ACCOUNT: An account to which you may allocate purchase payments. Amounts you allocate to this account earn interest at rates that we declare periodically. FUNDS: Investment options under your contract. Unless an asset allocation program is in effect, you may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. GOOD ORDER: We cannot process your transaction request relating to the contract until we have received the request in good order at our corporate office. "Good order" means the actual receipt of the requested transaction in writing, along with all information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes your completed request; the contract number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts and the fixed account affected by the requested transaction; the signatures of all contract owners, exactly as registered on the contract, if necessary; Social Security Number or Taxpayer Identification Number; and any other information or supporting documentation that we may require. With respect to purchase requests, "good order" also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time. GUARANTEE PERIOD: The number of successive 12-month periods that a guaranteed interest rate is credited. GUARANTEE PERIOD ACCOUNTS (GPAS): A nonunitized separate account to which you may allocate purchase payments and purchase payment credits or transfer contract value of at least $1,000. These accounts have guaranteed interest rates for guarantee periods we declare when you allocate purchase payments and purchase payment credits or transfer contract value to a GPA. These guaranteed rates and periods of time may vary by state. Unless an exception applies, transfers or surrenders from a GPA done more than 30 days before the end of the guarantee period will receive a Market Value Adjustment, which may result in a gain or loss of principal. GUARANTEED MINIMUM ACCUMULATION BENEFIT RIDER (ACCUMULATION BENEFIT): This is an optional benefit that you can add to your contract for an additional charge. It is intended to provide you with a guaranteed contract value at the end of a specified waiting period regardless of the volatility inherent in the investments in the subaccounts. This rider requires participation in the Portfolio Navigator Program. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 3 GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER (WITHDRAWAL BENEFIT): This is an optional benefit you can add to your contract for an additional charge. It is intended to provide a guaranteed withdrawal benefit that gives you the right to make limited partial withdrawals each contract year. This rider requires participation in the Portfolio Navigator program. For purposes of this rider, the term "withdrawal" is equal to the term "surrender" in your contract and any other riders. MARKET VALUE ADJUSTMENT (MVA): A positive or negative adjustment assessed if any portion of a Guarantee Period Account is surrendered or transferred more than 30 days before the end of its guarantee period. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) AND MAXIMUM FIVE-YEAR ANNIVERSARY VALUE DEATH BENEFIT (5-YEAR MAV): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide additional death benefit protection in the event of fluctuating fund values. You can elect to purchase either the MAV or the 5-Year MAV, subject to certain restrictions. OWNER (YOU, YOUR): A natural person or persons (including a revocable trust) who control the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. If the contract has a nonnatural person as the owner, "you, your" means the annuitant. PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM): This is a program in which you are required to participate through the choice of a PN program model portfolio or investment option if you select the optional Accumulation Benefit rider or the optional Withdrawal Benefit rider. If you do not select the Accumulation Benefit rider or the Withdrawal Benefit rider, you may elect to participate in the PN program by adding the optional PN program to your contract at no additional charge. Prior to May 10, 2010, the program required adding a rider for an additional charge. Beginning May 10, 2010, the rider is not required to select the PN program, and there is no additional charge. PURCHASE PAYMENT CREDITS: An addition we make to your contract value. We base the amount of the credit on the surrender charge schedule you elect and/or total purchase payments. QUALIFIED ANNUITY: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: - - Individual Retirement Annuities (IRAs) including inherited IRAs under Section 408(b) of the Code - - Roth IRAs including inherited Roth IRAs under Section 408A of the Code - - SIMPLE IRAs under Section 408(p) of the Code - - Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code - - Plans under Section 401(k) of the Code - - Custodial and investment only accounts maintained for qualified retirement plans under Section 401(a) of the Code - - Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax-deferred. All other contracts are considered NONQUALIFIED ANNUITIES. RETURN OF PURCHASE PAYMENTS DEATH BENEFIT (ROPP): This is an optional benefit that you can add to your contract for an additional charge if you are age 76 or older at contract issue that is intended to provide additional death benefit protection in the event of fluctuating fund values. ROPP is included in the standard death benefit for contract owners age 75 and under on the contract effective date at no additional cost. RIDER: You receive a rider to your contract when you purchase the EEB, EEP, MAV, 5-Year MAV, ROPP, PN, Accumulation Benefit and/or Withdrawal Benefit rider. Beginning May 10, 2010, the PN rider is not required to select the PN program. The rider adds the terms of the optional benefit to your contract. RIDER EFFECTIVE DATE: The date a rider becomes effective as stated in the rider. RIVERSOURCE LIFE: In this prospectus, "we," "us," "our" and "RiverSource Life" refer to RiverSource Life Insurance Company. SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. SPECIAL DOLLAR-COST AVERAGING (SPECIAL DCA) ACCOUNT: An account to which you may allocate new purchase payments of at least $10,000. Amounts you allocate to this account earn interest at rates that we declare periodically and will transfer into your specified subaccount allocations in six monthly transfers. The Special DCA account may not be available at all times. SURRENDER VALUE: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. VALUATION DATE: Any normal business day, Monday through Friday, on which the NYSE is open, up to the close of business. At the close of business, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each 4 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) in good order at our corporate office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other hand, if we receive your purchase payment or transaction request in good order at our corporate office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. VARIABLE ACCOUNT: Consists of separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 5 THE CONTRACT IN BRIEF This prospectus describes two contracts. RAVA Advantage Plus offers a choice of a seven-year or a ten-year surrender charge schedule and relatively lower expenses. RAVA Select Plus offers a three-year surrender charge schedule and relatively higher expenses. The information in this prospectus applies to both contracts unless stated otherwise. PURPOSE: The purpose of each contract is to allow you to accumulate money for retirement or similar long-term goal. You do this by making one or more purchase payments. You may allocate your purchase payments to the GPAs, fixed account, subaccounts and/or Special DCA account (when available) under the contract. These accounts, in turn, may earn returns that increase the value of the contract; however, you risk losing amounts you invest in the subaccounts of the variable account. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payouts of your contract value (less any applicable premium tax). TAX-DEFERRED RETIREMENT PLANS: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. A qualified annuity has features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions (RMDs). RMDs may reduce the value of certain death benefits and optional riders (see "Taxes -- Qualified Annuities - -- Required Minimum Distributions"). You should consult your tax advisor before you purchase the contract as a qualified annuity for an explanation of the potential tax implications to you. FREE LOOK PERIOD: You may return your contract to your financial advisor or to our corporate office within the time stated on the first page of your contract. You will receive a full refund of the contract value (reflecting any applicable MVA), less the amount of any purchase payment credits. (See "Valuing Your Investment -- Purchase payment credits.") We will not deduct any other charges. However, you bear the investment risk from the time of purchase until you return the contract; the refund amount may be more or less than the payment you made. (EXCEPTION: If the law requires, we will refund all of your purchase payments.) ACCOUNTS: Generally, you may allocate your purchase payments among any or all of: - - the subaccounts of the variable accounts, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (see "The Variable Account and the Funds") - - the GPAs which earn interest at rates declared when you make an allocation to that account. The required minimum investment in each GPA is $1,000. These accounts may not be available in all states. (see "Guarantee Period Accounts (GPAs)") - - the fixed account, which earns interest at a rate that we adjust periodically. Purchase payment allocations to the fixed account may be subject to special restrictions. (see "The Fixed Account") - - the Special DCA account, when available. (see "The Fixed Account -- The Special DCA Fixed Account") BUYING YOUR CONTRACT: We no longer offer new contracts. However, you have the option of making additional purchase payments in the future. (see "Buying Your Contract") TRANSFERS: Subject to certain restrictions, you currently may redistribute your contract value among the subaccounts until annuity payouts begin, and once per contract year after annuity payouts begin. Transfers out of the GPAs done more than 30 days before the end of the Guarantee Period will be subject to an MVA, unless an exception applies. You may establish automated transfers among the accounts. You may not transfer existing amounts to the Special DCA account. GPAs and fixed account transfers are subject to special restrictions. (see "Making the Most of Your Contract -- Transferring Among Accounts") SURRENDERS: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences; also, certain restrictions apply. (see "Surrenders") BENEFITS IN CASE OF DEATH: If you die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value, except in the case of a purchase payment credit reversal. (see "Benefits in Case of Death -- Standard Death Benefit") OPTIONAL BENEFITS: These contracts offer optional living and death benefits that are available for additional charges if you meet certain criteria. Optional living benefits require your participation in the PN program, which may limit transfers and 6 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS allocations; may limit the timing, amount and allocation of purchase payments; and may limit the amount of partial surrenders that can be taken under the optional benefit during a contract year. (see "Optional Benefits") ANNUITY PAYOUTS: You can apply your contract value, after reflecting any adjustments, to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (See "The Annuity Payout Period") TAXES: Generally, income earned on your contract value grows tax-deferred until you surrender it or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and nonqualified annuities differs. Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. However, Roth IRAs may grow and be distributed tax free if you meet certain distribution requirements. (See "Taxes") RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 7 EXPENSE SUMMARY THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU PAID AT THE TIME THAT YOU BOUGHT THE CONTRACT OR SURRENDER THE CONTRACT. STATE PREMIUM TAXES ALSO MAY BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SURRENDER CHARGE FOR RAVA ADVANTAGE PLUS (Contingent deferred sales load as a percentage of purchase payment surrendered) You select either a seven-year or ten-year surrender charge schedule at the time of application.(*)
SEVEN-YEAR SCHEDULE NUMBER OF COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE 0 7% 1 7 2 7 3 6 4 5 5 4 6 2 7+ 0 SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED NUMBER OF COMPLETED YEARS FROM DATE OF EACH YEARS FROM DATE OF EACH PURCHASE PAYMENT PURCHASE PAYMENT 0 0 1 1 2 2 3 3 4 4 5 5 6 6 7+ 7 8 9 10+ SEVEN-YEAR SCHEDULE NUMBER OF COMPLETED TEN-YEAR SCHEDULE* YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE 0 8% 1 8 2 8 3 7 4 7 5 6 6 5 7+ 4 3 2 0
* The ten-year surrender charge schedule is not available for contracts issued in Oregon. In Connecticut and Utah, the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama, Massachusetts, Oregon and Washington, surrender charges are waived after the tenth contract anniversary for all payments regardless of when payments are made. SURRENDER CHARGE FOR RAVA SELECT PLUS (EXCEPT TEXAS) (Contingent deferred sales load as a percentage of purchase payment surrendered)
YEARS FROM CONTRACT DATE SURRENDER CHARGE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE FOR RAVA SELECT PLUS IN TEXAS (Contingent deferred sales load)
SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 1 1 8% 2 3 Thereafter SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 2 1 7% 2 8 3 Thereafter SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 3 1 6% 2 7 3 8 Thereafter SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR THEREAFTER 1 0% 2 0 3 0 Thereafter 0
SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment rate is 3.5% and 6.67% if the assumed investment rate is 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.") 8 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL CONTRACT ADMINISTRATIVE CHARGE MAXIMUM: $50* CURRENT: $30
(We will waive $30 of this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) * In certain states and for certain contracts we have waived our right to increase the contract administrative charge. OPTIONAL RIDER FEES (As a percentage of contract value charged annually at the contract anniversary. The fee applies only if you elect the optional rider.) ROPP RIDER FEE MAXIMUM: 0.30% CURRENT: 0.20% MAV RIDER FEE MAXIMUM: 0.35% CURRENT: 0.25% 5-YEAR MAV RIDER FEE MAXIMUM: 0.20% CURRENT: 0.10% EEB RIDER FEE MAXIMUM: 0.40% CURRENT: 0.30% EEP RIDER FEE MAXIMUM: 0.50% CURRENT: 0.40% PN RIDER FEE* MAXIMUM: 0.20% CURRENT: 0.10% ACCUMULATION BENEFIT RIDER FEE MAXIMUM: 2.50% CURRENT: 0.60% WITHDRAWAL BENEFIT RIDER FEE MAXIMUM: 2.50% CURRENT: 0.60%
* Beginning May 10, 2010, the rider is not required to select the PN program and this fee will no longer apply. For contract holders who currently participate in the PN program, beginning May 10, 2010, the PN rider fee will be $0. ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value)
MORTALITY AND EXPENSE RISK FEE: RAVA ADVANTAGE PLUS RAVA SELECT PLUS FOR NONQUALIFIED ANNUITIES 0.95% 1.20% FOR QUALIFIED ANNUITIES 0.75% 1.00% FOR BAND 3 ANNUITIES 0.55% 0.75%
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 9 ANNUAL OPERATING EXPENSES OF THE FUNDS THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THESE OPERATING EXPENSES ARE FOR THE FISCAL YEAR ENDED DEC. 31, 2009, UNLESS OTHERWISE NOTED. THE FIRST TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE FEES AND EXPENSES CHARGED BY EACH FUND. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND. MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(A) (Including management fee, distribution and/or service (12b-1) fees and other expenses)
MINIMUM MAXIMUM Total expenses before fee waivers and/or expense reimbursements 0.50% 1.67%
(a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund's affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund's distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See "The Variable Account and the Funds" for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund's fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund's prospectus and SAI. TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE PLUS AND RAVA SELECT PLUS* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12b-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AllianceBernstein VPS Global Thematic Growth Portfolio 0.75% 0.25% 0.25% --% 1.25% (Class B) (previously AllianceBernstein VPS Global Technology Portfolio (Class B)) AllianceBernstein VPS Growth and Income Portfolio (Class B) 0.55 0.25 0.08 -- 0.88 AllianceBernstein VPS International Value Portfolio (Class 0.75 0.25 0.08 -- 1.08 B) American Century VP International, Class II 1.26 0.25 0.01 0.01 1.53 American Century VP Mid Cap Value, Class II 0.90 0.25 0.01 -- 1.16 American Century VP Ultra(R), Class II 0.90 0.25 0.01 -- 1.16 American Century VP Value, Class II 0.87 0.25 -- -- 1.12 Calvert Variable Series, Inc. VP SRI Social Balanced 0.70 -- 0.21 -- 0.91 Portfolio Columbia High Yield Fund, Variable Series, Class B 0.78 0.25 0.14 -- 1.17(1) Columbia Marsico Growth Fund, Variable Series, Class A 0.91 -- 0.02 -- 0.93(1) Columbia Marsico International Opportunities Fund, Variable 1.02 0.25 0.17 -- 1.44(1) Series, Class B Credit Suisse Trust - Commodity Return Strategy Portfolio 0.50 0.25 0.45 -- 1.20(2) Eaton Vance VT Floating-Rate Income Fund 0.57 0.25 0.33 -- 1.15 Evergreen VA International Equity Fund - Class 2 0.43 0.25 0.22 -- 0.90 Fidelity(R) VIP Contrafund(R) Portfolio Service Class 2 0.56 0.25 0.11 -- 0.92 Fidelity(R) VIP Growth & Income Portfolio Service Class 2 0.46 0.25 0.14 -- 0.85 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 0.56 0.25 0.12 -- 0.93 Fidelity(R) VIP Overseas Portfolio Service Class 2 0.71 0.25 0.16 -- 1.12 FTVIPT Franklin Global Real Estate Securities Fund - Class 0.80 0.25 0.31 -- 1.36(3) 2 FTVIPT Franklin Small Cap Value Securities Fund - Class 2 0.52 0.25 0.18 0.03 0.98(4) FTVIPT Mutual Shares Securities Fund - Class 2 0.60 0.25 0.18 -- 1.03 Goldman Sachs VIT Mid Cap Value Fund - Institutional Shares 0.80 -- 0.06 -- 0.86 Goldman Sachs VIT Structured U.S. Equity 0.64 -- 0.08 -- 0.72(5) Fund - Institutional Shares Invesco V.I. Capital Appreciation Fund, Series II Shares 0.62 0.25 0.29 0.01 1.17 (previously AIM V.I. Capital Appreciation Fund, Series II Shares) Invesco V.I. Capital Development Fund, Series II Shares 0.75 0.25 0.36 0.01 1.37(6) (previously AIM V.I. Capital Development Fund, Series II Shares) Invesco V.I. Financial Services Fund, Series I Shares 0.75 -- 0.53 0.01 1.29 (previously AIM V.I. Financial Services Fund, Series I Shares) Invesco V.I. Global Health Care Fund, Series II Shares 0.75 0.25 0.39 0.01 1.40 (previously AIM V.I. Global Health Care Fund, Series II Shares)
10 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE PLUS AND RAVA SELECT PLUS* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12b-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Invesco V.I. International Growth Fund, Series II Shares 0.71% 0.25% 0.33% 0.02% 1.31% (previously AIM V.I. International Growth Fund, Series II Shares) Invesco V.I. Technology Fund, Series I Shares 0.75 -- 0.44 0.01 1.20 (previously AIM V.I. Technology Fund, Series I Shares) Janus Aspen Series Janus Portfolio: Service Shares 0.64 0.25 0.03 -- 0.92 Legg Mason ClearBridge Variable Small Cap Growth Portfolio, 0.75 -- 0.17 -- 0.92 Class I (previously Legg Mason Partners Variable Small Cap Growth Portfolio, Class I) MFS(R) Investors Growth Stock Series - Service Class 0.75 0.25 0.11 -- 1.11 MFS(R) New Discovery Series - Service Class 0.90 0.25 0.13 -- 1.28 MFS(R) Utilities Series - Service Class 0.73 0.25 0.09 -- 1.07 Neuberger Berman Advisers Management Trust International 1.15 0.25 0.26 0.01 1.67(7) Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service Shares 0.64 0.25 0.11 -- 1.00 Oppenheimer Global Strategic Income Fund/VA, Service Shares 0.55 0.25 0.10 0.03 0.93(8) (previously Oppenheimer Strategic Bond Fund/VA, Service Shares) Oppenheimer Main Street Small Cap Fund/VA, Service Shares 0.71 0.25 0.19 -- 1.15(9) PIMCO VIT All Asset Portfolio, Advisor Share Class 0.43 0.25 -- 0.69 1.37 Putnam VT Global Health Care Fund - Class IB Shares 0.63 0.25 0.19 0.01 1.08(10) Putnam VT International Equity Fund - Class IB Shares 0.70 0.25 0.20 -- 1.15(11) Putnam VT Vista Fund - Class IB Shares 0.59 0.25 0.20 0.01 1.05(10) RVST Disciplined Asset Allocation Portfolios - Aggressive -- 0.25 0.32 0.69 1.26(12) RVST Disciplined Asset Allocation Portfolios - Conservative -- 0.25 0.21 0.63 1.09(12) RVST Disciplined Asset Allocation Portfolios - Moderate -- 0.25 0.14 0.66 1.05(12) RVST Disciplined Asset Allocation Portfolios - Moderately -- 0.25 0.17 0.67 1.09(12) Aggressive RVST Disciplined Asset Allocation Portfolios - Moderately -- 0.25 0.19 0.64 1.08(12) Conservative RVST RiverSource Variable Portfolio - Balanced Fund (Class 0.46 0.13 0.14 -- 0.73 3) RVST RiverSource Variable Portfolio - Cash Management Fund 0.33 0.13 0.18 -- 0.64 (Class 3) RVST RiverSource Variable Portfolio - Diversified Bond Fund 0.44 0.13 0.14 -- 0.71 (Class 3) RVST RiverSource Variable Portfolio - Diversified Equity 0.50 0.13 0.13 -- 0.76 Income Fund (Class 3) RVST RiverSource Variable Portfolio - Dynamic Equity Fund 0.44 0.13 0.14 0.01 0.72 (Class 3) RVST RiverSource Variable Portfolio - Global Bond Fund 0.66 0.13 0.18 -- 0.97(13) (Class 3) RVST RiverSource Variable Portfolio - Global Inflation 0.43 0.13 0.15 -- 0.71(13) Protected Securities Fund (Class 3) RVST RiverSource Variable Portfolio - High Yield Bond Fund 0.59 0.13 0.14 -- 0.86 (Class 3) RVST RiverSource Variable Portfolio - Income Opportunities 0.60 0.13 0.15 -- 0.88 Fund (Class 3) RVST RiverSource Variable Portfolio - Mid Cap Growth Fund 0.80 0.13 0.14 -- 1.07(13) (Class 3) RVST RiverSource Variable Portfolio - Mid Cap Value Fund 0.58 0.13 0.14 -- 0.85 (Class 3) RVST RiverSource Variable Portfolio - S&P 500 Index Fund 0.22 0.13 0.15 -- 0.50(13) (Class 3) RVST RiverSource Variable Portfolio - Short Duration U.S. 0.48 0.13 0.15 -- 0.76 Government Fund (Class 3) RVST Seligman Variable Portfolio - Growth Fund (Class 3) 0.52 0.13 0.15 -- 0.80 RVST Seligman Variable Portfolio - Larger-Cap Value Fund 0.61 0.13 0.50 -- 1.24(13) (Class 3) RVST Seligman Variable Portfolio - Smaller-Cap Value Fund 0.80 0.13 0.16 -- 1.09(13) (Class 3) RVST Threadneedle Variable Portfolio - Emerging Markets 1.08 0.13 0.21 -- 1.42(13) Fund (Class 3) RVST Threadneedle Variable Portfolio - International 0.85 0.13 0.18 -- 1.16 Opportunity Fund (Class 3) RVST Variable Portfolio - Davis New York Venture Fund 0.68 0.13 0.13 -- 0.94(13) (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund) RVST Variable Portfolio - Goldman Sachs Mid Cap Value Fund 0.81 0.13 0.62 -- 1.56(13) (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Select Value Fund) RVST Variable Portfolio - Partners Small Cap Value Fund 0.99 0.13 0.15 0.02 1.29(13) (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund) RVST Variable Portfolio - Aggressive Portfolio (Class 2) -- 0.25 0.04 0.77 1.06(14) RVST Variable Portfolio - Aggressive Portfolio (Class 4) -- 0.25 0.04 0.77 1.06(14),(15)
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 11 TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE PLUS AND RAVA SELECT PLUS* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12b-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES RVST Variable Portfolio - Conservative Portfolio (Class 2) --% 0.25% 0.04% 0.62% 0.91%(14) RVST Variable Portfolio - Conservative Portfolio (Class 4) -- 0.25 0.04 0.62 0.91(14),(15) RVST Variable Portfolio - Moderate Portfolio (Class 2) -- 0.25 0.04 0.70 0.99(14) RVST Variable Portfolio - Moderate Portfolio (Class 4) -- 0.25 0.04 0.70 0.99(14),(15) RVST Variable Portfolio - Moderately Aggressive Portfolio -- 0.25 0.04 0.74 1.03(14) (Class 2) RVST Variable Portfolio - Moderately Aggressive Portfolio -- 0.25 0.04 0.74 1.03(14),(15) (Class 4) RVST Variable Portfolio - Moderately Conservative Portfolio -- 0.25 0.04 0.66 0.95(14) (Class 2) RVST Variable Portfolio - Moderately Conservative Portfolio -- 0.25 0.04 0.66 0.95(14),(15) (Class 4) Van Kampen Life Investment Trust Comstock Portfolio, Class 0.56 0.25 0.06 -- 0.87 II Shares Van Kampen's UIF Global Real Estate Portfolio, Class II 0.85 0.35 0.36 0.01 1.57 Shares Van Kampen's UIF Mid Cap Growth Portfolio, Class II Shares 0.75 0.35 0.31 0.01 1.42 Wanger International 0.85 -- 0.20 -- 1.05 Wanger USA 0.86 -- 0.12 -- 0.98 Wells Fargo Advantage VT Opportunity Fund 0.75 0.25 0.32 0.02 1.34(16) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.26 0.01 1.27(16)
* The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) The Advisor has voluntarily agreed to reimburse a portion of the Fund's expenses so that the Fund's ordinary operating expenses (excluding any distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but including custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian, do not exceed 0.60% for Columbia High Yield Fund, Variable Series, Class B, 1.05% for Columbia Marsico Growth Fund, Variable Series, Class A and 1.20% for Columbia Marsico International Opportunities Fund, Variable Series, Class B, of the Fund's average daily net assets on an annualized basis. These arrangements may be modified or terminated by the Advisor at any time. (2) Credit Suisse fee waivers and expense reimbursements are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements, net expenses would be 0.95%. (3) The investment manager and administrator have contractually agreed to waive or limit their respective fees so that the increase in investment management and fund administration fees paid by the Fund is phased in over a five year period, starting on May 1, 2007, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of four years thereafter through April 30, 2012, the investment manager and administrator will receive one-fifth of the increase in the rate of fees. After fee reductions net expenses would be 1.15%. (4) The manager and administrator have agreed in advance to reduce their fees as a result of the Fund's investment in a Franklin Templeton money market fund. This reduction is required by the Trust's board of trustees and an exemptive order by the Securities and Exchange Commission; this arrangement will continue as long as the exemptive order is relied upon. After fee reductions net expenses would be 0.96%. (5) The Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.004% of the Fund's average daily net assets. Prior to July 1, 2009, this fee as a percentage of average daily net assets was 0.044% of the Fund. The expense reductions may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. (6) The Advisor has contractually agreed, through at least April 30, 2011, to waive a portion of its advisory fees to the extent necessary so that the advisory fees payable by the Fund does not exceed a specified maximum annual advisory fee rate, wherein the fee rate includes breakpoints and is based upon net asset levels. After fee waivers and expense reimbursements net expenses would be 1.36%. The Board of Trustees or Invesco Advisers, Inc. may mutually agree to terminate the fee waiver agreement at any time. (7) Neuberger Berman Management LLC ("NBM") has undertaken through Dec. 31, 2013, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 2.00% of the average daily net asset value. NBM has also voluntarily committed to reimburse certain expenses for an additional 0.50% per annum of the Portfolio's average daily net assets to maintain the Portfolio's operating expenses at 1.50%. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. After fee waiver and expense reimbursements net expenses would be 1.52%. (8) The Manager will voluntarily waive and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund, Oppenheimer Master Loan Fund, LLC and Oppenheimer Master Event-Linked Bond Fund, LLC. (9) The Manager has voluntarily undertaken to limit the Fund's total annual operating expenses so that the expenses, as percentages of daily net assets will not exceed the annual rate of 1.05%. This voluntary undertaking may be amended or withdrawn at any time. (10) The fees reflect projected expenses under a new management contract effective Jan. 1, 2010, changes in the fund's investor servicing contract and a new expense arrangement, which gives effect to changes in the allocation of certain expenses among the Putnam funds. (11) The fees reflect projected expenses under a new management contract effective Jan. 1, 2010 and changes in the fund's investor servicing contract. (12) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses of the Fund until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board of Trustees. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (excluding fees and expenses of acquired funds) will not exceed 0.41% for each of the RVST Disciplined Asset Allocation Portfolios. 12 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS (13) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board of Trustees. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net fund expenses (excluding acquired fund fees and expenses, if any), before giving effect to any performance incentive adjustment, will not exceed 0.97% for RVST RiverSource Variable Portfolio - Global Bond Fund (Class 3), 0.76% for RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Fund (Class 3), 1.08% for RVST RiverSource Variable Portfolio - Mid Cap Growth Fund (Class 3), 0.53% for RVST RiverSource Variable Portfolio - S&P 500 Index Fund (Class 3), 1.05% for RVST Seligman Variable Portfolio - Larger-Cap Value Fund (Class 3), 1.15% for RVST Seligman Variable Portfolio - Smaller-Cap Value Fund (Class 3), 1.53% for RVST Threadneedle Variable Portfolio - Emerging Markets Fund (Class 3), 0.99% for RVST Variable Portfolio - Davis New York Venture Fund (Class 3), 1.20% for RVST Variable Portfolio - Goldman Sachs Mid Cap Value Fund (Class 3) and 1.20% for RVST Variable Portfolio - Partners Small Cap Value Fund (Class 3). (14) Other expenses and acquired fund fees and expenses are based on estimated amounts for the current fiscal year. RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses for Class 2 and Class 4 shares of the Fund until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (excluding acquired fund fees and expenses) will not exceed 0.32% for each of the Class 2 and Class 4 shares of the Fund's. (15) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses for Class 4 shares of the Fund until April 30, 2012, unless sooner terminated at the sole discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (including acquired fund fees and expenses) will not exceed 0.99% for RVST Variable Portfolio - Aggressive Portfolio (Class 4), 0.86% for RVST Variable Portfolio - Conservative Portfolio (Class 4), 0.94% for RVST Variable Portfolio - Moderate Portfolio (Class 4), 0.98% RVST Variable Portfolio - Moderately Aggressive Portfolio (Class 4) and 0.90% for RVST Variable Portfolio -- Moderately Conservative Portfolio (Class 4). (16) Expenses have been adjusted from amounts incurred during the Fund's most recent fiscal year to reflect current fees and expenses. The adviser has contractually agreed through April 30, 2011 to waive fees and/or reimburse expenses to the extent necessary to ensure that the Fund's net operating expenses, including the underlying master portfolio's fees and expenses and excluding brokerage commissions, interest, taxes and extraordinary expenses, do not exceed: 1.09% for Wells Fargo Advantage VT Opportunity Fund and 1.21% for Wells Fargo Advantage VT Small Cap Growth Fund. The committed net operating expense ratio may be increased or terminated only with approval of the Board of Trustees. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 13 EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THESE CONTRACTS WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CONTRACT ADMINISTRATIVE CHARGES, VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES. THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR. MAXIMUM EXPENSES. These examples assume the most expensive combination of contract features and benefits and the maximum fees and expenses of any of the funds. They assume that you select the optional MAV, EEP and Withdrawal Benefit or Accumulation Benefit(1),(2). Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN NONQUALIFIED AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS With a ten-year surrender charge schedule(3) $1,451 $2,729 $3,887 $6,458 $651 $1,929 $3,187 $6,258 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 1,351 2,629 3,687 6,258 651 1,929 3,187 6,258 RAVA SELECT PLUS 1,376 2,700 3,302 6,460 676 2,000 3,302 6,460 RAVA SELECT PLUS - TEXAS 1,476 2,600 3,302 6,460 676 2,000 3,302 6,460
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS With a ten-year surrender charge schedule(3) $1,431 $2,671 $3,795 $6,293 $631 $1,871 $3,095 $6,093 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 1,331 2,571 3,595 6,093 631 1,871 3,095 6,093 RAVA SELECT PLUS 1,356 2,643 3,210 6,299 656 1,943 3,210 6,299 RAVA SELECT PLUS - TEXAS 1,456 2,543 3,210 6,299 656 1,943 3,210 6,299
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: BAND 3 ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS - BAND 3 With a ten-year surrender charge schedule(3) $1,411 $2,615 $3,703 $6,125 $611 $1,815 $3,003 $5,925 RAVA ADVANTAGE PLUS - BAND 3 With a seven-year surrender charge schedule 1,311 2,515 3,503 5,925 611 1,815 3,003 5,925 RAVA SELECT PLUS - BAND 3 1,331 2,571 3,095 6,093 631 1,871 3,095 6,093 RAVA SELECT PLUS - TEXAS - B- AND 3 1,431 2,471 3,095 6,093 631 1,871 3,095 6,093
MINIMUM EXPENSES. These examples assume the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds.(4) They assume that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN NONQUALIFIED AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS With a ten-year surrender charge schedule(3) $ 979 $1,350 $1,643 $2,223 $179 $550 $ 943 $2,023 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 879 1,250 1,443 2,023 179 550 943 2,023 RAVA SELECT PLUS 904 1,328 1,074 2,296 204 628 1,074 2,296 RAVA SELECT PLUS - TEXAS 1,004 1,228 1,074 2,296 204 628 1,074 2,296
14 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS With a ten-year surrender charge schedule(3) $958 $1,288 $1,536 $1,999 $158 $488 $836 $1,799 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 858 1,188 1,336 1,799 158 488 836 1,799 RAVA SELECT PLUS 884 1,266 969 2,078 184 566 969 2,078 RAVA SELECT PLUS - TEXAS 984 1,166 969 2,078 184 566 969 2,078
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: BAND 3 ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS - BAND 3 With a ten-year surrender charge schedule(3) $938 $1,225 $1,429 $1,771 $138 $425 $729 $1,571 RAVA ADVANTAGE PLUS - BAND 3 With a seven-year surrender charge schedule 838 1,125 1,229 1,571 138 425 729 1,571 RAVA SELECT PLUS - BAND 3 858 1,188 836 1,799 158 488 836 1,799 RAVA SELECT PLUS - TEXAS - B- AND 3 958 1,088 836 1,799 158 488 836 1,799
(1) In these examples, the contract administrative charge is $50. (2) Because these examples are intended to illustrate the most expensive combination of contract features, the maximum annual fee for each optional rider is reflected rather than the fee that is currently being charged. (3) In Connecticut and Utah, your expenses would be slightly lower due to the modified ten-year surrender charge schedule. (4) In these examples, the contract administrative charge is $30. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 15 CONDENSED FINANCIAL INFORMATION You can find unaudited condensed financial information for the subaccounts in Appendix D. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the divisions, which are comprised of subaccounts, in the SAI. The SAI does not include audited financial statements for divisions that are new and have no activity as of the financial statement date. THE VARIABLE ACCOUNT AND THE FUNDS THE VARIABLE ACCOUNT: The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of RiverSource Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the Internal Revenue Service (IRS) has issued some guidance on investor control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. THE FUNDS: The contracts currently offer subaccounts investing in shares of the funds listed in the table below. - - INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. - - FUND NAME AND MANAGEMENT: A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. - - ELIGIBLE PURCHASERS: All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The funds are not available to the public (see "Fund name and management" above). Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although we and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of each fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each fund intends to comply with the diversification requirements under Section 817(h) of the Code. - - ASSET ALLOCATION PROGRAMS MAY IMPACT FUND PERFORMANCE: Asset allocation programs in general may negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a fund in which your subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or reallocation under the terms of the asset allocation program may cause a fund to lose money if it must sell large amounts of securities to meet a redemption request. These losses can be greater if the fund holds securities that are not as liquid as others; for example, 16 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS various types of bonds, shares of smaller companies and securities of foreign issuers. A fund may also experience higher expenses because it must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the asset allocation program we offer (see "Making the Most of Your Contract -- Portfolio Navigator Program") or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the funds. - - FUNDS AVAILABLE UNDER THE CONTRACT: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each fund and the contract charges we impose. We select the underlying funds in which the subaccounts initially invest and when there is substitution (see "Substitution of Investments"). We also make all decisions regarding which funds to retain in a contract, which funds to add to a contract and which funds will no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to fund performance, fund expenses, classes of fund shares available, size of the fund and investment objectives and investing style of the fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds and portfolio concentration and sector weightings. We also consider the levels and types of revenue including but not limited to expense payments and non-cash compensation a fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the fund and support of marketing and distribution expenses incurred with respect to the fund. - - REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST: We or our affiliates receive from each of the funds, or the funds' affiliates, varying levels and types of revenue including expense payments and non-cash compensation. The amount and percentage of revenue we and our affiliates receive comes from assets allocated to subaccounts investing in the RiverSource Variable Series Trust funds (affiliated funds) that are managed by RiverSource Investments, LLC (RiverSource Investments), one of our affiliates. RiverSource Variable Series Trust funds include the RiverSource Variable Portfolio funds, Variable Portfolio funds, Seligman Variable Portfolio funds, Threadneedle Variable Portfolio funds, Disciplined Asset Allocation Portfolio funds and Variable Portfolio funds of funds. In addition, on Sept. 29, 2009, Ameriprise Financial, Inc. entered into an agreement with Bank of America Corporation to buy a portion of the asset management business of Columbia Management Group, LLC, including Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC (the "Transaction"). The Transaction is subject to certain approvals and other conditions to closing, and is currently expected to close in the second quarter of 2010. Certain separate accounts invest in funds sponsored by Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC. Employee compensation and operating goals at all levels are tied to the success of Ameriprise Financial, Inc. and its affiliates, including us. Certain employees may receive higher compensation and other benefits based, in part, on contract values that are invested in the RiverSource Variable Series Trust funds. We or our affiliates receive revenue which ranges up to 0.60% of the average daily net assets invested in the non- RiverSource Variable Series Trust funds (unaffiliated funds) through this and other contracts we and our affiliate issue. We or our affiliates may also receive revenue which ranges up to 0.04% of aggregate, net or anticipated sales of unaffiliated funds through this and other contracts we and our affiliate issue. Please see the SAI for a table that ranks the unaffiliated funds according to total dollar amounts they and their affiliates paid us or our affiliates in the prior calendar year. Expense payments, non-cash compensation and other forms of revenue may influence recommendations your investment professional makes regarding whether you should invest in the contract, and whether you should allocate purchase payments or contract value to a subaccount that invests in a particular fund (see "About the Service Providers"). The revenue we or our affiliates receive from a fund or its affiliates is in addition to revenue we receive from the charges you pay when buying, owning and surrendering the contract (see "Expense Summary"). However, the revenue we or our affiliates receive from a fund or its affiliates may come, at least in part, from the fund's fees and expenses you pay indirectly when you allocate contract value to the subaccount that invests in that fund. - - WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive these revenues including but not limited to expense payments and non-cash compensation for various purposes: - Compensating, training and educating financial advisors who sell the contracts. - Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their financial advisors, and granting access to financial advisors of our affiliated selling firms. - Activities or services we or our affiliates provide that assist in the promotion and distribution of the contracts including promoting the funds available under the contracts to prospective and existing contract owners, authorized selling firms and financial advisors. - Providing sub-transfer agency and shareholder servicing to contract owners. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 17 - Promoting, including and/or retaining the fund's investment portfolios as underlying investment options in the contracts. - Advertising, printing and mailing sales literature, and printing and distributing prospectuses and reports. - Furnishing personal services to contract owners, including education of contract owners, answering routine inquiries regarding a fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA). - Subaccounting, transaction processing, recordkeeping and administration. - - SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are managed by RiverSource Investments. The sources of revenue we receive from these affiliated funds, or from affiliates of these funds, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser and transfer agent or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the fund or on the actual cost of certain services we provide with respect to the fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. - - SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these unaffiliated funds, or the funds' affiliates, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser, subadviser, transfer agent or an affiliate of these and assets of the fund's distributor or an affiliate. The revenue resulting from these sources usually is based on a percentage of average daily net assets of the fund but there may be other types of payment arrangements. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. 18 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS UNLESS AN ASSET ALLOCATION PROGRAM IS IN EFFECT, YOU MAY ALLOCATE PURCHASE PAYMENTS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Global Thematic Growth Portfolio (Class B) (previously AllianceBernstein VPS Global Technology Portfolio (Class B)) - ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Growth and Income Portfolio (Class B) - ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS International Value Portfolio (Class B) - ---------------------------------------------------------------------------------------- American Century Seeks capital growth. American Century Global VP International, Investment Management, Class II Inc. - ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Mid Cap Value, secondary objective. Investment Management, Class II Inc. - ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. American Century VP Ultra(R), Investment Management, Class II Inc. - ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Value, Class secondary objective. Investment Management, II Inc. - ---------------------------------------------------------------------------------------- Calvert Variable Seeks competitive total return through Calvert Asset Management Series, Inc. VP actively managed portfolio of stocks, bonds Company, Inc., adviser. SRI Social and money market instruments which offer New Amsterdam Partners, Balanced income and capital growth opportunity and LLP, subadviser on Portfolio which satisfy Portfolio's investment and equity portion; no social criteria. subadviser on fixed- income portion. - ---------------------------------------------------------------------------------------- Columbia High Seeks total return, consisting of a high Columbia Management Yield Fund, level of income and capital appreciation. Investment Advisers, Variable Series, LLC, advisor; MacKay Class B Shields LLC, subadviser. - ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management Growth Fund, Investment Advisers, Variable Series, LLC, adviser; Marsico Class A Capital Management, LLC, sub-adviser. - ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management International Investment Advisers, Opportunities LLC, adviser; Marsico Fund, Variable Capital Management, LLC, Series, Class B sub-adviser. - ---------------------------------------------------------------------------------------- Credit Suisse Seeks total return. Credit Suisse Asset Trust - Commodity Management, LLC Return Strategy Portfolio - ---------------------------------------------------------------------------------------- Eaton Vance VT Seeks high level of current income. Eaton Vance Management Floating-Rate Income Fund - ---------------------------------------------------------------------------------------- Evergreen VA Seeks long-term capital growth and Evergreen Investment International secondarily, modest income. Management Company, LLC Equity Fund - Class 2 - ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 19
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term capital appreciation. Fidelity Management & Contrafund(R) Normally invests primarily in common Research Company (FMR), Portfolio Service stocks. Invests in securities of companies investment manager; FMR Class 2 whose value it believes is not fully U.K. and FMR Far East, recognized by the public. Invests in either sub-advisers. "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. - ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks high total return through a FMR, investment manager; Growth & Income combination of current income and capital FMR U.K., FMR Far East, Portfolio Service appreciation. Normally invests a majority sub-advisers. Class 2 of assets in common stocks with a focus on those that pay current dividends and show potential for capital appreciation. Invests in domestic and foreign issuers. The Fund invests in either "growth" stocks or "value" stocks or both. - ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Mid Cap Portfolio invests primarily in common stocks. FMR U.K., FMR Far East, Service Class 2 Normally invests at least 80% of assets in sub-advisers. securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. Invests in domestic and foreign issuers. The Fund invests in either "growth" or "value" common stocks or both. - ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Overseas invests primarily in common stocks FMR U.K., FMR Far East, Portfolio Service allocating investments across different Fidelity International Class 2 countries and regions. Normally invests at Investment Advisors least 80% of assets in non-U.S. securities. (FIIA) and FIIA U.K., sub-advisers. - ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks high total return. Franklin Templeton Global Real Institutional, LLC Estate Securities Fund - Class 2 - ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks long-term total return. Franklin Advisory Small Cap Value Services, LLC Securities Fund - Class 2 - ---------------------------------------------------------------------------------------- FTVIPT Mutual Seeks capital appreciation, with income as Franklin Mutual Shares Securities a secondary goal. Advisers, LLC Fund - Class 2 - ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term capital appreciation. Goldman Sachs Asset Mid Cap Value Management, L.P. Fund - Institutional Shares - ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital and Goldman Sachs Asset Structured U.S. dividend income. Management, L.P. Equity Fund - Institutional Shares - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks growth of capital. Invesco Advisers, Inc. Capital Appreciation Fund, Series II Shares (previously AIM V.I. Capital Appreciation Fund, Series II Shares) - ----------------------------------------------------------------------------------------
20 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks long-term growth of capital. Invesco Advisers, Inc. Capital Development Fund, Series II Shares (previously AIM V.I. Capital Development Fund, Series II Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks capital growth. Invesco Advisers, Inc. Financial Services Fund, Series I Shares (previously AIM V.I. Financial Services Fund, Series I Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks capital growth. Invesco Advisers, Inc. Global Health Care Fund, Series II Shares (previously AIM V.I. Global Health Care Fund, Series II Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks long-term growth of capital. Invesco Advisers, Inc. International Growth Fund, Series II Shares (previously AIM V.I. International Growth Fund, Series II Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks capital growth. Invesco Advisers, Inc. Technology Fund, Series I Shares (previously AIM V.I. Technology Fund, Series I Shares) - ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital in a Janus Capital Management Series Janus manner consistent with the preservation of LLC Portfolio: capital. Service Shares - ---------------------------------------------------------------------------------------- Legg Mason Seeks long-term growth of capital. Legg Mason Partners Fund ClearBridge Advisor, LLC, adviser; Variable Small ClearBridge Advisors, Cap Growth LLC, sub-adviser. Portfolio, Class I (previously Legg Mason Partners Variable Small Cap Growth Portfolio, Class I) - ---------------------------------------------------------------------------------------- MFS(R) Investors Seeks capital appreciation. MFS Investment Growth Stock Management(R) Series - Service Class - ---------------------------------------------------------------------------------------- MFS(R) New Seeks capital appreciation. MFS Investment Discovery Management(R) Series - Service Class - ---------------------------------------------------------------------------------------- MFS(R) Utilities Seeks total return. MFS Investment Series - Service Management(R) Class - ---------------------------------------------------------------------------------------- Neuberger Berman Seeks long-term growth of capital by Neuberger Berman Advisers investing primarily in common stocks of Management LLC Management Trust foreign companies. International Portfolio (Class S) - ---------------------------------------------------------------------------------------- Oppenheimer Seeks long-term capital appreciation. OppenheimerFunds, Inc. Global Securities Fund/VA, Service Shares - ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 21
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- Oppenheimer Seeks high level of current income OppenheimerFunds, Inc. Global Strategic principally derived from interest on debt Income Fund/VA, securities. Service Shares (previously Oppenheimer Strategic Bond Fund/VA, Service Shares) - ---------------------------------------------------------------------------------------- Oppenheimer Main Seeks capital appreciation. OppenheimerFunds, Inc. Street Small Cap Fund/VA, Service Shares - ---------------------------------------------------------------------------------------- PIMCO VIT All Seeks maximum real return consistent with Pacific Investment Asset Portfolio, preservation of real capital and prudent Management Company LLC Advisor Share investment management. Class - ---------------------------------------------------------------------------------------- Putnam VT Global Seeks capital appreciation. Putnam Investment Health Care Management, LLC Fund - Class IB Shares - ---------------------------------------------------------------------------------------- Putnam VT Seeks capital appreciation. Putnam Investment International Management, LLC Equity Fund - Class IB Shares - ---------------------------------------------------------------------------------------- Putnam VT Vista Seeks capital appreciation. Putnam Investment Fund - Class IB Management, LLC Shares - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with an aggressive level of LLC Portfolios - risk. This is a "fund of funds" and seeks Aggressive to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a conservative level of LLC Portfolios - risk. This is a "fund of funds" and seeks Conservative to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate level of risk. LLC Portfolios - This is a "fund of funds" and seeks to Moderate achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ----------------------------------------------------------------------------------------
22 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate aggressive level LLC Portfolios - of risk. This is a "fund of funds" and Moderately seeks to achieve its objective by investing Aggressive in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate conservative LLC Portfolios - level of risk. This is a "fund of funds" Moderately and seeks to achieve its objective by Conservative investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum total investment return RiverSource Investments, Variable through a combination of capital growth and LLC Portfolio - current income. Balanced Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum current income consistent RiverSource Investments, Variable with liquidity and stability of principal. LLC Portfolio - Cash Management Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income while RiverSource Investments, Variable attempting to conserve the value of the LLC Portfolio - investment for the longest period of time. Diversified Bond Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and, as RiverSource Investments, Variable a secondary goal, steady growth of capital. LLC Portfolio - Diversified Equity Income Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks capital appreciation. RiverSource Investments, Variable LLC Portfolio - Dynamic Equity Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks high total RiverSource Investments, Variable return through income and growth of LLC Portfolio - capital. Global Bond Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks total RiverSource Investments, Variable return that exceeds the rate of inflation LLC Portfolio - over the long-term. Global Inflation Protected Securities Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high current income, with capital RiverSource Investments, Variable growth as a secondary objective. LLC Portfolio - High Yield Bond Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high total return through current RiverSource Investments, Variable income and capital appreciation. LLC Portfolio - Income Opportunities Fund (Class 3) - ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 23
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Growth Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Value Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Variable LLC Portfolio - S&P 500 Index Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and RiverSource Investments, Variable safety of principal consistent with LLC Portfolio - Short investment in U.S. government and Duration U.S. government agency securities. Government Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC Portfolio - Growth Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Larger-Cap Value Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Kenwood Portfolio - Capital Management LLC, Smaller-Cap Value sub-adviser. Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Portfolio - Threadneedle Emerging Markets International Limited, Fund (Class 3) an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. - ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks capital appreciation RiverSource Investments, Variable LLC, adviser; Portfolio - Threadneedle International International Limited, Opportunity Fund an indirect wholly-owned (Class 3) subsidiary of Ameriprise Financial, sub-adviser. - ---------------------------------------------------------------------------------------- RVST Variable Seeks long-term capital growth. RiverSource Investments, Portfolio - Davis LLC, adviser; Davis New York Venture Selected Advisers, L.P., Fund (Class 3) subadviser. (previously RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund) - ---------------------------------------------------------------------------------------- RVST Variable Seeks long-term growth of capital. RiverSource Investments, Portfolio - Gold- LLC, adviser; Systematic man Sachs Mid Cap Financial Management, Value Fund (Class L.P. and WEDGE Capital 3) (previously Management L.L.P., sub- RVST RiverSource advisers. Partners Variable Portfolio - Select Value Fund) - ----------------------------------------------------------------------------------------
24 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST Variable Seeks long-term capital appreciation. RiverSource Investments, Portfolio - LLC, adviser; Barrow, Partners Small Cap Hanley, Mewhinney & Value Fund (Class Strauss, Inc., Denver 3) (previously Investment Advisors LLC, RVST RiverSource Donald Smith & Co., Partners Variable Inc., River Road Asset Portfolio - Small Management, LLC and Cap Value Fund) Turner Investment Partners, Inc., subadvisers. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with an aggressive level of LLC Aggressive risk. This is a "fund of funds" and seeks Portfolio (Class to achieve its objective by investing in a 2) combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a small amount in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with an aggressive level of LLC Aggressive risk. This is a "fund of funds" and seeks Portfolio (Class to achieve its objective by investing in a 4) combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a small amount in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a conservative level of LLC Conservative risk. This is a "fund of funds" and seeks Portfolio (Class to achieve its objective by investing in a 2) combination of underlying funds. The fund invests primarily in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a conservative level of LLC Conservative risk. This is a "fund of funds" and seeks Portfolio (Class to achieve its objective by investing in a 4) combination of underlying funds. The fund invests primarily in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderate level of risk. LLC Moderate Portfolio This is a "fund of funds" and seeks to (Class 2) achieve its objective by investing in a combination of underlying funds. The fund invests primarily in a balance of underlying funds that invest in fixed income securities and underlying funds that invest in equity securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderate level of risk. LLC Moderate Portfolio This is a "fund of funds" and seeks to (Class 4) achieve its objective by investing in a combination of underlying funds. The fund invests primarily in a balance of underlying funds that invest in fixed income securities and underlying funds that invest in equity securities. - ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 25
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderately aggressive LLC Moderately level of risk. This is a "fund of funds" Aggressive and seeks to achieve its objective by Portfolio (Class investing in a combination of underlying 2) funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a moderate amount in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderately aggressive LLC Moderately level of risk. This is a "fund of funds" Aggressive and seeks to achieve its objective by Portfolio (Class investing in a combination of underlying 4) funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a moderate amount in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderately conservative LLC Moderately level of risk. This is a "fund of funds" Conservative and seeks to achieve its objective by Portfolio (Class investing in a combination of underlying 2) funds. The fund invests primarily in underlying funds that invest in fixed income securities and also invests a moderate amount in underlying funds that invest in equity securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - consistent with a moderately conservative LLC Moderately level of risk. This is a "fund of funds" Conservative and seeks to achieve its objective by Portfolio (Class investing in a combination of underlying 4) funds. The fund invests primarily in underlying funds that invest in fixed income securities and also invests a moderate amount in underlying funds that invest in equity securities. - ---------------------------------------------------------------------------------------- Van Kampen Life Seeks capital growth and income through Van Kampen Asset Investment Trust investments in equity securities, including Management Comstock common stocks, preferred stocks and Portfolio, Class securities convertible into common and II Shares preferred stocks. - ---------------------------------------------------------------------------------------- Van Kampen's UIF Seeks current income and capital Morgan Stanley Global Real appreciation. Investment Management Estate Portfolio, Inc., doing business as Class II Shares Van Kampen, adviser; Morgan Stanley Investment Management Limited and Morgan Stanley Investment Management Company, sub- advisers. - ---------------------------------------------------------------------------------------- Van Kampen's UIF Seeks long-term capital growth. Morgan Stanley Mid Cap Growth Investment Management Portfolio, Class Inc., doing business as II Shares Van Kampen. - ---------------------------------------------------------------------------------------- Wanger Seeks long-term growth of capital. Columbia Wanger Asset International Management, L.P. - ---------------------------------------------------------------------------------------- Wanger USA Seeks long-term capital appreciation. Columbia Wanger Asset Management, L.P. - ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Opportunity Fund adviser; Wells Capital Management Incorporated, sub-adviser. - ----------------------------------------------------------------------------------------
26 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Small Cap Growth adviser; Wells Capital Fund Management Incorporated, sub-adviser. - ----------------------------------------------------------------------------------------
GUARANTEE PERIOD ACCOUNTS (GPAS) The GPAs may not be available for contracts in some states. Currently, unless the PN program is in effect, you may allocate purchase payments and purchase payment credits to one or more of the GPAs with guarantee periods declared by us. The required minimum investment in each GPA is $1,000. These accounts are not offered after annuity payouts begin. Each GPA pays an interest rate that is declared when you make an allocation to that account. That interest rate is then fixed for the guarantee period that you chose. We will periodically change the declared interest rate for any future allocations to these accounts, but we will not change the rate paid on money currently in a GPA. The GPA interests under the contracts are registered with the SEC. The SEC staff reviews the disclosures in this prospectus on the GPA interests. The interest rates that we will declare as guaranteed rates in the future are determined by us at our discretion (future rates). We will determine future rates based on various factors including, but not limited to, the interest rate environment, returns earned on investments in the nonannuitized separate account we have established for the GPAs, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition and RiverSource Life's revenues and other expenses. Interest rates offered may vary by state, but will not be lower than state law allows. WE CANNOT PREDICT NOR CAN WE GUARANTEE WHAT FUTURE RATES WILL BE. We hold amounts you allocate to the GPAs in a "nonannuitized" separate account. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the GPAs. State insurance law prohibits us from charging this separate account with liabilities of any other separate account or of our general business. We own the assets of this separate account as well as any favorable investment performance of those assets. You do not participate in the performance of the assets held in this separate account. We guarantee all benefits relating to your value in the GPAs. This guarantee is based on the continued claims-paying ability of the company's general account. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. We intend to construct and manage the investment portfolio relating to the separate account in such a way as to minimize the impact of fluctuations in interest rates. We achieve this by constructing a portfolio of assets with a price sensitivity to interest rate changes (i.e., price duration) that is similar to the price duration of the corresponding portfolio of liabilities. We must invest this portfolio of assets in accordance with requirements established by applicable state laws regarding the nature and quality of investments that life insurance companies may make and the percentage of their assets that they may commit to any particular type of investment. Our investment strategy will incorporate the use of a variety of debt instruments having price durations tending to match the applicable guarantee periods. These instruments include, but are not necessarily limited to, the following: - - Securities issued by the U.S. government or its agencies or instrumentalities, which issues may or may not be guaranteed by the U.S. government; - - Debt securities that have an investment grade, at the time of purchase, within the four highest grades assigned by any of three nationally recognized rating agencies -- Standard & Poor's, Moody's Investors Service or Fitch -- or are rated in the two highest grades by the National Association of Insurance Commissioners; - - Debt instruments that are unrated, but which are deemed by RiverSource Life to have an investment quality within the four highest grades; - - Other debt instruments which are unrated or rated below investment grade, limited to 15% of assets at the time of purchase; and - - Real estate mortgages, limited to 30% of portfolio assets at the time of acquisition. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 27 In addition, options and futures contracts on fixed income securities will be used from time to time to achieve and maintain appropriate investment and liquidity characteristics on the overall asset portfolio. While this information generally describes our investment strategy, we are not obligated to follow any particular strategy except as may be required by federal law and Minnesota and other state insurance laws. MARKET VALUE ADJUSTMENT (MVA) We will not apply an MVA to contract value you transfer or surrender out of the GPAs within 30 days before the end of the guarantee period. During this 30 day window you may choose to start a new guarantee period of the same length, transfer the contract value to a GPA of another length, transfer the contract value to any of the subaccounts or the fixed account, or surrender the contract value (subject to applicable surrender provisions). If we do not receive any instructions at the end of your guarantee period, our current practice is to automatically transfer the contract value to the one year GPA. Any new GPA, whether it is one you choose or an automatic transfer to a one year GPA, will be subject to an MVA as described below. We guarantee the contract value allocated to the GPAs, including interest credited, if you do not make any transfers or surrenders from the GPAs prior to 30 days before the end of the guarantee period (30-day rule). At all other times, and unless one of the exceptions to the 30-day rule described below applies, we will apply an MVA if you surrender or transfer contract value from a GPA including withdrawals under the Withdrawal Benefit rider, or you elect an annuity payout plan while you have contract value invested in a GPA. We will refer to these transactions as "early surrenders." The application of an MVA may result in either a gain or loss of principal. The 30-day rule does not apply and no MVA will apply to: - - death benefits; - - amounts surrendered for fees and charges; - - amounts surrendered under contract provisions that waive surrender charges for Hospital or Nursing Home Confinement and Terminal Illness Disability Diagnosis; and - - amounts surrendered from the GPA within 30 days prior to the end of the guarantee period. When you request an early surrender, we adjust the early surrender amount by an MVA formula. The early surrender amount reflects the relationship between the guaranteed interest rate you are earning in your current GPA and the interest rate we are crediting on new GPAs that end at the same time as your current GPA. The MVA is sensitive to changes in current interest rates. The magnitude of any applicable MVA will depend on our current schedule of guaranteed interest rates at the time of the surrender, the time remaining in your guarantee period and your guaranteed interest rate. The MVA is negative, zero or positive depending on how the guaranteed interest rate on your GPA compares to the interest rate of a new GPA for the same number of years as the guarantee period remaining on your GPA. This is summarized in the following table:
IF YOUR GPA RATE IS: THE MVA IS: Less than the new GPA rate + 0.10% Negative Equal to the new GPA rate + 0.10% Zero Greater than the new GPA rate + 0.10% Positive
For an example, see Appendix A. THE FIXED ACCOUNT Unless the PN program is in effect, you also may allocate purchase payments and purchase payment credits or transfer contract value to the fixed account. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of the company's general account. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. You should also be aware that we issue other types of insurance and financial products as well, and we also pay our obligations under these products from assets in our general account. Our general account is not segregated or insulated from the claims of our creditors. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. The value of the fixed account increases as we credit interest to the account. Purchase payments and transfers to the fixed account become part of our general account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment or transfer to the fixed account is guaranteed for one year. Thereafter, we will change the rates from time to time at our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and 28 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS RiverSource Life's revenues and expenses. Subject to state law limitations, we reserve the right to limit purchase payment allocations to the fixed account if the interest rate we are then currently crediting to the fixed account is equal to the minimum interest rate stated in the contract. Interests in the fixed account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account. Disclosures regarding the fixed account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract -- Transfer policies" for restrictions on transfers involving the fixed account.) THE SPECIAL DCA ACCOUNT You also may allocate purchase payments and purchase payment credits to the Special DCA account, when available. The Special DCA account is available for promotional purposes for new purchase payments only and may not be available at all times.* We back the principal and interest guarantees relating to the Special DCA account. These guarantees are based on the continued claims-paying ability of the company. The value of the Special DCA account increases as we credit interest to the account. Purchase payments to the Special DCA account become part of our general account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment is guaranteed for the period of time money remains in the Special DCA account. The rates credited to the Special DCA account will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and RiverSource Life's revenues and expenses. Interests in the Special DCA account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the Special DCA account. Disclosures regarding the Special DCA account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract -- Special Dollar Cost Averaging Program" for more information on the Special DCA account.) *) For contracts purchased in Oregon the Special DCA account is available at all times. BUYING YOUR CONTRACT New contracts are not currently being offered. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can buy a contract if you and the annuitant are 90 or younger. The contract provides for allocation of purchase payments and purchase payment credits to the subaccounts of the variable account, to the GPAs, to the fixed account and/or to the Special DCA account (when available) in even 1% increments subject to the $1,000 required minimum investment for the GPAs. There may be certain restrictions on the amount you may allocate to the fixed account. (See "Purchase Payments.") We will credit additional purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our corporate office before the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we receive an additional purchase payment at our corporate office at or after the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment. THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. This means that the contract will be annuitized (converted to a stream of monthly payments), and the first payment will be sent on the settlement date. If your contract is annuitized, the contract goes into payout mode and only annuity payout provisions continue. Unless Annuity Payout Plan E is elected, you will no longer have access to your contract value. In addition, the death benefit and any optional benefits you have elected will end. When we processed your application, we established the settlement date as the maximum age (or contract anniversary, if applicable). We have established a new maximum age (or contract anniversary) as described below. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. Generally, the settlement date must be no later than the annuitant's 95th birthday or the tenth contract anniversary. If the annuitant was age 95 or older and past the tenth contract anniversary when the new maximum was established, the new RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 29 settlement date was set to a birthday later than age 95. You can also choose to delay the annuitization of your contract beyond age 95 indefinitely, to the extent allowed by applicable tax laws. Six months prior to your settlement date, we will contact you with your options, including the option to postpone your annuitization start date to a future date. If you do not make an election, annuity payouts using the contract's default option of Annuity Payout Plan B -- life annuity with 10 years certain will begin on the settlement date, and your monthly annuity payments will continue for as long as the annuitant lives. If the annuitant does not survive 10 years, payments will continue until 10 years of payments have been made. If you own a qualified annuity (for example, an IRA) and tax laws require that you take distributions from your annuity prior to your new settlement date, your contract will not be automatically annuitized. If you satisfy your RMDs for a qualified annuity in the form of partial surrenders from this contract, you are electing to defer annuitizing your contract. Contract owners of IRAs and TSAs may also be able to satisfy RMDs by electing other IRAs or TSAs, and in that case, will delay the start of annuity payouts for these contracts. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay the death benefit to your named beneficiary. If there is more than one beneficiary we will pay each beneficiary's designated share when we receive their complete claim. A beneficiary will bear the investment risk if the variable account until we receive the beneficiary's complete claim. If there is no named beneficiary, then the default provisions of your contract apply. (See "Benefits in Case of Death" for more about beneficiaries.) PURCHASE PAYMENTS* MINIMUM ALLOWABLE PURCHASE PAYMENTS(**) If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month
RAVA ADVANTAGE PLUS RAVA SELECT PLUS If paying by any other method: initial payment for qualified annuities $1,000 $ 2,000 initial payment for nonqualified annuities 2,000 10,000 for any additional payments 50 50
* RAVA ADVANTAGE PLUS AND RAVA SELECT PLUS BAND 3 ANNUITIES SOLD TO INDIVIDUALS OTHER THAN ADVISORS AND EMPLOYEES: Require a minimum $1,000,000 initial purchase payment and corporate office approval. Contracts already approved may make payments in subsequent years up to $100,000 if your age on the effective date of the contract is age 85 or younger and $50,000 if your age on the effective date of the contract is age 86 to 90. ** Installments must total at least $600 in the first year. If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in Illinois and New Jersey. MAXIMUM ALLOWABLE PURCHASE PAYMENTS(***) (without corporate office approval) based on your age on the effective date of the contract:
RAVA ADVANTAGE PLUS RAVA SELECT PLUS For the first year: through age 85 $999,999 $999,999 for ages 86 to 90 100,000 100,000 For each subsequent year: through age 85 100,000 100,000 for ages 86 to 90 50,000 50,000
***These limits apply in total to all RiverSource Life annuities you own. We reserve the right to increase maximum limits. For qualified annuities the tax-deferred retirement plan's or the Code's limits on annual contributions also apply. We will consider your contract void from the start if we do not receive your initial purchase payment within 180 days of the application signed date. Effective Jan. 26, 2009, no additional purchase payments are allowed for contracts with the Withdrawal Benefit rider or Enhanced Withdrawal Benefit rider, subject to state restrictions. For contracts issued in all states except those listed below, certain exceptions apply and the following additional purchase payments will be allowed on/after Jan. 26, 2009: a. Tax Free Exchanges, rollovers, and transfers listed on the annuity application and received within 180 days from the contract issue date. 30 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS b. Current tax year contributions for TSAs up to the annual limit set by the IRS. c. Prior and current tax year contributions up to a cumulative annual maximum of $6,000(1) for any Qualified Accounts except TSAs. This maximum applies to IRAs, Roth IRAs, SIMPLE IRAs, and SEP plans. (1) The maximum amount is subject to change in later years and is based on the limit set by the IRS for individual IRAs (including the catch-up provision). For Contracts Issued in Florida, New Jersey, and Oregon: For contracts with the Withdrawal Benefit rider and Enhanced Withdrawal Benefit rider issued in Florida, New Jersey, and Oregon, additional purchase payments to your variable annuity contract will be limited to $100,000 for the life of your contract. The limit does not apply to Tax Free Exchanges, rollovers and transfers listed on the annuity application and received within 180 days for the contract issue date. We reserve the right to change these current rules at any time, subject to state restrictions. Purchase payment amounts and purchase payment timing may vary by state and may be limited under the terms of your contract. Subject to state regulatory requirements, we reserve the right to not accept purchase payments allocated to the fixed account for twelve months following either: 1. a partial surrender from the fixed account; or 2. a lump sum transfer from the fixed account to a subaccount. HOW TO MAKE PURCHASE PAYMENTS 1 BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 2 BY SCHEDULED PAYMENT PLAN We can help you set up: - - an automatic payroll deduction, salary reduction or other group billing arrangement; or - - a bank authorization. PURCHASE PAYMENT CREDITS FOR RAVA ADVANTAGE PLUS: we add a credit to your contract in the amount of: - - 1% of each purchase payment received: - if you elect the ten-year surrender charge schedule for your contract* and the initial purchase payment is under $100,000; or - if you elect the seven-year surrender charge schedule for your contract and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. - - 2% of each purchase payment received if you elect the ten-year surrender charge schedule for your contract* and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. FOR RAVA ADVANTAGE PLUS - BAND 3: we add a credit to your contract in the amount of: - - 2% of each purchase payment received: - if you elect the seven-year surrender charge schedule for your contract. - - 3% of each purchase payment received: - if you elect the ten-year surrender charge schedule for your contract*. Surrender charges under RAVA Advantage Plus and RAVA Advantage Plus - Band 3 may be higher and longer than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, there could be circumstances where you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. All things being equal (such as fund performance and availability), this may occur if you select the ten-year surrender charge and you make a full surrender in years five through ten. We pay for the credits under RAVA Advantage Plus and RAVA Advantage Plus - Band 3 primarily through revenue from a higher and longer surrender charge schedule and through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 31 FOR RAVA SELECT PLUS: we add a credit to your contract in the amount of 1% of each purchase payment received in the first contract year if your initial purchase payment to the contract is at least $250,000 but less than $1,000,000. FOR RAVA SELECT PLUS - BAND 3: we add a credit to your contract in the amount of 2% of each purchase payment received in the first contract year. Expenses under RAVA Select Plus and RAVA Select Plus - Band 3 may be higher than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. We pay for the credits under RAVA Select Plus and RAVA Select Plus - Band 3 primarily through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. We fund all credits from our general account. We do not consider credits to be "investments" for income tax purposes. (See "Taxes.") We allocate each credit to your contract value when the applicable purchase payment is applied to your contract value. We allocate such credits to your contract value according to allocation instructions in effect for your purchase payments. We will reverse credits from the contract value for any purchase payment that is not honored. The amount returned to you under the free look provision also will not include any credits applied to your contract. (See "The Contract in Brief -- Free look period.") We will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits to the extent a death benefit, surrender payment, or settlement under an annuity payout plan includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a lump sum death benefit under this contract; (2) a request for surrender charge waiver due to Nursing Home Confinement or Terminal Illness Disability Diagnosis; or (3) your settlement of the contract under an annuity payout plan.* We reserve the right to increase the amount of the credit for certain groups of contract owners. The increase will not be greater than 8% of total net purchase payments. We would pay for increases in credit amounts primarily through reduced expenses expected from such groups. * The ten-year surrender charge under RAVA Advantage Plus and RAVA Advantage Plus - Band 3 is not available in Oregon. Contracts purchased in Oregon are only eligible for a 1% purchase payment credit if the initial purchase payment is at least $100,000. For contracts purchased in Oregon, we will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits to the extent a death benefit includes purchase payment credits applied within twelve months preceding the date of death that results in a lump sum death benefit under this contract only. LIMITATIONS ON USE OF CONTRACTS If mandated by applicable law, including but not limited to, federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner's access to contract values and satisfy other statutory obligations. Under these circumstances, we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate governmental authority or court of competent jurisdiction. CHARGES CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. Currently, we deduct $30 from your contract value on your contract anniversary at the end of each contract year. Subject to state regulatory requirements, we prorate this charge among the subaccounts and the fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. The contract administrative charge is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. We reserve the right to increase this charge after the first contract anniversary to a maximum of $50.* We will waive $30 of this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the full charge at the time of surrender regardless of the contract value or purchase payments made. This charge does not apply after annuity payouts begin or when we pay death benefits. * In certain states and for certain contracts we have waived our right to increase the contract administrative charge. 32 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee, which is a percentage of their average daily net assets, on an annual basis as follows:
RAVA ADVANTAGE PLUS RAVA SELECT PLUS For nonqualified annuities 0.95% 1.20% For qualified annuities 0.75% 1.00% For Band 3 annuities 0.55% 0.75%
This fee covers the mortality and expense risk that we assume. This fee does not apply to the GPAs, the fixed account or the Special DCA account. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner or annuitant lives and no matter how long our entire group of owners or annuitants live. If, as a group, owners or annuitants outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners or annuitants do not live as long as expected, we could profit from the mortality risk fee. We deduct the mortality risk fee from the subaccounts during the annuity payout period even if the annuity payout plan does not involve a life contingency. Expense risk arises because we cannot increase the contract administrative charge more than $20.00 per contract and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. The subaccounts pay us the mortality and expense risk fee they accrued as follows: - - first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; - - then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. We do not expect that the surrender charge, discussed in the following paragraphs, will cover sales and distribution expenses. SURRENDER CHARGE If you surrender all or part of your contract, you may be subject to a surrender charge. For RAVA Advantage Plus, a surrender charge applies if all or part of the surrender amount is from purchase payments we received within seven or ten years before surrender. You select the surrender charge period at the time of your application for the contract. For RAVA Select Plus, a surrender charge applies if you surrender all or part of your purchase payments in the first three contract years. The surrender charge percentages that apply to you are shown in your contract. You may surrender an amount during any contract year without a surrender charge. We call this amount the Total Free Amount (TFA). The TFA varies depending on whether your contract includes the Withdrawal Benefit rider: CONTRACTS WITHOUT WITHDRAWAL BENEFIT RIDER The TFA is the greater of: - - 10% of the contract value on the prior contract anniversary*; or - - current contract earnings. CONTRACTS WITH WITHDRAWAL BENEFIT RIDER The TFA is the greatest of: - - 10% of the contract value on the prior contract anniversary*; - - current contract earnings; or - - the Remaining Benefit Payment. * We consider your purchase payment and any purchase payment credit applied on the first day payments are received to be the prior contract anniversary's contract value during the first contract year. NOTE: We determine current contract earnings by looking at the entire contract value, not the earnings of any particular subaccount, GPA, the fixed account or the Special DCA account. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 33 Amounts surrendered in excess of the TFA may be subject to a surrender charge as described below. SURRENDER CHARGE UNDER RAVA ADVANTAGE PLUS: For purposes of calculating any surrender charge under RAVA Advantage Plus, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next we surrender purchase payments received prior to the surrender charge period you selected and shown in your contract. We do not assess a surrender charge on these purchase payments. 3. Finally, if necessary, we surrender purchase payments received that are still within the surrender charge period you selected and shown in your contract. We surrender these payments on a first-in, first-out (FIFO) basis. We do assess a surrender charge on these payments. We determine your surrender charge by multiplying each of your payments surrendered by the applicable surrender charge percentage, and then adding the total surrender charges. The surrender charge percentage depends on the number of years since you made the payments that are surrendered, depending on the schedule you selected*:
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED NUMBER OF COMPLETED SURRENDER CHARGE YEARS FROM DATE OF EACH SURRENDER CHARGE YEARS FROM DATE OF EACH PERCENTAGE PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7+ 0 7 4 8 3 9 2 10+ 0
* The ten-year surrender charge schedule under RAVA Advantage Plus is not available in Oregon. In Connecticut and Utah, the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama, Massachusetts, Oregon and Washington, we waive surrender charges after the tenth contract anniversary for all payments regardless of when payments are made. SURRENDER CHARGE UNDER RAVA SELECT PLUS (EXCEPT TEXAS): For purposes of calculating any surrender charge under RAVA Select Plus, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, if necessary, we surrender purchase payments. We do assess a surrender charge on these payments during the first three contract years as follows:
CONTRACT YEAR SURRENDER CHARGE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE UNDER RAVA SELECT PLUS IN TEXAS: For purposes of calculating any surrender charge under RAVA Select Plus in Texas, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 34 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 2. Next, if necessary, we surrender purchase payments. We surrender amounts from the oldest purchase payments first. We do assess a surrender charge on these payments during the first three contract years as follows:
SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 1 2 3 THEREAFTER 1 8% 7% 6% 0% 2 8 7 0 3 8 0 Thereafter 0
PARTIAL SURRENDERS: For a partial surrender that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge, plus or minus any applicable MVA. For an example, see Appendix B. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment rate is 3.5% and 6.67% if the assumed investment rate is 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. WAIVER OF SURRENDER CHARGES We do not assess surrender charges for: - - surrenders of any contract earnings; - - surrenders of amounts totaling up to 10% of the contract value on the prior contract anniversary to the extent it exceeds contract earnings; - - if you elected the Withdrawal Benefit rider, your contract's Remaining Benefit Payment to the extent it exceeds the greater of contract earnings or 10% of the contract value on the prior contract anniversary; - - amounts surrendered after the tenth contract anniversary in Alabama, Massachusetts, Washington and Oregon; - - to the extent that they exceed the greater of contract earnings or 10% of the contract value on the prior contract anniversary, required minimum distributions from a qualified annuity. The amount on which surrender charges are waived can be no greater than the RMD amount calculated under your specific contract currently in force; - - contracts settled using an annuity payout plan*, unless an Annuity Payout Plan E is later surrendered; - - amounts we refund to you during the free look period*; - - death benefits*; - - surrenders you make under your contract's "Waiver of Surrender Charges for Hospital or Nursing Home Confinement" provision*. To the extent permitted by state law, this provision applies when you are under age 76 on the date that we issue the contract. Under this provision, we will waive surrender charges that we normally assess upon full or partial surrender. You must provide proof satisfactory to us that, as of the date you request the surrender, you are or your spouse is confined to a nursing home or hospital and have been for 60 straight days and the confinement began after the contract date. (See your contract for additional conditions and restrictions on this waiver.); and - - surrenders you make under your contract's "Waiver of Surrender Charges for Terminal Illness Disability Diagnosis" provision.* To the extent permitted by state law, this provision applies when you are under age 76 on the date we issue the contract. Under this provision, we will waive surrender charges that we normally assess for surrenders you make if you are diagnosed after the contract date as disabled with a medical condition that with reasonable medical certainty will result in death within 12 months or less from the date of a licensed physician's statement. You must provide us with a licensed physician's statement containing the terminal illness diagnosis and the date the terminal illness was initially diagnosed. (See your contract for additional conditions and restrictions on this waiver.) * However, we will reverse certain purchase payment credits. (See "Buying your contract -- Purchase payment credits.") OTHER INFORMATION ON CHARGES: Ameriprise Financial, Inc. makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 1/2 (fee waived in case of death or disability). RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 35 POSSIBLE GROUP REDUCTIONS: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate certain charges such as the contract administrative and surrender charges. However, we expect this to occur infrequently. ACCUMULATION BENEFIT RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.60% of the greater of your contract value or the minimum contract accumulation value on your contract anniversary. We prorate this fee among the subaccounts and the fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the Special DCA account. Such fee is only deducted from any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. The fee will only be deducted from the subaccounts in Washington. We will modify this prorated approach to comply with state regulations where necessary. Once you elect the Accumulation Benefit rider, you may not cancel it and the charge will continue to be deducted through the end of the waiting period or when annuity payouts begin. If the contract is terminated for any reason or when annuity payouts begin, we will deduct the fee, adjusted for the number of calendar days coverage was in place since we last deducted the charge. Currently, the Accumulation Benefit rider fee does not vary with the PN program model portfolio or investment option selected; however, we reserve the right to increase this fee and/or charge a separate rider fee for each model portfolio or investment option. The Accumulation Benefit rider fee will not exceed a maximum fee of 2.50%. We will not change the Accumulation Benefit rider fee after the rider effective date unless: (a) you choose the annual elective step up or elective spousal continuation step up after we have exercised our rights to increase the rider fee; (b) you change your PN program investment option (or change from a model portfolio to an investment option under the PN program) after we have exercised our rights to increase the rider fee or vary the rider fee for each PN program model portfolio or investment option; If you elect to change your PN program model portfolio or investment option after we have exercised our right to increase the fee for this rider, or after we have exercised our right to establish fees for this rider which vary by PN program model portfolio or investment option, the increase in fees for this rider will become effective on the contract anniversary following your change of PN program model portfolio or investment option. Any PN program model portfolio changes on the contract anniversary will have the new charge effective on that contract anniversary. Also, in the event you change your PN program model portfolio or investment option twice in the same contract year (see "Asset Allocation Program" and "Portfolio Navigator Program"), the fee we charge for this rider will be the greatest fee applicable to any PN program model portfolio or investment option which you have selected during the contract year. If you choose the elective step up, the elective spousal continuation step up, or change your PN program model portfolio or investment option after we have exercised our rights to increase the rider charge as described above, you will pay the charge that is in effect on the valuation date we receive your written request to step up or change your PN program model portfolio or investment option for each PN program model portfolio or investment option. For Elective Step Ups and the elective spousal continuation Step ups, this change will be in effect for the entire contract year. The fee does not apply after annuity payouts begin. (1) Available if you are 80 or younger at the rider effective date. You must participate in the PN program with this rider (see "Portfolio Navigator Program"). Not available with Withdrawal Benefit. WITHDRAWAL BENEFIT RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.60% of your contract value on your contract anniversary. We prorate this fee among the subaccounts and the fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the GPAs and in the Special DCA account. Such fee is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. The fee will only be deducted from the subaccounts in Washington. We will modify this prorated approach to comply with state regulations where necessary. (1) Available if you are 80 or younger at the rider effective date and age 60 to 80 if the contract is a TSA. You must participate in the PN program with this rider (see "Portfolio Navigator Program"). Once you elect the Withdrawal Benefit, you may not cancel it and the fee will continue to be deducted until the contract is terminated or annuity payouts begin. If the contract is terminated for any reason or when annuity payouts begin, we will deduct the Withdrawal Benefit fee, adjusted for the number of calendar days coverage was in place since we last deducted the fee. If the Remaining Benefit Amount (RBA) goes to zero but the contract value has not been depleted, you will continue to be charged. 36 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS We reserve the right to change the fee for this rider up to a maximum of 2.50%. However, any change to the rider fee will only apply to existing contract owners if: (a) you choose the annual elective step up or elective spousal continuation step up after we have exercised our rights to increase the rider fee; (b) you change your PN program investment option (or change from a model portfolio to an investment option under the PN program) after we have exercised our rights to increase the rider fee and/or vary the rider fee for each PN program model portfolio or investment option. If you choose the spousal continuation step up or to change your investment option (or change from a model portfolio to an investment option) after we have exercised our right to increase the fee we charge for this rider, or after we have exercised our right to establish fees for this rider which vary by model portfolio or investment option, the increase in fees we charge for this rider will become effective on the contract anniversary following your change. Any changes on the contract anniversary will have the new fee effective on that contract anniversary. Also, in the event you make more than one change in the same contract year, the fee for this rider will be the greatest fee applicable to any change which you have selected during the contract year. If you choose an annual elective step up, you will pay the fee we then charge. If you choose an elective step up on the first contract anniversary, any increase in fees we charge for this rider for the step up will not become effective until the third contract year. In the event of more than one change in model portfolio or investment option and/or an elective step up occurring in the same contract year, the fees we charge for this rider will be the highest fee applicable to any of these changes. ROPP RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual charge of 0.20% of your contract value on your contract anniversary at the end of each contract year. We prorate this charge among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. Such charge is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. In this case, we prorate the charge among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.30%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 76 or older at the rider effective date. ROPP is included in the standard death benefit if you are age 75 or younger on the contract effective date at no additional cost. MAV RIDER FEE We charge a fee for this optional feature only if you select it.(2) If selected, we deduct an annual charge of 0.25% of your contract value on your contract anniversary at the end of each contract year. We prorate this charge among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. Such charge is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. In this case, we prorate the charge among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.35%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (2) Available if you are 75 or younger at the rider effective date. Not available with 5-Year MAV. 5-YEAR MAV RIDER FEE We charge a fee for this optional feature only if you select it.(3) If selected, we deduct an annual charge of 0.10% of your contract value on your contract anniversary at the end of each contract year. We prorate this charge among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. Such charge is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (3) Available if you are 75 or younger at the rider effective date. Not available with MAV. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 37 EEB RIDER FEE We charge a fee for this optional feature only if you select it.(4) If selected, we deduct an annual charge of 0.30% of your contract value on your contract anniversary at the end of each contract year. We prorate this charge among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. Such charge is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. In this case, we prorate the charge among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.40%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (4) Available if you are 75 or younger at the rider effective date. Not available with EEP. May not be available in all states. EEP RIDER FEE We charge a fee for this optional feature only if you select it.(5) If selected, we deduct an annual charge of 0.40% of your contract value on your contract anniversary at the end of each contract year. We prorate this charge among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. Such charge is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. In this case, we prorate the charge among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.50%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (5) Available if you are 75 or younger at the rider effective date. Not available with EEB. May not be available in all states. EEP is only available on contracts purchased through a direct transfer or exchange of another annuity or a life insurance policy. RIDER COMBINATION DISCOUNT A fee discount of 0.05% applies if you purchase 5-Year MAV with either EEB or EEP. A fee discount of 0.10% applies if you purchase MAV with either EEB or EEP. PN RIDER FEE Before May 10, 2010, we deducted an annual charge of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. This fee will no longer apply beginning May 10, 2010. FUND FEES AND EXPENSES There are deductions from and expenses paid out of the assets of the funds that are described in the prospectuses for those funds. (see "Annual Operating Expenses of the Funds"). PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon your state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you surrender your contract. VALUING YOUR INVESTMENT We value your accounts as follows: GPA We value the amounts you allocate to the GPA directly in dollars. The GPA value equals: - - the sum of your purchase payments and purchase payment credits allocated to the GPA; - - plus any amounts transferred to the GPA from the fixed account or subaccounts; - - plus interest credited; - - minus any amounts transferred from the GPA to the fixed account or any subaccount; - - minus any amounts deducted for charges or surrenders; and/or - - minus any remaining portion of fees where the values of the fixed account and the subaccounts are insufficient to cover those fees. 38 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS FIXED ACCOUNT We value the amounts you allocate to the fixed account directly in dollars. The fixed account value equals: - - the sum of your purchase payments and purchase payment credits and transfer amounts allocated to the fixed account; - - plus interest credited; - - minus the sum of amounts surrendered (including any applicable surrender charges) and amounts transferred out (including any positive or negative MVA on amounts transferred from the GPAs); - - minus any prorated portion of the contract administrative charge; - - minus any prorated portion of the ROPP rider fee (if selected); - - minus any prorated portion of the MAV rider fee (if selected); - - minus any prorated portion of the 5-Year MAV rider fee (if selected); - - minus any prorated portion of the EEB rider fee (if selected); - - minus any prorated portion of the EEP rider fee (if selected); - - minus any prorated portion of the Accumulation Benefit rider fee (if selected)*; and - - minus any prorated portion of the Withdrawal Benefit rider fee (if selected)*. * The fee can only be deducted from the subaccounts in Washington. SPECIAL DCA ACCOUNT We value the amounts you allocate to the Special DCA account directly in dollars. The Special DCA account value equals: - - the sum of your purchase payments and purchase payment credits allocated to the Special DCA account; - - plus interest credited; - - minus the sum of amounts surrendered (including any applicable surrender charges); - - minus amounts transferred out; and - - minus any remaining portion of fees where the values of the fixed account and the subaccounts are insufficient to cover those fees. SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts or we apply any purchase payment credits to a subaccount, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each time you take a partial surrender, transfer amounts out of a subaccount, or we assess a contract administrative charge, a surrender charge or charge for any optional riders with annual charges (if applicable). The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: NUMBER OF UNITS: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. WE DETERMINE THE NET INVESTMENT FACTOR BY: - - adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - - dividing that sum by the previous adjusted net asset value per share; and - - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: - - additional purchase payments you allocate to the subaccounts; - - any purchase payment credits allocated to the subaccounts; - - transfers into or out of the subaccounts (including any positive or negative MVA on amounts transferred from the GPAs); - - partial surrenders; RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 39 - - surrender charges; and a deduction of: - - a prorated portion of the contract administrative charge; - - a prorated portion of the ROPP rider charge (if selected); - - a prorated portion of the MAV rider charge (if selected); - - a prorated portion of the 5-Year MAV rider charge (if selected); - - a prorated portion of the EEB rider charge (if selected); - - a prorated portion of the EEP rider charge (if selected); - - a prorated portion of the Accumulation Benefit rider charge (if selected); and/or - - a prorated portion of the Withdrawal Benefit rider charge (if selected). Accumulation unit values will fluctuate due to: - - changes in fund net asset value; - - fund dividends distributed to the subaccounts; - - fund capital gains or losses; - - fund operating expenses; and/or - - mortality and expense risk fees. MAKING THE MOST OF YOUR CONTRACT AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). Automated transfers from the fixed account to the subaccounts under automated dollar-cost averaging may not exceed an amount that, if continued, would deplete the fixed account within 12 months. For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the fixed account to one or more subaccounts. You may not set up an automated transfer to or from the GPAs. You may not set up an automated transfer to the fixed account or the Special DCA account. You may not set up an automated transfer if the Withdrawal Benefit, Accumulation Benefit or PN program is selected. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. The potential effect is to lower your average cost per unit. HOW DOLLAR-COST AVERAGING WORKS
NUMBER By investing an equal number of dollars AMOUNT ACCUMULATION OF UNITS each month ... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy Mar 100 17 5.88 more units when the (ARROW) Apr 100 15 6.67 per unit market price is low ... May 100 16 6.25 June 100 18 5.56 July 100 17 5.88 and fewer units Aug 100 19 5.26 when the per unit (ARROW) Sept 100 21 4.76 market price is high. Oct 100 20 5.00
You paid an average price of $17.91 per unit over the 10 months, while the average market price actually was $18.10. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success 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. For specific features contact your financial advisor. 40 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS SPECIAL DOLLAR-COST AVERAGING (SPECIAL DCA) PROGRAM If your purchase payment is at least $10,000, you can choose to participate in the Special DCA program (if available). There is no charge for the Special DCA program. Under the Special DCA program, you can allocate a new purchase payment and any applicable purchase payment credit to a six-month Special DCA account according to the following rules: - - You may only allocate a new purchase payment of at least $10,000 to a Special DCA account. - - You cannot transfer existing contract values into a Special DCA account. - - Each Special DCA arrangement consists of six monthly transfers that begin seven days after we receive your purchase payment. - - We make monthly transfers of your Special DCA account value into the subaccounts you select. - - You may not use the fixed account, GPA account or the Special DCA account as a destination for the Special DCA monthly transfer. (Exception: if the PN program is in effect, and the PN program model portfolio you have selected includes the fixed account, amounts will be transferred from the Special DCA account to the fixed account according to the allocation percentage established for the PN program model portfolio you have selected.) - - We will change the interest rate on each Special DCA account from time to time at our discretion based on factors that include the competition and the interest rate we are crediting to the fixed account at the time of the change. From time to time, we may credit interest to the Special DCA account at promotional rates that are higher than those we credit to the regular fixed account. - - We credit each Special DCA account with the current guaranteed annual rate that is in effect on the date we receive your purchase payment. However, we credit this annual rate over the length of the Special DCA arrangement on the balance remaining in your Special DCA account. Therefore, the net effective interest rate you receive is less than the stated annual rate. - - We do not credit this interest after we transfer the value out of the Special DCA account into the accounts you selected. - - Once you establish a Special DCA account, you cannot allocate additional purchase payments to it. However, you may establish another new Special DCA account (if available on the valuation date we receive your payment) and allocate new purchase payments to it. - - Funding from multiple sources is treated as individual purchase payments and a new Special DCA account is opened for each payment (if the Special DCA accounts are available on the valuation date we receive your payment). - - You may terminate your participation in the Special DCA program at any time. If you do, we will transfer the remaining balance from your Special DCA account to the fixed account. Interest will be credited according to the rates in effect on the fixed account and not the rate that was in effect on the Special DCA account. (Exception: if the PN program is in effect when you elect to end your participation in the Special DCA program, we will transfer the remaining balance to the PN program model portfolio or investment option you have selected). - - We can modify the terms or discontinue the Special DCA program at any time. Any modifications will not affect any purchase payments that are already in a Special DCA account. For more information on the Special DCA program, contact your financial advisor. The Special DCA program does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success 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. ASSET REBALANCING You can ask us in writing to have the variable subaccount portion of your contract value allocated according to the percentages (in tenth of a percent amounts) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semi-annually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be more than one digit past the decimal numbers. Asset rebalancing does not apply to the GPAs, fixed account or the Special DCA account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing or by any other method acceptable to us, to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor. Different rules apply to asset rebalancing under an asset allocation program (see "Asset Allocation Program" and "Portfolio Navigator Program" below). RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 41 ASSET ALLOCATION PROGRAM Asset allocation program described in this section has been replaced with the PN program for owners of all contracts purchased on or after Nov. 1, 2005 and for contract owners who chose to move from the previously offered asset allocation program the PN program or who add the PN program on or after Nov. 1, 2005. (see "Portfolio Navigator Program (PN Program)" below). If you purchased an optional Withdrawal Benefit rider, you are required to participate in our asset allocation program under the terms of the rider. The asset allocation program is only available if you purchased the optional Withdrawal Benefit rider. There is no additional charge for the asset allocation program. This asset allocation program allows you to allocate your contract value to a model portfolio that consists of subaccounts and may include the fixed account and certain GPAs, (if available under the asset allocation program) which represent various asset classes. By spreading your contract value among these various asset classes, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will occur. Asset allocation does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. You are responsible for determining which model portfolio is best for you. Your sales representative can help you make this determination. In addition, your financial advisor may provide you with a questionnaire, a tool that can help you determine which model portfolio is suited to your needs based on factors such as your investment goals, your tolerance for risk, and how long you intend to invest. Currently, there are five model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. You are allowed to request a change to another model portfolio twice per contract year. Each model portfolio specifies allocation percentages to each of the subaccounts, the fixed account and/or any GPAs that make up that model portfolio. By participating in the program, you authorize us to invest your contract value in the subaccounts, the fixed account and/or any GPAs (if included) according to the allocation percentages stated for the specific model portfolio you have selected. You also authorize us to automatically rebalance your contract value quarterly in order to maintain alignment with the allocation percentages specified in the model portfolio. Special rules will apply to the GPAs if they are included in a model portfolio. Under these rules: - - no MVA will apply when rebalancing occurs within a specific model portfolio (but an MVA will apply if you elect to transfer to a new model portfolio); - - no MVA will apply if you reallocate your contract value according to an updated model portfolio; and - - no MVA will apply when you elect an annuity payout plan while your contract value is invested in a model portfolio (see "Guarantee Period Accounts -- Market Value Adjustment"). If you initially allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA account, when available, (see "The Special DCA Account") and you are participating in the asset allocation program, we will make monthly transfers from the Special DCA account into the model portfolio you have chosen. You may not discontinue your participation in the asset allocation program; however, you have the right at all times to make a full surrender of your contract value (see "Surrenders"). Because the Withdrawal Benefit rider requires that your contract value be invested in one of the model portfolios for the life of the contract, and you cannot terminate the Withdrawal Benefit rider once you have selected it, you must terminate your contract by requesting a full surrender if you no longer wish to participate in any of the model portfolios. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE WITHDRAWAL BENEFIT RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN ONE OF THE MODEL PORTFOLIOS FOR THE LIFE OF THE CONTRACT. Under the asset allocation program, the subaccounts, the fixed account and/or any GPAs (if included) that make up the model portfolio you selected and the allocation percentages to those subaccounts, the fixed account and/or any GPAs (if included) will not change unless we adjust the composition of the model portfolio to reflect the liquidation, substitution or merger of an underlying fund, a change of investment objective by an underlying fund or when an underlying fund stops selling its shares to the variable account. We reserve the right to change the terms and conditions of the asset allocation program upon written notice to you. If permitted under applicable securities law, we reserve the right to: - - reallocate your current model portfolio to an updated version of your current model portfolio; or - - substitute a fund of funds for your current model portfolio. We also reserve the right to discontinue the asset allocation program. We will give you 30 days' written notice of any such change. 42 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM) THE FOLLOWING INFORMATION ABOUT THE PN PROGRAM APPLIES TO ALL CONTRACTS. FOR ADDITIONAL INFORMATION ABOUT THE PN PROGRAM FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010, ALSO SEE BELOW "PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM) FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010." The PN program is available for nonqualified annuities and for qualified annuities. The PN program allows you to allocate your contract value to a PN program investment option. The PN program investment options are currently five funds of funds, each of which has a particular investment objective and invests in underlying funds. The PN program also allows those who participated in the PN program and who exercised an "opt-out" right applicable through April 23, 2010 (to be in this group, you must have purchased your contract on or before April 23, 2010) to remain invested in a "static" PN program model portfolio (not subject to further updating or reallocation, as described under "Portfolio Navigator Program (PN program) for contracts purchased before May 10, 2010"). You are required to participate in the PN program if your contract includes one of the optional living benefit riders. If your contract does not include one of these riders, you also may elect to participate in the PN program at no additional charge. You should review any PN program information, including the terms of the PN program, carefully. Your financial advisor can provide you with additional information and can answer questions you may have on the PN program. Each of the PN program fund of funds investment options has the investment objective of seeking a high level of total return consistent with a certain level of risk by investing in various underlying funds. RiverSource Investments is the investment adviser of each of the PN program investment options, but does not serve as investment adviser under the PN program (regardless of whether you have selected a PN program investment option or remained in a model portfolio). Morningstar Associates, LLC serves as an independent consultant to RiverSource Investments to provide recommendations regarding portfolio construction and ongoing analysis of the PN program investment options, but does not provide any services in connection with the model portfolios. RiverSource Investments or an affiliate will serve as investment adviser for all of the underlying funds in which the investment options invest. However, some of the underlying funds will be managed on a day-to-day basis directly by RiverSource Investments and some will be managed by one or more affiliated or unaffiliated sub-advisers, subject to the oversight of RiverSource Investments and the fund's board of trustees. The new funds of funds have objectives ranging from Conservative to Aggressive, and are managed within asset class allocation targets and with a broad multi- manager approach. Below are the asset allocation weights (between equity and fixed income/cash underlying funds) for each of the funds of funds: 1. Variable Portfolio -- Aggressive Portfolio: 80% Equity / 20% Fixed Income 2. Variable Portfolio -- Moderately Aggressive Portfolio: 65% Equity / 35% Fixed Income 3. Variable Portfolio -- Moderate Portfolio: 50% Equity / 50% Fixed Income 4. Variable Portfolio -- Moderately Conservative Portfolio: 35% Equity / 65% Fixed Income 5. Variable Portfolio -- Conservative Portfolio: 20% Equity / 80% Fixed Income POTENTIAL CONFLICTS OF INTEREST. In identifying the universe of investment options and providing investment advisory services for the PN program investment options and certain of the funds underlying the investment options and model portfolios, RiverSource Investments is, together with its affiliates, including us, subject to competing interests that may influence its decisions. These competing interests typically arise because RiverSource Investments or one of its affiliates serves as the investment adviser to the underlying funds invested in the investment options and to certain underlying funds to which assets are allocated under the model portfolios, because we or an affiliate of ours may provide other services in connection with such underlying funds, and because the compensation we and our affiliates receive for providing these investment advisory and other services varies depending on the underlying fund. For additional information about the conflicts of interest which RiverSource Investments and its affiliates are subject to in connection with a PN program investment option, see the prospectus for such investment option. For additional information about the conflicts of interest which RiverSource Investments and its affiliates are subject to in connection with a PN program model portfolio, see "Portfolio Navigator Program (PN program) for contracts purchased before May 10, 2010." PARTICIPATING IN THE PN PROGRAM. If you choose or are required to participate in the PN program, you are responsible for determining which investment option is best for you or whether to remain in a model portfolio or investment option. Your financial advisor can help you make this determination. In addition, your financial advisor may provide you with an investor questionnaire, a tool to help define your investing style which is based on factors such as your investment goals, your tolerance for risk and how long you intend to invest. Your responses to the investor questionnaire can help you determine which model portfolio or investment option most closely matches your investing style. While the scoring of the investor questionnaire is objective, there is no guarantee that your responses to the investor questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the investment option (or the asset mix reflected in the model portfolio, if applicable) you select or selected after completing the investor questionnaire is appropriate to your ability to withstand RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 43 investment risk. RiverSource Life is not responsible for your decision to participate in the PN program, your selection of a specific investment option or model portfolio, if applicable, or your decision to change to a different investment option. Currently, there are five PN program investment options, and five model portfolios, ranging from conservative to aggressive. You may not use more than one investment option or model portfolio at a time. Each investment option is a fund of funds. Each model portfolio consists of subaccounts and/or the fixed account (if included) according to the allocation percentages stated for the model portfolio. If you are participating in the PN program in a model portfolio, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. If you initially allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA account, when available (see "The Special DCA Account"), and you are participating in the PN program, we will make monthly transfers in accordance with your instructions from the Special DCA account into the investment option or model portfolio you have chosen. You may request a change to your investment option (or a transfer from your model portfolio to an investment option) up to twice per contract year by written request on an authorized form or by another method agreed to by us. If your contract includes an optional rider that requires participation in the PN program and you make such a change, we may charge you a higher fee for your rider. If your contract includes optional living benefit riders, we reserve the right to limit the number of investment options from which you can select, subject to state restrictions. We reserve the right to change the terms and conditions of the PN program upon written notice to you. This includes but is not limited to the right to: - - limit your choice of investment options based on the amount of your initial purchase payment we accept or when you take a withdrawal; - - cancel required participation in the program after 30 days' written notice; - - substitute a fund of funds for your model portfolio if permitted under applicable securities law; and - - discontinue the PN program. We will give you 30 days' written notice of any such change. RISKS. Asset allocation through the PN program does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By investment in a PN program investment option or in accordance with a model portfolio, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. For additional information about the risks of investing in a PN program investment option, see the prospectus for such investment option. For additional information about the risks of investing in accordance with a PN program model portfolio, see "Portfolio Navigator Program (PN program) for contracts purchased before May 10, 2010" below. PN PROGRAM UNDER THE ACCUMULATION BENEFIT RIDER AND WITHDRAWAL BENEFIT RIDER If you purchase the optional Accumulation Benefit rider or the optional Withdrawal Benefit rider, you are required to participate in the PN program under the terms of each rider. - - ACCUMULATION BENEFIT RIDER: You cannot terminate the Accumulation Benefit rider. As long as the Accumulation Benefit rider is in effect, your contract value must be invested in one of the investment options or model portfolios. The Accumulation Benefit rider automatically ends at the end of the waiting period and you then have the option to cancel your participation in the PN program. At all other times, if you do not want to invest in any of the PN program investment options or invest in accordance with any of the model portfolios, you must terminate your contract by requesting a full surrender. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE ACCUMULATION BENEFIT RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN THE PN PROGRAM (AS IT NOW EXISTS OR AS WE MAY MODIFY IT IN THE FUTURE) UNTIL THE END OF THE WAITING PERIOD. - - WITHDRAWAL BENEFIT RIDER: The Withdrawal Benefit rider requires that your contract value be invested in one of the investment options or model portfolios for the life of the contract. Subject to state restrictions, we reserve the right to limit the number of investment options or model portfolios from which you can select based on the dollar amount of purchase payments you make. Because you cannot terminate the Withdrawal Benefit rider once you have selected it, you must terminate your contract by requesting a full surrender if you do not want to invest in any of the PN program investment options or invest in accordance with any of the model portfolios. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE WITHDRAWAL BENEFIT RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN THE PN PROGRAM (AS IT NOW EXISTS OR AS WE MAY MODIFY IT IN THE FUTURE) FOR THE LIFE OF THE CONTRACT. OPTIONAL PN PROGRAM If you do not select the optional living benefit rider that requires your participation in the PN program, you may elect to participate in the PN program by adding the optional PN program to your contract at no additional charge. You can elect to 44 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS participate in the PN program at any time, and you may transfer all or part of your assets from a PN program investment option or transfer your contract assets so that they are not invested in accordance with a model portfolio at any time. If you transfer contract assets so that they are no longer invested in accordance with a PN program model portfolio or investment option, automated rebalancing associated with the model portfolio or investment option will end. PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM) FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010 As of the Transfer Date (defined below), your contract assets invested in accordance with a model portfolio under the PN program will be transferred based on the recommendation of RiverSource Investments, LLC ("RiverSource Investments"), the investment adviser under the PN program, to a fund of funds investment option that corresponds to your model portfolio unless you informed us on or before April 23, 2010 that you did not want your assets so transferred (unless you "opt out"). The actual date of transfer to the fund of funds or the date upon which your opt out becomes effective (the "Transfer Date") will occur no earlier than May 7, 2010 and no later than June 30, 2010, and will depend on the contract you own and the month that you purchased your contract. If you opt out of the transfer, you will remain invested in accordance with the asset allocation currently specified for your model portfolio and you will not receive any further reallocation recommendations from RiverSource Investments (although your assets will be rebalanced back to the current allocation quarterly). As of the Transfer Date, RiverSource Investments will no longer review the model portfolios or make changes to them as part of the PN program, and the investment advisory agreement you have previously entered into with RiverSource Investments will terminate. If you have chosen to remain invested in a "static" PN program model portfolio, your assets will remain invested in accordance with your current model portfolio, and you will not be provided with any future updates to the model portfolio or reallocation recommendations. If you own a contract with a living benefit rider which requires you to participate in the PN program and have chosen to remain in a PN program model portfolio, you may in the future transfer the assets in your contract only to one of the new fund of funds investment options. If you begin taking income from your contract and have living benefit rider that requires a move to a certain model portfolio or investment option once you begin taking income, you will be transferred to a fund of funds that corresponds to that model portfolio. RiverSource Investments and its affiliates have committed to a two-year cap on PN program investment option expenses for contract owners who purchased a contract before May 10, 2010, as set forth in disclosure previously sent to such contract owners. Specifically, expense waivers and reimbursements will be applied to the PN program investment options and to the underlying funds so that total fees and expenses paid by investors in the PN program investment options will approximate the total fees and expenses of the underlying funds borne by participants in the corresponding PN program model portfolio, based on 2009 fiscal year end expenses. After two years these expense caps will no longer be in place and total expenses will likely be higher. SERVICE PROVIDERS IN CONNECTION WITH THE PN PROGRAM MODEL PORTFOLIOS. RiverSource Investments, an affiliate of ours, has served as non-discretionary investment adviser for PN program model portfolio participants solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments has entered into an investment advisory agreement with each contract owner participating in the PN program prior to the program changes described in this prospectus. In its role as investment adviser to the PN program, RiverSource Investments relied upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviewed the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducted periodic due diligence and provided ongoing oversight with respect to the process utilized by the third party service provider. For more information on RiverSource Investments' role as investment adviser for the PN program, please see the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document, which is based on Part II of RiverSource Investments' Form ADV, the SEC investment adviser registration form. The Disclosure Document was delivered to contract owners enrolled in the PN program prior to May 10, 2010 at or before the time they enrolled. The PN program model portfolios were designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. The criteria used in developing and updating the model portfolios do not guarantee or predict future performance. Neither Morningstar Associates nor RiverSource Investments, in connection with their respective roles, provided or provides any individualized investment advice to contract owners regarding the application of a particular model portfolio to his or her circumstances. Contract owners are solely responsible for determining whether any model portfolio is appropriate. We identified to Morningstar Associates the universe of allocation options that could be included in the model portfolios (the universe of allocation options). Once we identified this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictated to Morningstar Associates the number of allocation options that should be included in a model portfolio, the percentage that any allocation option represents in a model portfolio, or whether a particular allocation option may be included in a model portfolio. However, as described below under "Potential conflicts of interest", there are certain conflicts of interest associated with RiverSource Investments and its affiliates' influence over the development and updating of the model portfolios. POTENTIAL CONFLICTS OF INTEREST. Although RiverSource Investment will no longer maintain the model portfolios on an ongoing basis, the asset allocations in the current model portfolios may have been affected by the following conflicts of interest. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 45 In identifying the universe of allocation options for a model portfolio, we and our affiliates, including RiverSource Investments, were subject to competing interests that may have influenced the allocation options we proposed. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to certain underlying funds in the model portfolios as well as compensation we or an affiliate of ours may receive for providing services in connection with such underlying funds or their corresponding sub-accounts. These competing interests also involve compensation we or an affiliate of ours receive if certain funds that RiverSource Investments does not advise were included as underlying funds in model portfolios. The inclusion of funds that pay compensation to RiverSource Investments or an affiliate may have a positive or negative impact on performance. As an affiliate of RiverSource Investments, we had an incentive to identify the RiverSource Variable Series Trust funds for consideration as part of a model portfolio over unaffiliated funds. In addition, RiverSource Investments, in its capacity as investment adviser to the RiverSource Variable Series Trust funds, monitors the performance of the RiverSource Variable Series Trust funds. In this role RiverSource Investments may, from time to time, have recommended certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may have included a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may have believed that certain RiverSource Variable Series Trust funds would have benefited from additional assets or could have been harmed by redemptions. All of these factors may have impacted RiverSource Investments' view regarding the composition and allocation of a model portfolio. RiverSource Investments' role as investment adviser to the PN program in connection with the development and updating of the model portfolios, and our identification of the universe of allocation options to Morningstar Associates for consideration, may have influenced the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. We, RiverSource Investments, or another affiliate of ours may receive higher compensation from certain unaffiliated funds that RiverSource Investments does not advise or manage. (See "Expense Summary -- Annual Operating Expenses of the Funds" and "The Variable Account and the Funds -- The Funds.") Therefore, we may have had an incentive to identify these unaffiliated funds to Morningstar Associates for inclusion in the model portfolios. In addition, we or an affiliate of ours may receive higher compensation from the fixed account than from other allocation options. We therefore may have had an incentive to identify these allocation options to Morningstar Associates for inclusion in the model portfolios. Some officers and employees of RiverSource Investments are also officers or employees of us or our affiliates which may be involved in, and/or benefit from, your participation in the PN program. These officers and employees may have had an incentive to make recommendations, or take actions, that benefit one or more of the entities they represent, rather than participants in the PN program. MODEL PORTFOLIO RISKS. Asset allocation through a PN program model portfolio does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By spreading your contract value among various allocation options under the PN program, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. Although each model portfolio is intended to optimize returns given various levels of risk tolerance, a model portfolio may not perform as intended. A model portfolio, the allocation options and market performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause the model portfolio to be ineffective or less effective in reducing volatility. In the future, the model portfolios will not be updated periodically, and the investments and investment styles and policies of the current allocation options may change. Accordingly, your model portfolio may change so that it is no longer appropriate for your needs. Furthermore, the absence of periodic updating means that existing allocation options will not be replaced as may be appropriate due to poor performance, changes in management personnel, or other factors. Investment performance of your contract value could be better or worse by participating in the PN program than if you had not participated. A model portfolio may perform better or worse than any single fund or allocation option or any other combination of funds or allocation options. The performance of a model portfolio depends on the performance of the component funds. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing of the model portfolios can cause their component funds to incur transactional expenses to raise cash for money flowing out of the funds or to buy securities with money flowing into the funds. Moreover, a large outflow of money from the funds may increase the expenses attributable to the assets remaining in the funds. These expenses can adversely affect the performance of the relevant funds and of the model portfolios. In addition, when a particular fund needs to buy or sell securities due to quarterly rebalancing of a model portfolio, it may hold a large cash position. A large cash position could detract from the achievement of the fund's investment objective in a period of rising market prices; conversely, a large cash position would reduce the fund's magnitude of loss in the event of falling market prices and provide the fund with liquidity to 46 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS make additional investments or to meet redemptions. (See also the description of competing interests in the section titled "Service Providers to the PN Program" above.) For additional information regarding the risks of investing in a particular fund, see that fund's prospectus. TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while the PN program is in effect. You may transfer contract value from any one subaccount, GPAs or the fixed account, to another subaccount before annuity payouts begin. Certain restrictions apply to transfers involving the GPAs and the fixed account. When your request to transfer will be processed depends on when we receive it: - - If we receive your transfer request at our corporate office in good order before the close of business, we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request. - - If we receive your transfer request at our corporate office in good order at or after the close of business, we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. Transfers out of the GPAs will be subject to an MVA if done more than 30 days before the end of the guarantee period. Subject to state regulatory requirements, we may suspend or modify transfer privileges at any time. For information on transfers after annuity payouts begin, see "Transfer policies" below. TRANSFER POLICIES - - Before annuity payouts begin, you may transfer contract values between the subaccounts, or from the subaccounts to the GPAs and fixed account at any time. The amount transferred to any GPA must be at least $1,000. However, if you made a transfer from the fixed account to the subaccounts or the GPAs, you may not make a transfer from any subaccount or GPA back to the fixed account until the next contract anniversary. We reserve the right to limit transfers to the fixed account if the interest rate we are then currently crediting to the fixed account is equal to the minimum interest rate stated in the contract. - - You may transfer contract values from the fixed account to the subaccounts or the GPAs once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). Transfers from the fixed account are not subject to an MVA. Currently, transfers out of the fixed account are limited to the greater of: a) 30% of the fixed account value at the beginning of the contract year, or b) the amount transferred out of the fixed account in the previous contract year, excluding any automated transfer amounts. If an automated dollar-cost averaging arrangement is established at contract issue, the 30% limitation does not apply to transfers made from the fixed account to the subaccounts for the duration of this initial arrangement. - - You may transfer contract values from any GPA to the subaccounts, fixed account or other GPA any time after 60 days of transfer or payment allocation into such GPA. Transfers made more than 30 days before the end of the guarantee period will receive an MVA, which may result in a gain or loss of contract value, unless an exception applies (see "The Guarantee Period Accounts (GPAs) -- Market Value Adjustment (MVA)"). - - If we receive your request within 30 days before the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the anniversary. - - If we receive your request on or within 30 days after the contract anniversary date, the transfer from the fixed account to the subaccounts or GPAs will be effective on the valuation date we receive it. - - We will not accept requests for transfers from the fixed account at any other time. - - You may not make a transfer to the Special DCA account. - - Once annuity payouts begin, you may not make transfers to or from the GPAs or the fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. When annuity payments begin, you must transfer all contract value out of any GPAs and Special DCAs. MARKET TIMING Market timing can reduce the value of your investment in the contract. If market timing causes the returns of an underlying fund to suffer, contract value you have allocated to a subaccount that invests in that underlying fund will be lower too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a financial loss. WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. DO NOT BUY A CONTRACT IF YOU WISH TO USE SHORT-TERM TRADING STRATEGIES TO MANAGE YOUR RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 47 INVESTMENT. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CONTRACT. THE UNDERLYING FUNDS IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO TRANSFERS AMONG THE SUBACCOUNTS OF THE CONTRACT, AND MAY INCLUDE REDEMPTION FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE TO YOU. Market timing may hurt the performance of an underlying fund in which a subaccount invests in several ways, including but not necessarily limited to: - - diluting the value of an investment in an underlying fund in which a subaccount invests; - - increasing the transaction costs and expenses of an underlying fund in which a subaccount invests; and - - preventing the investment adviser(s) of an underlying fund in which a subaccount invests from fully investing the assets of the fund in accordance with the fund's investment objectives. Funds available as investment options under the contract that invest in securities that trade in overseas securities markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently. IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY HARMFUL EFFECTS OF MARKET TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CONTRACT VALUE AMONG THE SUBACCOUNTS OF THE VARIABLE ACCOUNT: We try to distinguish market timing from transfers that we believe are not harmful, such as periodic rebalancing for purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three subaccount transfers in any 90 day period. We also reserve the right to refuse any transfer request, if, in our sole judgment, the dollar amount of transfer request would adversely affect unit values. If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to: - - requiring transfer requests to be submitted only by first-class U.S. mail; - - not accepting hand-delivered transfer requests or requests made by overnight mail; - - not accepting telephone or electronic transfer requests; - - requiring a minimum time period between each transfer; - - not accepting transfer requests of an agent acting under power of attorney; - - limiting the dollar amount that you may transfer at any one time; - - suspending the transfer privilege; or - - modifying instructions under an automated transfer program to exclude a restricted fund if you do not provide new instructions. Subject to applicable state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights. We cannot guarantee that we will be able to identify and restrict all market timing activity. Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values. IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT, YOU SHOULD CAREFULLY REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS, WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE AND EXCHANGE OF FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION NUMBER OR OTHER UNITED STATES GOVERNMENT-ISSUED IDENTIFIER AND THE DETAILS OF YOUR 48 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS CONTRACT TRANSACTIONS INVOLVING THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CONTRACT VALUE TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY REDEMPTION FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE CONTRACT IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO: - - Each fund may restrict or refuse trading activity that the fund determines, in its sole discretion, represents market timing. - - Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund's market timing policies and procedures, including instructions we receive from a fund, may require us to reject your transfer request. For example, while we disregard transfers permitted under any asset allocation, dollar-cost-averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an underlying fund's market timing policies and procedures will do so. Orders we place to purchase fund shares for the variable account are subject to acceptance by the fund. We reserve the right to reject without prior notice to you any transfer request if the fund does not accept our order. - - Each underlying fund is responsible for its own market timing policies, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a fund has adopted. As a result, a fund's returns might be adversely affected, and a fund might terminate our right to offer its shares through the variable account. - - Funds that are available as investment options under the contract may also be offered to other intermediaries who are eligible to purchase and hold shares of the fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a fund's market timing policies, we cannot guarantee that other intermediaries purchasing that same fund's shares will do so, and the returns of that fund could be adversely affected as a result. FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSE TO THAT FUND, AND TO DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT FUND'S PROSPECTUS. HOW TO REQUEST A TRANSFER OR SURRENDER 1 BY LETTER Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: RIVERSOURCE LIFE INSURANCE COMPANY 70100 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers or surrenders: Contract value or entire account balance * Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution. 2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS Your financial advisor can help you set up automated transfers or partial surrenders among your subaccounts or fixed account (if available). You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. - - Automated transfers to the GPAs, the fixed account or the Special DCA account are not allowed. - - Automated transfers from the fixed account to the subaccounts under an automated dollar-cost averaging arrangement may not exceed an amount that, if continued, would deplete the fixed account within 12 months. - - Automated surrenders may be restricted by applicable law under some contracts. - - You may not make additional purchase payments if automated partial surrenders are in effect. - - Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. - - The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 49 - - If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. - - If the PN program is in effect, you are not allowed to set up automated transfers except in connection with a Special DCA account. - - If you have Withdrawal Benefit rider, you may set up automated partial surrenders up to the benefit amount available for withdrawal under the rider. MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the fixed account) 3 BY TELEPHONE Call: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and recording calls. We will not allow a telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. SURRENDERS You may surrender all or part of your contract at any time before annuity payouts begin by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. If we receive your surrender request at our corporate office in good order before the close of business, we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender request. If we receive your surrender request at our corporate office at or after the close of business, we will process your surrender using the accumulation unit value we calculate on the next valuation date after we received your surrender request. We may ask you to return the contract. You may have to pay contract administrative charges, surrender charges, or any applicable optional rider charges (see "Charges") and IRS taxes and penalties (see "Taxes"). You cannot make surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period -- Annuity Payout Plans"). Any partial surrenders you take under the contract will reduce your contract value. As a result, the value of your death benefit or any optional benefits you have elected also will be reduced. If you have elected the Withdrawal Benefit rider and your partial surrenders in any contract year exceed the permitted surrender amount under the terms of the Withdrawal Benefit rider, your benefits under the rider may be reduced (see "Optional Benefits -- Guaranteed Minimum Withdrawal Benefit"). Any partial surrender request that exceeds the amount allowed under the riders and impacts the guarantees provided, will not be considered in good order until we receive a signed Benefit Impact Acknowledgement form showing the affect of the surrender on the rider benefits or a verbal acknowledgement that you understand and accept the impacts that have been explained to you. In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain death benefits and optional benefits (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the fixed account, in the same proportion as your value in each account correlates to your total contract 50 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS value, less any GPA or Special DCA account, unless you request otherwise. We will not withdraw money for a partial surrender from any GPAs or Special DCA account you may have, unless insufficient amounts are available from your subaccounts and/or fixed account. However, you may request specifically surrender from a GPA or Special DCA account. The minimum contract value after partial surrender is $600. RECEIVING PAYMENT 1 BY REGULAR OR EXPRESS MAIL - - payable to you; - - mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. 2 BY WIRE - - request that payment be wired to your bank; - - bank account must be in the same ownership as your contract; and - - pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your financial advisor. Normally, we will send the payment within seven days after receiving your request in good order. However, we may postpone the payment if: - the surrender amount includes a purchase payment check that has not cleared; - the NYSE is closed, except for normal holiday and weekend closings; - trading on the NYSE is restricted, according to SEC rules; - an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or - the SEC permits us to delay payment for the protection of security holders. TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES If the contract is intended to be used in connection with an employer sponsored 403(b) plan, additional rules relating to this contract can be found in the annuity endorsement for tax sheltered 403(b) annuities. Unless we have made special arrangements with your employer, the contract is not intended for use in connection with an employer sponsored 403(b) plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event that the employer either by affirmative election or inadvertent action causes contributions under a plan that is subject to ERISA to be made to this contract, we will not be responsible for any obligations and requirements under ERISA and the regulations thereunder, unless we have prior written agreement with the employer. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. In the event we have a written agreement with your employer to administer the plan pursuant to ERISA, special rules apply as set forth in the TSA endorsement. The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. The Code imposes certain restrictions on your right to receive early distributions from a TSA: - - Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: - you are at least age 59 1/2; - you are disabled as defined in the Code; - you severed employment with the employer who purchased the contract; - the distribution is because of your death; - the distribution is due to plan termination; or - you are a military reservist. - - If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 51 - - Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). - - The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. - - If the contract has a loan provision, the right to receive a loan is described in detail in your contract. Loans will not be available if you have selected the Withdrawal Benefit or Accumulation Benefit rider. CHANGING OWNERSHIP You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our corporate office. If you are a natural person and you own a nonqualified annuity, you may change the annuitant or successor annuitant if the request is made before annuity payments begin and while the existing annuitant is living. The change will become binding on us when we receive and record it. We will honor any change of ownership request received in good order that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the ROPP, MAV, 5-Year MAV, EEB, EEP, Accumulation Benefit or Withdrawal Benefit. If you change ownership of your contract, we will terminate the ROPP and EEP. This includes both the EEP Part I benefits and the EEP Part II benefits. (See the description of these terms in "Optional Benefits".) In addition, the terms of the EEB, MAV and the 5-Year MAV will change due to a change of ownership. If the new owner is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over." We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If the new owner is older than age 75, the MAV and 5-Year MAV will terminate. If the MAV or the 5-Year MAV on the date of ownership change is greater than the account value on the date of the ownership change, we will set the MAV or the 5-Year MAV equal to the account value. Otherwise, the MAV or the 5-Year MAV value will not change due to a change in ownership. The Accumulation Benefit rider and the Withdrawal Benefit rider will continue upon change of ownership. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in similar capacity, ownership of the contract may be transferred to the annuitant. BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT We will pay the death benefit to your beneficiary upon your death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If you are age 75 or younger on the date we issue the contract, the beneficiary receives the greater of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders. If you are age 76 or older on the date we issue the contract, the beneficiary receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. ADJUSTED PARTIAL SURRENDERS = PS XDB ------- CV
PS = the partial surrender including any applicable surrender charge. DB = the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. 52 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS EXAMPLE OF STANDARD DEATH BENEFIT CALCULATION WHEN YOU ARE AGE 75 OR YOUNGER ON THE CONTRACT EFFECTIVE DATE: - - You purchase the contract with a payment of $20,000. - - During the second contract year the contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. We calculate the death benefit as follows: The total purchase payments minus adjustments for partial surrenders: Total purchase payments $20,000 minus adjusted partial surrenders, calculated as: $1,500 x $20,000 ---------------- $18,000 = -1,667 ------- for a death benefit of: $18,333
IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date that our death claim requirements are fulfilled. We will determine the contract's value using the accumulation unit value we calculate on that valuation date. The death benefit will never be less than the surrender value adjusted by the MVA formula. We pay interest, if any, at a rate no less than required by law. If requested, we will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid. To do this your spouse must give us written instructions to continue the contract as owner. If your spouse elects to continue the contract as owner, the following describes the standard death benefit: - - If your spouse was age 75 or younger as of the date we issued the contract, the beneficiary of your spouse's contract receives the greater of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. If your spouse was age 76 or older as of the date we issued the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. If you elected any optional contract features or riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. If your beneficiary is not your spouse, we will pay the beneficiary in a lump sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: - - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - - payouts begin no later than one year after your death, or other date as permitted by the IRS; and - - the payout period does not extend beyond the beneficiary's life or life expectancy. QUALIFIED ANNUITIES - - SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own, so long as he/she is eligible to do so, with the contract value equal to the death benefit that would otherwise have been paid or elect an annuity payout plan or another plan agreed to by us. If your spouse elects to treat the contract as his/her own, the following describes the standard death benefit: - - If your spouse was 75 or younger as of the date we issued the contract, the beneficiary of your spouse's contract receives the greater of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. If your spouse was age 76 or older as of the date we issued the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 53 If you elected any optional contract features or riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders just as if they were purchasing a new contract. - - NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your beneficiary does not elect a five year payout, or if your death occurs after attaining age 70 1/2, we will pay the beneficiary in a lump sum unless the beneficiary elects to receive payouts under any payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year following the year of your death; and - the payout period does not extend beyond the beneficiary's life or life expectancy. Additionally, any optional riders, if selected, will terminate. In the event of your beneficiary's death, their beneficiary can elect to take a lump sum payment or to continue the alternative payment plan following the schedule of minimum withdrawals established based on the life expectancy of your beneficiary. - - ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. DEATH BENEFIT PAYMENT IN A LUMP SUM: We may pay all or part of the death benefit to your beneficiary in a lump sum under either a nonqualified or qualified annuity. We pay all proceeds by check (unless the beneficiary has chosen to have death benefit proceeds directly deposited into another Ameriprise Financial, Inc. account). If the beneficiary chooses the checking account option, the proceeds will be deposited into an interest bearing checking account issued by Ameriprise Bank, FSB, member FDIC unless the beneficiary fails to meet the requirements of using this option. OPTIONAL BENEFITS The assets held in our general account support the guarantees under your contract, including optional death benefits and optional living benefits. To the extent that we are required to pay you amounts in addition to your contract value under these benefits, such amounts will come from our general account assets. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. You should also be aware that we issue other types of insurance and financial products as well, and we also pay our obligations under these products from assets in our general account. Our general account is not segregated or insulated from the claims of our creditors. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. OPTIONAL DEATH BENEFITS RETURN OF PURCHASE PAYMENTS DEATH BENEFIT (ROPP) The ROPP is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greater of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders. ADJUSTED PARTIAL SURRENDERS FOR THE ROPP DEATH BENEFIT = PS X DB --------- CV
PS = the partial surrender including any applicable surrender charge. DB = the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. The death benefit will never be less than the surrender value adjusted by the MVA formula. If you are age 76 or older at contract issue, you may choose to add the ROPP to your contract. Generally, you must elect the ROPP at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the ROPP may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the ROPP for new contracts. When annuity payouts begin, or if you terminate the contract for any reason other than death, this rider will terminate. TERMINATING THE ROPP - - You may terminate the ROPP rider within 30 days of the first contract anniversary after the rider effective date. - - You may terminate the ROPP rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - - The ROPP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. 54 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS If you terminate the ROPP, the standard death benefit applies. For an example, see Appendix C. IF YOUR SPOUSE IS THE SOLE BENEFICIARY, he or she may keep the contract as owner with the contract value equal to the death benefit that would otherwise been paid under the ROPP. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to keep the contract in force. IF YOUR SPOUSE WAS AGE 76 OR OLDER AS OF THE DATE WE ISSUED THE CONTRACT, he or she may choose to continue the ROPP. In that case, the ROPP rider charges described in "Charges -- ROPP Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary. Your spouse also has the option of discontinuing the ROPP rider within 30 days of the date he or she elects to continue the contract. If your spouse was age 75 or younger as of the date we issued the contract, the ROPP will terminate. NOTE: For special tax considerations associated with the ROPP, see "Taxes." MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you are older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider fee continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to the GPAs, fixed account or Special DCA account during the time you have amounts allocated to these accounts. Be sure to discuss with your financial advisor whether or not the MAV is appropriate for your situation. If you are age 75 or younger at contract issue, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the MAV for new contracts. On the first contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every contract anniversary after that, through age 80, we compare the previous anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value to the higher of these values. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders; or - - the maximum anniversary value as calculated on the most recent contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. The death benefit will never be less than the surrender value adjusted by the MVA formula. TERMINATING THE MAV - - You may terminate the MAV rider within 30 days of the first contract anniversary after the rider effective date. - - You may terminate the MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - - The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies. For an example, see Appendix C. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If, at the time he or she elects to RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 55 continue the contract, your spouse has not yet reached age 76 and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. MAXIMUM FIVE YEAR ANNIVERSARY VALUE DEATH BENEFIT (5-YEAR MAV) The 5-Year MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The 5-Year MAV does not provide any additional benefit before the fifth contract anniversary after the rider effective date. The 5-Year MAV may be of less value if you are older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum five year anniversary value at age 81, the 5-Year MAV rider fee continues to apply until the rider terminates. In addition, the 5-Year MAV does not provide any additional benefit with respect to the GPAs, fixed account or Special DCA account during the time you have amounts allocated to these accounts. Be sure to discuss with your financial advisor whether or not the 5-Year MAV is appropriate for your situation. If you are age 75 or younger at contract issue, you may choose to add the 5-Year MAV to your contract. Generally, you must elect the 5-Year MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the 5-Year MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the 5-Year MAV for new contracts. On the fifth contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every fifth contract anniversary after that, through age 80, we compare the previous 5-year anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value to the higher of these values. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders; or - - the maximum anniversary value as calculated on the most recent fifth contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. The death benefit will never be less than the surrender value adjusted by the MVA formula. TERMINATING THE 5-YEAR MAV - - You may terminate the 5-Year MAV rider within 30 days of the first contract anniversary after the rider effective date. - - You may terminate the 5-Year MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - - The 5-Year MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The 5-Year MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the 5-Year MAV, the standard death benefit applies. For an example, see Appendix C. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the 5-Year MAV. To do this your spouse must within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the 5-Year MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the 5-Year MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the 5-Year MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the 5-Year MAV rider, the contract value will be increased to the 5- Year MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT (EEB) The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides for reduced benefits if you are age 70 or older at the rider effective date and it does not 56 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS provide any additional benefit before the first contract anniversary. The EEB also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEB is appropriate for your situation. If you are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract according to terms determined by us and at our sole discretion. You may not select this rider if you select the EEP. We reserve the right to discontinue offering the EEB for new contracts. The EEB provides that if you die after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - - the standard death benefit amount (see "Benefits in Case of Death -- Standard Benefit"), the MAV death benefit amount, if applicable, or the 5-Year MAV death benefit amount, if applicable; PLUS - - 40% of your earnings at death if you were under age 70 on the rider effective date; or - - 15% of your earnings at death if you were age 70 or older on the rider effective date. Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. EARNINGS AT DEATH FOR THE EEB AND EEP: If the rider effective date for the EEB or EEP is the contract issue date, earnings at death is an amount equal to: - the standard death benefit amount, the MAV death benefit amount, or the 5- Year MAV death benefit amount if applicable (the "death benefit amount") - MINUS purchase payments not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount - MINUS the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% multiplied by: - the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. TERMINATING THE EEB - - You may terminate the EEB rider within 30 days of the first contract anniversary after the rider effective date. - - You may terminate the EEB rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - - The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. For an example, see Appendix C. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEB. If the spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 57 spouse is less than age 76 at the time he or she elects to continue the contract, he or she may choose to continue the EEB. In this case, the following conditions will apply: - - the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP) The EEP is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEP provides for reduced benefits if you are age 70 or older at the rider effective date. It does not provide any additional benefit before the first contract anniversary and it does not provide any benefit beyond what is offered under the EEB during the second contract year. The EEP also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because part of the benefit paid by the EEP is determined by the amount of earnings at death. Be sure to discuss with your sales representative and your tax advisor whether or not the EEP is appropriate for your situation. If this EEP rider is available in your state and you are age 75 or younger at contract issue, you may choose to add the EEP to your contract. You must elect the EEP at the time you purchase your contract and your rider effective date will be the contract issue date. THIS RIDER IS ONLY AVAILABLE UNDER ANNUITIES PURCHASED THROUGH AN EXCHANGE OR DIRECT TRANSFER FROM ANOTHER ANNUITY OR A LIFE INSURANCE POLICY. You may not select this rider if you select the EEB. We reserve the right to discontinue offering the EEP for new contracts. The EEP provides that if you die after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - - EEP Part I benefits, which equal the benefits payable under the EEB described above; PLUS - - EEP Part II benefits, which equal a percentage of exchange purchase payments identified at issue not previously surrendered as follows:
PERCENTAGE IF YOU ARE PERCENTAGE IF YOU ARE CONTRACT YEAR UNDER AGE 70 ON THE RIDER EFFECTIVE DATE 70 OR OLDER ON THE RIDER EFFECTIVE DATE One and Two 0% 0% Three and Four 10% 3.75% Five or more 20% 7.5%
Additional death benefits payable under the EEP are not included in the adjusted partial surrender calculation. If after 6 months, no exchange purchase payments have been received, we will contact you and you will have an additional 30 days to follow-up on exchange purchase payments identified at issue but not received by us. If after these 30 days we have not received any exchange purchase payments, we will convert the EEP rider into an EEB. Another way to describe the benefits payable under the EEP rider is as follows: - - the standard death benefit amount (see "Benefits in Case of Death -- Standard Death Benefit"), the MAV death benefit amount, or 5-Year MAV death benefit amount, if applicable, PLUS
IF YOU ARE UNDER AGE 70 IF YOU ARE AGE 70 CONTRACT YEAR ON THE RIDER EFFECTIVE DATE, ADD . . . OR OLDER ON THE RIDER EFFECTIVE DATE, ADD . . . 1 Zero Zero 2 40% x earnings at death (see above) 15% x earnings at death 3 & 4 40% x (earnings at death + 25% of exchange 15% x (earnings at death + 25% of exchange purchase payment*) purchase payment*) 5+ 40% x (earnings at death + 50% of exchange 15% x (earnings at death + 50% of exchange purchase payment*)
58 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS * Exchange purchase payments are purchase payments exchanged from another annuity or a life insurance policy that are identified at issue and not previously surrendered. We are not responsible for identifying exchange purchase payments if we did not receive proper notification from the company from which the purchase payments are exchanged. TERMINATING THE EEP - - You may terminate the EEP rider within 30 days of the first contract anniversary after the rider effective date. - - You may terminate the EEP rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - - The EEP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The EEP rider will terminate in the case of an ownership change. - - The EEP rider will terminate in the case of the spousal continuation if the new owner is age 76 or older. For an example, see Appendix C. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEP. If your spouse has reached age 76 at the time he or she elects to continue the contract, the EEP rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she cannot continue the EEP. However, he or she may choose to convert the EEP rider into an EEB. In this case, the following conditions will apply: - - the EEB rider will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the EEB rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEP rider. If your spouse chooses not to convert the EEP rider into an EEB, the standard death benefit amount (or the MAV or 5-Year MAV death benefit amount, if applicable,) will apply. NOTE: For special tax considerations associated with the EEP, see "Taxes." OPTIONAL LIVING BENEFITS GUARANTEED MINIMUM ACCUMULATION BENEFIT (ACCUMULATION BENEFIT) RIDER The Accumulation Benefit rider is an optional benefit that you may select for an additional charge. It is available for nonqualified and qualified annuities except under 401(a) and 401(k) plans. The Accumulation Benefit rider specifies a waiting period that ends on the benefit date. The Accumulation Benefit rider provides a one-time adjustment to your contract value on the benefit date if your contract value is less than the Minimum Contract Accumulation Value (defined below) on that benefit date. If the contract value falls to zero as the result of adverse market performance or the deduction of fees and/or charges at any time during the waiting period and before the benefit date, the contract and all riders, including the Accumulation Benefit rider will terminate without value and no benefits will be paid. EXCEPTION: if you are still living on the benefit date, we will pay you an amount equal to the Minimum Contract Accumulation Value as determined under the Accumulation Benefit rider on the valuation date your contract value reached zero. If you are 80 or younger at contract issue and this rider is available in your state, you may elect the Accumulation Benefit at the time you purchase your contract and the rider effective date will be the contract issue date. The Accumulation Benefit rider may not be terminated once you have elected it except as described in the "Terminating the Rider" section below. An additional charge for the Accumulation Benefit rider will be assessed annually during the waiting period. The rider ends when the waiting period expires and no further benefit will be payable and no further charges for the rider will be deducted. The Accumulation Benefit rider may not be purchased with the optional Withdrawal Benefit rider. When the rider ends, you may be able to purchase another optional rider we then offer by written request received within 30 days of that contract anniversary date. The Accumulation Benefit rider may not be available in all states. You should consider whether a Accumulation Benefit rider is appropriate for you because: - - you must participate in the PN program and you must be invested in one of the available model portfolios or investment options. This requirement limits your choice of investments. This means you will not be able to allocate contract value to all of the subaccounts, GPAs or the fixed account that are available under the contract to other contract owners who do not elect this rider. You may allocate qualifying purchase payments and applicable payment credits to the Special DCA account, RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 59 when available (see "The Special DCA Account"), and we will make monthly transfers into the model portfolio or investment option you have chosen. (See "Making the Most of Your Contract -- Portfolio Navigator Program"); - - you may not make additional purchase payments to your contract during the waiting period after the first 180 days immediately following the effective date of the Accumulation Benefit rider. Some exceptions apply (see "Additional Purchase Payments with Elective Step Up" below); - - if you purchase this contract as a qualified annuity, for example, an IRA, you may need to take partial surrenders from your contract to satisfy the RMDs under the Code. Partial surrenders, including those used to satisfy RMDs, will reduce any potential benefit that the Accumulation Benefit rider provides. You should consult your tax advisor if you have any questions about the use of this rider in your tax situation; - - if you think you may surrender all of your contract value before you have held your contract with this benefit rider attached for 10 years, or you are considering selecting an annuity payout option within 10 years of the effective date of your contract, you should consider whether this optional benefit is right for you. You must hold the contract a minimum of 10 years from the effective date of the Accumulation Benefit rider, which is the length of the waiting period under the Accumulation Benefit rider, in order to receive the benefit, if any, provided by the Accumulation Benefit rider. In some cases, as described below, you may need to hold the contract longer than 10 years in order to qualify for any benefit the Accumulation Benefit rider may provide; - - the 10 year waiting period under the Accumulation Benefit rider will restart if you exercise the elective step-up option (described below) or your surviving spouse exercises the spousal continuation elective step-up (described below); and - - the 10 year waiting period under the Accumulation Benefit rider may be restarted if you elect to change your model portfolio to one that causes the Accumulation Benefit rider charge to increase (see "Charges"). Be sure to discuss with your sales representative whether an Accumulation Benefit rider is appropriate for your situation. HERE ARE SOME GENERAL TERMS THAT ARE USED TO DESCRIBE THE OPERATION OF THE ACCUMULATION BENEFIT: BENEFIT DATE: This is the first valuation date immediately following the expiration of the waiting period. MINIMUM CONTRACT ACCUMULATION VALUE (MCAV): An amount calculated under the Accumulation Benefit rider. The contract value will be increased to equal the MCAV on the benefit date if the contract value on the benefit date is less than the MCAV on the benefit date. ADJUSTMENTS FOR PARTIAL SURRENDERS: The adjustment made for each partial surrender from the contract is equal to the amount derived from multiplying (a) and (b) where: (a) is 1 minus the ratio of the contract value on the date of (but immediately after) the partial surrender to the contract value on the date of (but immediately prior to) the partial surrender; and (b) is the MCAV on the date of (but immediately prior to) the partial surrender. WAITING PERIOD: The waiting period for the rider is 10 years. We reserve the right to restart the waiting period on the latest contract anniversary if you change your PN program investment option (or change from a PN program model portfolio to an investment option) after we have exercised our rights to increase the rider fee. Your initial MCAV is equal to your initial purchase payment and any purchase payment credit. It is increased by the amount of any subsequent purchase payments and purchase payment credits received within the first 180 days that the rider is effective. It is reduced by any adjustments for partial surrenders made during the waiting period. AUTOMATIC STEP UP On each contract anniversary after the effective date of the rider, the MCAV will be set to the greater of: 1. 80% of the contract value on the contract anniversary; or 2. the MCAV immediately prior to the automatic step up. The automatic step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be surrendered or paid upon death. Rather, the Automatic Step Up is an interim calculation used to arrive at the final MCAV, which is used to determine whether a benefit will be paid under the rider on the benefit date. The automatic step up of the MCAV does not restart the waiting period or increase the charge (although the total fee for the rider may increase). ELECTIVE STEP UP OPTION Within thirty days following each contract anniversary after the rider effective date, but prior to the benefit date, you may notify us in writing that you wish to exercise the annual elective step up option. You may exercise this elective step up option 60 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS only once per contract year during this 30 day period. If your contract value on the valuation date we receive your written request to step up is greater than the MCAV on that date, your MCAV will increase to 100% of that contract value. When you exercise the annual elective step up, we may be charging more for the Accumulation Benefit rider at that time. If your MCAV is increased as a result of the elective step up and we have increased the charge for the Accumulation Benefit rider, you will pay the charge that is in effect on the valuation date we receive your written request to step up for the entire contract year. In addition, the waiting period will restart as of the most recent contract anniversary. Failure to exercise this elective step up in subsequent years will not reinstate any prior waiting period. Rather, the waiting period under the rider will always commence from the most recent anniversary for which the elective step up option was exercised. The elective step up does not create contract value, guarantee the performance of any investment option or provide any benefit that can be surrendered or paid upon death. Rather the elective step up is an interim calculation used to arrive at the final MCAV, which is used to determine whether a benefit will be paid under the rider on the benefit date. The elective step up option is not available to non-spouse beneficiaries that continue the contract during the waiting period. ADDITIONAL PURCHASE PAYMENTS WITH ANNUAL ELECTIVE STEP UPS If your MCAV is increased as a result of Elective Step Up, you have 180 days from the latest contract anniversary to make additional purchase payments, if allowed under the base contract. The MCAV will include the amount of any additional purchase payments and purchase payment credits (if applicable) received during this period. SPOUSAL CONTINUATION If a spouse chooses to continue the contract under the spousal continuation provision, the rider will continue as part of the contract. Once, within the thirty days following the date of spousal continuation, the spouse may choose to exercise an elective step up. The spousal continuation elective step up is in addition to the annual elective step up. If the contract value on the valuation date we receive the written request to exercise this option is greater than the MCAV on that date, we will increase the MCAV to that contract value. If the MCAV is increased as a result of the elective step up and we have increased the charge for the Accumulation Benefit rider, the spouse will pay the charge that is in effect on the valuation date we receive their written request to step up for the entire contract year. In addition, the waiting period will restart as of the most recent contract anniversary. TERMINATING THE RIDER The rider will terminate under the following conditions: The rider will terminate before the benefit date without paying a benefit on the date: - you take a full surrender; or - annuitization begins; or - the contract terminates as a result of the death benefit being paid. The rider will terminate on the benefit date. For an example, see Appendix C. GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER (WITHDRAWAL BENEFIT AND ENHANCED WITHDRAWAL BENEFIT) The Withdrawal Benefit rider is an optional benefit that you may select for an additional annual charge if you are 80 or younger on the date the contract is issued. It is available for nonqualified and qualified annuities except under 401 (a) and 401 (k) plans.(1) (1) The Withdrawal Benefit rider is not available under an inherited qualified annuity. You must have elected the Withdrawal Benefit rider when you purchased your contract (original rider). The original rider you received at contract issue offers an elective annual step-up and any withdrawal after a step up during the first three contract years is considered an excess withdrawal, as described below. The rider effective date of the original rider is the contract issue date. We offered you the option of replacing the original rider with a new Withdrawal Benefit (enhanced rider). The enhanced rider offers an automatic annual step-up and a withdrawal after a step up during the first three contract years is not necessarily an excess withdrawal, as described below. The effective date of the enhanced rider will be the contract issue date except for the automatic step-up which will apply to contract anniversaries that occur after you accept the enhanced rider. The descriptions below apply to both the original and enhanced riders unless otherwise noted. The Withdrawal Benefit initially provides a guaranteed minimum withdrawal benefit that gives you the right to take limited partial withdrawals in each contract year that over time will total an amount equal to your purchase payments plus any purchase payment credits. Certain withdrawals and step ups, as described below, can cause the initial guaranteed withdrawal RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 61 benefit to change. The guarantee remains in effect if your partial withdrawals in a contract year do not exceed the allowed amount. As long as your withdrawals in each contract year do not exceed the allowed amount, you will not be assessed a surrender charge. Under the original rider, the allowed amount is the Guaranteed Benefit Payment (GBP -- the amount you may withdraw under the terms of the rider in each contract year, subject to certain restrictions prior to the third contract anniversary, as described below). Under the enhanced rider, the allowed amount is equal to 7% of purchase payments and purchase payment credits for the first three contract years, and the GBP in all other years. If you withdraw an amount greater than the allowed amount in a contract year, we call this an "excess withdrawal" under the rider. If you make an excess withdrawal under the rider: - surrender charges, if applicable, will apply only to the amount of the withdrawal that exceeds the allowed amount; - the guaranteed benefit amount will be adjusted as described below; and - the remaining benefit amount will be adjusted as described below. For a partial withdrawal that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge (see "Charges -- Surrender Charge"). Market value adjustments, if applicable, will also be made (see the "Market Value Adjustment" provision in the prospectus). We pay you the amount you request. Any partial withdrawals you take under the contract will reduce the value of the death benefits (see "Benefits in Case of Death"). Upon full withdrawal of the contract, you will receive the remaining contract value less any applicable charges (see "Surrenders"). Once elected, the Withdrawal Benefit rider may not be cancelled by you and the fee will continue to be deducted until the contract is terminated, the contract value reduces to zero (described below) or annuity payouts begin. If you select the Withdrawal Benefit rider, you may not select the Accumulation Benefit rider. If you exercise the annual step up election (see "Elective Step Up" and "Annual Step Up" below), the special spousal continuation step up election (see "Spousal Continuation and Special Spousal Continuation Step Up" below) or change your Portfolio Navigator investment option (or change from a PN program model portfolio to an investment option), the rider charge may change (see "Charges"). WITHDRAWAL BENEFIT IS SUBJECT TO CERTAIN RESTRICTIONS AND LIMITATIONS DESCRIBED BELOW: - - USE OF PORTFOLIO NAVIGATOR PROGRAM REQUIRED: You must participate in the PN program with this rider (see "Making the Most of Your Contract -- Portfolio Navigator Program"). The PN program limits your choice of investments. This means you will not be able to allocate contract value to all of the subaccounts or the fixed account that are available under the contract to contract owners who do not elect this rider. You may allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA account, when available (see "The Special DCA Account"), and we will make monthly transfers into the model portfolio or investment option you have chosen. (See "Making the Most of Your Contract -- Portfolio Navigator Program."); - - LIMITATIONS ON TSAS: Your right to take withdrawals is restricted if your contract is a TSA (see "TSA -- Special Provisions"). Therefore, Withdrawal Benefit rider may be of limited value to you. You should consult your tax advisor if you selected this optional rider and if you have any questions about the use of this rider in your tax situation; - - LIMITATIONS ON PURCHASE PAYMENTS: We reserve the right to limit the cumulative amount of purchase payments. For current limitations, see "Buying Your Contract -- Purchase Payment." - - NON-CANCELABLE: Once elected, the Withdrawal Benefit rider may not be cancelled by you and the fee will continue to be deducted until the contract is terminated, the contract value reduces to zero (described below) or annuity payouts begin. - - INTERACTION WITH THE TOTAL FREE AMOUNT (TFA) CONTRACT PROVISION: The TFA is the amount you are allowed to withdraw in each contract year without incurring a surrender charge (see "Charges -- Surrender Charge"). The TFA may be greater than the RBP under this rider. Any amount you withdraw under the contract's TFA provision that exceeds the RBP is subject to the excess withdrawal processing for the GBA and RBA described below. YOU SHOULD CONSULT YOUR TAX ADVISOR IF YOU HAVE ANY QUESTIONS ABOUT THE USE OF THIS RIDER IN YOUR TAX SITUATION: - - TAX CONSIDERATIONS FOR NON-QUALIFIED ANNUITIES: Withdrawals are taxable income to the extent of earnings. Withdrawals of earnings before age 59 1/2 may also incur a 10% IRS early withdrawal penalty. - - TAX CONSIDERATIONS FOR QUALIFIED ANNUITIES: Qualified annuities have minimum distribution rules that govern the timing and amount of distributions from the annuity contract (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). If you have a qualified annuity, you may need to take an RMD that exceeds the guaranteed amount of withdrawal available under the rider and such withdrawals may reduce future benefits guaranteed under the rider. Under the terms of the enhanced rider, we allow you to satisfy the RMD based on the life expectancy RMD for your contract and the requirements of the Code and regulations in effect when you purchase your contract, without the withdrawal being treated as an excess withdrawal. It is our current administrative practice to make the same accommodation under the original rider, however, we reserve the right to discontinue this administrative practice and will give you 30 days' written notice of any such change. 62 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS For contract holders subject to annual RMD rules under Section 401(a)(9) of the Code, amounts you withdraw each year from this contract to satisfy these rules are not subject to excess withdrawal processing under the terms of the rider, subject to the following rules and our current administrative practice: If on the date we calculated your Annual Life Expectancy Required Minimum Distribution Amount (ALERMDA), it is greater than the RBP from the beginning of the current contract year, - A Basic Additional Benefit Amount (BABA) will be set equal to that portion of your ALERMDA that exceeds the value of the RBP from the beginning of the current contract year. - Any withdrawals taken in a contract year will count first against and reduce the RBP for that contract year. - Once the RBP for the current contract year has been depleted, any additional amounts withdrawn will count against and reduce the BABA. These withdrawals will not be considered excess withdrawals with regard to the GBA and RBA as long as they do not exceed the remaining BABA. - Once the BABA has been depleted, any additional withdrawal amounts will be considered excess withdrawals with regard to the GBA and RBA and will subject them all to the excess withdrawal processing described by the rider. The ALERMDA is: (1) determined by us each calendar year; (2) based on the value of this contract alone on the date it is determined; and (3) based on the company's understanding and interpretation of the requirements for life expectancy distributions intended to satisfy the required minimum distribution rules under Code Section 401(a) (9) and the Treasury Regulations promulgated thereunder, as applicable on the effective date of this prospectus, to: 1. IRAs under Section 408(b) of the Code; 2. Roth IRAs under Section 408A of the Code; 3. SIMPLE IRA under Section 408A of the Code; 4. SEP plans under Section 408 (k) of the Code; 5. Custodial and investment only plans under Section 401 (a) of the Code; 6. TSAs under Section 403(b) of the Code. In the future, the requirements under tax law for such distributions may change and the life expectancy amount calculation provided under your rider may not be sufficient to satisfy the requirements under the tax law for these types of distributions. In such a situation, amounts withdrawn to satisfy such distribution requirements would exceed your available withdrawal amount and may result in the reduction of your GBA and/or RBA as described under the excess withdrawal provision of the rider. RMD rules follow the calendar year which most likely does not coincide with your contract year and therefore may limit when you can take your RMD and not be subject to excess withdrawal processing. In cases where the Code does not allow the life expectancy of a natural person to be used to calculate the required minimum distribution amount (e.g. some ownerships by trusts and charities), we will calculate the life expectancy RMD amount as zero in all years. The annual life expectancy required minimum distribution amount calculated by us will also equal zero in all years. THE TERMS "GUARANTEED BENEFIT AMOUNT" AND "REMAINING BENEFIT AMOUNT" ARE DESCRIBED BELOW. EACH IS USED IN THE OPERATION OF THE GBP, THE RBP, THE ELECTIVE STEP UP, THE ANNUAL STEP UP, THE SPECIAL SPOUSAL CONTINUATION STEP UP AND THE WITHDRAWAL BENEFIT ANNUITY PAYOUT OPTION. GUARANTEED BENEFIT AMOUNT The Guaranteed Benefit Amount (GBA) is equal to the initial purchase payment, plus any purchase payment credits, adjusted for subsequent purchase payments, any purchase payment credits, partial withdrawals in excess of the GBP, and step ups. The maximum GBA is $5,000,000. THE GBA IS DETERMINED AT THE FOLLOWING TIMES: - - At contract issue -- the GBA is equal to the initial purchase payment, plus any purchase payment credit; - - When you make additional purchase payments -- each additional purchase payment plus any purchase payment credit has its own GBA equal to the amount of the purchase payment plus any purchase payment credit. The total GBA when an additional purchase payment and purchase payment credit are added is the sum of the individual GBAs immediately prior to the receipt of the additional purchase payment, plus the GBA associated with the additional purchase payment; - - At step up -- (see "Elective Step Up" and "Annual Step Up" headings below). RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 63 - - When you make a partial withdrawal: (a) and all of your withdrawals in the current contract year, including the current withdrawal, are less than or equal to the GBP -- the GBA remains unchanged. Note that if the partial withdrawal is taken during the first three contract years, the GBA and the GBP are calculated after the reversal of any prior step ups; (b) and all of your withdrawals in the current contract year, including the current withdrawal, are greater than the GBP -- THE FOLLOWING EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE GBA. Note that if the partial withdrawal is taken during the first three contract years, the GBA and the GBP are calculated after the reversal of any prior step ups: (c) under the original rider in a contract year after a step up but before the third contract anniversary -- THE FOLLOWING EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE GBA. Note that the GBA and the GBP are calculated after the reversal of prior step ups: GBA EXCESS WITHDRAWAL PROCESSING The total GBA will automatically be reset to the lesser of (a) the total GBA immediately prior to the withdrawal; or (b) the contract value immediately following the withdrawal. If there have been multiple purchase payments, each payment's GBA after the withdrawal will be reset to equal that payment's RBA after the withdrawal plus (a) times (b), where: (a) is the ratio of the total GBA after the withdrawal less the total RBA after the withdrawal to the total GBA before the withdrawal less the total RBA after the withdrawal; and (b) is each payment's GBA before the withdrawal less that payment's RBA after the withdrawal. REMAINING BENEFIT AMOUNT The remaining benefit amount (RBA) at any point is the total guaranteed amount available for future partial withdrawals. The maximum RBA is $5,000,000. The RBA is determined at the following times: - - At contract issue -- the RBA is equal to the initial purchase payment plus any purchase payment credit; - - When you make additional purchase payments -- each additional purchase payment plus any purchase payment credit has its own RBA equal to the amount of the purchase payment plus any purchase payment credit. The total RBA when an additional purchase payment and purchase payment credit are added is the sum of the individual RBAs immediately prior to the receipt of the additional purchase payment, plus the RBA associated with the additional payment; - - At step up -- (see "Elective Step Up" and "Annual Step Up" headings below). - - When you make a partial withdrawal: (a) and all of your withdrawals in the current contract year, including the current withdrawal, are less than or equal to the GBP -- the RBA becomes the RBA immediately prior to the partial withdrawal, less the partial withdrawal. Note that if the partial withdrawal is taken during the first three contract years, the RBA and the GBP are calculated after the reversal of any prior step ups; (b) and all of your withdrawals in the current contract year, including the current withdrawal, are greater than the GBP -- THE FOLLOWING EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE RBA. Note that if the partial withdrawal is taken during the first three contract years, the RBA and the GBP are calculated after the reversal of any prior step ups; (c) under the original rider after a step up but before the third contract anniversary -- THE FOLLOWING EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE RBA. Note that the RBA and the GBP are calculated after the reversal of prior step ups. RBA EXCESS WITHDRAWAL PROCESSING The RBA will automatically be reset to the lesser of (a) the contract value immediately following the withdrawal, or (b) the RBA immediately prior to the withdrawal, less the amount of the withdrawal. If there have been multiple purchase payments, any reduction of the RBA will be taken out of each payment's RBA in the following manner: The withdrawal amount up to the remaining benefit payment (defined below) is taken out of each RBA bucket in proportion to its remaining benefit payment at the time of the withdrawal; and the withdrawal amount above the remaining benefit payment and any amount determined by the excess withdrawal processing are taken out of each RBA bucket in proportion to its RBA at the time of the withdrawal. GUARANTEED BENEFIT PAYMENT Under the original rider, the GBP is the amount you may withdraw under the terms of the rider in each contract year, subject to certain restrictions prior to the third anniversary. 64 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Under the enhanced rider, the GBP is the withdrawal amount that you are entitled to take each contract year after the third anniversary until the RBA is depleted. Under the original rider, the GBP is equal to 7% of the GBA. Under the enhanced rider, the GBP is the lesser of a) 7% of the GBA or (b) the RBA. Under both the original and enhanced riders, if you withdraw less than the GBP in a contract year, there is no carry over to the next contract year. REMAINING BENEFIT PAYMENT Under the original rider, at the beginning of each contract year, the remaining benefit payment (RBP) is set as the lesser of (a) the GBP, or (b) the RBA. Under the enhanced rider, at the beginning of each contract year, during the first three contract years and prior to any withdrawal, the RBP for each purchase payment is set equal to that purchase payment plus any purchase payment credit, multiplied by 7%. At the beginning of any other contract year, each individual RBP is set equal to each individual GBP. Each additional purchase payment has its own RBP established equal to that payment's GBP. The total RBP is equal to the sum of the individual RBPs. Whenever a partial withdrawal is made, the RBP equals the RBP immediately prior to the partial withdrawal less the amount of the partial withdrawal, but not less than zero. ELECTIVE STEP UP (UNDER THE ORIGINAL RIDER ONLY) You have the option to increase the RBA, the GBA, the GBP and the RBP beginning with the first contract anniversary. An annual elective step up option is available for 30 days after the contract anniversary. The elective step up option allows you to step up the remaining benefit amount and guaranteed benefit amount to the contract value on the valuation date we receive your written request to step up. The elective step up is subject to the following rules: - - if you do not take any withdrawals during the first three contract years, you may step up annually beginning with the first contract anniversary; - - if you take any withdrawals during the first three contract years, the annual elective step up will not be available until the third contract anniversary; - - if you step up on the first or second contract anniversary but then take a withdrawal prior to the third contract anniversary, you will lose any prior step ups and the withdrawal will be considered an excess withdrawal subject to the GBA and RBA excess withdrawal processing discussed under the "Guaranteed Benefit Amount" and "Remaining Benefit Amount" headings above, and to surrender charges; and - - you may take withdrawals on or after the third contract anniversary without reversal of previous step ups You may elect a step up only once each contract year within 30 days after the contract anniversary. Once a step up has been elected, another step up may not be elected until the next contract anniversary. RIDER A(1): You may only step up if your contract value on the valuation date we receive your written request to step up is greater than RBA. The elective step up will be determined as follows: - - The effective date of the elective step up is the valuation date we receive your written request to step up. - - The RBA will be increased to an amount equal to the contract value on the valuation date we receive your written request to step up. - - The GBA will be increased to an amount equal to the greater of (a) the GBA immediately prior to the elective step up; or (b) the contract value on the valuation date we receive your written request to step up. - - The GBP will be increased to an amount equal to the greater of (a) the GBP immediately prior to the step up; or (b) 7% of the GBA after the step up. - - The RBP will be increased to the lesser of (a) the RBA after the elective step up; or (b) the GBP after the elective step up. RIDER B(1): You may only step up if your contract value is greater than RBA. The elective step up will be determined as follows: - - The effective date of the elective step up is the contract anniversary. - - The RBA will be increased to an amount equal to the contract anniversary value. - - The GBA will be increased to an amount equal to the greater of (a) the GBA immediately prior to the elective step up; or (b) the contract anniversary value. - - The GBP will be increased to an amount equal to the greater of (a) the GBP immediately prior to the step up; or (b) 7% of the GBA after the step up. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 65 - - The RBP will be increased to the lesser of (a) the RBA after the elective step up; or (b) the GBP after the elective step up. (1) Before April 29, 2005 we only offered Rider B. We began offering Rider A in states where it is approved and discontinued offering Rider B in those states, on April 29, 2005. If you purchased a contract with this optional benefit rider before April 29, 2005 the references to Rider B generally apply to your contract (see the rider attached to your contract for the actual terms of the benefit you purchased). If you purchased a contract on or after April 20, 2005 with this benefit, the version we offer you depends on which state you live in. The discussion about this benefit and how it works applies generally to both riders unless otherwise noted. ANNUAL STEP UP (UNDER THE ENHANCED RIDER ONLY) Beginning with the first contract anniversary after you accept the enhanced rider, an increase of the RBA, the GBA, the GBP and the RBP may be available. A step up does not create contract value, guarantee performance of any investment options, or provide a benefit that can be withdrawn or paid upon death. Rather, a step up determines the current values of the GBA, RBA, GBP, and RBP, and may extend the payment period or increase allowable payment. The annual step up is subject to the following rules: - - The annual step up is available when the RBA would increase on the step up date. The applicable step up date depends on whether the annual step up is applied on an automatic or elective basis. - - If the application of the step does not increase the rider charge, the annual step up will be automatically applied to your contract and the step up date is the contract anniversary date. - - If the application of the step up would increase the rider charge (see the "Withdrawal Benefit Rider Fee" provision in the prospectus), the annual step up is not automatically applied. Instead, you have the option to step up for 30 days after the contract anniversary. If you exercise the elective annual step up option, you will pay the rider charge in effect on the step up date. If you wish to exercise the elective annual step up option, we must receive a request from you or your investment professional. The step up date is the date we receive your request to step up. If your request is received after the close of business, the step up date will be the next valuation day. - - Only one step up is allowed each contract year. - - If you take any withdrawals during the first three contract years, any previously applied step ups will be reversed and the annual step up will not be available until the third contract anniversary; - - You may take withdrawals on or after the third contract anniversary without reversal of previous step ups. The annual step up will be determined as follows: - - The RBA will be increased to an amount equal to the contract value on the step up date. - - The GBA will be increased to an amount equal to the greater of (a) the GBA immediately prior to the annual step up; or (b) the contract value on the step up date. - - The GBP will be calculated as described earlier, but based on the increased GBA and RBA. - - The RBP will be reset as follows: (a) Prior to any withdrawals during the first three contract years, the RBP will not be affected by the step up. (b) At any other time, the RBP will be reset as the increased GBP less all prior withdrawals made during the current contract year, but not less than zero. SPOUSAL CONTINUATION AND SPECIAL SPOUSAL CONTINUATION STEP UP If a surviving spouse elects to continue the contract, this rider also continues. The spousal continuation step up is in addition to the elective step up or the annual step up on contract anniversaries. A surviving spouse may elect a spousal continuation step up by written request within 30 days following the spouse's election to continue the contract. Under this step up, the RBA will be reset to the greater of the RBA or the contract value on the valuation date we receive the spouse's written request to step up; the GBA will be reset to the greater of the GBA or the contract value on the same valuation date. If a spousal continuation step up is elected and we have increased the charge for the rider, the spouse will pay the charge that is in effect on the valuation date we receive the written request to step up. It is our current administrative practice to process the spousal continuation step up as described in the next paragraph; however, we reserve the right to discontinue the administrative practice and will give you 30 days' written notice of any such change. At the time of spousal continuation, a step up may be available. All annual step-up rules (see "Annual Step-Up" heading above), other than those that apply to the waiting period, also apply to the spousal continuation step up. If the spousal continuation step up is processed automatically, the step up date is the valuation date the spousal continuation is effective. If not, the spouse must elect the step up and must do so within 30 days of the spousal continuation date. If the spouse elects the 66 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS spousal continuation step up, the step-up date is the valuation date we receive the spouse's written request to step up if we receive the request by the close of business on that day, otherwise the next valuation date. REMAINING BENEFIT AMOUNT PAYOUT OPTION Several annuity payout plans are available under the contract. As an alternative to these annuity payout plans, a fixed annuity payout option is available under the Withdrawal Benefit. Under this option the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the current total RBA at the time you begin this fixed annuity option. These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at that time but will be no less frequent than annually. If, at the death of the owner, total payments have been made for less than the RBA, the remaining payments will be paid to the beneficiary (see "The Annuity Payout Period" and "Taxes"). This annuity payout option may also be elected by the beneficiary of a contract as a settlement option. Whenever multiple beneficiaries are designated under the contract, each such beneficiary's share of the proceeds if they elect this option will be in proportion to their applicable designated beneficiary percentage. Beneficiaries of nonqualified contracts may elect this settlement option subject to the distribution requirements of the contract. We reserve the right to adjust the remaining schedule of GBPs if necessary to comply with the Code. IF CONTRACT VALUE REDUCES TO LESS THAN $600* If the contract value reduces to less than $600 and the RBA remains greater than zero, the following will occur: - - you will be paid according to the annuity payout option described above; - - we will no longer accept additional purchase payments; - - you will no longer be charged for the rider; - - any attached death benefit riders will terminate; and - - the death benefit becomes the remaining payments under the annuity payout option described above. If the contract value falls to zero and the RBA is depleted, the Withdrawal Benefit rider and the contract will terminate. * Under our current administrative practice, we allow the minimum contract value to be $0. Therefore, these limitations will only apply when the contract value is reduced to zero. For an example, see Appendix C. THE ANNUITY PAYOUT PERIOD As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below except under Plan E. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date after any rider charges have been deducted, plus or minus any applicable MVA, less any purchase payment credits subject to reversal and less any applicable premium tax. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. AMOUNTS OF FIXED AND VARIABLE PAYOUTS DEPEND ON: - - the annuity payout plan you select; - - the annuitant's age and, in most cases, the annuitant's sex; - - the annuity table in the contract; and - - the amounts you allocated to the accounts at settlement. In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. Fixed payouts remain the same from month to month. For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." ANNUITY TABLES The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of contract value according to the annuitant's age and, when applicable, the annuitant's sex. (Where required by law, we will use a unisex table of settlement rates.) RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 67 Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment rate for the 5% Table A in the contract. The assumed investment rate affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment rate and payouts will decrease if the return is below the assumed investment rate. Using the 5% assumed interest rate results in a higher initial payout, but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract value is used to purchase the payout plan*: - - PLAN A: LIFE ANNUITY -- NO REFUND: We make monthly payouts until the annuitant's death. Payouts end with the last payout before the annuitant's death. We will not make any further payouts. This means that if the annuitant dies after we made only one monthly payout, we will not make any more payouts. - - PLAN B: LIFE ANNUITY WITH FIVE, TEN OR 15 YEARS CERTAIN: We make monthly payouts for a guaranteed payout period of five, ten or 15 years that you elect. This election will determine the length of the payout period to the beneficiary if the annuitant should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant's death. - - PLAN C: LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until the annuitant's death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living. - - PLAN D: JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until the death of the surviving owner. Payouts end with the death of the second annuitant. - - PLAN E: PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether the annuitant is living or not. Depending on the selected time period, it is foreseeable that the annuitant can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the amount of the payout that would have been made 7 days prior to the date we determine the present value. The discount rate we use in the calculation will be either 5.17% or 6.67%, depending on the applicable assumed investment rate. (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take a surrender. (See "Taxes.") - - WITHDRAWAL BENEFIT -- RBA PAYOUT OPTION: If you have a Withdrawal Benefit rider under your contract, you may elect the Withdrawal Benefit RBA payout option as an alternative to the above annuity payout plans. This option may not be available if the contract is issued to qualify under Sections 403 or 408 of the Code. For such contracts, this option will be available only if the guaranteed payout period is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using life expectancy tables published by IRS. Under this option, the amount payable each year will be equal to the future schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the total RBA at the time you begin this fixed payout option (see "Optional Benefits -- Withdrawal Benefit"). These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at the time but will be no less frequent than annually. If, at the death of the owner, total payouts have been made for less than the RBA, the remaining payouts will be paid to the beneficiary. ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your contract is a qualified annuity, you must select a payout plan as of the settlement date set forth in your contract. You have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will generally meet certain IRS regulations governing RMDs if the payout plan meets the incidental distribution benefit requirements, if any, and the payouts are made: - - in equal or substantially equal payments over a period not longer than your life or over the joint life of you and your designated beneficiary; or 68 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - - in equal or substantially equal payments over a period not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary; or - - over a period certain not longer than your life expectancy or over the life expectancy of you and your designated beneficiary. * For contracts purchased in Oregon, you cannot apply your contract value to an annuity payout plan during your first contract year. IF WE DO NOT RECEIVE INSTRUCTIONS: You must give us written instructions for the annuity payouts at least 30 days before the settlement date. If you do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed. Contract values that you allocated to the fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of monthly payouts at the time amounts are applied toe a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. DEATH AFTER ANNUITY PAYOUTS BEGIN: If you die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. TAXES Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay income tax until there is a taxable distribution (or deemed distribution) from the contract. We will send a tax information reporting form for any year in which we made a taxable or reportable distribution according to our records. NONQUALIFIED ANNUITIES Generally, only the increase in the value of a non-qualified annuity contract over the investment in the contract is taxable. Certain exceptions apply. Federal tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when distributions are taken from any one of those contracts. ANNUITY PAYOUTS: Generally, unlike surrenders described below, the taxation of annuity payouts is subject to exclusion ratios, i.e. a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of your investment in the contract and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity -- no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under all other annuity payout plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "The Annuity Payout Period -- Annuity Payout Plans.") SURRENDERS: Generally, if you surrender all or part of your nonqualified annuity before your annuity payouts begin, including withdrawals under any optional withdrawal benefit rider, your surrender will be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. Different rules may apply if you exchange another contract into this contract. You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. WITHHOLDING: If you receive taxable income as a result of an annuity payout or surrender, including surrenders under any optional withdrawal benefit rider, we may deduct federal, and in some cases state withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, and you have a valid U.S. address, you may be able to elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. DEATH BENEFITS TO BENEFICIARIES: The death benefit under a nonqualified contract is not exempt from estate (federal or state) or income taxes. In addition, any amount your beneficiary receives that exceeds the investment in the contract is taxable as RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 69 ordinary income to the beneficiary in the year he or she receives the payments. (See also "Benefits in Case of Death -- If You Die Before the Settlement Date"). ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR IRREVOCABLE TRUSTS: For nonqualified annuities, any annual increase in the value of annuities held by such entities (nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person only, the income will generally remain tax-deferred. PENALTIES: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: - - because of your death or in the event of nonnatural ownership, the death of the annuitant; - - because you become disabled (as defined in the Code); - - if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - - if it is allocable to an investment before Aug. 14, 1982; or - - if annuity payouts are made under immediate annuities as defined by the Code. TRANSFER OF OWNERSHIP: Generally, if you transfer ownership of a nonqualified annuity without receiving adequate consideration, the transfer may be treated as a surrender for federal income tax purposes. If the transfer is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Please consult your tax advisor for further details. 1035 EXCHANGES: Section 1035 of the Code permits nontaxable exchanges of certain insurance policies, endowment contracts, annuity contracts and qualified long- term care insurance contract while providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the cost basis from the old policy or contract to the new policy or contract. A 1035 exchange is a transfer from one policy or contract to another policy or contract. The following are nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment, annuity or qualified long-term care insurance contracts, (2) the exchange of an endowment contract for an annuity or qualified long-term care insurance contract, or for an endowment contract under which payments will begin no later than payments would have begun under the contract exchanged, (3) the exchange of an annuity contract for another annuity contract or for a qualified long-term care insurance contract, or (4) the exchange of a qualified long-term care insurance contract for a qualified long-term insurance contract. However, if the life insurance policy has an outstanding loan, there may be tax consequences. Depending on the issue date of your original policy or contract, there may be tax or other benefits that are given up to gain the benefits of the new policy or contract. Consider whether the features and benefits of the new policy or contract outweigh any tax or other benefits of the old contract. For a partial exchange of an annuity contract for another annuity contract, the 1035 exchange is generally tax-free. The investment in the original contract and the earnings on the contract will be allocated proportionately between the original and new contracts. However, IRS Revenue Procedure 2008-24 states if withdrawals are taken from either contract within a 12 month period following a partial exchange, the 1035 exchange may be invalidated. In that case, the following will occur 1) the tax-free nature of the partial exchange can be lost, 2) the exchange will be retroactively treated as a taxable surrender on the lesser of the earnings in the original contract or the amount exchanged and 3) the entire amount of the exchange will be treated as a purchase into the second contract. You may receive an amended form 1099-R reporting an invalidated exchange. (If certain life events occur between the date of the partial exchange and the date of the withdrawal in the first 12 months, the partial exchange could remain valid.) You should consult your tax advisor before taking any surrender from either contract. ASSIGNMENT: If you assign or pledge your contract as collateral for a loan, earnings on purchase payments you made after Aug. 13, 1982 will be taxed as a deemed distribution and you may have to pay a 10% IRS penalty. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. When you use your contract to fund a retirement plan or IRA that is already tax- deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your right to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract. 70 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS ANNUITY PAYOUTS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. ANNUITY PAYOUTS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. SURRENDERS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. SURRENDERS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans (except for Roth IRAs) are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. RMDs are based on the fair market value of your contract at year-end divided by life expectancy factor. Certain death benefits and optional riders may be considered in determining the fair market value of your contract for RMD purposes. This may cause your RMD to be higher. Inherited IRAs (including inherited Roth IRAs) are subject to special required minimum distribution rules. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. WITHHOLDING FOR IRAS, ROTH IRAS, SEPS AND SIMPLE IRAS: If you receive taxable income as a result of an annuity payout or a surrender, including surrenders under any optional withdrawal benefit rider, we may deduct withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. WITHHOLDING FOR ALL OTHER QUALIFIED ANNUITIES: If you receive directly all or part of the contract value from a qualified annuity, mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. This mandatory withholding will not be imposed if instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan. Payments made to a surviving spouse instead of being directly rolled over to an IRA are also subject to mandatory 20% income tax withholding. In the below situations, the distribution is subject to an optional 10% withholding instead of the mandatory 20% withholding. We will withhold 10% of the distribution amount unless you elect otherwise. - - the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; - - the payout is a RMD as defined under the Code; - - the payout is made on account of an eligible hardship; or - - the payout is a corrective distribution. State withholding also may be imposed on taxable distributions. PENALTIES: If you receive amounts from your qualified contract before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received: - - because of your death; - - because you become disabled (as defined in the Code); - - if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 71 - - if the distribution is made following severance from employment during the calendar year in which you attain age 55 (TSAs and annuities funding 401(a) plans only); - - to pay certain medical or education expenses (IRAs only); or - - if the distribution is made from an inherited IRA. DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he/she receives the payments from the qualified annuity. If you made non-deductible contributions to a traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. You are responsible for keeping all records tracking your non- deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are met. (See also "Benefits in Case of Death -- If You Die Before the Settlement Date"). ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. OTHER PURCHASE PAYMENT CREDITS: These are considered earnings and are taxed accordingly when surrendered or paid out. SPECIAL CONSIDERATIONS IF YOU SELECT ANY OPTIONAL RIDER: As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% tax penalty for surrenders before the age of 59 1/2, if applicable. We reserve the right to report charges for these riders as partial surrenders if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report any benefits attributable to these riders on the death of you or the annuitant as an annuity death benefit distribution, not as proceeds from life insurance. IMPORTANT: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. RIVERSOURCE LIFE'S TAX STATUS: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which each subaccount invests and becomes part of that subaccount's value. This investment income, including realized capital gains, is not subject to any withholding because of federal or state income taxes. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities or in our tax status as we then understand it. TAX QUALIFICATION: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. VOTING RIGHTS As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. After annuity payouts begin, the number of votes you have is equal to: - - the reserve held in each subaccount for your contract; divided by - - the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. 72 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS SUBSTITUTION OF INVESTMENTS We may substitute the funds in which the subaccounts invest if: - - laws or regulations change; - - the existing funds become unavailable; or - - in our judgment, the funds no longer are suitable (or no longer the most suitable) for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute a fund currently listed in this prospectus (existing fund) for another fund (new fund). The new fund may have higher fees and/or operating expenses than the existing fund. Also, the new fund may have investment objectives and policies and/or investment advisers which differ from the existing fund. We may also: - - add new subaccounts; - - combine any two or more subaccounts; - - transfer assets to and from the subaccounts or the variable account; and - - eliminate or close any subaccounts. We will notify you of any substitution or change. If we notify you that a subaccount will be eliminated or closed, you will have a certain period of time to tell us where to reallocate purchase payments or contract value currently allocated to that subaccount. If we do not receive your reallocation instructions by the due date, we automatically will reallocate to the subaccount investing in the RiverSource Variable Portfolio - Cash Management Fund. You may then transfer this reallocated amount in accordance with the transfer provisions of your contract (see "Transferring Between Accounts" above). In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. ABOUT THE SERVICE PROVIDERS PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. ("RiverSource Distributors"), our affiliate, serves as the principal underwriter of the contract. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc. Although we no longer offer the contract for sale, you may continue to make purchase payments if permitted under the terms of your contract. We pay commissions to an affiliated selling firm of up to 5.75% of purchase payments on the contract as well as service/trail commissions of up to 1.00% based on annual total contract value for as long as the contract remains in effect. We also may pay a temporary additional sales commission of up to 1.00% of purchase payments for a period of time we select. These commissions do not change depending on which subaccounts you choose to allocate your purchase payments. From time to time and in accordance with applicable laws and regulations, we may also pay or provide the selling firm with various cash and non-cash promotional incentives including, but not limited to bonuses, short-term sales incentive payments, marketing allowances, costs associated with sales conferences and educational seminars and sales recognition awards. A portion of the payments made to the selling firm may be passed on to its financial advisors in accordance with its internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Ask your financial advisor for further information about what your financial advisor and the selling firm for which he or she works may receive in connection with your contract. We pay the commissions and other compensation described above from our assets. Our assets include: - - revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see "Expense Summary"); - - compensation we or an affiliate receive from the underlying funds in the form of distribution and services fees (see "The Variable Account and the Funds -- The Funds"); - - compensation we or an affiliate receive from a fund's investment adviser, subadviser, distributor or an affiliate of any of these (see "The Variable Account and the Funds -- The Funds"); and - - revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 73 You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part of all of the commissions and other compensation described above indirectly through: - - fees and expenses we collect from contract owners, including surrender charges; and - - fees and expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated person. ISSUER We issue the contracts. We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc. We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts and life insurance policies. LEGAL PROCEEDINGS RiverSource Life is involved in the normal course of business in legal and regulatory proceedings, or regulatory requests for information, concerning matters arising in connection with the conduct of our general business activities as well as generally applicable to business practices in the insurance industry. From time to time, we receive requests for information from, or have been subject to examination by, the SEC, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities concerning our business activities and practices. These requests generally include suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements with respect to our annuity and insurance products. We have cooperated with and will continue to cooperate with the applicable regulators regarding their inquiries and examinations. RiverSource Life is involved in other proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material adverse impact on results of operations in any particular reporting period as the proceedings are resolved. ADDITIONAL INFORMATION INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE To the extent and only to the extent that any statement in a document incorporated by reference into this prospectus is modified or superseded by a statement in this prospectus or in a later-filed document, such statement is hereby deemed so modified or superseded and not part of this prospectus. The Annual Report on Form 10-K of RiverSource Life Insurance Company for the year ended Dec. 31, 2009 that we previously filed with the SEC under the Securities Exchange Act of 1934 (1934 Act) is incorporated by reference into this prospectus. To access these documents, see "SEC Filings" under "Investors Relations" on our website at www.ameriprise.com. RiverSource Life will furnish you without charge a copy of any or all of the documents incorporated by reference into this prospectus, including any exhibits to such documents which have been specifically incorporated by reference. We will do so upon receipt of your written or oral request. You can contact RiverSource Life at the telephone number and address listed on the first page of this prospectus. AVAILABLE INFORMATION This prospectus is part of a registration statement we file with the SEC. Additional information on RiverSource Life and on this offering is available in the registration statement and other materials we file. You can obtain copies of these materials at the SEC's Public Reference Room at 100 F Street, N.E., N.W., Washington, D.C. 20549. You can obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. This prospectus, other information about the contract and other information incorporated by reference are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). INDEMNIFICATION Insofar as indemnification for liabilities arising under the Securities Act of 1933 (1933 Act) may be permitted to directors and officers or persons controlling RiverSource Life pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the 1933 Act and is therefore unenforceable. 74 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS APPENDICES The purpose of these appendices is to illustrate the operation of various contract features and riders and to provide condensed financial history disclosure regarding the subaccounts. In order to demonstrate these contract features and riders, an example may show hypothetical contract values. These contract values do not represent past or future performance. Actual contract values may be more or less than those shown and will depend on a number of factors, including but not limited to the investment experience of the subaccounts, GPAs, Special DCA account, fixed account and the fees and charges that apply to your contract. The examples of the optional riders and death benefits in Appendix C include partial surrenders to illustrate the effect of partial surrenders on the particular benefit. These examples are intended to show how the optional riders and death benefits operate, and do not take into account whether a particular optional rider or death benefit is part of a qualified annuity. Qualified annuities are subject to RMDs at certain ages (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") which may require you to take partial surrenders from the contract. If you are considering the addition of certain death benefits and/or optional riders to a qualified annuity, you should consult your tax advisor prior to making a purchase for an explanation of the potential tax implication to you. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 75 APPENDIX A: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA) As the examples below demonstrate, the application of an MVA may result in either a gain or a loss of principal. We refer to all of the transactions described below as "early surrenders." GENERAL EXAMPLES ASSUMPTIONS: - - You purchase a contract and allocate part of your purchase payment to the ten- year GPA; and - - we guarantee an interest rate of 3.0% annually for your ten-year Guarantee Period; and - - after three years, you decide to make a surrender from your GPA. In other words, there are seven years left in your guarantee period. Remember that the MVA depends partly on the interest rate of a new GPA for the same number of years as the Guarantee Period remaining on your GPA. In this case, that is seven years. EXAMPLE 1: Remember that your GPA is earning 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 3.5%. We add 0.10% to the 3.5% rate to get 3.6%. Your GPA's 3.0% rate is less than the 3.6% rate so the MVA will be negative. EXAMPLE 2: Remember again that your GPA is earning 3.0%, and assume that new GPAs that we offer with a seven-year Guarantee Period are earning 2.5%. We add 0.10% to the 2.5% rate to get 2.6%. In this example, since your GPA's 3.0% rate is greater than the 2.6% rate, the MVA will be positive. To determine that adjustment precisely, you will have to use the formula described below. SAMPLE MVA CALCULATIONS The precise MVA formula we apply is as follows: 1 + II EARLY WITHDRAWAL AMOUNT X [( --------------- ) (N/12) - 1] = MVA 1 + J + .001
Where i = rate earned in the GPA from which amounts are being transferred or surrendered. j = current rate for a new Guaranteed Period equal to the remaining term in the current Guarantee Period (rounded up to the next year). n = number of months remaining in the current Guarantee Period (rounded up to the next month) EXAMPLES -- MVA Using assumptions similar to those we used in the examples above: - - You purchase a contract and allocate part of your purchase payment to the ten- year GPA; and - - we guarantee an interest rate of 3.0% annually for your ten-year Guarantee Period; and - - after three years, you decide to make a $1,000 surrender from your GPA. In other words, there are seven years left in your guarantee period. EXAMPLE 1: You request an early surrender of $1,000 from your ten-year GPA earning a guaranteed interest rate of 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 3.5%. Using the formula above, we determine the MVA as follows: 1.030 $1,000 X [( ----------------- ) (84/12) - 1] = -$39.84 1 + .035 + .001)
In this example, the MVA is a negative $39.84. EXAMPLE 2: You request an early surrender of $1,000 from your ten-year GPA earning a guaranteed interest rate of 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 2.5%. Using the formula above, we determine the MVA as follows: 1.030 $1,000 X [( ----------------- ) (84/12) - 1] = $27.61 1 + .025 + .001)
In this example, the MVA is a positive $27.61. We do not apply MVAs to the amounts we deduct for surrender charges, so we would deduct the surrender charge from your early surrender after we applied the MVA. Also note that when you request an early surrender, we surrender an amount from 76 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS your GPA that will give you the net amount you requested after we apply the MVA and any applicable surrender charge, unless you request otherwise. The current interest rate we offer on the GPA will change periodically at our discretion. It is the rate we are then paying on purchase payments, renewals and transfers paid under this class of contracts for Guarantee Period durations equaling the remaining Guarantee Period of the GPA to which the formula is being applied. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 77 APPENDIX B: EXAMPLE -- SURRENDER CHARGES FULL SURRENDER CHARGE CALCULATION -- TEN-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a full surrender on a RAVA Advantage Plus contract with a ten-year surrender charge schedule with the following history: - - we receive a single $100,000 purchase payment; and - - you surrender the contract for its total value during the fourth contract year. The surrender charge percentage in the fourth year after a purchase payment is 7.0%; and - - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: - --------------------------------------------------------------------------------
CONTRACT WITH GAIN CONTRACT WITH LOSS Contract Value at time of full $120,000.00 $ 80,000.00 surrender: Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's contract 11,500.00 8,500.00 value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered 0.00 8,500.00 Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] WD = 120,000.00 80,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of the surrender PR = 100% 100% = the premium ratio STEP 4. We calculate Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 100% 100% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 100,000.00 91,500.00 STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 100,000.00 91,500.00 Surrender Charge Percentage: 7% 7% Surrender Charge: 7,000.00 6,405.00 STEP 6. We calculate the Net Surrender Value: 120,000.00 80,000.00 Contract Value Surrendered: (7,000.00) (6,405.00) Contract Charge (assessed upon full (30.00) (30.00) surrender): NET FULL SURRENDER PROCEEDS: 112,970.00 73,565.00
78 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS PARTIAL SURRENDER CHARGE CALCULATION -- TEN-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a partial surrender on a RAVA Advantage Plus contract with a ten-year surrender charge schedule with the following history: - - we receive a single $100,000 purchase payment; and - - you request a gross partial surrender of $50,000 during the fourth contract year. The surrender charge percentage is 7.0%; and - - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: - --------------------------------------------------------------------------------
CONTRACT WITH GAIN CONTRACT WITH LOSS Contract Value at time of partial $120,000.00 $ 80,000.00 surrender: Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's 11,500.00 8,500.00 contract value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered 0.00 8,500.00 Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] WD = 50,000.00 50,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of surrender PR = 30% 58% = the premium ratio STEP 4. We calculate the Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 30% 58% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 30,000.00 53,108.39 = chargeable purchase payments being surrendered STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 30,000.00 53,108.39 Surrender Charge Percentage: 7% 7% Surrender Charge: 2,100 3,718 STEP 6. We calculate the Net Surrender Value: Contract Value Surrendered: 50,000.00 50,000.00 SURRENDER CHARGE: (2,100.00) (3,717.59) NET PARTIAL SURRENDER PROCEEDS: 47,900.00 46,282.41
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 79 FULL SURRENDER CHARGE CALCULATION -- THREE-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a full surrender on a RAVA Select Plus contract with a three-year surrender charge schedule with the following history: - - we receive a single $100,000 purchase payment; and - - you surrender the contract for its total value during the second contract year. The surrender charge percentage in the year after a purchase payment is 7.0%; and - - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: - --------------------------------------------------------------------------------
CONTRACT WITH GAIN CONTRACT WITH LOSS Contract Value at time of full $120,000.00 $ 80,000.00 surrender: Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the Contract: 20,000.00 0.00 10% of the prior anniversary's 11,500.00 8,500.00 contract value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA and Amount Free that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered 0.00 8,500.00 Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] WD = 120,000.00 80,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of the surrender PR = 100% 100% STEP 4. We calculate Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 100% 100% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 100,000.00 91,500.00 STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 100,000.00 91,500.00 Surrender Charge Percentage: 7% 7% Surrender Charge: 7,000.00 6,405.00 STEP 6. We calculate the Net Surrender 120,000.00 80,000.00 Value: Contract Value Surrendered: (7,000.00) (6,405.00) Contract Charge (assessed upon full (30.00) (30.00) surrender): NET FULL SURRENDER PROCEEDS: 112,970.00 73,565.00
80 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS PARTIAL SURRENDER CHARGE CALCULATION -- THREE-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a partial surrender on a RAVA Select Plus contract with a three-year surrender charge schedule with the following history: - - we receive a single $100,000 purchase payment; and - - you request a gross partial surrender of $50,000 during the second contract year. The surrender charge percentage is 7.0%; and - - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: - --------------------------------------------------------------------------------
CONTRACT WITH GAIN CONTRACT WITH LOSS Contract Value at time of partial $120,000.00 $ 80,000.00 surrender: Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's 11,500.00 8,500.00 contract value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the Amount Free that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered 0.00 8,500.00 Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] WD = 50,000.00 50,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of surrender PR = 30% 58% = the premium ratio STEP 4. We calculate the Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 30% 58% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 30,000.00 53,108.39 = chargeable purchase payments being surrendered STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 30,000.00 53,108.39 Surrender Charge Percentage: 7% 7% Surrender Charge: 2,100 3,718 STEP 6. We calculate the Net Surrender Value: Contract Value Surrendered: 50,000.00 50,000.00 SURRENDER CHARGE: (2,100.00) (3,717.59) NET PARTIAL SURRENDER PROCEEDS: 47,900.00 46,282.41
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 81 APPENDIX C: EXAMPLE -- OPTIONAL BENEFITS EXAMPLE -- ACCUMULATION BENEFIT The following example shows how the Accumulation Benefit rider works based on hypothetical values. It is not intended to depict investment performance of the contract. The example assumes: - - You purchase the contract (with the Accumulation Benefit rider) with a payment of $100,000. No purchase payment credit applies. - - You make no additional purchase payments. - - You do not exercise the Elective Step-up option. - - The Accumulation Benefit rider fee is 0.60%.
END OF CONTRACT ASSUMED NET PARTIAL SURRENDER ADJUSTED ACCUMULATION YEAR RATE OF RETURN (BEGINNING OF YEAR) PARTIAL SURRENDER MCAV BENEFIT AMOUNT CONTRACT VALUE 1 12% 0 0 100,000 0 111,328 2 15% 0 0 102,422 0 127,259 3 3% 0 0 104,861 0 130,290 4 -8% 0 0 104,861 0 119,148 5 -15% 0 0 104,861 0 100,647 6 20% 2,000 2,084 102,778 0 117,666 7 15% 0 0 108,252 0 134,504 8 -10% 0 0 108,252 0 120,327 9 -20% 5,000 4,498 103,754 0 91,639 10 -12% 0 0 103,754 23,734 103,754
EXAMPLE -- WITHDRAWAL BENEFIT The following example shows how the Withdrawal Benefit rider works based on hypothetical values. It is not intended to depict investment performance of the contract. The example assumes: - - You purchase the RAVA Select contract (with the Withdrawal Benefit rider) with a payment of $100,000. No purchase payment credit applies. - - You make no additional purchase payments. - - The contract earns a net return of -5%. - - The Withdrawal Benefit rider fee is 0.60%. 82 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - - You take withdrawals equal to the GBP (which is 7% of the GBA or $7,000) at the beginning of each contract year until the RBA is exhausted.
CONTRACT CONTRACT VALUE WITHDRAWAL CONTRACT VALUE YEAR (BEGINNING OF YEAR) (BEGINNING OF YEAR) (END OF YEAR) GBA RBA 1 $100,000 $7,000 $87,820 $100,000 $93,000 2 87,820 7,000 76,318 100,000 86,000 3 76,318 7,000 65,457 100,000 79,000 4 65,457 7,000 55,201 100,000 72,000 5 55,201 7,000 45,516 100,000 65,000 6 45,516 7,000 36,371 100,000 58,000 7 36,371 7,000 27,735 100,000 51,000 8 27,735 7,000 19,550 100,000 44,000 9 19,550 7,000 11,821 100,000 37,000 10 11,821 7,000 4,523 100,000 30,000 11 4,523 7,000 0 100,000 23,000 12 0 7,000 0 100,000 16,000 13 0 7,000 0 100,000 9,000 14 0 7,000 0 100,000 2,000 15 0 2,000 0 100,000 0
EXAMPLE -- ROPP DEATH BENEFIT - - You purchase the contract (with the ROPP rider) with a payment of $20,000. - - The contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: The total purchase payments minus adjustments for partial surrenders: Total purchase payments $20,000 minus adjusted partial surrenders, calculated as: $1,500 x $20,000 ---------------- = -1,667 $18,000 ------- for a death benefit of: $18,333
EXAMPLE -- MAV DEATH BENEFIT - - You purchase the contract (with the MAV rider) with a payment of $20,000. - - On the first contract anniversary the contract value grows to $24,000. - - During the second contract year the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 x $24,000 ---------------- = -1,636 $22,000 ------- for a death benefit of: $22,364
EXAMPLE -- 5-YEAR MAV DEATH BENEFIT - - You purchase the contract (with the 5-Year MAV rider) with a payment of $20,000. - - On the fifth contract anniversary the contract value grows to $30,000. - - During the sixth contract year the contract value falls to $25,000, at which point you take a $1,500 partial surrender, leaving a contract value of $23,500. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 83 WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: The maximum 5-year anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your 5-year contract anniversary contract values: $30,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 x $30,000 ---------------- = -1,800 $25,000 ------- for a death benefit of: $28,200
EXAMPLE -- EEB DEATH BENEFIT - - You purchase the contract with a payment of $100,000 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEB. - - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so the EEB does not provide any additional benefit at this time. - - On the first contract anniversary the contract value grows to $110,000. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- - On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- - During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $47,235. We calculate purchase payments not previously surrendered as $100,000 -- $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): ($50,000 x $110,000) $110,000 - -------------------- = $57,619 $105,000 plus the EEB (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 ------- Total death benefit of: $58,667
- - On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58,667. The reduction in contract value has no effect. - - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $255,000
84 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - - During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit equals: MAV death benefit amount (contract value less purchase payment credits reversed) $250,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $305,000
- - During the eleventh contract year the contract value remains $250,500 and the "new" purchase payment is now one year old. The value of the EEB changes. The death benefit equals: MAV death benefit amount (contract value): $250,500 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 x ($250,500 - $105,000) = +58,200 -------- Total death benefit of: $308,700
EXAMPLE -- EEP DEATH BENEFIT - - You purchase the contract with an exchange purchase payment of $100,000 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEP. - - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit amount, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so neither the EEP Part I nor Part II provides any additional benefit at this time. - - On the first contract anniversary the contract value grows to $110,000. You have not reached the second contract anniversary so the EEP Part II does not provide any additional benefit at this time. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit amount minus purchase payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- - On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $100,000 = +10,000 -------- Total death benefit of: $124,000
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 85 - - During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $47,235. We calculate purchase payments not previously surrendered as $100,000 -- $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): ($50,000 x $110,000) $110,000 - -------------------- = $57,619 $105,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $55,000 = +5,500 ------- Total death benefit of: $64,167
- - On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $64,167. The reduction in contract value has no effect. - - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. Because we are beyond the fourth contract anniversary the EEP also reaches its maximum of 20%. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEP Part I (40% of earnings at death) .40 x (2.50 x $55,000) = +55,000 plus the EEP Part II which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $266,000
- - During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on either the EEP Part I or EEP Part II. The death benefit equals: MAV death benefit amount (contract value less purchase payment credits reversed): $250,000 plus the EEP Part I (40% of earnings at death) .40 x (2.50 x $55,000) = +55,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and Not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $316,000
- - During the eleventh contract year the contract value remains $250,500 and the "new" purchase payment is now one year old. The value of the EEP Part I changes but the value of the EEP Part II remains constant. The death benefit equals: MAV death benefit amount (contract value): $250,500 the EEP Part I which equals 40% of earnings at death (the MAV death benefit minus payments not previously surrendered): 0.40 x ($250,500 - $105,000) = +58,200 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue And not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $319,700
86 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS APPENDIX D: CONDENSED FINANCIAL INFORMATION (UNAUDITED) The following tables give per-unit information about the financial history of each subaccount. The date in which operations commenced in each subaccount is noted in parentheses. We have not provided this information to subaccounts that were not available under your contract as of Dec. 31, 2009.
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------ ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.71 $1.36 $1.14 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.08 $0.71 $1.36 $1.14 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 69 49 61 653 144 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $0.81 $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 $1.00 -- Accumulation unit value at end of period $0.97 $0.81 $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 388 452 1,081 1,374 1,186 726 969 310 136 -- - ------------------------------------------------------------------------------------------------------------------------ ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.24 $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 $1.00 -- Accumulation unit value at end of period $1.66 $1.24 $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 1,925 3,352 3,600 3,592 2,607 984 472 606 210 -- - ------------------------------------------------------------------------------------------------------------------------ AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $0.93 $1.70 $1.45 $1.17 $1.04 $0.91 $0.74 $0.93 $1.00 -- Accumulation unit value at end of period $1.24 $0.93 $1.70 $1.45 $1.17 $1.04 $0.91 $0.74 $0.93 -- Number of accumulation units outstanding at end of period (000 omitted) 263 286 389 365 314 127 5 254 1 -- - ------------------------------------------------------------------------------------------------------------------------ AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.68 $0.90 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.68 $0.90 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,289 1,327 1,710 -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.69 $1.20 $1.00 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.93 $0.69 $1.20 $1.00 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 91 72 187 2,939 618 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.10 $1.51 $1.61 $1.36 $1.31 $1.15 $0.90 $1.04 $1.00 -- Accumulation unit value at end of period $1.31 $1.10 $1.51 $1.61 $1.36 $1.31 $1.15 $0.90 $1.04 -- Number of accumulation units outstanding at end of period (000 omitted) 469 483 848 1,060 1,104 1,064 673 483 146 -- - ------------------------------------------------------------------------------------------------------------------------ CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $0.79 $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 $1.00 Accumulation unit value at end of period $0.99 $0.79 $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 10 24 21 18 5 54 8 8 6 5 - ------------------------------------------------------------------------------------------------------------------------ COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (04/28/2006) Accumulation unit value at beginning of period $0.81 $1.09 $1.07 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.16 $0.81 $1.09 $1.07 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 461 402 788 585 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.72 $1.20 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.72 $1.20 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,497 6,506 5,466 2,834 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.65 $1.27 $1.07 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.65 $1.27 $1.07 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 810 730 772 2,194 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.75 $1.13 $0.97 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.75 $1.13 $0.97 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 605 506 677 1,600 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.76 $1.04 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.08 $0.76 $1.04 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,787 2,025 2,116 2,567 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 87
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------ EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.07 $1.84 $1.62 $1.32 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.23 $1.07 $1.84 $1.62 $1.32 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,398 408 500 669 661 76 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.69 $1.21 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $0.69 $1.21 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,368 8,518 7,443 6,582 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.82 $1.42 $1.28 $1.14 $1.06 $1.01 $0.83 $1.00 $1.00 -- Accumulation unit value at end of period $1.04 $0.82 $1.42 $1.28 $1.14 $1.06 $1.01 $0.83 $1.00 -- Number of accumulation units outstanding at end of period (000 omitted) 805 963 1,126 1,624 1,338 994 432 233 132 -- - ------------------------------------------------------------------------------------------------------------------------ FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.43 $2.39 $2.08 $1.86 $1.59 $1.28 $0.93 $1.04 $1.00 -- Accumulation unit value at end of period $1.99 $1.43 $2.39 $2.08 $1.86 $1.59 $1.28 $0.93 $1.04 -- Number of accumulation units outstanding at end of period (000 omitted) 2,734 3,823 3,786 4,011 2,702 1,034 510 325 132 -- - ------------------------------------------------------------------------------------------------------------------------ FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.08 $1.93 $1.66 $1.42 $1.20 $1.06 $0.75 $0.95 $1.00 -- Accumulation unit value at end of period $1.35 $1.08 $1.93 $1.66 $1.42 $1.20 $1.06 $0.75 $0.95 -- Number of accumulation units outstanding at end of period (000 omitted) 558 771 890 1,130 728 573 205 324 7 -- - ------------------------------------------------------------------------------------------------------------------------ FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.48 $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 Accumulation unit value at end of period $1.75 $1.48 $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 Number of accumulation units outstanding at end of period (000 omitted) 232 262 688 836 667 487 349 205 211 148 - ------------------------------------------------------------------------------------------------------------------------ FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.61 $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 Accumulation unit value at end of period $2.07 $1.61 $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 352 465 576 738 593 414 242 282 150 9 - ------------------------------------------------------------------------------------------------------------------------ FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.98 $1.57 $1.53 $1.30 $1.18 $1.05 $0.85 $0.97 $1.00 -- Accumulation unit value at end of period $1.23 $0.98 $1.57 $1.53 $1.30 $1.18 $1.05 $0.85 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 525 670 761 865 716 533 667 130 -- -- - ------------------------------------------------------------------------------------------------------------------------ GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.74 $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 Accumulation unit value at end of period $2.30 $1.74 $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 922 1,060 2,008 2,339 1,930 834 639 450 200 15 - ------------------------------------------------------------------------------------------------------------------------ GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $0.72 $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 Accumulation unit value at end of period $0.87 $0.72 $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 Number of accumulation units outstanding at end of period (000 omitted) 826 1,128 1,678 2,499 3,019 1,522 735 694 943 577 - ------------------------------------------------------------------------------------------------------------------------ INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.72 $1.26 $1.14 $1.08 $1.00 $0.94 $0.73 $0.98 $1.00 -- Accumulation unit value at end of period $0.86 $0.72 $1.26 $1.14 $1.08 $1.00 $0.94 $0.73 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 451 495 371 489 1,554 110 85 4 6 -- - ------------------------------------------------------------------------------------------------------------------------ INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.86 $1.63 $1.48 $1.28 $1.18 $1.03 $0.77 $0.98 $1.00 -- Accumulation unit value at end of period $1.21 $0.86 $1.63 $1.48 $1.28 $1.18 $1.03 $0.77 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 54 71 208 183 141 107 284 180 3 -- - ------------------------------------------------------------------------------------------------------------------------ INVESCO V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.44 $1.08 $1.39 $1.20 $1.14 $1.06 $0.82 $0.97 $1.00 -- Accumulation unit value at end of period $0.55 $0.44 $1.08 $1.39 $1.20 $1.14 $1.06 $0.82 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 606 149 54 158 140 132 66 3 -- -- - ------------------------------------------------------------------------------------------------------------------------ INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.81 $1.14 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.02 $0.81 $1.14 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 403 73 115 1,114 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------
88 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------ INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.93 $1.58 $1.39 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.25 $0.93 $1.58 $1.39 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,658 2,794 1,479 105 5 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ INVESCO V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. TECHNOLOGY FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.48 $0.86 $0.81 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- Accumulation unit value at end of period $0.75 $0.48 $0.86 $0.81 $0.73 $0.72 $0.69 $0.48 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 411 351 275 418 532 249 96 3 -- -- - ------------------------------------------------------------------------------------------------------------------------ JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.63 $1.06 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,880 6,240 5,448 -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ LEGG MASON CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) (PREVIOUSLY LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I) Accumulation unit value at beginning of period $0.60 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.85 $0.60 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 136 127 65 -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.49 $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 $1.00 Accumulation unit value at end of period $0.68 $0.49 $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 406 260 317 481 640 522 874 785 913 533 - ------------------------------------------------------------------------------------------------------------------------ MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.62 $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 $1.00 Accumulation unit value at end of period $1.00 $0.62 $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 190 92 130 243 558 576 622 485 548 352 - ------------------------------------------------------------------------------------------------------------------------ MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.41 $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 $1.00 -- Accumulation unit value at end of period $1.86 $1.41 $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 -- Number of accumulation units outstanding at end of period (000 omitted) 562 821 765 1,065 588 211 139 139 138 -- - ------------------------------------------------------------------------------------------------------------------------ NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.57 $1.07 $1.05 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.76 $0.57 $1.07 $1.05 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,718 1,971 2,116 1,957 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.96 $1.62 $1.53 $1.31 $1.16 $1.00 -- -- -- -- Accumulation unit value at end of period $1.33 $0.96 $1.62 $1.53 $1.31 $1.16 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 604 777 1,099 1,309 756 158 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.08 $1.27 $1.16 $1.09 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.27 $1.08 $1.27 $1.16 $1.09 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,634 8,498 9,223 6,331 3,173 403 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.87 $1.41 $1.44 $1.26 $1.16 $1.00 -- -- -- -- Accumulation unit value at end of period $1.18 $0.87 $1.41 $1.44 $1.26 $1.16 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 717 646 676 773 643 432 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.94 $1.12 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.94 $1.12 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,431 4,628 4,555 4,105 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.92 $1.11 $1.12 $1.10 $0.98 $0.92 $0.78 $0.98 $1.00 -- Accumulation unit value at end of period $1.15 $0.92 $1.11 $1.12 $1.10 $0.98 $0.92 $0.78 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 27 111 67 195 218 67 170 145 129 -- - ------------------------------------------------------------------------------------------------------------------------ PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.99 $1.78 $1.65 $1.30 $1.16 $1.01 $0.79 $0.96 $1.00 -- Accumulation unit value at end of period $1.23 $0.99 $1.78 $1.65 $1.30 $1.16 $1.01 $0.79 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 57 91 69 164 145 194 207 881 418 -- - ------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 89
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------ PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $0.60 $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 Accumulation unit value at end of period $0.83 $0.60 $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 Number of accumulation units outstanding at end of period (000 omitted) 149 221 370 429 374 375 431 525 1,092 1,330 - ------------------------------------------------------------------------------------------------------------------------ RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.70 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.70 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 914 547 -- -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.98 $0.84 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 50 -- -- -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 41 -- -- -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 83 67 -- -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.94 $0.79 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3 -- -- -- -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.88 $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 Accumulation unit value at end of period $1.09 $0.88 $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 733 602 372 459 623 257 221 120 296 145 - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(09/15/1999) Accumulation unit value at beginning of period $1.25 $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 Accumulation unit value at end of period $1.24 $1.25 $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 2,492 10,988 11,779 8,286 4,504 2,098 447 3,911 5,658 6,615 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (0.58%) and (0.58%), respectively. - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.33 $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 Accumulation unit value at end of period $1.51 $1.33 $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 10,140 8,140 9,540 7,272 3,619 2,145 1,691 762 985 410 - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 Accumulation unit value at end of period $1.47 $1.16 $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 7,610 8,565 9,289 9,434 5,165 3,041 1,239 1,262 281 218 - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.57 $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 Accumulation unit value at end of period $0.70 $0.57 $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 877 1,397 1,682 2,453 3,121 1,484 172 202 291 266 - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.55 $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 Accumulation unit value at end of period $1.72 $1.55 $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 3,215 2,861 3,115 2,645 1,377 741 714 251 249 4 - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.13 $1.13 $1.06 $1.05 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.20 $1.13 $1.13 $1.06 $1.05 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,705 2,307 2,713 2,959 1,455 5,004 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.05 $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 Accumulation unit value at end of period $1.61 $1.05 $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 639 713 1,605 1,925 2,397 2,886 4,230 1,480 1,549 1,186 - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.95 $1.17 $1.15 $1.07 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.34 $0.95 $1.17 $1.15 $1.07 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,111 2,233 2,599 2,358 493 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------
90 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (05/01/2001) Accumulation unit value at beginning of period $0.78 $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 $1.00 -- Accumulation unit value at end of period $1.26 $0.78 $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 -- Number of accumulation units outstanding at end of period (000 omitted) 363 242 268 450 655 523 578 328 38 -- - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.82 $1.50 $1.37 $1.20 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.15 $0.82 $1.50 $1.37 $1.20 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,292 1,658 1,406 2,575 115 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $0.66 $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 $1.00 Accumulation unit value at end of period $0.83 $0.66 $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 741 1,447 1,022 1,170 2,054 1,958 1,381 973 770 285 - ------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.30 $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 Accumulation unit value at end of period $1.36 $1.30 $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 825 1,394 817 493 688 870 1,097 1,275 592 1 - ------------------------------------------------------------------------------------------------------------------------ RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.42 $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 Accumulation unit value at end of period $0.57 $0.42 $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 2,260 2,601 3,768 6,049 6,193 2,153 1,664 1,064 1,285 1,762 - ------------------------------------------------------------------------------------------------------------------------ RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.81 $1.34 $1.35 $1.14 $1.10 $1.00 -- -- -- -- Accumulation unit value at end of period $1.01 $0.81 $1.34 $1.35 $1.14 $1.10 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 195 67 67 184 92 65 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.04 $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 Accumulation unit value at end of period $1.44 $1.04 $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 57 113 214 333 514 779 660 393 378 286 - ------------------------------------------------------------------------------------------------------------------------ RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $1.33 $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 $1.00 Accumulation unit value at end of period $2.31 $1.33 $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 1,522 2,437 1,993 2,144 1,491 475 115 277 3 1 - ------------------------------------------------------------------------------------------------------------------------ RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.76 $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 Accumulation unit value at end of period $0.96 $0.76 $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 910 1,080 1,307 1,343 1,252 848 143 488 65 81 - ------------------------------------------------------------------------------------------------------------------------ RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.69 $1.13 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.90 $0.69 $1.13 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,045 4,641 3,570 3,666 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.86 $1.37 $1.30 $1.13 $1.13 $1.00 -- -- -- -- Accumulation unit value at end of period $1.17 $0.86 $1.37 $1.30 $1.13 $1.13 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 176 74 115 77 235 182 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (08/14/2001) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.24 $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 $1.00 -- Accumulation unit value at end of period $1.68 $1.24 $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 -- Number of accumulation units outstanding at end of period (000 omitted) 3,210 3,353 3,487 2,495 2,068 860 982 627 411 -- - ------------------------------------------------------------------------------------------------------------------------ VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.85 $1.34 $1.38 $1.19 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.09 $0.85 $1.34 $1.38 $1.19 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,639 3,700 3,639 4,892 3,642 641 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.62 $1.12 $1.23 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.62 $1.12 $1.23 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,794 1,961 1,463 1,473 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 91
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------ VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.64 $1.21 $0.99 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.00 $0.64 $1.21 $0.99 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 356 270 140 1,068 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $1.44 $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 Accumulation unit value at end of period $2.15 $1.44 $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 2,334 2,433 2,932 3,471 2,814 1,701 1,136 1,484 769 599 - ------------------------------------------------------------------------------------------------------------------------ WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.21 $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 Accumulation unit value at end of period $1.71 $1.21 $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 2,350 3,272 3,659 3,852 2,709 1,415 1,250 847 820 990 - ------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $0.87 $1.46 $1.38 $1.23 $1.15 $0.98 $0.72 $0.99 $1.00 -- Accumulation unit value at end of period $1.28 $0.87 $1.46 $1.38 $1.23 $1.15 $0.98 $0.72 $0.99 -- Number of accumulation units outstanding at end of period (000 omitted) 298 182 331 421 467 408 445 314 136 -- - ------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $0.79 $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 $1.00 -- Accumulation unit value at end of period $1.20 $0.79 $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 -- Number of accumulation units outstanding at end of period (000 omitted) 225 258 231 84 35 10 10 6 2 -- - ------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.71 $1.36 $1.14 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.07 $0.71 $1.36 $1.14 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,299 3,750 4,111 14,120 2,021 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $0.80 $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 $1.00 -- Accumulation unit value at end of period $0.95 $0.80 $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 68,595 84,420 116,725 135,093 149,316 125,010 82,114 43,189 5,550 -- - -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.23 $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 $1.00 -- Accumulation unit value at end of period $1.63 $1.23 $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 150,692 202,780 217,241 203,016 153,107 70,504 34,604 12,313 805 -- - -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $0.92 $1.68 $1.44 $1.16 $1.03 $0.91 $0.73 $0.93 $1.00 -- Accumulation unit value at end of period $1.22 $0.92 $1.68 $1.44 $1.16 $1.03 $0.91 $0.73 $0.93 -- Number of accumulation units outstanding at end of period (000 omitted) 26,575 32,736 42,202 45,349 43,612 34,180 21,555 11,378 1,950 -- - -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.68 $0.90 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.68 $0.90 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 48,044 54,402 56,815 -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.69 $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.92 $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,805 12,809 13,321 78,916 10,074 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.08 $1.49 $1.59 $1.35 $1.30 $1.15 $0.90 $1.04 $1.00 -- Accumulation unit value at end of period $1.29 $1.08 $1.49 $1.59 $1.35 $1.30 $1.15 $0.90 $1.04 -- Number of accumulation units outstanding at end of period (000 omitted) 72,598 82,749 118,591 136,167 142,660 110,681 74,984 42,497 7,356 -- - --------------------------------------------------------------------------------------------------------------------------------
92 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $0.78 $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 $1.00 Accumulation unit value at end of period $0.97 $0.78 $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 15,940 18,431 21,893 24,975 23,850 20,551 15,315 9,520 4,490 1,283 - -------------------------------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (04/28/2006) Accumulation unit value at beginning of period $0.81 $1.08 $1.07 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.15 $0.81 $1.08 $1.07 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,889 31,527 41,917 48,099 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.72 $1.19 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.90 $0.72 $1.19 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 378,240 310,527 204,077 121,798 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.65 $1.27 $1.07 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.65 $1.27 $1.07 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,788 41,006 32,112 59,299 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.74 $1.13 $0.97 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.74 $1.13 $0.97 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 39,767 30,400 17,045 51,380 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.75 $1.04 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.08 $0.75 $1.04 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 162,181 119,741 111,086 103,830 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.06 $1.83 $1.61 $1.32 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.22 $1.06 $1.83 $1.61 $1.32 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,414 12,645 16,521 19,055 15,273 4,245 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.68 $1.20 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.92 $0.68 $1.20 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 269,589 398,515 294,643 244,121 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.81 $1.40 $1.26 $1.13 $1.06 $1.01 $0.82 $1.00 $1.00 -- Accumulation unit value at end of period $1.02 $0.81 $1.40 $1.26 $1.13 $1.06 $1.01 $0.82 $1.00 -- Number of accumulation units outstanding at end of period (000 omitted) 92,559 113,690 148,743 173,861 189,109 187,351 119,284 48,686 6,363 -- - -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.41 $2.36 $2.06 $1.85 $1.58 $1.27 $0.93 $1.04 $1.00 -- Accumulation unit value at end of period $1.96 $1.41 $2.36 $2.06 $1.85 $1.58 $1.27 $0.93 $1.04 -- Number of accumulation units outstanding at end of period (000 omitted) 187,652 236,346 264,423 290,678 260,492 188,565 109,647 50,458 6,903 -- - -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.06 $1.91 $1.64 $1.40 $1.19 $1.06 $0.75 $0.95 $1.00 -- Accumulation unit value at end of period $1.33 $1.06 $1.91 $1.64 $1.40 $1.19 $1.06 $0.75 $0.95 -- Number of accumulation units outstanding at end of period (000 omitted) 43,314 53,513 66,434 74,339 70,878 66,935 31,322 13,157 2,147 -- - -------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.45 $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 Accumulation unit value at end of period $1.71 $1.45 $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 Number of accumulation units outstanding at end of period (000 omitted) 50,767 62,873 93,100 128,540 139,618 120,456 87,330 59,317 24,477 6,879 - --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 93
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.58 $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 Accumulation unit value at end of period $2.02 $1.58 $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 Number of accumulation units outstanding at end of period (000 omitted) 42,025 52,033 66,946 78,886 78,073 59,293 43,978 29,743 10,800 2,846 - -------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.97 $1.55 $1.51 $1.29 $1.17 $1.05 $0.85 $0.97 $1.00 -- Accumulation unit value at end of period $1.21 $0.97 $1.55 $1.51 $1.29 $1.17 $1.05 $0.85 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 57,678 68,255 94,998 90,391 69,986 45,710 26,370 10,942 942 -- - -------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.71 $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 Accumulation unit value at end of period $2.26 $1.71 $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 78,043 97,291 139,637 163,687 174,918 115,616 83,015 56,079 23,748 7,622 - -------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $0.71 $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 Accumulation unit value at end of period $0.85 $0.71 $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 Number of accumulation units outstanding at end of period (000 omitted) 108,298 131,282 187,585 231,223 248,935 128,074 83,166 71,820 60,343 42,626 - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.71 $1.25 $1.12 $1.07 $0.99 $0.94 $0.73 $0.98 $1.00 -- Accumulation unit value at end of period $0.85 $0.71 $1.25 $1.12 $1.07 $0.99 $0.94 $0.73 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 67,782 76,677 90,475 109,952 134,591 39,117 20,015 11,313 1,710 -- - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.84 $1.61 $1.47 $1.27 $1.17 $1.02 $0.76 $0.98 $1.00 -- Accumulation unit value at end of period $1.19 $0.84 $1.61 $1.47 $1.27 $1.17 $1.02 $0.76 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 13,229 16,534 23,253 25,868 24,349 20,043 10,924 6,981 1,459 -- - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.43 $1.06 $1.38 $1.19 $1.14 $1.05 $0.82 $0.97 $1.00 -- Accumulation unit value at end of period $0.54 $0.43 $1.06 $1.38 $1.19 $1.14 $1.05 $0.82 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 14,877 13,625 9,208 12,088 10,621 10,625 8,724 5,572 1,081 -- - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.80 $1.13 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.01 $0.80 $1.13 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,089 8,014 5,881 33,923 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.93 $1.57 $1.39 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.24 $0.93 $1.57 $1.39 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 128,526 99,290 48,018 1,744 127 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. TECHNOLOGY FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.47 $0.85 $0.80 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- Accumulation unit value at end of period $0.73 $0.47 $0.85 $0.80 $0.73 $0.72 $0.69 $0.48 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 21,730 19,001 21,716 25,440 31,926 14,454 7,882 3,769 490 -- - -------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.85 $0.63 $1.06 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 305,123 238,472 154,650 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------
94 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- LEGG MASON CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) (PREVIOUSLY LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I) Accumulation unit value at beginning of period $0.60 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.85 $0.60 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,551 1,524 1,080 -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.48 $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 $1.00 Accumulation unit value at end of period $0.67 $0.48 $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 67,421 63,755 80,158 100,533 117,493 108,239 91,666 69,576 50,212 19,521 - -------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.61 $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 $1.00 Accumulation unit value at end of period $0.98 $0.61 $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 28,887 32,039 42,261 51,188 62,995 77,406 74,690 59,272 34,072 12,308 - -------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.39 $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 $1.00 -- Accumulation unit value at end of period $1.83 $1.39 $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 -- Number of accumulation units outstanding at end of period (000 omitted) 56,324 67,989 78,212 71,164 55,870 28,362 18,051 10,543 2,997 -- - -------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.57 $1.07 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.76 $0.57 $1.07 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 75,726 78,811 64,614 57,067 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.95 $1.60 $1.52 $1.31 $1.16 $1.00 -- -- -- -- Accumulation unit value at end of period $1.31 $0.95 $1.60 $1.52 $1.31 $1.16 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 31,543 36,705 48,173 51,514 33,811 11,540 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.07 $1.26 $1.16 $1.09 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.25 $1.07 $1.26 $1.16 $1.09 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 519,119 569,070 536,032 339,587 150,945 22,945 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.86 $1.40 $1.43 $1.26 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.17 $0.86 $1.40 $1.43 $1.26 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,658 27,205 34,265 34,462 18,592 7,652 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.93 $1.12 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.93 $1.12 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 218,702 228,912 161,214 154,199 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.90 $1.10 $1.11 $1.09 $0.97 $0.91 $0.78 $0.98 $1.00 -- Accumulation unit value at end of period $1.13 $0.90 $1.10 $1.11 $1.09 $0.97 $0.91 $0.78 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 12,725 15,248 19,770 25,848 27,299 21,518 18,023 11,416 2,137 -- - -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.98 $1.75 $1.63 $1.29 $1.15 $1.00 $0.78 $0.96 $1.00 -- Accumulation unit value at end of period $1.21 $0.98 $1.75 $1.63 $1.29 $1.15 $1.00 $0.78 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 16,372 20,502 29,411 34,316 37,980 40,598 38,012 20,773 2,460 -- - -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $0.59 $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 Accumulation unit value at end of period $0.82 $0.59 $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 Number of accumulation units outstanding at end of period (000 omitted) 21,581 25,511 33,551 42,808 49,747 57,095 67,224 72,033 74,819 49,764 - --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 95
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.71 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,669 6,188 -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.98 $0.84 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,032 11,487 -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 45,180 25,617 -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.74 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.74 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,720 16,958 -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.80 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.94 $0.80 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,560 11,805 -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.86 $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 Accumulation unit value at end of period $1.07 $0.86 $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 74,529 61,707 86,628 89,309 92,705 84,704 79,035 64,273 37,760 28,348 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(09/15/1999) Accumulation unit value at beginning of period $1.22 $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 Accumulation unit value at end of period $1.22 $1.22 $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 197,288 399,214 286,121 258,492 193,996 187,100 203,753 255,251 243,870 171,785 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (0.75%) and (0.75%), respectively. - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.30 $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 Accumulation unit value at end of period $1.48 $1.30 $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 638,984 610,707 599,680 511,100 332,677 221,377 188,939 154,530 83,968 30,783 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.15 $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 Accumulation unit value at end of period $1.45 $1.15 $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 508,061 530,216 560,416 585,144 408,559 255,776 134,486 86,442 43,328 12,124 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.56 $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 Accumulation unit value at end of period $0.69 $0.56 $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 257,537 301,682 383,078 450,207 263,828 130,790 69,981 52,124 26,327 24,003 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.52 $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 Accumulation unit value at end of period $1.68 $1.52 $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 195,536 201,728 204,316 169,931 130,135 82,347 51,936 31,133 16,572 8,968 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.12 $1.13 $1.05 $1.05 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.19 $1.12 $1.13 $1.05 $1.05 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 302,524 171,393 147,400 161,490 91,038 2,274 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------
96 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.03 $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 Accumulation unit value at end of period $1.57 $1.03 $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 137,350 147,297 218,538 251,768 262,154 242,254 177,150 93,845 58,348 31,722 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.94 $1.16 $1.14 $1.07 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.33 $0.94 $1.16 $1.14 $1.07 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 229,076 128,653 116,516 109,316 29,477 1,052 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (05/01/2001) Accumulation unit value at beginning of period $0.75 $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 $1.00 -- Accumulation unit value at end of period $1.22 $0.75 $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 -- Number of accumulation units outstanding at end of period (000 omitted) 40,215 38,730 50,337 62,826 47,283 53,376 42,780 16,388 2,489 -- - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.81 $1.49 $1.36 $1.19 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.14 $0.81 $1.49 $1.36 $1.19 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 57,405 76,989 71,709 101,239 6,605 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $0.65 $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 $1.00 Accumulation unit value at end of period $0.81 $0.65 $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 91,208 100,420 127,010 139,008 154,949 144,039 103,587 64,771 35,957 9,812 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.27 $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 Accumulation unit value at end of period $1.33 $1.27 $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 109,059 125,698 120,018 125,729 145,087 160,725 155,718 124,866 50,510 16,258 - -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.41 $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 Accumulation unit value at end of period $0.56 $0.41 $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 147,034 180,650 283,769 326,108 323,849 191,140 192,314 135,693 129,186 97,754 - -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.80 $1.33 $1.34 $1.14 $1.10 $1.00 -- -- -- -- Accumulation unit value at end of period $1.00 $0.80 $1.33 $1.34 $1.14 $1.10 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,269 5,696 7,988 7,937 6,232 3,498 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.03 $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 Accumulation unit value at end of period $1.42 $1.03 $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 21,859 26,621 38,095 49,721 59,243 61,563 44,627 29,202 22,792 14,830 - -------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $1.29 $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 $1.00 Accumulation unit value at end of period $2.23 $1.29 $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 Number of accumulation units outstanding at end of period (000 omitted) 80,593 111,551 89,546 89,672 75,520 22,549 8,256 4,750 1,789 906 - -------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.74 $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 Accumulation unit value at end of period $0.94 $0.74 $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 48,442 55,412 75,421 80,961 77,787 51,446 23,614 20,012 15,821 13,967 - -------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.68 $1.12 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.68 $1.12 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 303,537 183,635 117,605 123,150 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 97
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.85 $1.36 $1.29 $1.12 $1.12 $1.00 -- -- -- -- Accumulation unit value at end of period $1.16 $0.85 $1.36 $1.29 $1.12 $1.12 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,203 6,409 9,188 9,786 10,247 4,730 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (08/14/2001) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.22 $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 $1.00 -- Accumulation unit value at end of period $1.66 $1.22 $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 -- Number of accumulation units outstanding at end of period (000 omitted) 149,191 156,845 148,793 126,637 127,559 90,541 67,609 43,199 6,885 -- - -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.85 $1.33 $1.37 $1.19 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.08 $0.85 $1.33 $1.37 $1.19 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 178,986 227,595 224,730 258,223 203,272 36,974 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.61 $1.11 $1.23 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.61 $1.11 $1.23 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67,174 88,969 51,109 51,499 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.64 $1.20 $0.99 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.99 $0.64 $1.20 $0.99 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,479 17,546 14,940 37,273 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $1.42 $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 Accumulation unit value at end of period $2.11 $1.42 $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 131,326 142,736 164,570 186,862 170,230 104,567 66,022 43,554 27,818 18,245 - -------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.18 $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 Accumulation unit value at end of period $1.67 $1.18 $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 155,213 176,483 212,646 235,960 241,623 184,961 129,824 78,311 40,791 23,813 - -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $0.86 $1.44 $1.36 $1.22 $1.14 $0.97 $0.72 $0.99 $1.00 -- Accumulation unit value at end of period $1.26 $0.86 $1.44 $1.36 $1.22 $1.14 $0.97 $0.72 $0.99 -- Number of accumulation units outstanding at end of period (000 omitted) 19,019 22,799 30,772 36,471 41,049 43,145 38,865 25,397 3,701 -- - -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $0.78 $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 $1.00 -- Accumulation unit value at end of period $1.18 $0.78 $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 -- Number of accumulation units outstanding at end of period (000 omitted) 31,042 29,488 35,670 25,726 19,618 22,185 19,289 9,992 2,060 -- - --------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.70 $1.35 $1.14 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.07 $0.70 $1.35 $1.14 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,654 2,593 2,415 5,609 801 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $0.78 $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 $1.00 -- Accumulation unit value at end of period $0.93 $0.78 $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 41,871 53,105 74,246 84,552 91,924 75,935 54,358 29,770 4,363 -- - --------------------------------------------------------------------------------------------------------------------------------
98 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.21 $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 $1.00 -- Accumulation unit value at end of period $1.61 $1.21 $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 93,058 122,930 135,634 127,479 94,909 44,705 24,114 9,270 790 -- - -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $0.91 $1.66 $1.42 $1.15 $1.03 $0.90 $0.73 $0.93 $1.00 -- Accumulation unit value at end of period $1.20 $0.91 $1.66 $1.42 $1.15 $1.03 $0.90 $0.73 $0.93 -- Number of accumulation units outstanding at end of period (000 omitted) 15,628 19,242 25,059 26,700 27,136 22,031 15,471 8,200 1,927 -- - -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.67 $0.90 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.67 $0.90 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,355 30,504 28,466 -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.69 $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,957 7,931 8,170 35,411 4,856 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.07 $1.47 $1.57 $1.34 $1.29 $1.14 $0.89 $1.04 $1.00 -- Accumulation unit value at end of period $1.27 $1.07 $1.47 $1.57 $1.34 $1.29 $1.14 $0.89 $1.04 -- Number of accumulation units outstanding at end of period (000 omitted) 48,731 56,747 81,683 93,343 95,710 71,318 50,607 30,523 7,298 -- - -------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $0.76 $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 $1.00 Accumulation unit value at end of period $0.95 $0.76 $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 9,852 12,240 17,034 19,334 19,301 17,682 14,100 9,832 6,090 1,693 - -------------------------------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (04/28/2006) Accumulation unit value at beginning of period $0.80 $1.08 $1.07 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.15 $0.80 $1.08 $1.07 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,890 19,527 26,868 30,821 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.71 $1.19 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.71 $1.19 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 214,161 176,791 113,001 66,352 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.65 $1.26 $1.07 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.65 $1.26 $1.07 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,723 26,849 22,702 32,712 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.74 $1.13 $0.97 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.74 $1.13 $0.97 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,662 22,011 12,631 26,224 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.75 $1.04 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $0.75 $1.04 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 105,964 79,727 71,987 59,159 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.82 $1.60 $1.31 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.20 $1.05 $1.82 $1.60 $1.31 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 69,836 8,283 11,475 12,674 9,815 2,086 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 99
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.68 $1.20 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.68 $1.20 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 167,696 237,020 166,815 127,364 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.80 $1.38 $1.25 $1.12 $1.05 $1.00 $0.82 $1.00 $1.00 -- Accumulation unit value at end of period $1.00 $0.80 $1.38 $1.25 $1.12 $1.05 $1.00 $0.82 $1.00 -- Number of accumulation units outstanding at end of period (000 omitted) 57,593 72,387 96,482 112,864 121,317 119,521 81,919 36,320 8,177 -- - -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.39 $2.33 $2.04 $1.83 $1.57 $1.27 $0.93 $1.04 $1.00 -- Accumulation unit value at end of period $1.93 $1.39 $2.33 $2.04 $1.83 $1.57 $1.27 $0.93 $1.04 -- Number of accumulation units outstanding at end of period (000 omitted) 106,479 136,525 156,364 174,833 157,678 117,171 72,124 35,541 6,689 -- - -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.05 $1.88 $1.62 $1.39 $1.18 $1.05 $0.74 $0.94 $1.00 -- Accumulation unit value at end of period $1.31 $1.05 $1.88 $1.62 $1.39 $1.18 $1.05 $0.74 $0.94 -- Number of accumulation units outstanding at end of period (000 omitted) 29,954 37,943 48,192 52,627 48,642 42,672 21,405 10,123 2,157 -- - -------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.42 $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 Accumulation unit value at end of period $1.68 $1.42 $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 Number of accumulation units outstanding at end of period (000 omitted) 31,073 39,491 59,503 81,589 88,911 80,587 63,047 44,591 19,803 6,181 - -------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.55 $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 Accumulation unit value at end of period $1.98 $1.55 $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 Number of accumulation units outstanding at end of period (000 omitted) 28,730 36,256 46,935 55,078 55,521 44,541 34,639 23,553 9,584 2,897 - -------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.96 $1.53 $1.50 $1.28 $1.17 $1.04 $0.84 $0.96 $1.00 -- Accumulation unit value at end of period $1.19 $0.96 $1.53 $1.50 $1.28 $1.17 $1.04 $0.84 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 39,361 47,292 65,658 63,662 50,166 33,241 21,294 9,151 1,114 -- - -------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.68 $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 Accumulation unit value at end of period $2.21 $1.68 $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 51,883 65,990 96,413 112,452 117,932 84,473 65,106 47,539 24,711 10,265 - -------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $0.70 $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 Accumulation unit value at end of period $0.84 $0.70 $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 Number of accumulation units outstanding at end of period (000 omitted) 70,758 87,685 126,734 160,736 168,697 108,140 80,350 75,489 71,185 55,239 - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.70 $1.23 $1.11 $1.06 $0.98 $0.93 $0.73 $0.98 $1.00 -- Accumulation unit value at end of period $0.84 $0.70 $1.23 $1.11 $1.06 $0.98 $0.93 $0.73 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 33,205 38,700 46,783 56,007 64,800 21,785 12,215 7,624 1,711 -- - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.83 $1.59 $1.45 $1.26 $1.16 $1.02 $0.76 $0.98 $1.00 -- Accumulation unit value at end of period $1.17 $0.83 $1.59 $1.45 $1.26 $1.16 $1.02 $0.76 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 7,715 9,784 13,998 14,692 13,500 12,074 7,348 4,808 1,224 -- - --------------------------------------------------------------------------------------------------------------------------------
100 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.42 $1.05 $1.36 $1.18 $1.13 $1.05 $0.82 $0.96 $1.00 -- Accumulation unit value at end of period $0.53 $0.42 $1.05 $1.36 $1.18 $1.13 $1.05 $0.82 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 8,567 8,723 5,805 7,305 6,396 6,649 5,460 3,709 901 -- - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.80 $1.13 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.01 $0.80 $1.13 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,414 5,240 3,964 15,226 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.92 $1.57 $1.38 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.23 $0.92 $1.57 $1.38 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 76,801 53,711 23,729 1,198 107 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. TECHNOLOGY FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.46 $0.84 $0.79 $0.72 $0.71 $0.69 $0.48 $0.91 $1.00 -- Accumulation unit value at end of period $0.72 $0.46 $0.84 $0.79 $0.72 $0.71 $0.69 $0.48 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 11,446 8,853 10,072 12,094 14,960 8,076 5,212 2,845 911 -- - -------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.85 $0.63 $1.06 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 168,562 128,192 72,177 -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- LEGG MASON CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) (PREVIOUSLY LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I) Accumulation unit value at beginning of period $0.60 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.85 $0.60 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,436 1,203 741 -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.48 $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 $1.00 Accumulation unit value at end of period $0.66 $0.48 $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 44,235 44,360 58,819 73,300 84,506 78,223 74,564 62,663 51,051 21,973 - -------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.60 $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 $1.00 Accumulation unit value at end of period $0.96 $0.60 $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 20,432 22,831 31,915 38,120 48,503 60,214 61,988 53,383 36,822 15,060 - -------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.37 $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 $1.00 -- Accumulation unit value at end of period $1.80 $1.37 $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 -- Number of accumulation units outstanding at end of period (000 omitted) 35,891 43,832 51,479 45,869 35,163 18,264 12,519 7,093 2,778 -- - -------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.57 $1.07 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $0.57 $1.07 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 40,525 41,079 30,611 26,517 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.94 $1.59 $1.51 $1.30 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.30 $0.94 $1.59 $1.51 $1.30 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 21,263 24,950 32,187 34,962 20,721 6,121 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 101
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.25 $1.15 $1.08 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.24 $1.06 $1.25 $1.15 $1.08 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 350,910 395,298 360,480 226,000 94,657 11,924 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.85 $1.39 $1.42 $1.25 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.16 $0.85 $1.39 $1.42 $1.25 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,634 18,861 23,107 22,606 12,037 4,085 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.93 $1.12 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $0.93 $1.12 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 127,629 131,661 82,318 76,067 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.89 $1.08 $1.10 $1.08 $0.96 $0.91 $0.77 $0.98 $1.00 -- Accumulation unit value at end of period $1.11 $0.89 $1.08 $1.10 $1.08 $0.96 $0.91 $0.77 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 7,349 8,551 11,073 13,569 14,517 11,248 9,676 6,574 1,743 -- - -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.96 $1.73 $1.61 $1.27 $1.15 $1.00 $0.78 $0.96 $1.00 -- Accumulation unit value at end of period $1.19 $0.96 $1.73 $1.61 $1.27 $1.15 $1.00 $0.78 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 10,504 13,381 18,697 21,524 23,458 24,819 24,880 15,138 2,180 -- - -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $0.58 $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 Accumulation unit value at end of period $0.80 $0.58 $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 Number of accumulation units outstanding at end of period (000 omitted) 15,529 20,077 26,405 34,609 42,680 51,579 63,075 73,930 87,722 68,407 - -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.71 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,500 3,115 -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,467 7,436 -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,565 15,034 -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,191 9,299 -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.94 $0.79 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,602 8,524 -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.85 $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 Accumulation unit value at end of period $1.04 $0.85 $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 55,353 51,095 74,966 74,221 77,525 74,540 73,310 64,613 53,096 39,810 - --------------------------------------------------------------------------------------------------------------------------------
102 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(09/15/1999) Accumulation unit value at beginning of period $1.20 $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 Accumulation unit value at end of period $1.19 $1.20 $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 140,419 290,095 247,870 211,744 147,452 148,915 178,580 228,237 265,455 203,922 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (0.97%) and (0.97%), respectively. - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.28 $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 Accumulation unit value at end of period $1.45 $1.28 $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 447,493 430,993 408,270 351,043 257,273 190,125 176,013 159,405 106,760 43,920 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.13 $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 Accumulation unit value at end of period $1.42 $1.13 $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 307,581 329,220 363,274 383,460 278,737 181,318 99,776 67,958 41,299 14,227 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.55 $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 Accumulation unit value at end of period $0.68 $0.55 $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 147,939 180,807 242,876 290,744 144,230 94,730 45,599 34,956 26,779 22,159 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.49 $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 Accumulation unit value at end of period $1.65 $1.49 $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 137,253 142,773 141,675 123,834 102,876 72,702 54,100 36,626 23,970 14,137 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.11 $1.12 $1.05 $1.05 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.18 $1.11 $1.12 $1.05 $1.05 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 192,220 113,444 88,734 95,224 51,906 1,504 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.01 $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 Accumulation unit value at end of period $1.54 $1.01 $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 111,734 125,862 186,775 221,767 237,711 236,566 197,358 122,784 88,813 52,655 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.93 $1.16 $1.14 $1.06 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.31 $0.93 $1.16 $1.14 $1.06 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 141,698 76,770 65,977 61,812 18,068 783 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (05/01/2001) Accumulation unit value at beginning of period $0.74 $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 $1.00 -- Accumulation unit value at end of period $1.20 $0.74 $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 -- Number of accumulation units outstanding at end of period (000 omitted) 26,343 25,504 35,043 43,939 31,419 35,498 29,450 12,145 2,238 -- - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.81 $1.48 $1.36 $1.19 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.81 $1.48 $1.36 $1.19 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,037 45,362 43,555 54,642 4,982 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $0.64 $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 $1.00 Accumulation unit value at end of period $0.80 $0.64 $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 65,626 73,795 92,416 104,302 122,070 117,372 91,398 65,011 40,575 14,084 - -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 Accumulation unit value at end of period $1.30 $1.24 $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 88,306 108,778 104,637 108,222 121,249 130,386 135,202 116,147 56,966 24,654 - --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 103
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.41 $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 Accumulation unit value at end of period $0.55 $0.41 $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 90,930 116,110 186,447 216,237 212,229 135,373 147,485 118,986 130,764 106,410 - -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.79 $1.32 $1.34 $1.13 $1.09 $1.00 -- -- -- -- Accumulation unit value at end of period $0.99 $0.79 $1.32 $1.34 $1.13 $1.09 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,736 2,900 4,152 4,707 3,594 2,030 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.01 $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 Accumulation unit value at end of period $1.39 $1.01 $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 15,189 18,734 28,329 38,372 46,718 51,057 39,709 29,341 24,346 16,349 - -------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $1.27 $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 $1.00 Accumulation unit value at end of period $2.19 $1.27 $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 Number of accumulation units outstanding at end of period (000 omitted) 47,289 61,879 50,491 51,867 44,244 16,315 6,501 3,888 1,542 693 - -------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.73 $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 Accumulation unit value at end of period $0.92 $0.73 $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 35,421 42,730 58,762 64,541 61,793 40,351 21,462 19,189 18,664 15,670 - -------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.68 $1.11 $1.08 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.68 $1.11 $1.08 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 163,841 98,708 55,721 57,963 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.84 $1.34 $1.28 $1.12 $1.12 $1.00 -- -- -- -- Accumulation unit value at end of period $1.14 $0.84 $1.34 $1.28 $1.12 $1.12 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,165 3,807 5,203 5,724 5,777 2,540 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (08/14/2001) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.21 $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 $1.00 -- Accumulation unit value at end of period $1.63 $1.21 $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 -- Number of accumulation units outstanding at end of period (000 omitted) 81,111 85,345 79,474 69,587 72,463 57,581 44,918 28,099 6,314 -- - -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.84 $1.32 $1.36 $1.18 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.07 $0.84 $1.32 $1.36 $1.18 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 95,224 120,656 113,380 130,395 96,755 18,714 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.61 $1.11 $1.22 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.61 $1.11 $1.22 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,794 50,326 29,814 27,318 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.63 $1.20 $0.99 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.98 $0.63 $1.20 $0.99 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,049 11,266 9,199 17,529 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------
104 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $1.39 $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 Accumulation unit value at end of period $2.06 $1.39 $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 80,522 88,899 108,613 122,718 114,381 79,981 56,466 42,309 30,297 21,844 - -------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 Accumulation unit value at end of period $1.64 $1.16 $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 100,879 117,299 145,262 164,257 169,886 140,320 108,046 72,853 46,456 29,881 - -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $0.84 $1.42 $1.35 $1.21 $1.13 $0.97 $0.72 $0.99 $1.00 -- Accumulation unit value at end of period $1.24 $0.84 $1.42 $1.35 $1.21 $1.13 $0.97 $0.72 $0.99 -- Number of accumulation units outstanding at end of period (000 omitted) 11,212 13,585 18,131 21,391 25,313 25,983 24,999 17,130 3,747 -- - -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $0.76 $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 $1.00 -- Accumulation unit value at end of period $1.16 $0.76 $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 -- Number of accumulation units outstanding at end of period (000 omitted) 20,853 19,000 23,653 17,655 14,334 16,103 13,800 7,655 2,230 -- - --------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.70 $1.35 $1.14 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $1.06 $0.70 $1.35 $1.14 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 609 425 664 2,023 333 -- -- -- - -------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $0.85 $1.45 $1.40 $1.21 $1.16 $1.06 $0.81 $1.00 Accumulation unit value at end of period $1.01 $0.85 $1.45 $1.40 $1.21 $1.16 $1.06 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 7,705 10,045 14,240 18,481 20,739 16,610 9,284 3,503 - -------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.25 $2.71 $2.59 $1.94 $1.68 $1.36 $0.95 $1.00 Accumulation unit value at end of period $1.67 $1.25 $2.71 $2.59 $1.94 $1.68 $1.36 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 19,906 29,486 32,186 31,867 25,568 11,679 5,621 1,417 - -------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.05 $1.92 $1.64 $1.33 $1.19 $1.05 $0.85 $1.00 Accumulation unit value at end of period $1.38 $1.05 $1.92 $1.64 $1.33 $1.19 $1.05 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,810 5,162 6,589 7,826 7,538 4,969 2,812 944 - -------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.67 $0.90 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.67 $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,341 7,412 9,862 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.68 $1.18 $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $0.91 $0.68 $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,815 2,188 2,203 12,931 2,015 -- -- -- - -------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.06 $1.46 $1.56 $1.33 $1.28 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.26 $1.06 $1.46 $1.56 $1.33 $1.28 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 11,068 13,643 20,382 24,433 25,428 16,423 8,977 2,837 - -------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $0.87 $1.28 $1.26 $1.17 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $1.08 $0.87 $1.28 $1.26 $1.17 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,706 1,873 2,380 3,270 3,186 2,458 1,272 211 - -------------------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (04/28/2006) Accumulation unit value at beginning of period $0.80 $1.08 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.14 $0.80 $1.08 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,923 6,783 10,284 12,074 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 105
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.71 $1.19 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.89 $0.71 $1.19 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 47,208 42,915 31,378 21,100 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.64 $1.26 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $0.88 $0.64 $1.26 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,016 5,121 4,198 9,849 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.74 $1.13 $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $0.87 $0.74 $1.13 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,589 4,848 3,423 9,239 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.75 $1.03 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.07 $0.75 $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,977 18,362 19,211 18,826 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.81 $1.59 $1.31 $1.14 $1.00 -- -- Accumulation unit value at end of period $1.20 $1.05 $1.81 $1.59 $1.31 $1.14 -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,466 3,851 5,245 6,006 4,632 1,316 -- -- - -------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.68 $1.20 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.91 $0.68 $1.20 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,815 53,546 45,072 40,094 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $0.83 $1.44 $1.30 $1.16 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.04 $0.83 $1.44 $1.30 $1.16 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 10,988 14,570 20,111 25,441 28,158 27,602 15,940 3,592 - -------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.35 $2.25 $1.97 $1.77 $1.52 $1.23 $0.90 $1.00 Accumulation unit value at end of period $1.86 $1.35 $2.25 $1.97 $1.77 $1.52 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 28,494 38,797 44,787 53,339 46,944 30,787 15,111 4,182 - -------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.16 $2.09 $1.80 $1.55 $1.32 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.45 $1.16 $2.09 $1.80 $1.55 $1.32 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 5,075 6,432 8,255 10,330 9,686 7,474 2,900 553 - -------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.06 $1.86 $2.37 $1.99 $1.77 $1.36 $1.01 $1.00 Accumulation unit value at end of period $1.25 $1.06 $1.86 $2.37 $1.99 $1.77 $1.36 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 7,137 9,150 14,263 20,694 22,307 17,231 9,166 2,887 - -------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.18 $1.77 $1.84 $1.59 $1.47 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.51 $1.18 $1.77 $1.84 $1.59 $1.47 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 7,198 8,815 11,862 14,227 13,298 8,980 5,248 2,075 - -------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.01 $1.62 $1.58 $1.35 $1.23 $1.10 $0.89 $1.00 Accumulation unit value at end of period $1.26 $1.01 $1.62 $1.58 $1.35 $1.23 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 10,913 14,362 21,837 22,449 18,871 13,076 6,742 1,735 - -------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.24 $1.98 $1.94 $1.69 $1.51 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.63 $1.24 $1.98 $1.94 $1.69 $1.51 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 12,872 16,558 24,512 29,515 30,996 15,049 7,743 2,583 - -------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $0.84 $1.35 $1.38 $1.24 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $1.01 $0.84 $1.35 $1.38 $1.24 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 11,037 13,564 20,871 27,339 30,636 9,922 2,742 1,048 - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.74 $1.31 $1.18 $1.13 $1.05 $1.00 $0.78 $1.00 Accumulation unit value at end of period $0.89 $0.74 $1.31 $1.18 $1.13 $1.05 $1.00 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 10,744 12,622 15,385 19,282 24,536 5,492 1,386 379 - --------------------------------------------------------------------------------------------------------------------
106 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.88 $1.67 $1.53 $1.33 $1.23 $1.07 $0.80 $1.00 Accumulation unit value at end of period $1.23 $0.88 $1.67 $1.53 $1.33 $1.23 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,576 2,199 3,003 3,321 2,836 2,429 1,198 552 - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.45 $1.12 $1.45 $1.26 $1.20 $1.11 $0.87 $1.00 Accumulation unit value at end of period $0.56 $0.45 $1.12 $1.45 $1.26 $1.20 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 2,151 1,606 1,004 1,342 1,322 1,122 925 526 - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.80 $1.13 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.00 $0.80 $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 956 923 753 5,096 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.92 $1.57 $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $1.23 $0.92 $1.57 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 14,695 14,785 8,000 503 2 -- -- -- - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) (PREVIOUSLY AIM V.I. TECHNOLOGY FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.54 $0.99 $0.93 $0.85 $0.84 $0.81 $0.56 $1.00 Accumulation unit value at end of period $0.84 $0.54 $0.99 $0.93 $0.85 $0.84 $0.81 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 2,935 2,808 2,913 3,543 4,728 1,650 851 192 - -------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $0.63 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,560 33,658 25,246 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- LEGG MASON CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) (PREVIOUSLY LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I) Accumulation unit value at beginning of period $0.60 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.84 $0.60 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 497 443 225 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $0.75 $1.20 $1.09 $1.03 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $1.03 $0.75 $1.20 $1.09 $1.03 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 4,222 4,927 5,932 8,628 8,658 5,399 2,971 1,088 - -------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $0.71 $1.18 $1.17 $1.04 $1.00 $0.96 $0.72 $1.00 Accumulation unit value at end of period $1.14 $0.71 $1.18 $1.17 $1.04 $1.00 $0.96 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 2,166 2,718 3,692 5,363 6,257 6,311 5,191 2,112 - -------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.71 $2.78 $2.20 $1.70 $1.47 $1.14 $0.85 $1.00 Accumulation unit value at end of period $2.25 $1.71 $2.78 $2.20 $1.70 $1.47 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 5,019 6,021 7,678 8,231 6,871 3,380 1,670 276 - -------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.56 $1.07 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.75 $0.56 $1.07 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,498 10,873 10,350 9,305 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.94 $1.59 $1.51 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.29 $0.94 $1.59 $1.51 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,423 8,456 11,884 14,402 11,208 4,318 -- -- - -------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.05 $1.24 $1.15 $1.08 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.24 $1.05 $1.24 $1.15 $1.08 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 70,681 82,157 92,164 64,615 34,899 7,003 -- -- - --------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 107
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.85 $1.38 $1.42 $1.25 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.15 $0.85 $1.38 $1.42 $1.25 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,663 7,256 9,606 10,328 6,924 2,998 -- -- - -------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.93 $1.11 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.12 $0.93 $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,403 31,669 27,066 26,857 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $0.92 $1.12 $1.14 $1.12 $1.00 $0.94 $0.81 $1.00 Accumulation unit value at end of period $1.15 $0.92 $1.12 $1.14 $1.12 $1.00 $0.94 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 2,116 2,705 3,423 4,490 4,351 2,530 1,776 617 - -------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.05 $1.90 $1.77 $1.40 $1.26 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.30 $1.05 $1.90 $1.77 $1.40 $1.26 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 1,819 2,476 3,409 3,961 4,252 4,043 4,165 2,086 - -------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $0.73 $1.35 $1.31 $1.25 $1.13 $0.96 $0.73 $1.00 Accumulation unit value at end of period $1.00 $0.73 $1.35 $1.31 $1.25 $1.13 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 518 601 771 986 736 559 614 267 - -------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.71 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 897 88 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,849 1,582 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,698 2,013 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,942 1,762 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $0.79 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,685 829 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.94 $1.36 $1.35 $1.19 $1.16 $1.07 $0.90 $1.00 Accumulation unit value at end of period $1.16 $0.94 $1.36 $1.35 $1.19 $1.16 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 8,438 2,967 5,018 4,466 3,385 2,471 1,608 531 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(02/13/2002) Accumulation unit value at beginning of period $1.10 $1.08 $1.04 $1.01 $0.99 $1.00 $1.00 $1.00 Accumulation unit value at end of period $1.09 $1.10 $1.08 $1.04 $1.01 $0.99 $1.00 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 23,076 51,260 39,420 37,806 22,067 19,507 13,022 12,452 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (1.02%) and (1.01%), respectively. - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.12 $1.21 $1.16 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.27 $1.12 $1.21 $1.16 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 89,692 93,379 103,330 87,923 50,746 22,751 13,984 6,481 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.14 $1.94 $1.82 $1.53 $1.36 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.44 $1.14 $1.94 $1.82 $1.53 $1.36 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 59,080 64,717 69,629 75,610 47,282 24,579 8,342 3,101 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.70 $1.22 $1.20 $1.05 $1.00 $0.95 $0.75 $1.00 Accumulation unit value at end of period $0.86 $0.70 $1.22 $1.20 $1.05 $1.00 $0.95 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 16,370 18,986 23,697 27,942 27,550 4,862 1,779 291 - --------------------------------------------------------------------------------------------------------------------
108 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.45 $1.47 $1.38 $1.31 $1.39 $1.28 $1.14 $1.00 Accumulation unit value at end of period $1.60 $1.45 $1.47 $1.38 $1.31 $1.39 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 24,423 26,925 31,193 26,716 18,771 8,568 3,885 1,060 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.11 $1.12 $1.05 $1.05 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.17 $1.11 $1.12 $1.05 $1.05 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 40,367 23,321 26,608 31,048 20,279 653 -- -- - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.08 $1.46 $1.44 $1.32 $1.28 $1.16 $0.94 $1.00 Accumulation unit value at end of period $1.64 $1.08 $1.46 $1.44 $1.32 $1.28 $1.16 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 10,600 13,016 20,960 27,180 28,189 24,305 16,280 3,957 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.93 $1.15 $1.14 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.31 $0.93 $1.15 $1.14 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,266 19,612 20,632 21,052 7,061 300 -- -- - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.76 $1.40 $1.24 $1.26 $1.15 $1.07 $0.88 $1.00 Accumulation unit value at end of period $1.24 $0.76 $1.40 $1.24 $1.26 $1.15 $1.07 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 2,137 2,135 2,984 4,676 5,505 5,961 4,649 1,153 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.81 $1.48 $1.36 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $1.12 $0.81 $1.48 $1.36 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,370 9,682 9,445 15,321 622 -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.84 $1.35 $1.30 $1.14 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $1.05 $0.84 $1.35 $1.30 $1.14 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 6,575 7,849 10,644 13,132 14,184 11,269 6,544 1,889 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.09 $1.13 $1.08 $1.05 $1.04 $1.05 $1.04 $1.00 Accumulation unit value at end of period $1.13 $1.09 $1.13 $1.08 $1.05 $1.04 $1.05 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 11,597 12,804 12,583 16,153 18,707 17,403 14,902 6,107 - -------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.66 $1.19 $1.17 $1.06 $0.99 $0.92 $0.77 $1.00 Accumulation unit value at end of period $0.89 $0.66 $1.19 $1.17 $1.06 $0.99 $0.92 $0.77 Number of accumulation units outstanding at end of period (000 omitted) 9,725 12,689 20,603 24,725 23,296 7,403 5,647 973 - -------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.79 $1.31 $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $0.98 $0.79 $1.31 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 520 582 925 1,124 921 450 -- -- - -------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.97 $1.59 $1.68 $1.52 $1.46 $1.25 $0.85 $1.00 Accumulation unit value at end of period $1.34 $0.97 $1.59 $1.68 $1.52 $1.46 $1.25 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 1,760 2,383 3,378 4,827 5,744 5,617 2,920 900 - -------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.69 $3.70 $2.70 $2.04 $1.54 $1.25 $0.90 $1.00 Accumulation unit value at end of period $2.92 $1.69 $3.70 $2.70 $2.04 $1.54 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 7,245 11,453 9,394 9,829 8,412 1,983 492 220 - -------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.15 $1.94 $1.74 $1.42 $1.26 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.45 $1.15 $1.94 $1.74 $1.42 $1.26 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,118 3,748 5,324 5,986 5,133 2,551 340 55 - -------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.68 $1.11 $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $0.88 $0.68 $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,320 25,636 18,675 20,639 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 109
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.84 $1.34 $1.28 $1.12 $1.12 $1.00 -- -- Accumulation unit value at end of period $1.14 $0.84 $1.34 $1.28 $1.12 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 522 766 1,469 1,490 1,493 840 -- -- - -------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.14 $1.68 $1.79 $1.50 $1.43 $1.21 $0.88 $1.00 Accumulation unit value at end of period $1.54 $1.14 $1.68 $1.79 $1.50 $1.43 $1.21 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 20,099 23,170 23,547 19,283 20,683 11,379 7,181 3,316 - -------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.84 $1.31 $1.36 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.06 $0.84 $1.31 $1.36 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,587 43,694 51,531 60,771 53,896 12,916 -- -- - -------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.61 $1.11 $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $0.86 $0.61 $1.11 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 10,214 14,095 9,916 8,886 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.63 $1.20 $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $0.98 $0.63 $1.20 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,148 2,776 2,519 6,372 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (02/13/2002) Accumulation unit value at beginning of period $1.68 $3.12 $2.71 $1.99 $1.66 $1.28 $0.87 $1.00 Accumulation unit value at end of period $2.49 $1.68 $3.12 $2.71 $1.99 $1.66 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 14,208 16,311 18,491 21,367 19,260 9,273 4,376 1,523 - -------------------------------------------------------------------------------------------------------------------- WANGER USA (02/13/2002) Accumulation unit value at beginning of period $1.03 $1.73 $1.66 $1.56 $1.41 $1.21 $0.85 $1.00 Accumulation unit value at end of period $1.46 $1.03 $1.73 $1.66 $1.56 $1.41 $1.21 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 23,568 28,344 36,469 42,372 41,455 26,304 13,657 3,732 - -------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $0.88 $1.48 $1.40 $1.26 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $1.29 $0.88 $1.48 $1.40 $1.26 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 2,701 3,344 4,587 6,324 7,621 6,990 5,557 2,340 - -------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $0.88 $1.52 $1.35 $1.11 $1.06 $0.94 $0.67 $1.00 Accumulation unit value at end of period $1.34 $0.88 $1.52 $1.35 $1.11 $1.06 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 2,879 3,050 3,223 2,943 2,596 2,735 1,772 662 - --------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.70 $1.34 $1.13 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $1.05 $0.70 $1.34 $1.13 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 548 301 264 846 148 -- -- -- - -------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $0.84 $1.43 $1.38 $1.20 $1.16 $1.05 $0.81 $1.00 Accumulation unit value at end of period $1.00 $0.84 $1.43 $1.38 $1.20 $1.16 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 4,258 6,035 9,112 12,504 14,313 11,547 7,339 4,072 - -------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.24 $2.68 $2.57 $1.92 $1.67 $1.35 $0.95 $1.00 Accumulation unit value at end of period $1.64 $1.24 $2.68 $2.57 $1.92 $1.67 $1.35 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 9,981 15,720 18,897 19,979 16,470 7,898 3,918 1,371 - -------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.03 $1.90 $1.63 $1.32 $1.18 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.36 $1.03 $1.90 $1.63 $1.32 $1.18 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 2,015 2,795 3,680 4,188 3,768 2,448 1,128 448 - --------------------------------------------------------------------------------------------------------------------
110 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.67 $0.90 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.67 $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,523 4,001 5,266 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.68 $1.18 $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $0.90 $0.68 $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,098 1,338 1,445 6,545 1,015 -- -- -- - -------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.05 $1.45 $1.54 $1.32 $1.27 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.24 $1.05 $1.45 $1.54 $1.32 $1.27 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 6,158 8,079 12,429 15,592 16,716 10,779 5,922 2,396 - -------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $0.86 $1.26 $1.24 $1.16 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $1.06 $0.86 $1.26 $1.24 $1.16 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 858 1,073 1,711 2,144 2,283 1,690 769 208 - -------------------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (04/28/2006) Accumulation unit value at beginning of period $0.80 $1.07 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.14 $0.80 $1.07 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,262 4,864 7,595 9,164 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.71 $1.18 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.89 $0.71 $1.18 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,026 20,913 15,689 10,663 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.64 $1.26 $1.06 $1.00 -- -- -- -- Accumulation unit value at end of period $0.87 $0.64 $1.26 $1.06 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,195 2,857 2,426 5,251 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.73 $1.12 $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $0.87 $0.73 $1.12 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,966 2,963 1,728 4,962 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.74 $1.03 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.06 $0.74 $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,792 11,376 13,146 12,200 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.04 $1.80 $1.59 $1.31 $1.14 $1.00 -- -- Accumulation unit value at end of period $1.18 $1.04 $1.80 $1.59 $1.31 $1.14 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,152 2,508 3,470 4,047 3,150 728 -- -- - -------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.68 $1.19 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.90 $0.68 $1.19 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,949 27,515 23,069 20,348 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $0.81 $1.42 $1.28 $1.15 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.02 $0.81 $1.42 $1.28 $1.15 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 6,236 8,328 12,003 16,152 18,132 18,010 11,020 3,508 - -------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.33 $2.23 $1.95 $1.76 $1.51 $1.23 $0.90 $1.00 Accumulation unit value at end of period $1.84 $1.33 $2.23 $1.95 $1.76 $1.51 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 14,164 20,610 25,720 32,335 28,423 18,934 9,886 3,541 - -------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.14 $2.07 $1.79 $1.53 $1.31 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.43 $1.14 $2.07 $1.79 $1.53 $1.31 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 3,135 4,259 5,901 7,436 6,520 5,276 2,292 610 - -------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.05 $1.84 $2.35 $1.97 $1.76 $1.35 $1.01 $1.00 Accumulation unit value at end of period $1.23 $1.05 $1.84 $2.35 $1.97 $1.76 $1.35 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 4,145 5,481 8,852 13,498 15,139 12,119 6,601 2,989 - --------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 111
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.16 $1.75 $1.82 $1.57 $1.46 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.48 $1.16 $1.75 $1.82 $1.57 $1.46 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 3,457 4,647 7,056 8,954 8,682 5,338 3,257 1,610 - -------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $0.99 $1.60 $1.56 $1.34 $1.22 $1.10 $0.89 $1.00 Accumulation unit value at end of period $1.24 $0.99 $1.60 $1.56 $1.34 $1.22 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 5,705 8,193 12,837 13,922 11,400 7,311 3,856 1,418 - -------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.22 $1.96 $1.92 $1.68 $1.50 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.60 $1.22 $1.96 $1.92 $1.68 $1.50 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 7,669 10,448 15,654 19,762 20,011 10,047 5,836 2,777 - -------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $0.83 $1.33 $1.37 $1.23 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $0.99 $0.83 $1.33 $1.37 $1.23 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 5,508 7,207 11,550 15,324 16,269 6,220 2,770 1,483 - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.73 $1.29 $1.17 $1.12 $1.04 $0.99 $0.78 $1.00 Accumulation unit value at end of period $0.88 $0.73 $1.29 $1.17 $1.12 $1.04 $0.99 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 4,612 5,453 7,314 10,002 11,202 2,736 978 447 - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.86 $1.65 $1.51 $1.32 $1.22 $1.07 $0.80 $1.00 Accumulation unit value at end of period $1.21 $0.86 $1.65 $1.51 $1.32 $1.22 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 992 1,232 1,796 2,051 1,835 1,591 774 463 - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.44 $1.10 $1.43 $1.25 $1.19 $1.11 $0.87 $1.00 Accumulation unit value at end of period $0.56 $0.44 $1.10 $1.43 $1.25 $1.19 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 1,003 1,016 586 904 832 915 731 446 - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.79 $1.13 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.00 $0.79 $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 587 665 456 2,466 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.92 $1.56 $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $1.22 $0.92 $1.56 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,083 7,389 4,140 267 5 -- -- -- - -------------------------------------------------------------------------------------------------------------------- INVESCO V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) (PREVIOUSLY AIM V.I. TECHNOLOGY FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.53 $0.98 $0.92 $0.84 $0.83 $0.80 $0.56 $1.00 Accumulation unit value at end of period $0.83 $0.53 $0.98 $0.92 $0.84 $0.83 $0.80 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 1,450 1,188 1,544 1,896 2,168 923 573 157 - -------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.84 $0.63 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,450 16,906 12,686 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- LEGG MASON CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) (PREVIOUSLY LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I) Accumulation unit value at beginning of period $0.59 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.84 $0.59 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 204 130 97 -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $0.74 $1.18 $1.08 $1.02 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $1.01 $0.74 $1.18 $1.08 $1.02 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 2,149 2,427 3,135 4,033 4,710 3,047 2,246 712 - --------------------------------------------------------------------------------------------------------------------
112 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $0.70 $1.17 $1.16 $1.04 $1.00 $0.95 $0.72 $1.00 Accumulation unit value at end of period $1.12 $0.70 $1.17 $1.16 $1.04 $1.00 $0.95 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 1,542 1,851 2,675 3,472 4,247 4,567 3,912 1,784 - -------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.69 $2.74 $2.18 $1.68 $1.46 $1.14 $0.85 $1.00 Accumulation unit value at end of period $2.21 $1.69 $2.74 $2.18 $1.68 $1.46 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,343 4,698 6,370 6,302 5,189 2,575 1,371 431 - -------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.56 $1.06 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.75 $0.56 $1.06 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,088 5,048 4,922 4,471 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.93 $1.58 $1.50 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.28 $0.93 $1.58 $1.50 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,414 4,437 6,986 8,796 5,927 2,391 -- -- - -------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.04 $1.23 $1.14 $1.08 $1.06 $1.00 -- -- Accumulation unit value at end of period $1.22 $1.04 $1.23 $1.14 $1.08 $1.06 -- -- Number of accumulation units outstanding at end of period (000 omitted) 45,739 58,677 62,902 46,387 23,303 4,223 -- -- - -------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.84 $1.37 $1.41 $1.24 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.14 $0.84 $1.37 $1.41 $1.24 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,510 3,184 4,773 5,725 3,700 1,477 -- -- - -------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.92 $1.11 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $0.92 $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,667 18,406 14,755 14,860 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $0.91 $1.11 $1.13 $1.11 $1.00 $0.94 $0.80 $1.00 Accumulation unit value at end of period $1.13 $0.91 $1.11 $1.13 $1.11 $1.00 $0.94 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 936 1,192 1,630 2,416 2,388 1,649 1,108 583 - -------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.04 $1.87 $1.75 $1.39 $1.25 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.28 $1.04 $1.87 $1.75 $1.39 $1.25 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 1,046 1,497 2,184 2,660 3,019 2,995 2,797 1,392 - -------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $0.72 $1.33 $1.30 $1.24 $1.12 $0.96 $0.73 $1.00 Accumulation unit value at end of period $0.98 $0.72 $1.33 $1.30 $1.24 $1.12 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 186 264 448 706 598 413 417 192 - -------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.71 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 334 66 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,130 1,506 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.90 $0.76 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,219 1,184 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 873 466 -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $0.79 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,964 993 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 113
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.93 $1.35 $1.34 $1.18 $1.15 $1.07 $0.90 $1.00 Accumulation unit value at end of period $1.14 $0.93 $1.35 $1.34 $1.18 $1.15 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 6,111 2,378 4,008 3,764 3,085 2,273 1,117 462 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(02/13/2002) Accumulation unit value at beginning of period $1.08 $1.07 $1.03 $1.00 $0.99 $0.99 $1.00 $1.00 Accumulation unit value at end of period $1.07 $1.08 $1.07 $1.03 $1.00 $0.99 $0.99 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 14,861 39,094 33,791 33,401 18,979 15,014 12,047 12,148 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (1.23%) and (1.22%), respectively. - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.11 $1.20 $1.15 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.25 $1.11 $1.20 $1.15 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 58,421 63,728 68,622 60,502 37,023 19,654 12,452 5,971 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.12 $1.91 $1.79 $1.51 $1.35 $1.15 $0.83 $1.00 Accumulation unit value at end of period $1.41 $1.12 $1.91 $1.79 $1.51 $1.35 $1.15 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 30,183 36,755 43,798 50,646 33,232 17,932 5,976 2,058 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.75 $1.31 $1.29 $1.13 $1.08 $1.03 $0.81 $1.00 Accumulation unit value at end of period $0.92 $0.75 $1.31 $1.29 $1.13 $1.08 $1.03 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 6,295 7,479 10,299 12,875 11,604 2,482 744 96 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.43 $1.46 $1.37 $1.30 $1.38 $1.27 $1.14 $1.00 Accumulation unit value at end of period $1.58 $1.43 $1.46 $1.37 $1.30 $1.38 $1.27 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 16,121 18,675 22,272 19,781 15,541 8,857 4,839 1,529 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.10 $1.11 $1.04 $1.04 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.16 $1.10 $1.11 $1.04 $1.04 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,536 17,319 17,958 20,730 13,014 516 -- -- - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.06 $1.44 $1.43 $1.31 $1.27 $1.15 $0.93 $1.00 Accumulation unit value at end of period $1.62 $1.06 $1.44 $1.43 $1.31 $1.27 $1.15 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 9,680 11,973 19,687 25,271 27,474 25,456 15,576 4,269 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.92 $1.15 $1.13 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.29 $0.92 $1.15 $1.13 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,730 11,540 12,716 13,255 4,187 271 -- -- - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.75 $1.38 $1.23 $1.25 $1.15 $1.06 $0.88 $1.00 Accumulation unit value at end of period $1.22 $0.75 $1.38 $1.23 $1.25 $1.15 $1.06 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,372 1,170 1,887 2,741 2,961 3,400 2,602 889 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.80 $1.47 $1.35 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $1.11 $0.80 $1.47 $1.35 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,952 5,049 5,225 7,878 393 -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.83 $1.34 $1.29 $1.13 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $1.03 $0.83 $1.34 $1.29 $1.13 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 4,568 5,854 8,187 9,874 10,825 9,241 5,428 1,648 - -------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.07 $1.11 $1.07 $1.04 $1.04 $1.04 $1.04 $1.00 Accumulation unit value at end of period $1.12 $1.07 $1.11 $1.07 $1.04 $1.04 $1.04 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 11,135 13,972 12,745 15,464 16,802 16,700 13,079 7,646 - -------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.65 $1.18 $1.16 $1.05 $0.98 $0.92 $0.76 $1.00 Accumulation unit value at end of period $0.88 $0.65 $1.18 $1.16 $1.05 $0.98 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 4,530 6,110 10,992 13,741 13,519 4,079 2,868 392 - -------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.78 $1.30 $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $0.97 $0.78 $1.30 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 429 584 789 734 632 499 -- -- - --------------------------------------------------------------------------------------------------------------------
114 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $0.95 $1.57 $1.66 $1.51 $1.45 $1.24 $0.85 $1.00 Accumulation unit value at end of period $1.32 $0.95 $1.57 $1.66 $1.51 $1.45 $1.24 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 971 1,315 2,098 3,358 3,917 3,802 2,139 516 - -------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.67 $3.65 $2.68 $2.02 $1.53 $1.25 $0.90 $1.00 Accumulation unit value at end of period $2.87 $1.67 $3.65 $2.68 $2.02 $1.53 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 3,600 5,787 5,242 5,716 4,677 1,199 318 121 - -------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (02/13/2002) Accumulation unit value at beginning of period $1.13 $1.92 $1.73 $1.41 $1.25 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.42 $1.13 $1.92 $1.73 $1.41 $1.25 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 1,829 2,197 3,162 3,800 3,647 2,172 496 105 - -------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.67 $1.11 $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $0.87 $0.67 $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,879 12,896 9,646 10,682 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.83 $1.33 $1.27 $1.11 $1.12 $1.00 -- -- Accumulation unit value at end of period $1.12 $0.83 $1.33 $1.27 $1.11 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 389 614 980 1,141 1,193 732 -- -- - -------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.66 $1.77 $1.49 $1.42 $1.20 $0.88 $1.00 Accumulation unit value at end of period $1.52 $1.12 $1.66 $1.77 $1.49 $1.42 $1.20 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 9,298 11,506 12,216 10,437 11,559 7,783 5,093 2,665 - -------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.83 $1.30 $1.35 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.05 $0.83 $1.30 $1.35 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,447 21,701 27,381 32,887 26,831 6,418 -- -- - -------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.61 $1.10 $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $0.85 $0.61 $1.10 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,848 7,113 4,961 4,670 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.63 $1.19 $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $0.98 $0.63 $1.19 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,240 1,487 1,490 3,111 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (02/13/2002) Accumulation unit value at beginning of period $1.66 $3.08 $2.68 $1.98 $1.65 $1.28 $0.87 $1.00 Accumulation unit value at end of period $2.45 $1.66 $3.08 $2.68 $1.98 $1.65 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 7,020 8,509 10,565 12,918 11,470 5,817 2,667 1,055 - -------------------------------------------------------------------------------------------------------------------- WANGER USA (02/13/2002) Accumulation unit value at beginning of period $1.02 $1.71 $1.64 $1.54 $1.40 $1.20 $0.85 $1.00 Accumulation unit value at end of period $1.43 $1.02 $1.71 $1.64 $1.54 $1.40 $1.20 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 11,266 14,444 19,504 23,503 23,080 15,408 8,442 3,131 - -------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $0.87 $1.47 $1.39 $1.25 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $1.27 $0.87 $1.47 $1.39 $1.25 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 1,067 1,472 2,414 3,081 3,829 3,698 3,344 1,985 - -------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $0.87 $1.51 $1.34 $1.10 $1.05 $0.94 $0.67 $1.00 Accumulation unit value at end of period $1.31 $0.87 $1.51 $1.34 $1.10 $1.05 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 1,388 1,360 1,799 1,527 1,557 1,643 1,441 387 - --------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 115 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts.............. p. 3 Rating Agencies.......................... p. 4 Revenues Received During Calendar Year 2009................................... p. 4 Principal Underwriter.................... p. 5 Independent Registered Public Accounting Firm................................... p. 5 Financial Statements
116 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 1 (800) 862-7919 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc. (C) 2008-2010 RiverSource Life Insurance Company. All rights reserved. S-6273 N (4/10) PROSPECTUS APRIL 30, 2010 RIVERSOURCE RETIREMENT ADVISOR 4 ADVANTAGE(R) VARIABLE ANNUITY RETIREMENT ADVISOR 4 SELECT(R) VARIABLE ANNUITY RETIREMENT ADVISOR 4 ACCESS(R) VARIABLE ANNUITY INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITIES ISSUED BY: RIVERSOURCE LIFE INSURANCE COMPANY (RIVERSOURCE LIFE) 70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 ameriprise.com/variableannuities RIVERSOURCE VARIABLE ACCOUNT 10/RIVERSOURCE ACCOUNT MGA This prospectus contains information that you should know before investing in the RiverSource Retirement Advisor 4 Advantage Variable Annuity (RAVA 4 Advantage), the RiverSource Retirement Advisor 4 Select Variable Annuity (RAVA 4 Select), or the RiverSource Retirement Advisor 4 Access Variable Annuity (RAVA 4 Access). The information in this prospectus applies to all contracts unless stated otherwise. Prospectuses are also available for: - - AllianceBernstein Variable Products Series Fund, Inc. - - American Century Variable Portfolios, Inc - - Columbia Funds Variable Insurance Trust - - Credit Suisse Trust - - Dreyfus Variable Investment Fund - - Eaton Vance Variable Trust - - Evergreen Variable Annuity Trust - - Fidelity(R) Variable Insurance Products -- Service Class 2 - - Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 - - Goldman Sachs Variable Insurance Trust (VIT) - - Invesco Variable Insurance Funds (previously AIM Variable Insurance Funds) - - Janus Aspen Series: Service Shares - - Legg Mason Variable Portfolios I, Inc. - - MFS(R) Variable Insurance Trust(SM) - - Neuberger Berman Advisers Management Trust - - Oppenheimer Variable Account Funds Service Shares - - PIMCO Variable Investment Trust (VIT) - - RiverSource Variable Series Trust (RVST) - - The Universal Institutional Funds, Inc. - - Van Kampen Life Investment Trust - - Wanger Advisors Trust - - Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. The contracts provide for purchase payment credits which we may reverse under certain circumstances. Expenses may be higher and surrender charges may be higher and longer for contracts with purchase payment credits than for contracts without such credits. The amount of the credit may be more than offset by additional charges associated with the credit. THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THIS CONTRACT IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS CONTRACT INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 1 Variable annuities are insurance products that are complex investment vehicles. Before you invest, be sure to ask your financial advisor about the contract features, benefits, risks and fees, and whether the contract is appropriate for you, based upon your financial situation and objectives. The contracts and/or certain optional benefits described in this prospectus may not be available in all jurisdictions. This prospectus constitutes an offering or solicitation only in those jurisdictions where such offering or solicitation may lawfully be made. State variations are covered in a special contract form used in that state. This prospectus provides a general description of the contracts. Your actual contract and any riders or endorsements are the controlling documents. RiverSource Life has not authorized any person to give any information or to make any representations regarding the contracts other than those contained in this prospectus or the fund prospectuses. RiverSource Life offers several different annuities which your financial advisor may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to your annuity account values. The fees and charges you will pay when buying, owning and surrendering money from the contracts we describe in this prospectus may be more or less than the fees and charges of other variable annuities we and our affiliates issue. You should ask your financial advisor about his or her ability to offer you other variable annuities we issue (which might have lower fees and charges than the contracts described in this prospectus). TABLE OF CONTENTS KEY TERMS................................ 3 THE CONTRACT IN BRIEF.................... 6 EXPENSE SUMMARY.......................... 8 CONDENSED FINANCIAL INFORMATION.......... 16 FINANCIAL STATEMENTS..................... 16 THE VARIABLE ACCOUNT AND THE FUNDS....... 16 GUARANTEE PERIOD ACCOUNTS (GPAS)......... 18 THE FIXED ACCOUNT........................ 20 BUYING YOUR CONTRACT..................... 21 CHARGES.................................. 26 VALUING YOUR INVESTMENT.................. 33 MAKING THE MOST OF YOUR CONTRACT......... 35 SURRENDERS............................... 45 TSA -- SPECIAL PROVISIONS................ 46 CHANGING OWNERSHIP....................... 47 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT.......................... 48 OPTIONAL BENEFITS........................ 50 THE ANNUITY PAYOUT PERIOD................ 69 TAXES.................................... 71 VOTING RIGHTS............................ 74 SUBSTITUTION OF INVESTMENTS.............. 75 ABOUT THE SERVICE PROVIDERS.............. 75 ADDITIONAL INFORMATION................... 77 APPENDIX A: THE FUNDS.................... 78 APPENDIX B: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA)....................... 86 APPENDIX C: EXAMPLE -- SURRENDER CHARGES................................ 88 APPENDIX D: EXAMPLE -- OPTIONAL DEATH BENEFITS............................... 93 APPENDIX E: EXAMPLE -- OPTIONAL LIVING BENEFITS............................... 97 APPENDIX F: ADDITIONAL RMD DISCLOSURE.... 104 APPENDIX G: GUARANTOR WITHDRAWAL BENEFIT FOR LIFE RIDER DISCLOSURE.............. 106 APPENDIX H: SECURESOURCE RIDERS DISCLOSURE............................. 118 APPENDIX I: CONDENSED FINANCIAL INFORMATION (UNAUDITED)................ 131 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION................. 162
- -------------------------------------------------------------------------------- 2 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS KEY TERMS These terms can help you understand details about your contract. ACCUMULATION UNIT: A measure of the value of each subaccount before annuity payouts begin. ANNUITANT: The person or persons on whose life or life expectancy the annuity payouts are based. ANNUITY PAYOUTS: An amount paid at regular intervals under one of several plans. ASSUMED INVESTMENT RATE: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. BAND 3 ANNUITIES: RAVA 4 Advantage and RAVA 4 Select contracts that are available for: - - current or retired employees of Ameriprise Financial, Inc. or its subsidiaries and their spouses or domestic partners (employees), - - current or retired Ameriprise financial advisors and their spouses or domestic partners (advisors), or - - individuals investing an initial purchase payment of $1 million or more, with our approval (other individuals). BENEFICIARY: The person you designate to receive benefits in case of your death while the contract is in force. CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). CODE: The Internal Revenue Code of 1986, as amended. CONTRACT: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. CONTRACT VALUE: The total value of your contract before we deduct any applicable charges. CONTRACT YEAR: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. ENHANCED EARNINGS DEATH BENEFIT (EEB) AND ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. You can elect to purchase either the EEB or the EEP, subject to certain restrictions. FIXED ACCOUNT: Our general account which includes the Regular Fixed account and the Special DCA fixed account. Amounts you allocate to this account earn interest at rates that we declare periodically. FUNDS: Investment options under your contract. Unless an asset allocation program is in effect, you may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. GOOD ORDER: We cannot process your transaction request relating to the contract until we have received the request in good order at our corporate office. "Good order" means the actual receipt of the requested transaction in writing, along with all information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes your completed request; the contract number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts and the fixed account affected by the requested transaction; the signatures of all contract owners, exactly as registered on the contract, if necessary; Social Security Number or Taxpayer Identification Number; and any other information or supporting documentation that we may require. With respect to purchase requests, "good order" also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time. GUARANTEE PERIOD: The number of successive 12-month periods that a guaranteed interest rate is credited. GUARANTEE PERIOD ACCOUNTS (GPAS): A nonunitized separate account to which you may allocate purchase payments and purchase payment credits or transfer contract value of at least $1,000. These accounts have guaranteed interest rates for guarantee periods we declare when you allocate purchase payments and purchase payment credits or transfer contract value to a GPA. These guaranteed rates and periods of time may vary by state. Unless an exception applies, transfers or surrenders from a GPA done more than 30 days before the end of the guarantee period will receive a market value adjustment, which may result in a gain or loss of principal. GUARANTEED MINIMUM ACCUMULATION BENEFIT RIDER (ACCUMULATION BENEFIT): This is an optional benefit that you can add to your contract for an additional charge. It is intended to provide you with a guaranteed contract value at the end of a specified - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 3 waiting period regardless of the volatility inherent in the investments in the subaccounts. This rider requires participation in the Portfolio Navigator Program. This rider is not available for RAVA 4 Access. GUARANTOR WITHDRAWAL BENEFIT FOR LIFE(R) RIDER (GWB FOR LIFE(R)): This is an optional benefit you can add to your contract for an additional charge. It is intended to provide a guaranteed withdrawal up to a certain amount each year from the contract, regardless of the investment performance of your contract before the annuity payments begin, until you have recovered at a minimum, all of your purchase payments plus any purchase payment credits. Under certain limited circumstances, it gives you the right to take limited withdrawals in each contract year until death. This rider requires participation in the Portfolio Navigator Program. This rider is not available for RAVA 4 Access. This rider is no longer available for sale. MARKET VALUE ADJUSTMENT (MVA): A positive or negative adjustment assessed if any portion of a Guarantee Period Account is surrendered or transferred more than 30 days before the end of its guarantee period. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) AND MAXIMUM FIVE-YEAR ANNIVERSARY VALUE DEATH BENEFIT (5-YEAR MAV): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide additional death benefit protection in the event of fluctuating fund values. You can elect to purchase either the MAV or the 5-Year MAV, subject to certain restrictions. OWNER (YOU, YOUR): A person or persons who control the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. If the contract has a nonnatural person as the owner, "you, your, and owner" means the annuitant where contract provisions are based on the age or life of the owner. PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM): This is a program in which you are required to participate through the choice of a PN program model portfolio or investment option if you select the optional Accumulation Benefit rider, the optional GWB for Life rider or the optional SecureSource rider. If you do not select the Accumulation Benefit rider, the GWB for Life rider or the optional SecureSource rider, you may elect to participate in the PN program at no additional charge. If you purchase your contract on or after May 10, 2010, only the PN program investment options (and not the model portfolios described in this prospectus) will be available to you. PURCHASE PAYMENT CREDITS: An addition we make to your contract value. We base the amount of the credit on the surrender charge schedule you elect and/or total purchase payments. Purchase payment credits are not available under RAVA 4 Access contracts. QUALIFIED ANNUITY: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: - - Individual Retirement Annuities (IRAs) including inherited IRAs under Section 408(b) of the Code - - Roth IRAs including inherited Roth IRAs under Section 408A of the Code - - SIMPLE IRAs under Section 408(p) of the Code - - Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code - - Custodial and investment only accounts maintained for qualified retirement plans under Section 401(a) of the Code - - Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax-deferred. All other contracts are considered NONQUALIFIED ANNUITIES. RETURN OF PURCHASE PAYMENTS DEATH BENEFIT (ROPP): This is an optional benefit that you can add to your contract for an additional charge if you are age 76 or older at contract issue that is intended to provide additional death benefit protection in the event of fluctuating fund values. ROPP is included in the standard death benefit for contract owners age 75 and under on the contract effective date at no additional cost. RIDER: You receive a rider to your contract when you purchase the EEB, EEP, MAV, 5-Year MAV, ROPP, Accumulation Benefit, GWB for Life and/or SecureSource rider. The rider adds the terms of the optional benefit to your contract. RIDER EFFECTIVE DATE: The date a rider becomes effective as stated in the rider. RIVERSOURCE LIFE: In this prospectus, "we," "us," "our" and "RiverSource Life" refer to RiverSource Life Insurance Company. SECURESOURCE(R) RIDERS: This is an optional benefit that you can add to your contract for an additional charge. SecureSource -- Single Life covers one person. SecureSource -- Joint Life covers two spouses jointly. The benefit is intended to provide guaranteed withdrawals up to a certain amount each year from the contract, regardless of the investment performance of your contract before the annuity payments begin until you have recovered, at a minimum, all of your purchase payments plus any purchase payment credits. Under certain limited circumstances, it gives you the right to take limited withdrawals in each - -------------------------------------------------------------------------------- 4 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS contract year until death. These riders require participation in the PN program. When used in this prospectus, "SecureSource riders" include SecureSource Flex riders, except where the SecureSource Flex riders are specifically referenced and distinguished from the other SecureSource riders. These riders are not available for RAVA 4 Access. SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. SPECIAL DOLLAR-COST AVERAGING (SPECIAL DCA) FIXED ACCOUNT: An account to which you may allocate new purchase payments of at least $10,000. Amounts you allocate to this account earn interest at rates that we declare periodically and will transfer into your specified subaccount allocations in six monthly transfers. SURRENDER VALUE: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. VALUATION DATE: Any normal business day, Monday through Friday, on which the NYSE is open, up to the close of business. At the close of business, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) in good order at our corporate office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other hand, if we receive your purchase payment or transaction request in good order at our corporate office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. VARIABLE ACCOUNT: Separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 5 THE CONTRACT IN BRIEF This prospectus describes three contracts. Each contract has different expenses. RAVA 4 Access does not have surrender charges, but it has the highest mortality and expense risk fees of the three contracts. RAVA 4 Select has a three-year surrender charge schedule and has lower mortality and expense risk fees than RAVA 4 Access. RAVA 4 Advantage offers a choice of a seven-year or a ten-year surrender charge schedule, and has the lowest mortality and expense risk fees of the three contracts. RAVA 4 Advantage and RAVA 4 Select include the option to purchase living benefit riders; living benefit riders are not currently available under RAVA 4 Access. Your financial advisor can help you determine which contract is best suited to your needs based on factors such as your investment goals and how long you intend to keep your contract. The information in this prospectus applies to all contracts unless stated otherwise. PURPOSE: The purpose of each contract is to allow you to accumulate money for retirement or a similar long-term goal. You do this by making one or more purchase payments. You may allocate your purchase payments to the GPAs, regular fixed account, subaccounts and/or Special DCA fixed account under the contract; however, you risk losing amounts you invest in the subaccounts of the variable account. These accounts, in turn, may earn returns that increase the value of the contract. You may be able to purchase an optional benefit to reduce the investment risk you assume under your contract. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payouts of your contract value (less any applicable premium tax). BUYING A CONTRACT: There are many factors to consider carefully before you buy a variable annuity and any optional benefit rider. Variable annuities -- with or without optional benefit riders -- are not right for everyone. MAKE SURE YOU HAVE ALL THE FACTS YOU NEED BEFORE YOU PURCHASE A VARIABLE ANNUITY OR CHOOSE AN OPTIONAL BENEFIT RIDER. Some of the factors you may wish to consider include: - - "Tax Free" Exchanges: It may not be advantageous for you to purchase this contract in exchange for, or in addition to, an existing annuity or life insurance policy. Generally, you can exchange one annuity for another or for a long-term care policy in a "tax-free" exchange under Section 1035 of the Code. You can also do a partial exchange from one annuity contract to another annuity contract, subject to IRS rules. You also generally can exchange a life insurance policy for an annuity. However, before making an exchange, you should compare both contracts carefully because the features and benefits may be different. Fees and charges may be higher or lower on your old contract than on this contract. You may have to pay a surrender charge when you exchange out of your old contract and a new surrender charge period will begin when you exchange into this contract. If the exchange does not qualify for Section 1035 treatment, you also may have to pay federal income tax on the distribution. State income taxes may also apply. You should not exchange your old contract for this contract, or buy this contract in addition to your old contract, unless you determine it is in your best interest. (See "Taxes -- 1035 Exchanges.") - - Tax-deferred retirement plans: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. A qualified annuity has features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions ("RMDs"). RMDs may reduce the value of certain death benefits and optional riders (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). You should consult your tax advisor before you purchase the contract as a qualified annuity for an explanation of the tax implications to you. - - Taxes: Generally, income earned on your contract value grows tax-deferred until you make withdrawals or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and nonqualified annuities differs. Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. (see "Taxes") - - Your age: If you are an older person, you may not necessarily have a need for tax deferral, retirement income or a death benefit. Older persons who are considering buying a contract including any optional benefits may find it helpful to consult with or include a family member, friend or other trusted advisor in the decision making process before buying a contract. - - How long you plan to keep your contract: variable annuities are not short-term liquid investments. RAVA 4 Advantage and RAVA 4 Select contracts have surrender charges. RAVA 4 Access contract does not have a surrender charge schedule, but it has a higher mortality and expense risk fee than RAVA 4 Advantage and RAVA 4 Select. All contracts offer an annuity payout plan called Annuity Payout Plan E, which imposes a surrender charge only if you elect to surrender remaining variable payouts available under Annuity Payout Plan E. (see "Annuity Payout Plans -- Plan E") Does the contract meet your current and anticipated future needs for liquidity? - - If you can afford the contract: are your annual income and assets adequate to buy the contract and any optional benefit riders you may choose? - -------------------------------------------------------------------------------- 6 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - The fees and expenses you will pay when buying, owning and withdrawing money from this contract. (see "Charges") - - How and when you plan to take money from the contract: under current tax law, withdrawals, including withdrawals made under optional benefit riders, are taxed differently than annuity payouts. In addition, certain withdrawals may be subject to a federal income tax penalty. If you have elected the SecureSource Flex rider, any withdrawals during the 3-year waiting period, could negatively impact the value of your income guarantee provided by this rider. Also, if you withdraw more than the allowed withdrawal amount in a contract year under the SecureSource riders or GWB for Life rider ("excess withdrawal"), the guaranteed amounts under the rider may be reduced. (see "Surrenders") - - Your investment objectives, how much experience you have in managing investments and how much risk you are you willing to accept. - - Short-term trading: if you plan to manage your investment in the contract by frequent or short-term trading, this contract is not suitable for you and you should not buy it. (see "Making the Most of Your Contract -- Transferring Among Accounts") FREE LOOK PERIOD: You may return your contract to your financial advisor or to our corporate office within the time stated on the first page of your contract and receive a full refund of the contract value less the amounts of any purchase payment credits, subject to market value adjustment. We will not deduct any contract charges or fees. However, you bear the investment risk from the time of purchase until you return the contract and any positive or negative market value adjustment will apply; the refund amount may be more or less than the payment you made. (EXCEPTION: If the law requires, we will refund all of your purchase payments.) ACCOUNTS: Generally, you may allocate your purchase payments among the: - - the subaccounts of the variable account, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (see "The Variable Account and the Funds") - - the GPAs which earn interest at rates declared when you make an allocation to that account. The required minimum investment in each GPA is $1,000. These accounts may not be available in all states. (see "Guarantee Period Accounts (GPAs)") - - the regular fixed account, which earns interest at rates that we adjust periodically. Purchase payment allocations to the regular fixed account may be subject to special restrictions. For RAVA 4 Access contracts, you cannot select the regular fixed account unless it is included in the PN program model portfolio you selected. (see "The Fixed Account") - - the Special DCA fixed account, when available. (see "The Fixed Account -- The Special DCA Fixed Account") TRANSFERS: Subject to certain restrictions, you currently may redistribute your contract value among the subaccounts until annuity payouts begin, and once per contract year after annuity payouts begin. Transfers out of the GPAs done more than 30 days before the end of the Guarantee Period will be subject to an MVA, unless an exception applies. You may establish automated transfers among the accounts. You may not transfer existing amounts to the Special DCA fixed account. GPAs and regular fixed account transfers are subject to special restrictions. (see "Making the Most of Your Contract -- Transferring Among Accounts") SURRENDERS: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences. If you have elected the SecureSource Flex rider, please consider carefully when you take withdrawals. If you take withdrawals during the 3-year waiting period,your benefits will be set to zero until the end of the waiting period when they will be re-established based on your contract value at that time. Certain other restrictions may apply. (see "Surrenders") BENEFITS IN CASE OF DEATH: If you die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value, except in the case of a purchase payment credit reversal. (see "Benefits in Case of Death -- Standard Death Benefit") OPTIONAL BENEFITS: These contracts offer optional living and death benefits that are available for additional charges if you meet certain criteria. Optional living benefits require your participation in the PN program which may limit transfers and allocations; may limit the timing, amount and allocation of purchase payments; and may limit the amount of partial surrenders that can be taken under the optional benefit during a contract year. (see "Optional Benefits") ANNUITY PAYOUTS: You can apply your contract value, after reflecting any adjustments, to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the regular fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (see "The Annuity Payout Period") - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 7 EXPENSE SUMMARY THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU BUY THE CONTRACT OR SURRENDER THE CONTRACT. STATE PREMIUM TAXES ALSO MAY BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SURRENDER CHARGE FOR RAVA 4 ADVANTAGE: (Contingent deferred sales load as a percentage of purchase payment surrendered) You select either a seven-year or ten-year surrender charge schedule at the time of application.*
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED NUMBER OF COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7+ 0 7 4 8 3 9 2 10+ 0
* In Alaska, Arizona, Colorado, Connecticut, Georgia, Hawaii, Illinois, Iowa, Michigan, Minnesota, Mississippi, Montana, New Jersey, North Carolina, Oregon, Utah and Washington the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama and Massachusetts, surrender charges are waived after the tenth contract anniversary for all payments regardless of when payments are made. SURRENDER CHARGE FOR RAVA 4 SELECT (EXCEPT TEXAS): (Contingent deferred sales load as a percentage of purchase payment surrendered)
YEARS FROM SURRENDER CHARGE CONTRACT DATE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE FOR RAVA 4 SELECT IN TEXAS: (Contingent deferred sales load as a percentage of purchase payment surrendered)
NUMBER OF COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE 0 8% 1 7 2 6 Thereafter 0
There are no surrender charges after the third contract anniversary. SURRENDER CHARGE FOR RAVA 4 ACCESS: 0% SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: If you are receiving variable annuity payments under this annuity payout plan, you can choose to take surrender. The amount that you can surrender is the present - -------------------------------------------------------------------------------- 8 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment return is 3.5% and 6.67% for the assumed investment return of 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment return minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.") THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL CONTRACT ADMINISTRATIVE CHARGE MAXIMUM: $50* CURRENT: $30
(We will waive this $30 charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) * In certain states and for certain contracts we have waived our right to increase the contract administrative charge. ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value)
MORTALITY AND EXPENSE RISK FEE: RAVA 4 ADVANTAGE RAVA 4 SELECT RAVA 4 ACCESS For nonqualified annuities 1.05% 1.30% 1.45% For qualified annuities .85% 1.10% 1.25%
OPTIONAL RIDER FEES OPTIONAL DEATH BENEFITS (As a percentage of contract value charged annually at the contract anniversary. The fee applies only if you elect the optional rider.) ROPP RIDER FEE MAXIMUM: 0.30% CURRENT: 0.20% MAV RIDER FEE MAXIMUM: 0.35% CURRENT: 0.25% 5-YEAR MAV RIDER FEE MAXIMUM: 0.20% CURRENT: 0.10% EEB RIDER FEE MAXIMUM: 0.40% CURRENT: 0.30% EEP RIDER FEE MAXIMUM: 0.50% CURRENT: 0.40%
OPTIONAL LIVING BENEFITS -- CURRENTLY OFFERED ACCUMULATION BENEFIT RIDER FEE MAXIMUM: 2.50% CURRENT: 1.25%(1)
(1) For contracts purchased between Jan. 26, 2009 and May 30, 2009, the current charge is 0.80%. For contracts purchased prior to Jan. 26, 2009, the current charge is 0.60%. (Charged annually as a percentage of contract value or the minimum contract accumulation value, whichever is greater. The fee applies only if you elect the optional rider.) SECURESOURCE FLEX - SINGLE LIFE RIDER FEE MAXIMUM: 2.00% CURRENT: 0.95% SECURESOURCE FLEX - JOINT LIFE RIDER FEE MAXIMUM: 2.50% CURRENT: 1.10%
(Charged annually at the contract anniversary as a percentage of contract value or the total Remaining Benefit Amount, whichever is greater. The fee applies only if you elect the optional rider.) OPTIONAL LIVING BENEFITS -- PREVIOUSLY OFFERED GWB FOR LIFE RIDER FEE MAXIMUM: 1.50% CURRENT: 0.65%
(Charged annually at the contract anniversary as a percentage of contract value or the total Remaining Benefit Amount, whichever is greater. The fee applies only if you elect the optional rider.) SECURESOURCE - SINGLE LIFE RIDER FEE(2) MAXIMUM: 2.00% CURRENT: 0.90% SECURESOURCE - JOINT LIFE RIDER FEE(2) MAXIMUM: 2.50% CURRENT: 1.15%
(Charged annually at the contract anniversary as a percentage of contract value or the total Remaining Benefit Amount, whichever is greater. The fee applies only if you elect the optional rider.) (2) For contracts purchased prior to Jan. 26, 2009, the following charges apply: -- the current charge for Single Life rider is 0.65% and for Joint Life rider is 0.85%, and -- the maximum charge for Single Life rider is 1.50% and for Joint Life rider is 1.75%. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 9 ANNUAL OPERATING EXPENSES OF THE FUNDS THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THESE OPERATING EXPENSES ARE FOR THE FISCAL YEAR ENDED DEC. 31, 2009, UNLESS OTHERWISE NOTED. THE FIRST TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE FEES AND EXPENSES CHARGED BY EACH FUND. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS. MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(A) (Including management fee, distribution and/or service (12b-1) fees and other expenses)
MINIMUM MAXIMUM Total expenses before fee waivers and/or expense reimbursements 0.50% 2.18%
(a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund's affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund's distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See "The Variable Accounts and the Funds" for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund's fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund's prospectus and SAI. TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA 4 ADVANTAGE, RAVA 4 SELECT AND RAVA 4 ACCESS* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12b-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AllianceBernstein VPS Global Thematic Growth Portfolio 0.75% 0.25% 0.25% --% 1.25% (Class B) (previously AllianceBernstein VPS Global Technology Portfolio (Class B)) AllianceBernstein VPS Growth and Income Portfolio (Class B) 0.55 0.25 0.08 -- 0.88 AllianceBernstein VPS International Value Portfolio (Class 0.75 0.25 0.08 -- 1.08 B) AllianceBernstein VPS Large Cap Growth Portfolio (Class B) 0.75 0.25 0.13 -- 1.13 American Century VP Mid Cap Value, Class II 0.90 0.25 0.01 -- 1.16 American Century VP Ultra(R), Class II 0.90 0.25 0.01 -- 1.16 American Century VP Value, Class II 0.87 0.25 -- -- 1.12 Columbia High Yield Fund, Variable Series, Class B 0.78 0.25 0.14 -- 1.17(1) Columbia Marsico Growth Fund, Variable Series, Class A 0.91 -- 0.02 -- 0.93(1) Columbia Marsico International Opportunities Fund, Variable 1.02 0.25 0.17 -- 1.44(1) Series, Class B Credit Suisse Trust - Commodity Return Strategy Portfolio 0.50 0.25 0.45 -- 1.20(2) Dreyfus Variable Investment Fund International Equity 0.75 0.25 0.37 -- 1.37 Portfolio, Service Shares Eaton Vance VT Floating-Rate Income Fund 0.57 0.25 0.33 -- 1.15 Evergreen VA Fundamental Large Cap Fund - Class 2 0.63 0.25 0.22 -- 1.10 Evergreen VA International Equity Fund - Class 2 0.43 0.25 0.22 -- 0.90 Fidelity(R) VIP Contrafund(R) Portfolio Service Class 2 0.56 0.25 0.11 -- 0.92 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 0.56 0.25 0.12 -- 0.93 Fidelity(R) VIP Overseas Portfolio Service Class 2 0.71 0.25 0.16 -- 1.12 FTVIPT Franklin Global Real Estate Securities Fund - Class 0.80 0.25 0.31 -- 1.36(3) 2 FTVIPT Franklin Small Cap Value Securities Fund - Class 2 0.52 0.25 0.18 0.03 0.98(4) FTVIPT Mutual Shares Securities Fund - Class 2 0.60 0.25 0.18 -- 1.03 Goldman Sachs VIT Structured U.S. Equity 0.64 -- 0.08 -- 0.72(5) Fund - Institutional Shares Invesco V.I. Capital Appreciation Fund, Series II Shares 0.62 0.25 0.29 0.01 1.17 (previously AIM V.I. Capital Appreciation Fund, Series II Shares) Invesco V.I. Capital Development Fund, Series II Shares 0.75 0.25 0.36 0.01 1.37(6) (previously AIM V.I. Capital Development Fund, Series II Shares) Invesco V.I. Financial Services Fund, Series II Shares 0.75 0.25 0.53 0.01 1.54(7) (previously AIM V.I. Financial Services Fund, Series II Shares)
- -------------------------------------------------------------------------------- 10 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA 4 ADVANTAGE, RAVA 4 SELECT AND RAVA 4 ACCESS* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12b-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Invesco V.I. Global Health Care Fund, Series II Shares 0.75% 0.25% 0.39% 0.01% 1.40% (previously AIM V.I. Global Health Care Fund, Series II Shares) Invesco V.I. International Growth Fund, Series II Shares 0.71 0.25 0.33 0.02 1.31 (previously AIM V.I. International Growth Fund, Series II Shares) Janus Aspen Series Janus Portfolio: Service Shares 0.64 0.25 0.03 -- 0.92 Legg Mason ClearBridge Variable Small Cap Growth Portfolio, 0.75 -- 0.17 -- 0.92 Class I (previously Legg Mason Partners Variable Small Cap Growth Portfolio, Class I) MFS(R) Investors Growth Stock Series - Service Class 0.75 0.25 0.11 -- 1.11 MFS(R) Utilities Series - Service Class 0.73 0.25 0.09 -- 1.07 Neuberger Berman Advisers Management Trust International 1.15 0.25 0.26 0.01 1.67(8) Portfolio (Class S) Neuberger Berman Advisers Management Trust Socially 0.85 0.25 0.30 -- 1.40(9) Responsive Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service Shares 0.64 0.25 0.11 -- 1.00 Oppenheimer Global Strategic Income Fund/VA, Service Shares 0.55 0.25 0.10 0.03 0.93(10) (previously Oppenheimer Strategic Bond Fund/VA, Service Shares) Oppenheimer Main Street Small Cap Fund/VA, Service Shares 0.71 0.25 0.19 -- 1.15(11) Oppenheimer Value Fund/VA, Service Shares 0.75 0.22 1.20 0.01 2.18(12) PIMCO VIT All Asset Portfolio, Advisor Share Class 0.43 0.25 -- 0.69 1.37 RVST Disciplined Asset Allocation Portfolios - Aggressive -- 0.25 0.32 0.69 1.26(13) RVST Disciplined Asset Allocation Portfolios - Conservative -- 0.25 0.21 0.63 1.09(13) RVST Disciplined Asset Allocation Portfolios - Moderate -- 0.25 0.14 0.66 1.05(13) RVST Disciplined Asset Allocation Portfolios - Moderately -- 0.25 0.17 0.67 1.09(13) Aggressive RVST Disciplined Asset Allocation Portfolios - Moderately -- 0.25 0.19 0.64 1.08(13) Conservative RVST RiverSource Variable Portfolio - Balanced Fund (Class 0.46 0.13 0.14 -- 0.73 3) RVST RiverSource Variable Portfolio - Cash Management Fund 0.33 0.13 0.18 -- 0.64 (Class 3) RVST RiverSource Variable Portfolio - Diversified Bond Fund 0.44 0.13 0.14 -- 0.71 (Class 3) RVST RiverSource Variable Portfolio - Diversified Equity 0.50 0.13 0.13 -- 0.76 Income Fund (Class 3) RVST RiverSource Variable Portfolio - Dynamic Equity Fund 0.44 0.13 0.14 0.01 0.72 (Class 3) RVST RiverSource Variable Portfolio - Global Bond Fund 0.66 0.13 0.18 -- 0.97(14) (Class 3) RVST RiverSource Variable Portfolio - Global Inflation 0.43 0.13 0.15 -- 0.71(14) Protected Securities Fund (Class 3) RVST RiverSource Variable Portfolio - High Yield Bond Fund 0.59 0.13 0.14 -- 0.86 (Class 3) RVST RiverSource Variable Portfolio - Income Opportunities 0.60 0.13 0.15 -- 0.88 Fund (Class 3) RVST RiverSource Variable Portfolio - Mid Cap Growth Fund 0.80 0.13 0.14 -- 1.07(14) (Class 3) RVST RiverSource Variable Portfolio - Mid Cap Value Fund 0.58 0.13 0.14 -- 0.85 (Class 3) RVST RiverSource Variable Portfolio - S&P 500 Index Fund 0.22 0.13 0.15 -- 0.50(14) (Class 3) RVST RiverSource Variable Portfolio - Short Duration U.S. 0.48 0.13 0.15 -- 0.76 Government Fund (Class 3) RVST Seligman Variable Portfolio - Growth Fund (Class 3) 0.52 0.13 0.15 -- 0.80 RVST Seligman Variable Portfolio - Larger-Cap Value Fund 0.61 0.13 0.50 -- 1.24(14) (Class 3) RVST Seligman Variable Portfolio - Smaller-Cap Value Fund 0.80 0.13 0.16 -- 1.09(14) (Class 3) RVST Threadneedle Variable Portfolio - Emerging Markets 1.08 0.13 0.21 -- 1.42(14) Fund (Class 3) RVST Threadneedle Variable Portfolio - International 0.85 0.13 0.18 -- 1.16 Opportunity Fund (Class 3) RVST Variable Portfolio - Davis New York Venture Fund 0.68 0.13 0.13 -- 0.94(14) (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund) RVST Variable Portfolio - Goldman Sachs Mid Cap Value Fund 0.81 0.13 0.62 -- 1.56(14) (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Select Value Fund) RVST Variable Portfolio - Partners Small Cap Value Fund 0.99 0.13 0.15 0.02 1.29(14) (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund) RVST Variable Portfolio - Aggressive Portfolio (Class 2) -- 0.25 0.04 0.77 1.06(15)
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 11 TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA 4 ADVANTAGE, RAVA 4 SELECT AND RAVA 4 ACCESS* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12b-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES RVST Variable Portfolio - Aggressive Portfolio (Class 4) --% 0.25% 0.04% 0.77% 1.06(15),%(16) RVST Variable Portfolio - Conservative Portfolio (Class 2) -- 0.25 0.04 0.62 0.91(15) RVST Variable Portfolio - Conservative Portfolio (Class 4) -- 0.25 0.04 0.62 0.91(15),(16) RVST Variable Portfolio - Moderate Portfolio (Class 2) -- 0.25 0.04 0.70 0.99(15) RVST Variable Portfolio - Moderate Portfolio (Class 4) -- 0.25 0.04 0.70 0.99(15),(16) RVST Variable Portfolio - Moderately Aggressive Portfolio -- 0.25 0.04 0.74 1.03(15) (Class 2) RVST Variable Portfolio - Moderately Aggressive Portfolio -- 0.25 0.04 0.74 1.03(15),(16) (Class 4) RVST Variable Portfolio - Moderately Conservative Portfolio -- 0.25 0.04 0.66 0.95(15) (Class 2) RVST Variable Portfolio - Moderately Conservative Portfolio -- 0.25 0.04 0.66 0.95(15),(16) (Class 4) Van Kampen Life Investment Trust Comstock Portfolio, Class 0.56 0.25 0.06 -- 0.87 II Shares Van Kampen's UIF Global Real Estate Portfolio, Class II 0.85 0.35 0.36 0.01 1.57 Shares Van Kampen's UIF Mid Cap Growth Portfolio, Class II Shares 0.75 0.35 0.31 0.01 1.42 Wanger International 0.85 -- 0.20 -- 1.05 Wanger USA 0.86 -- 0.12 -- 0.98 Wells Fargo Advantage VT Opportunity Fund 0.75 0.25 0.32 0.02 1.34(17) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.26 0.01 1.27(17)
* The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) The Advisor has voluntarily agreed to reimburse a portion of the Fund's expenses so that the Fund's ordinary operating expenses (excluding any distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but including custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian, do not exceed 0.60% for Columbia High Yield Fund, Variable Series, Class B, 1.05% for Columbia Marsico Growth Fund, Variable Series, Class A and 1.20% for Columbia Marsico International Opportunities Fund, Variable Series, Class B, of the Fund's average daily net assets on an annualized basis. These arrangements may be modified or terminated by the Advisor at any time. (2) Credit Suisse fee waivers and expense reimbursements are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements, net expenses would be 0.95%. (3) The investment manager and administrator have contractually agreed to waive or limit their respective fees so that the increase in investment management and fund administration fees paid by the Fund is phased in over a five year period, starting on May 1, 2007, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of four years thereafter through April 30, 2012, the investment manager and administrator will receive one-fifth of the increase in the rate of fees. After fee reductions net expenses would be 1.15%. (4) The manager and administrator have agreed in advance to reduce their fees as a result of the Fund's investment in a Franklin Templeton money market fund. This reduction is required by the Trust's board of trustees and an exemptive order by the Securities and Exchange Commission; this arrangement will continue as long as the exemptive order is relied upon. After fee reductions net expenses would be 0.96%. (5) The Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.004% of the Fund's average daily net assets. Prior to July 1, 2009, this fee as a percentage of average daily net assets was 0.044% of the Fund. The expense reductions may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. (6) The Advisor has contractually agreed, through at least April 30, 2011, to waive a portion of its advisory fees to the extent necessary so that the advisory fees payable by the Fund does not exceed a specified maximum annual advisory fee rate, wherein the fee rate includes breakpoints and is based upon net asset levels. After fee waivers and expense reimbursements net expenses would be 1.36%. The Board of Trustees or Invesco Advisers, Inc. may mutually agree to terminate the fee waiver agreement at any time. (7) The Advisor has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual operating expenses (subject to certain exclusions) to 1.45% of average daily net assets. After fee waivers and expense reimbursements net expenses would be 1.46%. The Board of Trustees or Invesco Advisers, Inc. may mutually agree to terminate the fee waiver agreement at any time. (8) Neuberger Berman Management LLC ("NBM") has undertaken through Dec. 31, 2013, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 2.00% of the average daily net asset value. NBM has also voluntarily committed to reimburse certain expenses for an additional 0.50% per annum of the Portfolio's average daily net assets to maintain the Portfolio's operating expenses at 1.50%. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. After fee waiver and expense reimbursements net expenses would be 1.52%. (9) Neuberger Berman Management LLC ("NBM") has undertaken through Dec. 31, 2013, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 1.17% of the average daily net asset value. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. After fee waiver and expense reimbursements net expenses would be 1.18%. (10) The Manager will voluntarily waive and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund, Oppenheimer Master Loan Fund, LLC and Oppenheimer Master Event-Linked Bond Fund, LLC. - -------------------------------------------------------------------------------- 12 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS (11) The Manager has voluntarily undertaken to limit the Fund's total annual operating expenses so that the expenses, as percentages of daily net assets will not exceed the annual rate of 1.05%. This voluntary undertaking may be amended or withdrawn at any time. (12) The Manager has voluntarily undertaken to limit the Fund's total annual operating expenses so that the expenses, as percentages of daily net assets will not exceed the annual rate of 1.05%. In addition, the Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund. This voluntary undertaking may be amended or withdrawn at any time. (13) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses of the Fund until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board of Trustees. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (excluding fees and expenses of acquired funds) will not exceed 0.41% for each of the RVST Disciplined Asset Allocation Portfolios. (14) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board of Trustees. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net fund expenses (excluding acquired fund fees and expenses, if any), before giving effect to any performance incentive adjustment, will not exceed 0.97% for RVST RiverSource Variable Portfolio - Global Bond Fund (Class 3), 0.76% for RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Fund (Class 3), 1.08% for RVST RiverSource Variable Portfolio - Mid Cap Growth Fund (Class 3), 0.53% for RVST RiverSource Variable Portfolio - S&P 500 Index Fund (Class 3), 1.05% for RVST Seligman Variable Portfolio - Larger-Cap Value Fund (Class 3), 1.15% for RVST Seligman Variable Portfolio - Smaller-Cap Value Fund (Class 3), 1.53% for RVST Threadneedle Variable Portfolio - Emerging Markets Fund (Class 3), 0.99% for RVST Variable Portfolio - Davis New York Venture Fund (Class 3), 1.20% for RVST Variable Portfolio - Goldman Sachs Mid Cap Value Fund (Class 3) and 1.20% for RVST Variable Portfolio - Partners Small Cap Value Fund (Class 3). (15) Other expenses and acquired fund fees and expenses are based on estimated amounts for the current fiscal year. RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses for Class 2 and Class 4 shares of the Fund until April 30, 2011, unless sooner terminated at the sole discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (excluding acquired fund fees and expenses) will not exceed 0.32% for each of the Class 2 and Class 4 shares of the Fund's. (16) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses for Class 4 shares of the Fund until April 30, 2012, unless sooner terminated at the sole discretion of the Fund's Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net Fund expenses (including acquired fund fees and expenses) will not exceed 0.99% for RVST Variable Portfolio - Aggressive Portfolio (Class 4), 0.86% for RVST Variable Portfolio - Conservative Portfolio (Class 4), 0.94% for RVST Variable Portfolio - Moderate Portfolio (Class 4), 0.98% RVST Variable Portfolio - Moderately Aggressive Portfolio (Class 4) and 0.90% for RVST Variable Portfolio - Moderately Conservative Portfolio (Class 4). (17) Expenses have been adjusted from amounts incurred during the Fund's most recent fiscal year to reflect current fees and expenses. The adviser has contractually agreed through April 30, 2011 to waive fees and/or reimburse expenses to the extent necessary to ensure that the Fund's net operating expenses, including the underlying master portfolio's fees and expenses and excluding brokerage commissions, interest, taxes and extraordinary expenses, do not exceed: 1.09% for Wells Fargo Advantage VT Opportunity Fund and 1.21% for Wells Fargo Advantage VT Small Cap Growth Fund. The committed net operating expense ratio may be increased or terminated only with approval of the Board of Trustees. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 13 EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THESE CONTRACTS WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CONTRACT ADMINISTRATIVE CHARGES, VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES. THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR. MAXIMUM EXPENSES. These examples assume the most expensive combination of contract features and benefits and the maximum fees and expenses of any of the funds. They assume that you select the optional MAV, EEP (if available), Accumulation Benefit, SecureSource Flex - Joint Life or SecureSource - Joint Life(1),(2). Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN NONQUALIFIED AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(4) $1,512 $2,903 $4,166 $6,943 $712 $2,103 $3,466 $6,743 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 1,412 2,803 3,966 6,743 712 2,103 3,466 6,743 RAVA 4 SELECT 1,436 2,875 3,579 6,934 736 2,175 3,579 6,934 RAVA 4 SELECT - TEXAS 1,536 2,775 3,579 6,934 736 2,175 3,579 6,934 RAVA 4 ACCESS 498 1,494 2,491 4,984 498 1,494 2,491 4,984
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(4) $1,492 $2,845 $4,075 $6,787 $692 $2,045 $3,375 $6,587 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 1,392 2,745 3,875 6,587 692 2,045 3,375 6,587 RAVA 4 SELECT 1,417 2,817 3,488 6,782 717 2,117 3,488 6,782 RAVA 4 SELECT - TEXAS 1,517 2,717 3,488 6,782 717 2,117 3,488 6,782 RAVA 4 ACCESS 478 1,436 2,398 4,821 478 1,436 2,398 4,821
MINIMUM EXPENSES. These examples assume the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds(3). They assume that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN NONQUALIFIED AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(4) $ 989 $1,382 $1,696 $2,333 $189 $582 $ 996 $2,133 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 889 1,282 1,496 2,133 189 582 996 2,133 RAVA 4 SELECT 915 1,359 1,127 2,403 215 659 1,127 2,403 RAVA 4 SELECT - TEXAS 1,015 1,259 1,127 2,403 215 659 1,127 2,403 RAVA 4 ACCESS 230 706 1,205 2,562 230 706 1,205 2,562
- -------------------------------------------------------------------------------- 14 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(4) $968 $1,319 $1,589 $2,111 $168 $519 $ 889 $1,911 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 868 1,219 1,389 1,911 168 519 889 1,911 RAVA 4 SELECT 894 1,297 1,022 2,187 194 597 1,022 2,187 RAVA 4 SELECT - TEXAS 994 1,197 1,022 2,187 194 597 1,022 2,187 RAVA 4 ACCESS 209 644 1,101 2,350 209 644 1,101 2,350
(1) In these examples, the contract administrative charge is $50. (2) Because these examples are intended to illustrate the most expensive combination of contract features, the maximum annual fee for each optional rider is reflected rather than the fee that is currently being charged. (3) In these examples, the contract administrative charge is $30. (4) In Alaska, Arizona, Colorado, Connecticut, Georgia, Hawaii, Illinois, Iowa, Michigan, Minnesota, Mississippi, Montana, New Jersey, North Carolina, Oregon, Utah and Washington, your expenses would be slightly lower due to the modified ten-year surrender charge schedule. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 15 CONDENSED FINANCIAL INFORMATION You can find unaudited condensed financial information for the subaccounts in Appendix I. We do not include any condensed financial information for subaccounts that are new and did not have any activity as of the financial statement date. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the divisions, which are comprised of subaccounts, in the SAI. The SAI does not include audited financial statements for divisions that are new and have no activity as of the financial statement date. THE VARIABLE ACCOUNT AND THE FUNDS THE VARIABLE ACCOUNT: The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of RiverSource Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the Internal Revenue Service (IRS) has issued some guidance on investor control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. THE FUNDS: The contracts currently offer subaccounts investing in shares of the funds. For a list of underlying funds with a summary of investment objectives, investment advisers and subadvisers, please see Appendix A. - - INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. - - FUND NAME AND MANAGEMENT: A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. - - ELIGIBLE PURCHASERS: All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The funds are not available to the public (see "Fund name and management" above). Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although we and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of each fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each fund intends to comply with the diversification requirements under Section 817(h) of the Code. - -------------------------------------------------------------------------------- 16 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - ASSET ALLOCATION PROGRAMS MAY IMPACT FUND PERFORMANCE: Asset allocation programs in general may negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a fund in which your subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or reallocation under the terms of the asset allocation program may cause a fund to lose money if it must sell large amounts of securities to meet a redemption request. These losses can be greater if the fund holds securities that are not as liquid as others; for example, various types of bonds, shares of smaller companies and securities of foreign issuers. A fund may also experience higher expenses because it must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the asset allocation program we offer (see "Making the Most of Your Contract -- Portfolio Navigator Program") or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the funds. - - FUNDS AVAILABLE UNDER THE CONTRACT: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each fund and the contract charges we impose. We select the underlying funds in which the subaccounts initially invest and when there is substitution (see "Substitution of Investments"). We also make all decisions regarding which funds to retain in a contract, which funds to add to a contract and which funds will no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to fund performance, fund expenses, classes of fund shares available, size of the fund and investment objectives and investing style of the fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds and portfolio concentration and sector weightings. We also consider the levels and types of revenue, including but not limited to expense payments and non-cash compensation a fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the fund and support of marketing and distribution expenses incurred with respect to the fund. - - REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST: We or our affiliates receive from each of the funds, or the funds' affiliates, varying levels and types of revenue including but not limited to expense payments and non-cash compensation. The amount of this revenue and how it is computed varies by fund, may be significant and may create potential conflicts of interest. The greatest amount and percentage of revenue we and our affiliates receive comes from assets allocated to subaccounts investing in the RiverSource Variable Series Trust funds (affiliated funds) that are managed by RiverSource Investments, LLC (RiverSource Investments), one of our affiliates. RiverSource Variable Series Trust funds include the RiverSource Variable Portfolio funds, Variable Portfolio funds, Threadneedle Variable Portfolio funds, Seligman Variable Portfolio funds, Disciplined Asset Allocation Portfolio funds and Variable Portfolio funds of funds. In addition, on Sept. 29, 2009, Ameriprise Financial, Inc. entered into an agreement with Bank of America Corporation to buy a portion of the asset management business of Columbia Management Group, LLC, including Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC (the "Transaction"). The Transaction is subject to certain approvals and other conditions to closing, and is currently expected to close in the second quarter of 2010. Certain separate accounts invest in funds sponsored by Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC. Employee compensation and operating goals at all levels are tied to the success of Ameriprise Financial, Inc. and its affiliates, including us. Certain employees may receive higher compensation and other benefits based, in part, on contract values that are invested in the RiverSource Variable Series Trust funds. We or our affiliates receive revenue which ranges up to 0.60% of the average daily net assets invested in the non-RiverSource Variable Series Trust funds (unaffiliated funds) through this and other contracts we and our affiliate issue. We or our affiliates may also receive revenue which ranges up to 0.04% of aggregate, net or anticipated sales of unaffiliated funds through this and other contracts we and our affiliate issue. Please see the SAI for a table that ranks the unaffiliated funds according to total dollar amounts they and their affiliates paid us or our affiliates in the prior calendar year. Expense payments, non-cash compensation and other forms of revenue may influence recommendations your investment professional makes regarding whether you should invest in the contract, and whether you should allocate purchase payments or contract value to a subaccount that invests in a particular fund (see "About the Service Providers"). The revenue we or our affiliates receive from a fund or its affiliates is in addition to revenue we receive from the charges you pay when buying, owning and surrendering the contract (see "Expense Summary"). However, the revenue we or our affiliates receive from a fund or its affiliates may come, at least in part, from the fund's fees and expenses you pay indirectly when you allocate contract value to the subaccount that invests in that fund. - - WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive these revenues including but not limited to expense payments and non-cash compensation for various purposes: - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 17 - Compensating, training and educating financial advisors who sell the contracts. - Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their financial advisors, and granting access to financial advisors of our affiliated selling firms. - Activities or services we or our affiliates provide that assist in the promotion and distribution of the contracts including promoting the funds available under the contracts to prospective and existing contract owners, authorized selling firms and financial advisors. - Providing sub-transfer agency and shareholder servicing to contract owners. - Promoting, including and/or retaining the fund's investment portfolios as underlying investment options in the contracts. - Advertising, printing and mailing sales literature, and printing and distributing prospectuses and reports. - Furnishing personal services to contract owners, including education of contract owners, answering routine inquiries regarding a fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA). - Subaccounting, transaction processing, recordkeeping and administration. - - SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are managed by RiverSource Investments. The sources of revenue we receive from these affiliated funds, or from affiliates of these funds, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser and transfer agent or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the fund or on the actual cost of certain services we provide with respect to the fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. - - SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these unaffiliated funds, or the funds' affiliates, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser, subadviser, transfer agent or an affiliate of these and assets of the fund's distributor or an affiliate. The revenue resulting from these sources usually is based on a percentage of average daily net assets of the fund but there may be other types of payment arrangements. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. GUARANTEE PERIOD ACCOUNTS (GPAS) The GPAs may not be available for contracts in some states. GPAs are not available if the GWB for Life, SecureSource, or Accumulation Benefit is selected. Currently, unless the PN program is in effect, you may allocate purchase payments and purchase payment credits to one or more of the GPAs with guarantee periods declared by us. The required minimum investment in each GPA is $1,000. These accounts are not offered after annuity payouts begin. Each GPA pays an interest rate that is declared when you make an allocation to that account. That interest rate is then fixed for the guarantee period that you chose. We will periodically change the declared interest rate for any future allocations to these accounts, but we will not change the rate paid on money currently in a GPA. The GPA interests under the contracts are registered with the SEC. The SEC staff reviews the disclosures in this prospectus on the GPA interests. The interest rates that we will declare as guaranteed rates in the future are determined by us at our discretion (future rates). We will determine future rates based on various factors including, but not limited to, the interest rate environment, returns earned on investments in the nonunitized separate account we have established for the GPAs, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition and RiverSource Life's revenues and other expenses. Interest rates offered may vary by state, but will not be lower than state law allows. WE CANNOT PREDICT NOR CAN WE GUARANTEE WHAT FUTURE RATES WILL BE. We hold amounts you allocate to the GPAs in a "nonunitized" separate account. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the GPAs. State insurance law prohibits us from charging this separate account with liabilities of any other separate account or of our general business. We own the assets of this separate account as well as any favorable investment performance of those assets. You do not participate in the performance of the assets held in this separate account. We guarantee all benefits relating to your value in the GPAs. This guarantee is based on the continued claims-paying ability of the company's general account. You should be aware that our - -------------------------------------------------------------------------------- 18 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. We intend to construct and manage the investment portfolio relating to the separate account in such a way as to minimize the impact of fluctuations in interest rates. We achieve this by constructing a portfolio of assets with a price sensitivity to interest rate changes (i.e., price duration) that is similar to the price duration of the corresponding portfolio of liabilities. We must invest this portfolio of assets in accordance with requirements established by applicable state laws regarding the nature and quality of investments that life insurance companies may make and the percentage of their assets that they may commit to any particular type of investment. Our investment strategy will incorporate the use of a variety of debt instruments having price durations tending to match the applicable guarantee periods. These instruments include, but are not necessarily limited to, the following: - - Securities issued by the U.S. government or its agencies or instrumentalities, which issues may or may not be guaranteed by the U.S. government; - - Debt securities that have an investment grade, at the time of purchase, within the four highest grades assigned by any of three nationally recognized rating agencies -- Standard & Poor's, Moody's Investors Service or Fitch -- or are rated in the two highest grades by the National Association of Insurance Commissioners; - - Debt instruments that are unrated, but which are deemed by RiverSource Life to have an investment quality within the four highest grades; - - Other debt instruments which are unrated or rated below investment grade, limited to 15% of assets at the time of purchase; and - - Real estate mortgages, limited to 30% of portfolio assets at the time of acquisition. In addition, options and futures contracts on fixed income securities will be used from time to time to achieve and maintain appropriate investment and liquidity characteristics on the overall asset portfolio. While this information generally describes our investment strategy, we are not obligated to follow any particular strategy except as may be required by federal law and Minnesota and other state insurance laws. MARKET VALUE ADJUSTMENT (MVA) We will not apply an MVA to contract value you transfer or surrender out of the GPAs within 30 days before the end of the guarantee period. During this 30 day window you may choose to start a new guarantee period of the same length, transfer the contract value to a GPA of another length, transfer the contract value to any of the subaccounts or the regular fixed account, or surrender the contract value (subject to applicable surrender provisions). If we do not receive any instructions at the end of your guarantee period, our current practice is to automatically transfer the contract value to the one year GPA. Any new GPA, whether it is one you choose or an automatic transfer to a one year GPA, will be subject to an MVA as described below. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 19 We guarantee the contract value allocated to the GPAs, including interest credited, if you do not make any transfers or surrenders from the GPAs prior to 30 days before the end of the guarantee period (30-day rule). At all other times, and unless one of the exceptions to the 30-day rule described below applies, we will apply an MVA if you surrender or transfer contract value from a GPA including withdrawals under the GWB for Life rider, SecureSource rider or if you elect an annuity payout plan while you have contract value invested in a GPA. We will refer to these transactions as "early surrenders." The application of an MVA may result in either a gain or loss of principal. The 30-day rule does not apply and no MVA will apply to: - - amounts surrendered under contract provisions that waive surrender charges for Hospital or Nursing Home Confinement and Terminal Illness Disability Diagnosis; - - amounts surrendered from the GPA within 30 days prior to the end of the Guarantee Period; - - amounts surrendered for fees and charges; and - - amounts we pay as death claims. When you request an early surrender, we adjust the early surrender amount by an MVA formula. The early surrender amount reflects the relationship between the guaranteed interest rate you are earning in your current GPA and the interest rate we are crediting on new GPAs that end at the same time as your current GPA. The MVA is sensitive to changes in current interest rates. The magnitude of any applicable MVA will depend on our current schedule of guaranteed interest rates at the time of the surrender, the time remaining in your guarantee period and your guaranteed interest rate. The MVA is negative, zero or positive depending on how the guaranteed interest rate on your GPA compares to the interest rate of a new GPA for the same number of years as the guarantee period remaining on your GPA. This is summarized in the following table:
IF YOUR GPA RATE IS: THE MVA IS: Less than the new GPA rate + 0.10% Negative Equal to the new GPA rate + 0.10% Zero Greater than the new GPA rate + 0.10% Positive
For an example, see Appendix B. THE FIXED ACCOUNT Amounts allocated to the fixed account become part of our general account. The fixed account includes the regular fixed account and the Special DCA fixed account. We credit interest on amounts you allocate to the fixed account at rates we determine from time to time in our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns we earn on our general account investments, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and RiverSource Life's revenues and expenses. The guaranteed minimum interest rate on amounts invested in the fixed account may vary by state but will not be lower than state law allows. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of RiverSource Life. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. You should also be aware that we issue other types of insurance and financial products as well, and we also pay our obligations under these products from assets in our general account. Our general account is not segregated or insulated from the claims of our creditors. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. The fixed account is not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account, however, disclosures regarding the fixed account may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. THE REGULAR FIXED ACCOUNT For RAVA 4 Advantage and RAVA 4 Select, unless the PN program is in effect, you also may allocate purchase payments and purchase payment credits or transfer contract value to the regular fixed account. For RAVA 4 Access contracts, you cannot allocate purchase payments to the regular fixed account unless it is included in the PN program model portfolio you selected. Under the new PN program, the regular fixed account cannot be included in the investment option. The value of the regular fixed account increases as we credit interest to the account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment or transfer to the regular fixed account is guaranteed for one year. Thereafter, we will change - -------------------------------------------------------------------------------- 20 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS the rates from time to time at our discretion. Subject to state limitations, we reserve the right to limit purchase payment allocations to the regular fixed account if the interest rate we are then currently crediting to the regular fixed account is equal to the minimum interest rate stated in the contract. (See "Making the Most of Your Contract -- Transfer policies" for restrictions on transfers involving the regular fixed account.) THE SPECIAL DCA FIXED ACCOUNT You also may allocate purchase payments and purchase payment credits to the Special DCA fixed account, when available. The Special DCA fixed account is available for new purchase payments. The value of the Special DCA fixed account increases as we credit interest to the account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment is guaranteed for the period of time money remains in the Special DCA fixed account. (See "Making the Most of Your Contract -- Special Dollar Cost Averaging Program" for more information on the Special DCA fixed account.) BUYING YOUR CONTRACT You can fill out an application and send it along with your initial purchase payment to our corporate office. You may buy RAVA 4 Advantage, RAVA 4 Select or RAVA 4 Access. Each contract has different mortality and expense risk fees. RAVA 4 Access does not have surrender charges, but it has the highest mortality and expense risk fees of the three contracts. RAVA 4 Select has a three-year surrender charge schedule and lower mortality and expense risk fees then RAVA 4 Access. RAVA 4 Advantage offers a choice of a seven-year or ten-year surrender charge schedule and the lowest mortality and expense risk fees of the three contracts; additionally, optional living benefit riders are not available under RAVA 4 Access. We are required by law to obtain personal information from you which we will use to verify your identity. If you do not provide this information we reserve the right to refuse to issue your contract or take other steps we deem reasonable. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can buy a contract if you and the annuitant are 90 or younger. When you apply, you may select among the following (if available in your state): - - GPAs, the regular fixed account(1), subaccounts, or the Special DCA fixed account and/or the optional PN program in which you want to invest; - - how you want to make purchase payments; - - a beneficiary; - - under RAVA 4 Advantage, the length of the surrender charge period (seven or ten years)(2); - - one of the following optional death benefits: - ROPP Death Benefit(3); - MAV Death Benefit(3); - 5-Year MAV Death Benefit(3); - EEB Death Benefit(3); - EEP Death Benefit(3); and - - under RAVA 4 Advantage and RAVA 4 Select, one of the following optional living benefits that require the use of the PN program: - Accumulation Benefit rider(4); or - SecureSource Flex rider(4). (1) For RAVA 4 Access contracts, you cannot select the regular fixed account unless it is included in a PN program model portfolio you selected. (2) In Alaska, Arizona, Colorado, Connecticut, Georgia, Hawaii, Illinois, Iowa, Michigan, Minnesota, Mississippi, Montana, New Jersey, North Carolina, Oregon, Utah and Washington, the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama and Massachusetts, we waive surrender charges after the tenth contract anniversary for all payments regardless of when payments are made. (3) You may select any one of the ROPP, MAV, 5-Year MAV, EEB or EEP riders or certain combinations thereof. You may select the MAV and either the EEB or the EEP. You may select the 5-Year MAV and either the EEB or the EEP. You cannot select both the EEB and EEP. You cannot select both the MAV and 5- Year MAV. The MAV, EEB, EEP and 5-Year MAV are only available if you are 75 or younger at the rider effective date. EEP is only available on contracts purchased through a transfer or exchange. ROPP is only available if you are 76 or older at the rider effective date. ROPP is included in the standard death benefit if you are 75 or younger. (4) You may select either the Accumulation Benefit or SecureSource Flex rider. The Accumulation Benefit and SecureSource Flex - Single Life riders are only available if you are 80 or younger at the rider effective date. SecureSource Flex - Joint Life rider is available if both covered spouses are 80 or younger. The contracts provide for allocation of purchase payments and purchase payment credits to the subaccounts of the variable account, to the GPAs, to the regular fixed account and/or to the Special DCA fixed account (when available) in even 1% increments subject to the $1,000 required minimum investment for the GPAs. There may be certain restrictions on the amount - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 21 you may allocate to the regular fixed account. For RAVA 4 Access contracts, purchase payment credits are not available and you cannot allocate purchase payments to the regular fixed account unless it is included in a PN program model portfolio you selected. (See "Purchase Payments.") If your application is complete, we will process it and apply your purchase payment and purchase payment credits to the GPAs, the regular fixed account, the Special DCA fixed account and/or subaccounts you selected within two business days after we receive it at our corporate office. If we accept your application, we will send you a contract. If your application is not complete, you must give us the information to complete it within five business days. If we cannot accept your application within five business days, we will decline it and return your payment unless you specifically ask us to keep the payment and apply it once your application is complete. We will credit additional purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our corporate office before the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we receive an additional purchase payment at our corporate office at or after the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment. THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. This means that the contract will be annuitized (converted to a stream of monthly payments), and the first payment will be sent on the settlement date. If your contract is annuitized, the contract goes into payout mode and only the annuity payout provisions continue. Unless Annuity Payout Plan E is elected, you will no longer have access to your contract value. In addition, the death benefit and any optional benefits you have elected will end. When we processed your application, we established the settlement date as the maximum age (or contract anniversary, if applicable). We have established a new maximum age (or contract anniversary) as described below. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. Generally, the settlement date must be no later than the annuitant's 95th birthday or the tenth contract anniversary. If the annuitant was age 95 or older and past the tenth contract anniversary when the new maximum was established, the new settlement date was set to a birthday later than age 95. You can also choose to delay the annuitization of your contract beyond age 95 indefinitely, to the extent allowed by applicable tax laws. Six months prior to your settlement date, we will contact you with your options, including the option to postpone your annuitization start date to a future date. If you do not make an election, annuity payouts, using the contract's default option of Annuity Payout Plan B - Life annuity with 10 years certain, will begin on the settlement date and your monthly annuity payments will continue for as long as the annuitant lives. If the annuitant does not survive 10 years, payments will continue until 10 years of payments have been made. If you own a qualified annuity (for example, an IRA) and tax laws require that you take distributions from your annuity prior to your new settlement date, your contract will not be automatically annuitized. If you satisfy your RMDs for a qualified annuity in the form of partial surrenders from this contract, you are electing to defer annuitizing your contract. Contract owners of IRAs and TSAs may also be able to satisfy RMDs by electing other IRAs or TSAs, and in that case, will delay the start of annuity payouts for these contracts. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay the death benefit to your named beneficiary. If there is more than one beneficiary we will pay each beneficiary's designated share when we receive their completed claim. A beneficiary will bear the investment risk of the variable account until we receive the beneficiary's completed claim. If there is no named beneficiary, then the default provisions of your contract will apply. (See "Benefits in Case of Death" for more about beneficiaries.) If you select the SecureSource - Joint Life rider, please consider carefully whether or not you wish to change the beneficiary of your annuity contract. The rider will terminate if the surviving covered spouse can not utilize the spousal continuation provision of the contract when the death benefit is payable. PURCHASE PAYMENTS(*) MINIMUM ALLOWABLE PURCHASE PAYMENTS(**) If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month - -------------------------------------------------------------------------------- 22 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
RAVA 4 RAVA 4 RAVA 4 ADVANTAGE SELECT ACCESS --------- ------- ------- If paying by any other method: initial payment for qualified annuities....................... $1,000 $ 2,000 $ 2,000 initial payment for nonqualified annuities.................... 2,000 10,000 10,000 for any additional payments................................... 50 50 50
* RAVA 4 ADVANTAGE AND RAVA 4 SELECT BAND 3 ANNUITIES SOLD TO INDIVIDUALS OTHER THAN ADVISORS AND EMPLOYEES: Require a minimum $1,000,000 initial purchase payment and corporate office approval. Contracts already approved may make payments in subsequent years up to $100,000 if your age on the effective date of the contract is age 85 or younger and $50,000 if your age on the effective date of the contract is age 86 to 90. ** Installments must total at least $600 in the first year. If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in Illinois, Massachusetts and New Jersey. MAXIMUM ALLOWABLE PURCHASE PAYMENTS*** (without corporate office approval) based on your age on the effective date of the contract:
RAVA 4 RAVA 4 RAVA 4 ADVANTAGE SELECT ACCESS --------- -------- -------- For the first year: through age 85............................................... $999,999 $999,999 $999,999 for ages 86 to 90............................................ 100,000 100,000 100,000 For each subsequent year: through age 85............................................... 100,000 100,000 100,000 for ages 86 to 90............................................ 50,000 50,000 50,000
***These limits apply in total to all RiverSource Life annuities you own. These limits do not apply to contracts in New Jersey. We reserve the right to increase maximum limits. For qualified annuities, the Code's limits on annual contributions also apply. We will consider your contract void from the start if we do not receive your initial purchase payment within 180 days of the application signed date. Additional purchase payment restrictions for contracts with the Accumulation Benefit rider Additional purchase payments for contracts with the Accumulation Benefit rider are restricted during the waiting period after the first 180 days (1) immediately following the effective date and (2) following the last contract anniversary for each elective step up. Additional purchase payment restrictions for contracts with the GWB for Life rider EFFECTIVE JAN. 26, 2009, AFTER INITIAL PURCHASE PAYMENTS ARE RECEIVED, LIMITED ADDITIONAL PURCHASE PAYMENTS ARE ALLOWED FOR ALL CONTRACTS WITH THE GWB FOR LIFE, SUBJECT TO STATE RESTRICTIONS. Initial purchase payments are: 1) payments received with the application; and 2) Tax Free Exchanges, rollovers, and transfers listed on the annuity application, paper work initiated within 30 days from contract issue date and received within 180 days from the contract issue date. For contracts issued in all states except those listed below, the only additional purchase payments that will be allowed on/after Jan. 26, 2009 are the maximum permissible annual contribution described by the Code for qualified annuities. For Contracts Issued in Florida, New Jersey, and Oregon: For contracts with GWB for Life rider issued in Florida, New Jersey, and Oregon, additional purchase payments to your variable annuity contract will be limited to $100,000 for the life of your contract. The limit does not apply to initial purchase payments. Additional purchase payment restrictions for contracts with the SecureSource Flex riders The SecureSource Flex riders prohibit additional purchase payments while the rider is effective, if (1) you decline a rider fee increase, or (2) the Annual Lifetime Payment (ALP) is established and your contract value on an anniversary is less than four times the ALP. (For the purpose of this calculation only, the ALP is determined using 5%, as described under "Optional Living Benefits -- Currently Offered -- SecureSource Flex Riders.") Also if you make additional purchase payment after you take a withdrawal during the waiting period, these purchase payments are not guaranteed until the end of the waiting period. Subject to state restrictions, we reserve the right to change the purchase payment limitations for all optional riders, including making further restrictions, upon written notice. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 23 Subject to state regulatory requirements, we reserve the right to not accept purchase payments allocated to the regular fixed account for twelve months following either: 1. a partial surrender from the regular fixed account; or 2. a lump sum transfer from the regular fixed account to a subaccount. HOW TO MAKE PURCHASE PAYMENTS 1 BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 2 BY SCHEDULED PAYMENT PLAN We can help you set up: - - an automatic payroll deduction, salary reduction or other group billing arrangement; or - - a bank authorization. PURCHASE PAYMENT CREDITS PURCHASE PAYMENT CREDITS ARE NOT AVAILABLE FOR RAVA 4 ACCESS. FOR RAVA 4 ADVANTAGE: we add a credit to your contract in the amount of: - - 1% of each purchase payment received: - if you elect the ten-year surrender charge schedule for your contract and the initial purchase payment is under $100,000; or - if you elect the seven-year surrender charge schedule for your contract and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. - - 2% of each purchase payment received if you elect the ten-year surrender charge schedule for your contract and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. FOR RAVA 4 ADVANTAGE - BAND 3: we add a credit to your contract in the amount of: - - 2% of each purchase payment received: - if you elect the seven-year surrender charge schedule for your contract. - - 3% of each purchase payment received - if you elect the ten-year surrender charge schedule for your contract. Surrender charges under RAVA 4 Advantage and RAVA 4 Advantage - Band 3 may be higher and longer than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, there could be circumstances where you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. All things being equal (such as fund performance and availability), this may occur if you select the ten-year surrender charge and you make a full surrender before year ten. We pay for the credits under RAVA 4 Advantage and RAVA 4 Advantage - Band 3 primarily through revenue from a higher and longer surrender charge schedule and through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. FOR RAVA 4 SELECT: we add a credit to your contract in the amount of: - - 1% of each purchase payment received in the first contract year if your initial purchase payment to the contract is at least $250,000 but less than $1,000,000; or - - 2% of each purchase payment received in the first contract year if your initial purchase payment to the contract is $1,000,000 or more. Please note that purchase payments of $1,000,000 or more require home office approval. FOR RAVA 4 SELECT - BAND 3: we add a credit to your contract in the amount of 2% of each purchase payment received in the first contract year. Expenses under RAVA 4 Select and RAVA 4 Select - Band 3 may be higher than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. We pay for the credits under RAVA 4 Select and RAVA 4 Select - Band 3 primarily through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. - -------------------------------------------------------------------------------- 24 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS We fund all credits from our general account. We do not consider credits to be "investments" for income tax purposes. (See "Taxes.") We allocate each credit to your contract value when the applicable purchase payment is applied to your contract value. We allocate such credits to your contract value according to allocation instructions in effect for your purchase payments. We will reverse credits from the contract value for any purchase payment that is not honored. The amount returned to you under the free look provision also will not include any credits applied to your contract. (See "The Contract in Brief - Free look period.") We will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits to the extent a death benefit, surrender payment, or your settlement under an annuity payout plan includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a death benefit payment under this contract; (2) a request for surrender charge waiver due to Hospital or Nursing Home Confinement or Terminal Illness Disability Diagnosis; or (3) your settlement of the contract under an annuity payout plan.* We reserve the right to increase the amount of the credit for certain groups of contract owners. The increase will not be greater than 8% of total net purchase payments. We would pay for increases in credit amounts primarily through reduced expenses expected from such groups. * For contracts purchased in Oregon, we will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits to the extent a death benefit, includes purchase payment credits applied within twelve months preceding the date of death. LIMITATIONS ON USE OF CONTRACTS If mandated by applicable law, including but not limited to, federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner's access to contract values and satisfy other statutory obligations. Under these circumstances, we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate governmental authority or court of competent jurisdiction. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 25 CHARGES CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. Currently, we deduct $30 from your contract value on your contract anniversary at the end of each contract year. Subject to state regulatory requirements, we prorate this charge among the subaccounts and the regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. The contract administrative charge is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. We reserve the right to increase this charge after the first contract anniversary to a maximum of $50.* We will waive $30 of this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the full charge at the time of surrender regardless of the contract value or purchase payments made. This charge does not apply after annuity payouts begin or when we pay death benefits. * In certain states and for certain contracts we have waived our right to increase the contract administrative charge. MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee, which is a percentage of their average daily net assets, on an annual basis as follows:
RAVA 4 ADVANTAGE RAVA 4 SELECT RAVA 4 ACCESS For nonqualified annuities 1.05% 1.30% 1.45% For qualified annuities .85% 1.10% 1.25%
This fee covers the mortality and expense risk that we assume. This fee does not apply to the GPAs, the regular fixed account or the Special DCA fixed account. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner or annuitant lives and no matter how long our entire group of owners or annuitants live. If, as a group, owners or annuitants outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners or annuitants do not live as long as expected, we could profit from the mortality risk fee. We deduct the mortality risk fee from the subaccounts during the annuity payout period even if the annuity payout plan does not involve a life contingency. Expense risk arises because we cannot increase the contract administrative charge more than $20.00 per contract and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. The subaccounts pay us the mortality and expense risk fee they accrued as follows: - - first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; - - then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. We do not expect that the surrender charge for RAVA 4 Advantage or RAVA 4 Select, discussed in the following paragraphs, will cover sales and distribution expenses. SURRENDER CHARGE If you surrender all or part of your contract, you may be subject to a surrender charge. For RAVA 4 Advantage, a surrender charge applies if all or part of the surrender amount is from purchase payments we received within seven or ten years before surrender. You select the surrender charge period at the time of your application for the contract. For RAVA 4 Select, a surrender charge applies if you surrender all or part of your purchase payments in the first three contract years. There is no surrender charge for RAVA 4 Access. The surrender charge percentages that apply to you are shown in your contract. You may surrender an amount during any contract year without a surrender charge. We call this amount the Total Free Amount (TFA). The TFA varies depending on whether your contract includes the GWB for Life rider or SecureSource rider: CONTRACTS WITHOUT GWB FOR LIFE RIDER OR SECURESOURCE RIDER The TFA is the greater of: - - 10% of the contract value on the prior contract anniversary*; or - - current contract earnings. - -------------------------------------------------------------------------------- 26 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS CONTRACTS WITH GWB FOR LIFE RIDER OR SECURESOURCE RIDER The TFA is the greatest of: - - 10% of the contract value on the prior contract anniversary*; - - current contract earnings; - - the Remaining Benefit Payment; or - - the Remaining Annual Lifetime Payment. * We consider all purchase payments received and any purchase payment credit applied prior to your surrender request to be the prior contract anniversary's contract value during the first contract year. NOTE: We determine current contract earnings by looking at the entire contract value, not the earnings of any particular subaccount, GPA, the regular fixed account or the Special DCA fixed account. Amounts surrendered in excess of the TFA may be subject to a surrender charge as described below. SURRENDER CHARGE UNDER RAVA 4 ADVANTAGE: For purposes of calculating any surrender charge under RAVA 4 Advantage, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next we surrender purchase payments received prior to the surrender charge period you selected and shown in your contract. We do not assess a surrender charge on these purchase payments. 3. Finally, if necessary, we surrender purchase payments received that are still within the surrender charge period you selected and shown in your contract. We surrender these payments on a first-in, first-out (FIFO) basis. We do assess a surrender charge on these payments. We determine your surrender charge by multiplying each of your payments surrendered by the applicable surrender charge percentage, and then adding the total surrender charges. The surrender charge percentage depends on the number of years since you made the payments that are surrendered, depending on the schedule you selected*:
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED NUMBER OF COMPLETED YEARS FROM DATE OF SURRENDER CHARGE YEARS FROM DATE OF EACH SURRENDER CHARGE EACH PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7+ 0 7 4 8 3 9 2 10+ 0
* In Alaska, Arizona, Colorado, Connecticut, Georgia, Hawaii, Illinois, Iowa, Michigan, Minnesota, Mississippi, Montana, New Jersey, North Carolina, Oregon, Utah and Washington the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama and Massachusetts, we waive surrender charges after the tenth contract anniversary for all payments regardless of when payments are made. Surrender charges may vary by state based on your age at contract issue. SURRENDER CHARGE UNDER RAVA 4 SELECT (EXCEPT TEXAS): For purposes of calculating any surrender charge under RAVA 4 Select, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 27 2. Next, if necessary, we surrender purchase payments. We do assess a surrender charge on these payments during the first three contract years as follows:
CONTRACT YEAR SURRENDER CHARGE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE UNDER RAVA 4 SELECT IN TEXAS: For purposes of calculating any surrender charge under RAVA 4 Select in Texas, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, if necessary, we surrender purchase payments. We surrender amounts from the oldest purchase payments first. We do assess a surrender charge on these payments during the first three contract years as follows:
NUMBER OF COMPLETED YEARS FROM DATE OF EACH PURCHASE PAYMENT SURRENDER CHARGE PERCENTAGE 0 8% 1 7 2 6 Thereafter 0
3. There are no surrender charges after the third contract anniversary. SURRENDER CHARGE UNDER RAVA 4 ACCESS: There is no surrender charge if you surrender all or part of your contract. PARTIAL SURRENDERS: For a partial surrender that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge, plus or minus any applicable MVA. For an example, see Appendix C. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E - PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment return is 3.5% and 6.67% if the assumed investment return is 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment return minus the present value of the remaining payouts using the discount rate. WAIVER OF SURRENDER CHARGES We do not assess surrender charges for: - - surrenders of any contract earnings; - - surrenders of amounts totaling up to 10% of the contract value on the prior contract anniversary to the extent it exceeds contract earnings; - - if you elected the GWB for Life or SecureSource rider, the greater of your contract's Remaining Benefit Payment or Remaining Annual Lifetime Payment to the extent it exceeds the greater of contract earnings or 10% of the contract value on the prior contract anniversary; - - amounts surrendered after the tenth contract anniversary in Alabama and Massachusetts; - - to the extent that they exceed the greater of contract earnings or 10% of the contract value on the prior contract anniversary, required minimum distributions from a qualified annuity. The amount on which surrender charges are waived can be no greater than the RMD amount calculated under your specific contract currently in force; - - contracts settled using an annuity payout plan*, unless an Annuity Payout Plan E is later surrendered; - - amounts we refund to you during the free look period*; - - death benefits*; - -------------------------------------------------------------------------------- 28 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - surrenders you make under your contract's "Waiver of Surrender Charges for Hospital or Nursing Home Confinement" provision*. To the extent permitted by state law, this provision applies when you are under age 76 on the date that we issue the contract. Under this provision, we will waive surrender charges that we normally assess upon full or partial surrender. You must provide proof satisfactory to us that, as of the date you request the surrender, you or your spouse are confined to a nursing home or hospital and have been for 60 straight days and the confinement began after the contract date. (See your contract for additional conditions and restrictions on this waiver.); and - - surrenders you make under your contract's "Waiver of Surrender Charges for Terminal Illness Disability Diagnosis" provision.* To the extent permitted by state law, this provision applies when you are under age 76 on the date we issue the contract. Under this provision, we will waive surrender charges that we normally assess for surrenders you make if you are diagnosed after the contract issue date as disabled with a medical condition that with reasonable medical certainty will result in death within 12 months or less from the date of a licensed physician's statement. You must provide us with a licensed physician's statement containing the terminal illness diagnosis and the date the terminal illness was initially diagnosed. (See your contract for additional conditions and restrictions on this waiver.) * However, we will reverse certain purchase payment credits. (See "Buying your contract - Purchase payment credits.") OTHER INFORMATION ON CHARGES: Ameriprise Financial, Inc. makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 1/2 (fee waived in case of death or disability). POSSIBLE GROUP REDUCTIONS: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate certain charges such as the contract administrative and surrender charges. However, we expect this to occur infrequently. OPTIONAL LIVING BENEFIT CHARGES -- CURRENTLY OFFERED SECURESOURCE FLEX RIDER FEE We deduct an annual charge based on the greater of the contract anniversary value or the total Remaining Benefit Amount (RBA) for this optional feature only if you select it as follows: - - SecureSource Flex - Single Life rider, 0.95%; - - SecureSource Flex - Joint Life rider, 1.10%. We deduct the charge from your contract value on your contract anniversary. We prorate this charge among the regular fixed account and the subaccounts in the same proportion as your interest in each bears to your total contract value, less any amounts invested in GPAs or any Special DCA account. Such charge is only deducted from GPAs and any Special DCA account if insufficient amounts are available from the regular fixed account and variable subaccounts. We will modify this prorated approach to comply with state regulations where necessary. Once you elect the SecureSource Flex rider, you may not cancel it (except as described below), and the charge will continue to be deducted until the contract or rider is terminated, or the contract value reduces to zero. If the contract or rider is terminated for any reason, we will deduct the charge adjusted for the number of calendar days coverage was in place since we last deducted the charge. If the RBA reduces to zero but the contract value has not been depleted, you will continue to be charged. Currently the SecureSource Flex rider fee does not vary with the PN program model portfolio or investment option selected; however, we reserve the right to vary the rider fee for each model portfolio or investment option. The SecureSource Flex - Single Life rider fee will not exceed a maximum fee of 2.00%. The SecureSource Flex - Joint Life rider fee will not exceed a maximum fee of 2.50 %. The following describes how your annual rider fee may increase: 1. We may increase the annual rider fee at our discretion and on a nondiscriminatory basis. Your annual rider fee will increase if we declare an increase to the fee with written notice 30 days in advance except as described below. The new fee will be in effect on the date we declare in the written notice. (A) You can decline this increase and therefore all future fee increases if we receive your written request prior to the date of the fee increase, in which case you permanently relinquish: (i) all future annual step-ups, and for the Joint Life rider, spousal continuation step-ups, (ii) any ability to make additional purchase payments, - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 29 (iii) the ability to change your PN program investment option (or change from a model portfolio to an investment option) to one that is more aggressive than your current model portfolio or investment option. Any change to a less aggressive investment option will further limit the investment options available to the then current and less aggressive investment options. (B) You can terminate this rider if your annual rider fee after any increase is more than 0.25 percentage points higher than your fee before the increase and if we receive your written request to terminate the rider prior to the date of the fee increase. 2. Your annual rider fee may increase if you elect to change to a more aggressive PN program investment option (or change from a model portfolio to a more aggressive investment option) and if the new investment option has a higher current annual rider fee. The annual rider fees associated with the available PN program model portfolios or investment options may change at our discretion, however these changes will not apply to this rider unless you change your current model portfolio or investment option to a more aggressive investment option. The new fee will be in effect on the valuation date we receive your written request to change your model portfolio or investment option. You can not decline this type of fee increase. To avoid it, you must stay in the same model portfolio or investment option or move to a less aggressive one. Also, this type of fee increase does not allow you to terminate the rider. The charge does not apply after you annuitize your contract and annuity payouts begin. ACCUMULATION BENEFIT RIDER FEE We deduct a charge for this optional feature only if you select it.(1) If selected, we deduct an annual charge of 1.25%(2) of the greater of your contract value or the minimum contract accumulation value on your contract anniversary. We prorate this charge among the subaccounts and the regular fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the Special DCA fixed account. Such charge is only deducted from any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. The charge will only be deducted from the subaccounts in Washington. We will modify this prorated approach to comply with state regulations where necessary. Once you elect the Accumulation Benefit rider, you may not cancel it and the charge will continue to be deducted through the end of the waiting period or when annuity payouts begin. If the contract is terminated for any reason or when annuity payouts begin, we will deduct the charge, adjusted for the number of calendar days coverage was in place since we last deducted the charge. Currently, the Accumulation Benefit rider fee does not vary with the PN program model portfolio or investment option selected; however, we reserve the right to increase this fee and/or charge a separate rider fee for each model portfolio or investment option. The Accumulation Benefit rider fee will not exceed a maximum fee of 2.50%. We will not change the Accumulation Benefit rider fee after the rider effective date unless: (a) you choose the annual elective step up or the elective spousal continuation step up after we have exercised our rights to increase the rider fee; (b) you change your PN program investment option (or change from a model portfolio to an investment option under the PN program) after we have exercised our rights to increase and/or vary the rider fee for each model portfolio or investment option. If you elect to change your PN program investment option (or change from a model portfolio to an investment option under the PN program) after we have exercised our right to increase the fee for this rider, or after we have exercised our right to establish fees for this rider which vary by model portfolio or investment option, the increase in fees we charge for this rider will become effective on the contract anniversary following your change of model portfolio or investment option. Any model portfolio or investment option changes on the contract anniversary will have the new fee effective on that contract anniversary. Also, in the event you change your model portfolio or investment option twice in the same contract year (see "Portfolio Navigator Program"), the fee for this rider will be the greatest fee applicable to any investment option which you have selected during the contract year. If you choose the elective step up, the elective spousal continuation step up, or change your model portfolio or investment option after we have exercised our rights to increase the rider fee as described above, your fee will be the fee that is in effect on the valuation date we receive your written request to step up or change your model portfolio or investment option. For elective step ups and elective spousal continuation step ups, this fee will be in effect for the entire contract year. The charge does not apply after annuity payouts begin. (1) Available if you are 80 or younger at the rider effective date. You must participate in the PN program with this rider (see "Portfolio Navigator Program"). Not available with GWB for Life or SecureSource riders. (2) For contracts purchased between Jan. 26, 2009 and May 30, 2009, the current charge is 0.80%. For contracts purchased prior to Jan. 26, 2009, the current charge is 0.60%. - -------------------------------------------------------------------------------- 30 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS OPTIONAL LIVING BENEFIT CHARGES -- PREVIOUSLY OFFERED GWB FOR LIFE RIDER FEE We deduct a charge for this optional feature only if you select it. If selected, we deduct an annual charge of 0.65% of the greater of the contract anniversary value or the remaining benefit amount (RBA). We prorate this charge among the subaccounts and the regular fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the GPAs and in the Special DCA fixed account. Such charge is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. The charge will only be deducted from the subaccounts in Washington. We will modify this prorated approach to comply with state regulations where necessary. Once you elect the GWB for Life rider, you may not cancel it and the fee will continue to be deducted until the contract is terminated, the contract value reduces to zero or annuity payouts begin. If the contract is terminated for any reason or when annuity payouts begin, we will deduct the fee, adjusted for the number of calendar days coverage was in place since we last deducted the fee. If the RBA goes to zero but the contract value has not been depleted, you will continue to be charged. Currently, the GWB for Life rider fee does not vary with the PN program model portfolio or investment option selected; however, we reserve the right to increase this fee and/or charge a separate rider fee for each model portfolio or investment option. The GWB for Life rider fee will not exceed a maximum fee of 1.50%. We will not change the GWB for Life rider fee after the rider effective date unless: (a) you choose the annual elective step up or the elective spousal continuation step up after we have exercised our rights to increase the rider fee; (b) you elect to change your PN program investment option (or change from a model portfolio to an investment option under the PN program)after we have exercised our rights to increase and/or vary the rider fee for each model portfolio or investment option. If you chose the elective spousal continuation step up or change your PN program investment option (or change from a model portfolio to an investment option under the PN program) after we have exercised our right to increase the fee for this rider, or after we have exercised our right to establish fees for this rider which vary by model portfolio or investment option, the increase in fees we charge for this rider will become effective on the contract anniversary following your change. Any changes on the contract anniversary will have the new fee effective on that contract anniversary. Also, in the event you change your model portfolio or investment option more than once in the same contract year (see "Portfolio Navigator Program"), the fee for this rider will be the greatest fee applicable to any investment option which you have selected during the contract year. If you chose the elective step up, you will pay the fee in effect on the valuation date we receive your written request to step up. If you chose an elective step up on the first contract anniversary, any increase in fees we charge for this rider for the step up will not become effective until the third contract year. In the event of more than one change in model portfolio or investment option and/or elective step up occurring in the same contract year, the fee we charge for this rider will be the highest fee applicable to any of these changes. The charge does not apply after annuity payouts begin. SECURESOURCE RIDER FEE We deduct an annual charge based on the greater of the contract anniversary value or the total Remaining Benefit Amount (RBA)(1) for this optional feature only if you select it(2) as follows: - - SecureSource - Single Life rider, 0.90%(3); - - SecureSource - Joint Life rider, 1.15%(3) We deduct the charge from your contract value on your contract anniversary. We prorate this charge among the subaccounts and the regular fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the GPAs and in the Special DCA fixed account. Such charge is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. The charge will only be deducted from the subaccounts in Washington. We will modify this approach to comply with state regulations where necessary. Once you elect the SecureSource rider, you may not cancel it and the fee will continue to be deducted until the contract or rider is terminated, or the contract value reduces to zero. If the contract or rider is terminated for any reason, we will deduct the fee, adjusted for the number of calendar days coverage was in place since we last deducted the fee. If the RBA reduces to zero but the contract value has not been depleted, you will continue to be charged. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 31 Currently the SecureSource rider fee does not vary with the PN program model portfolio or investment option selected; however, we reserve the right to increase this fee and/or charge a separate rider fee for each model portfolio or investment option. The SecureSource - Single Life rider fee will not exceed a maximum fee of 2.00%(3). The SecureSource - Joint Life rider charge will not exceed a maximum fee of 2.50%(3). We will not change the SecureSource rider fee after the rider effective date unless: (a) you choose the annual elective step up after we have exercised our rights to increase the rider fee. However, if you choose to exercise the annual elective step up before the end of the waiting period, the SecureSource rider fee will not change until the end of the waiting period. The fee for your rider will be based on the fee in effect on the valuation date we received your last written request to exercise the elective annual step up or to elect to change your PN program model portfolio or investment option; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider fee; (c) you elect to change your PN program investment option (or change from a model portfolio to an investment option under the PN program) after we have exercised our rights to increase and/or vary the rider fee for each model portfolio or investment option. If you choose the elective step up, the elective spousal continuation step up, or change your PN program model portfolio or investment option as described above, the fee for your rider will be the fee that is in effect on the valuation date we receive your written request to step up or change your model portfolio or investment option. On the next contract anniversary, we will calculate an average rider fee, for the preceding contract year only, that reflects the various different fees that were in effect that year, adjusted for the number of calendar days each fee was in effect. The charge does not apply after annuity payouts begin. (1) In Washington, the fee is based on the greater of the variable account contract value or the RBA less amounts invested in the fixed account. (2) For Single Life, available if you are 80 or younger at the rider effective date. For Joint Life, available if you and your spouse are 80 or younger at the rider effective date. You must participate in the PN program with this rider (see "Portfolio Navigator Program"). Not available with the Accumulation Benefit rider. (3) For contracts purchased prior to Jan. 26, 2009, the following charges apply: - the current fee for Single Life rider is 0.65% and for Joint Life rider is 0.85%, and - the maximum fee for Single Life rider is 1.50% and for Joint Life rider is 1.75%. OPTIONAL DEATH BENEFIT CHARGES ROPP RIDER FEE We deduct a charge for this optional feature only if you select it.(1) If selected, we deduct an annual charge of 0.20% of your contract value on your contract anniversary at the end of each contract year. We prorate this charge among the subaccounts and regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such charge is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.30%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 76 or older at the rider effective date. ROPP is included in the standard death benefit if you are age 75 or younger on the contract effective date at no additional cost. MAV RIDER FEE We deduct a charge for this optional feature only if you select it.(1) If selected, we deduct an annual charge of 0.25% of your contract value on your contract anniversary at the end of each contract year. We prorate this charge among the subaccounts and regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such charge is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.35%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 75 or younger at the rider effective date. Not available with the 5-Year MAV. - -------------------------------------------------------------------------------- 32 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 5-YEAR MAV RIDER FEE We deduct a charge for this optional feature only if you select it.(1) If selected, we deduct an annual charge of 0.10% of your contract value on your contract anniversary at the end of each contract year. We prorate this charge among the subaccounts and regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such charge is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 75 or younger at the rider effective date. Not available with the MAV. EEB RIDER FEE We deduct a charge for this optional feature only if you select it.(1) If selected, we deduct an annual charge of 0.30% of your contract value on your contract anniversary at the end of each contract year. We prorate this charge among the subaccounts and regular fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such charge is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.40%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 75 or younger at the rider effective date. Not available with EEP. May not be available in all states. EEP RIDER FEE We deduct a charge for this optional feature only if you select it.(1) If selected, we deduct an annual charge of 0.40% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and regular fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such charge is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.50%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 75 or younger at the rider effective date. Not available with EEB. May not be available in all states. EEP is only available on contracts purchased through a direct transfer or exchange of another annuity or a life insurance policy. RIDER COMBINATION DISCOUNT A fee discount of 0.05% applies if you purchase the 5-Year MAV with either the EEB or EEP. A fee discount of 0.10% applies if you purchase the MAV with either the EEB or EEP. FUND FEES AND EXPENSES There are deductions from and expenses paid out of the assets of the funds that are described in the prospectuses for those funds. (See "Annual Operating Expenses of the Funds.") PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon your state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you surrender your contract. VALUING YOUR INVESTMENT We value your accounts as follows: GPA We value the amounts you allocate to the GPA directly in dollars. The GPA value equals: - - the sum of your purchase payments and purchase payment credits allocated to the GPA; - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 33 - - plus any amounts transferred to the GPA from the regular fixed account or subaccounts; - - plus interest credited; - - minus any amounts transferred from the GPA to the regular fixed account or any subaccount; - - minus any amounts deducted for charges or surrenders; and/or - - minus any remaining portion of fees where the values of the regular fixed account and the subaccounts are insufficient to cover those fees. REGULAR FIXED ACCOUNT We value the amounts you allocate to the regular fixed account directly in dollars. The regular fixed account value equals: - - the sum of your purchase payments and purchase payment credits and transfer amounts allocated to the regular fixed account (including any positive or negative MVA on amounts transferred from the GPAs); - - plus interest credited; - - minus the sum of amounts surrendered (including any applicable surrender charges) and amounts transferred out; - - minus any prorated portion of the contract administrative charge; - - minus any prorated portion of the ROPP rider fee (if selected); - - minus any prorated portion of the MAV rider fee (if selected); - - minus any prorated portion of the 5-Year MAV rider fee (if selected); - - minus any prorated portion of the EEB rider fee (if selected); - - minus any prorated portion of the EEP rider fee (if selected); - - minus any prorated portion of the Accumulation Benefit rider fee (if selected)*; - - minus any prorated portion of the GWB for Life rider fee (if selected)*; and - - minus any prorated portion of the SecureSource rider fee (if selected)*. * The fee can only be deducted from the subaccounts in Washington. SPECIAL DCA FIXED ACCOUNT We value the amounts you allocate to the Special DCA fixed account directly in dollars. The Special DCA fixed account value equals: - - the sum of your purchase payments and purchase payment credits allocated to the Special DCA fixed account; - - plus interest credited; - - minus the sum of amounts surrendered (including any applicable surrender charges); - - minus amounts transferred out; and - - minus any remaining portion of fees where the values of the regular fixed account and the subaccounts are insufficient to cover those fees. SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts or we apply any purchase payment credits to a subaccount, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each time you take a partial surrender, transfer amounts out of a subaccount, or we assess a contract administrative charge, a surrender charge or charge for any optional riders with annual charges (if applicable). The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: NUMBER OF UNITS: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. WE DETERMINE THE NET INVESTMENT FACTOR BY: - - adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - - dividing that sum by the previous adjusted net asset value per share; and - -------------------------------------------------------------------------------- 34 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: - - additional purchase payments you allocate to the subaccounts; - - any purchase payment credits allocated to the subaccounts; - - transfers into or out of the subaccounts (including any positive or negative MVA on amounts transferred from the GPAs); - - partial surrenders; - - surrender charges; and a deduction of a prorated portion of: - - the contract administrative charge; - - the ROPP rider charge (if selected); - - the MAV rider charge (if selected); - - the 5-Year MAV rider charge (if selected); - - the EEB rider charge (if selected); - - the EEP rider fee charge (if selected); - - the Accumulation Benefit rider charge (if selected); - - the GWB for Life rider charge (if selected); and/or - - the SecureSource rider charge (if selected). Accumulation unit values will fluctuate due to: - - changes in fund net asset value; - - fund dividends distributed to the subaccounts; - - fund capital gains or losses; - - fund operating expenses; and/or - - mortality and expense risk fees. MAKING THE MOST OF YOUR CONTRACT AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the regular fixed account to one or more subaccounts. Automated transfers from the regular fixed account to the subaccounts under automated dollar-cost averaging may not exceed an amount that, if continued, would deplete the regular fixed account within 12 months. You may not set up an automated transfer to or from the GPAs. You may not set up an automated transfer to the regular fixed account or the Special DCA fixed account. You may not set up an automated transfer if the GWB for Life, SecureSource, Accumulation Benefit, or PN program is selected. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. The potential effect is to lower your average cost per unit. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 35 HOW DOLLAR-COST AVERAGING WORKS
NUMBER By investing an equal number AMOUNT ACCUMULATION OF UNITS of dollars each month... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy Mar 100 17 5.88 more units when the (ARROW) Apr 100 15 6.67 per unit market price is low... May 100 16 6.25 June 100 18 5.56 July 100 17 5.88 and fewer units Aug 100 19 5.26 when the per unit (ARROW) Sept 100 21 4.76 market price is high. Oct 100 20 5.00
You paid an average price of $17.91 per unit over the 10 months, while the average market price actually was $18.10. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success 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. For specific features contact your financial advisor. SPECIAL DOLLAR-COST AVERAGING (SPECIAL DCA) PROGRAM If your purchase payment is at least $10,000, you can choose to participate in the Special DCA program (if available). There is no charge for the Special DCA program. Under the Special DCA program, you can allocate a new purchase payment and any applicable purchase payment credit to a six-month Special DCA fixed account according to the following rules: - - You may only allocate a new purchase payment of at least $10,000 to a Special DCA fixed account. - - You cannot transfer existing contract values into a Special DCA fixed account. - - Each Special DCA arrangement consists of six monthly transfers that begin seven days after we receive your purchase payment. - - We make monthly transfers of your Special DCA fixed account value into the subaccounts or PN program model portfolio or investment option you have selected. - - You may not use the regular fixed account, GPA account, or the Special DCA fixed account as a destination for the Special DCA monthly transfer. (Exception: if the PN program is in effect, and the model portfolio you have selected includes the regular fixed account, amounts will be transferred from the Special DCA fixed account to the regular fixed account according to the allocation percentage established for the model portfolio you have selected.) - - We will change the interest rate on each Special DCA fixed account from time to time at our discretion based on factors that include the competition and the interest rate we are crediting to the regular fixed account at the time of the change. From time to time, we may credit interest to the Special DCA fixed account at promotional rates that are higher than those we credit to the regular fixed account. - - We credit each Special DCA fixed account with the current guaranteed annual rate that is in effect on the date we receive your purchase payment. However, we credit this annual rate over the length of the Special DCA arrangement on the balance remaining in your Special DCA fixed account. Therefore, the net effective interest rate you receive is less than the stated annual rate. - - We do not credit this interest after we transfer the value out of the Special DCA fixed account into the accounts you selected. - - Once you establish a Special DCA fixed account, you cannot allocate additional purchase payments to it. However, you may establish another new Special DCA fixed account and allocate new purchase payments to it. - - Funding from multiple sources is treated as individual purchase payments and a new Special DCA fixed account is opened for each payment (if the Special DCA fixed accounts are available on the valuation date we receive your payment). - - You may terminate your participation in the Special DCA program at any time. If you do, for RAVA 4 Advantage and RAVA 4 Select, we will transfer the remaining balance from your Special DCA fixed account to the regular fixed account, if no other specification is made. Interest will be credited according to the rates in effect on the regular fixed account and not - -------------------------------------------------------------------------------- 36 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS the rate that was in effect on the Special DCA fixed account. For RAVA 4 Access, we will transfer the remaining balance from your Special DCA fixed account to variable subaccounts you specified in your termination request, or if no specification is made, according to your current purchase payment allocation. (Exception: if you have selected a PN program model portfolio or investment option when you elect to end your participation in the Special DCA program, we will transfer the remaining balance to the model portfolio or investment option you have selected). - - We can modify the terms of the Special DCA program at any time. Any modifications will not affect any purchase payments that are already in a Special DCA fixed account. For more information on the Special DCA program, contact your financial advisor. The Special DCA program does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success 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. ASSET REBALANCING You can ask us in writing to have the variable subaccount portion of your contract value allocated according to the percentages (in tenth of a percent amounts) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semi-annually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be in numbers with no more than one digit past the decimal. Asset rebalancing does not apply to the GPAs, regular fixed account or the Special DCA fixed account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing or by any other method acceptable to us, to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor. Different rules apply to asset rebalancing under the Portfolio Navigator program (see "Portfolio Navigator Program" below). PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM) THE FOLLOWING INFORMATION ABOUT THE PN PROGRAM APPLIES TO ALL CONTRACTS. FOR ADDITIONAL INFORMATION ABOUT THE PN PROGRAM FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010, ALSO SEE BELOW "PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM) FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010." The PN program is available for nonqualified annuities and for qualified annuities. The PN program allows you to allocate your contract value to a PN program investment option. The PN program investment options are currently five funds of funds, each of which has a particular investment objective and invests in underlying funds. The PN program also allows those who participated in the PN program and who exercised an "opt-out" right applicable through April 23, 2010 (to be in this group, you must have purchased your contract on or before April 23, 2010) to remain invested in a "static" PN program model portfolio (not subject to further updating or reallocation, as described under "Portfolio Navigator Program (PN program) for contracts purchased before May 10, 2010"). You are required to participate in the PN program if your contract includes an optional Accumulation Benefit rider, GWB for Life or SecureSource rider. If your contract does not include one of these riders, you also may elect to participate in the PN program at no additional charge. You should review any PN program information, including the terms of the PN program, carefully. Your financial advisor can provide you with additional information and can answer questions you may have on the PN program. Each of the PN program fund of funds investment options has the investment objective of seeking a high level of total return consistent with a certain level of risk by investing in various underlying funds. RiverSource Investments is the investment adviser of each of the PN program investment options, but does not serve as investment adviser under the PN program (regardless of whether you have selected a PN program investment option or remained in a model portfolio). Morningstar Associates, LLC serves as an independent consultant to RiverSource Investments to provide recommendations regarding portfolio construction and ongoing analysis of the PN program investment options, but does not provide any services in connection with the model portfolios. RiverSource Investments or an affiliate will serve as investment adviser for all of the underlying funds in which the investment options invest. However, some of the underlying funds will be managed on a day-to-day basis directly by RiverSource Investments and some will be managed by one or more affiliated or unaffiliated sub-advisers, subject to the oversight of RiverSource Investments and the fund's board of trustees. The new funds of funds have objectives ranging from Conservative to Aggressive, and are managed within asset class allocation targets and with a broad multi- manager approach. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 37 Below are the asset allocation weights (between equity and fixed income/cash underlying funds) for each of the funds of funds: 1. Variable Portfolio - Aggressive Portfolio: 80% Equity / 20% Fixed Income 2. Variable Portfolio - Moderately Aggressive Portfolio: 65% Equity / 35% Fixed Income 3. Variable Portfolio - Moderate Portfolio: 50% Equity / 50% Fixed Income 4. Variable Portfolio - Moderately Conservative Portfolio: 35% Equity / 65% Fixed Income 5. Variable Portfolio - Conservative Portfolio: 20% Equity / 80% Fixed Income POTENTIAL CONFLICTS OF INTEREST. In identifying the universe of investment options and providing investment advisory services for the PN program investment options and certain of the funds underlying the investment options and model portfolios, RiverSource Investments is, together with its affiliates, including us, subject to competing interests that may influence its decisions. These competing interests typically arise because RiverSource Investments or one of its affiliates serves as the investment adviser to the underlying funds invested in the investment options and to certain underlying funds to which assets are allocated under the model portfolios, because we or an affiliate of ours may provide other services in connection with such underlying funds, and because the compensation we and our affiliates receive for providing these investment advisory and other services varies depending on the underlying fund. For additional information about the conflicts of interest which RiverSource Investments and its affiliates are subject to in connection with a PN program investment option, see the prospectus for such investment option. For additional information about the conflicts of interest which RiverSource Investments and its affiliates are subject to in connection with a PN program model portfolio, see "Portfolio Navigator Program (PN program) for contracts purchased before May 10, 2010." PARTICIPATING IN THE PN PROGRAM. If you choose or are required to participate in the PN program, you are responsible for determining which investment option is best for you or whether to remain in a model portfolio or investment option. Your financial advisor can help you make this determination. In addition, your financial advisor may provide you with an investor questionnaire, a tool to help define your investing style which is based on factors such as your investment goals, your tolerance for risk and how long you intend to invest. Your responses to the investor questionnaire can help you determine which model portfolio or investment option most closely matches your investing style. While the scoring of the investor questionnaire is objective, there is no guarantee that your responses to the investor questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the investment option (or the asset mix reflected in the model portfolio, if applicable) you select or selected after completing the investor questionnaire is appropriate to your ability to withstand investment risk. RiverSource Life is not responsible for your decision to participate in the PN program, your selection of a specific investment option or model portfolio, if applicable, or your decision to change to a different investment option. Currently, there are five PN program investment options, and five model portfolios, ranging from conservative to aggressive. You may not use more than one investment option or model portfolio at a time. Each investment option is a fund of funds. Each model portfolio consists of subaccounts and/or the regular fixed account according to the allocation percentages stated for the model portfolio. If you are participating in the PN program in a model portfolio, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Special rules apply to the GPAs if they are included in a model portfolio. Under these rules: - - no MVA will apply when rebalancing occurs within a specific model portfolio (but an MVA may apply if you elect to transfer to a new investment option); - - no MVA will apply when you elect an annuity payout plan while your contract value is invested in a model portfolio. (See "Guarantee Period Accounts -- Market Value Adjustment.") If you initially allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA fixed account, when available (see "The Special DCA Fixed Account"), and you are participating in the PN program, we will make monthly transfers in accordance with your instructions from the Special DCA fixed account (and subaccounts we may choose to allow for DCA arrangements which are not part of a model portfolio -- "excluded accounts") into the investment option or model portfolio you have chosen. You may request a change to your investment option (or a transfer from your model portfolio to an investment option) up to twice per contract year by written request on an authorized form or by another method agreed to by us. If your contract includes an optional Accumulation Benefit, GWB for Life rider or SecureSource rider and you make such a change, we may charge you a higher fee for your rider. If your contract includes a Secure Source rider, we reserve the right to limit the number of changes if required to comply with the written instructions of a Fund (see "Market Timing"). If your contract includes the GWB for Life rider or SecureSource rider, we reserve the right to limit the number of investment options from which you can select, subject to state restrictions. - -------------------------------------------------------------------------------- 38 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS We reserve the right to change the terms and conditions of the PN program upon written notice to you. This includes but is not limited to the right to: - - limit your choice of investment options based on the amount of your initial purchase payment we accept or when you take a withdrawal; - - cancel required participation in the program after 30 days' written notice; - - substitute a fund of funds for your model portfolio if permitted under applicable securities law; and - - discontinue the PN program. We will give you 30 days' written notice of any such change. RISKS. Asset allocation through the PN program does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By investing in a PN program investment option or in accordance with a model portfolio, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. For additional information about the risks of investing in a PN program investment option, see the prospectus for such investment option. For additional information about the risks of investing in accordance with a PN program model portfolio, see "Portfolio Navigator Program (PN program) for Contracts Purchased before May 10, 2010" below. PN PROGRAM UNDER THE ACCUMULATION BENEFIT RIDER, GWB FOR LIFE RIDER OR SECURESOURCE RIDER If you purchase the optional Accumulation Benefit rider, the optional GWB for Life rider or the optional SecureSource rider, you are required to participate in the PN program under the terms of each rider. - - ACCUMULATION BENEFIT RIDER: You cannot terminate the Accumulation Benefit rider. As long as the Accumulation Benefit rider is in effect, your contract value must be invested in one of the investment options or model portfolios. For contracts purchased on or after Jan. 26, 2009, you cannot select the Aggressive investment option or model portfolio, or transfer to the Aggressive investment option while the rider is in effect. The Accumulation Benefit rider automatically ends at the end of the waiting period and you then have the option to cancel your participation in the PN program. At all other times, if you do not want to invest in any of the PN program investment options or invest in accordance with any of the model portfolios, you must terminate your contract by requesting a full surrender. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE ACCUMULATION BENEFIT RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN THE PN PROGRAM (AS IT NOW EXISTS OR AS WE MAY MODIFY IT IN THE FUTURE) UNTIL THE END OF THE WAITING PERIOD. - - GWB FOR LIFE OR SECURESOURCE RIDER: The GWB for Life or SecureSource rider requires that your contract value be invested in one of the investment options or model portfolios for the life of the contract. Subject to state restrictions, we reserve the right to limit the number of investment options or model portfolios from which you can select based on the dollar amount of purchase payments you make. Because you cannot terminate the GWB for Life or SecureSource rider once you have selected it, you must terminate your contract by requesting a full surrender if you do not want to invest in any of the PN program investment options or invest in accordance with any of the model portfolios. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE GWB FOR LIFE OR SECURESOURCE RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN THE PN PROGRAM (AS IT NOW EXISTS OR AS WE MAY MODIFY IT IN THE FUTURE) FOR THE LIFE OF THE CONTRACT. OPTIONAL PN PROGRAM If you do not select the optional Accumulation Benefit rider, the optional GWB for Life rider or an optional SecureSource rider with your contract, you may elect to participate in the PN program by adding the optional PN program to your contract at no additional charge. You can elect to participate in the PN program at any time, and you may transfer all or part of your assets from a PN program investment option or transfer your contract assets so that they are not invested in accordance with a model portfolio at any time. If you transfer contract assets so that they are no longer invested in accordance with a PN program model portfolio or investment option, automated rebalancing associated with the model portfolio or investment option will end. PORTFOLIO NAVIGATOR PROGRAM (PN PROGRAM) FOR CONTRACTS PURCHASED BEFORE MAY 10, 2010 As of the Transfer Date (defined below), your contract assets invested in accordance with a model portfolio under the PN program will be transferred based on the recommendation of RiverSource Investments, LLC ("RiverSource Investments"), the investment adviser under the PN program, to a fund of funds investment option that corresponds to your model portfolio unless you informed us on or before April 23, 2010 that you did not want your assets so transferred (unless you "opt out"). The actual date of transfer to the fund of funds or the date upon which your opt out becomes effective (the "Transfer Date") will occur no earlier than May 7, 2010 and no later than June 30, 2010, and will depend on the contract you own and the month that you purchased your contract. If you opt out of the transfer, you will remain invested in accordance with the asset allocation currently specified for your model portfolio and you will not receive any further reallocation recommendations from RiverSource Investments (although your assets will be rebalanced back to the current allocation quarterly). As of the Transfer - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 39 Date, RiverSource Investments will no longer review the model portfolios or make changes to them as part of the PN program, and the investment advisory agreement you have previously entered into with RiverSource Investments will terminate. If you have chosen to remain invested in a "static" PN program model portfolio, your assets will remain invested in accordance with your current model portfolio, and you will not be provided with any future updates to the model portfolio or reallocation recommendations. If you own a contract with a living benefit rider which requires you to participate in the PN program and have chosen to remain in a PN program model portfolio, you may in the future transfer the assets in your contract only to one of the new fund of funds investment options. If you begin taking income from your contract and have living benefit rider that requires a move to a certain model portfolio or investment option once you begin taking income, you will be transferred to a fund of funds that corresponds to that model portfolio. RiverSource Investments and its affiliates have committed to a two-year cap on PN program investment option expenses for contract owners who purchased a contract before May 10, 2010, as set forth in disclosure previously sent to such contract owners. Specifically, expense waivers and reimbursements will be applied to the PN program investment options and to the underlying funds so that total fees and expenses paid by investors in the PN program investment options will approximate the total fees and expenses of the underlying funds borne by participants in the corresponding PN program model portfolio, based on 2009 fiscal year end expenses. After two years these expense caps will no longer be in place and total expenses will likely be higher. SERVICE PROVIDERS IN CONNECTION WITH THE PN PROGRAM MODEL PORTFOLIOS. RiverSource Investments, an affiliate of ours, has served as non-discretionary investment adviser for PN program model portfolio participants solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments has entered into an investment advisory agreement with each contract owner participating in the PN program prior to the program changes described in this prospectus. In its role as investment adviser to the PN program, RiverSource Investments relied upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviewed the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducted periodic due diligence and provided ongoing oversight with respect to the process utilized by the third party service provider. For more information on RiverSource Investments' role as investment adviser for the PN program, please see the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document, which is based on Part II of RiverSource Investments' Form ADV, the SEC investment adviser registration form. The Disclosure Document was delivered to contract owners enrolled in the PN program prior to May 10, 2010 at or before the time they enrolled. The PN program model portfolios were designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. The criteria used in developing and updating the model portfolios do not guarantee or predict future performance. Neither Morningstar Associates nor RiverSource Investments, in connection with their respective roles, provided or provides any individualized investment advice to contract owners regarding the application of a particular model portfolio to his or her circumstances. Contract owners are solely responsible for determining whether any model portfolio is appropriate. We identified to Morningstar Associates the universe of allocation options that could be included in the model portfolios (the universe of allocation options). Once we identified this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictated to Morningstar Associates the number of allocation options that should be included in a model portfolio, the percentage that any allocation option represents in a model portfolio, or whether a particular allocation option may be included in a model portfolio. However, as described below under "Potential conflicts of interest", there are certain conflicts of interest associated with RiverSource Investments and its affiliates' influence over the development and updating of the model portfolios. POTENTIAL CONFLICTS OF INTEREST. Although RiverSource Investments will no longer maintain the model portfolios on an ongoing basis, the asset allocations in the current model portfolios may have been affected by the following conflicts of interest. In identifying the universe of allocation options for a model portfolio, we and our affiliates, including RiverSource Investments, were subject to competing interests that may have influenced the allocation options we proposed. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to certain underlying funds in the model portfolios as well as compensation we or an affiliate of ours may receive for providing services in connection with such underlying funds or their corresponding sub-accounts. These competing interests also involve compensation we or an affiliate of ours receive if certain funds that RiverSource Investments does not advise were included as underlying funds in model portfolios. The inclusion of funds that pay compensation to RiverSource Investments or an affiliate may have a positive or negative impact on performance. - -------------------------------------------------------------------------------- 40 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS As an affiliate of RiverSource Investments, we had an incentive to identify the RiverSource Variable Series Trust funds for consideration as part of a model portfolio over unaffiliated funds. In addition, RiverSource Investments, in its capacity as investment adviser to the RiverSource Variable Series Trust funds, monitors the performance of the RiverSource Variable Series Trust funds. In this role RiverSource Investments may, from time to time, have recommended certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may have included a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may have believed that certain RiverSource Variable Series Trust funds would have benefited from additional assets or could have been harmed by redemptions. All of these factors may have impacted RiverSource Investments' view regarding the composition and allocation of a model portfolio. RiverSource Investments' role as investment adviser to the PN program in connection with the development and updating of the model portfolios, and our identification of the universe of allocation options to Morningstar Associates for consideration, may have influenced the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. We, RiverSource Investments, or another affiliate of ours may receive higher compensation from certain unaffiliated funds that RiverSource Investments does not advise or manage. (See "Expense Summary -- Annual Operating Expenses of the Funds" and "The Variable Account and the Funds -- The Funds.") Therefore, we may have had an incentive to identify these unaffiliated funds to Morningstar Associates for inclusion in the model portfolios. In addition, we or an affiliate of ours may receive higher compensation from certain GPAs or the regular fixed account than from other allocation options. We therefore may have had an incentive to identify these allocation options to Morningstar Associates for inclusion in the model portfolios. Some officers and employees of RiverSource Investments are also officers or employees of us or our affiliates which may be involved in, and/or benefit from, your participation in the PN program. These officers and employees may have had an incentive to make recommendations, or take actions, that benefit one or more of the entities they represent, rather than participants in the PN program. MODEL PORTFOLIO RISKS. Asset allocation through a PN program model portfolio does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By spreading your contract value among various allocation options under the PN program, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. Although each model portfolio is intended to optimize returns given various levels of risk tolerance, a model portfolio may not perform as intended. A model portfolio, the allocation options and market performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause the model portfolio to be ineffective or less effective in reducing volatility. In the future, the model portfolios will not be updated periodically, and the investments and investment styles and policies of the current allocation options may change. Accordingly, your model portfolio may change so that it is no longer appropriate for your needs. Furthermore, the absence of periodic updating means that existing allocation options will not be replaced as may be appropriate due to poor performance, changes in management personnel or other factors. Investment performance of your contract value could be better or worse by participating in the PN program than if you had not participated. A model portfolio may perform better or worse than any single fund or allocation option or any other combination of funds or allocation options. The performance of a model portfolio depends on the performance of the component funds. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing of the model portfolios can cause their component funds to incur transactional expenses to raise cash for money flowing out of the funds or to buy securities with money flowing into the funds. Moreover, a large outflow of money from the funds may increase the expenses attributable to the assets remaining in the funds. These expenses can adversely affect the performance of the relevant funds and of the model portfolios. In addition, when a particular fund needs to buy or sell securities due to quarterly rebalancing of a model portfolio, it may hold a large cash position. A large cash position could detract from the achievement of the fund's investment objective in a period of rising market prices; conversely, a large cash position would reduce the fund's magnitude of loss in the event of falling market prices and provide the fund with liquidity to make additional investments or to meet redemptions. (See also the description of competing interests in the section titled "Service Providers to the PN Program" above.) For additional information regarding the risks of investing in a particular fund, see that fund's prospectus. TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while the PN program is in effect. You may transfer contract value from any one subaccount, GPAs or the regular fixed account, to another subaccount before annuity payouts begin. For RAVA 4 Advantage and RAVA 4 Select contracts, certain restrictions apply to transfers involving - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 41 the GPAs and the regular fixed account. For RAVA 4 Access contracts, you cannot transfer to the regular fixed account unless it is included in the PN program model portfolio that you selected. When your request to transfer will be processed depends on when we receive it: - - If we receive your transfer request at our corporate office in good order before the close of business, we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request. - - If we receive your transfer request at our corporate office in good order at or after the close of business, we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. Transfers out of the GPAs will be subject to an MVA if done more than 30 days before the end of the guarantee period. We may suspend or modify transfer privileges at any time, subject to state regulatory requirements. For information on transfers after annuity payouts begin, see "Transfer policies" below. TRANSFER POLICIES FOR RAVA 4 ADVANTAGE AND RAVA 4 SELECT - - Before annuity payouts begin, you may transfer contract values between the subaccounts, or from the subaccounts to the GPAs and regular fixed account at any time. The amount transferred to any GPA must be at least $1,000. However, if you made a transfer from the regular fixed account to the subaccounts or the GPAs, you may not make a transfer from any subaccount or GPA back to the regular fixed account until the next contract anniversary. We reserve the right to limit transfers to the regular fixed account if the interest rate we are then currently crediting to the regular fixed account is equal to the minimum interest rate stated in the contract. - - You may transfer contract values from the regular fixed account to the subaccounts or the GPAs once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). Transfers from the regular fixed account are not subject to an MVA. Currently, transfers out of the regular fixed account are limited to the greater of: a) 30% of the regular fixed account value at the beginning of the contract year, or b) the amount transferred out of the regular fixed account in the previous contract year, excluding any automated transfer amounts. If an automated dollar-cost averaging arrangement is established within 30 days of contract issue, the 30% limitation does not apply to transfers made from the regular fixed account to the subaccounts for the duration of this initial arrangement. - - You may transfer contract values from any GPA to the subaccounts, regular fixed account or other GPA any time after 60 days of transfer or payment allocation into such GPA. Transfers made more than 30 days before the end of the guarantee period will receive an MVA, which may result in a gain or loss of contract value, unless an exception applies (see "The Guarantee Period Accounts (GPAs) -- Market Value Adjustment (MVA)"). - - If we receive your request within 30 days before the contract anniversary date, the transfer from the regular fixed account to the subaccounts will be effective on the anniversary. - - If we receive your request on or within 30 days after the contract anniversary date, the transfer from the regular fixed account to the subaccounts or GPAs will be effective on the valuation date we receive it. - - We will not accept requests for transfers from the regular fixed account at any other time. - - You may not make a transfer to the Special DCA fixed account. - - Once annuity payouts begin, you may not make transfers to or from the GPAs or the regular fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. When annuity payments begin, you must transfer all contract value out of any GPAs and Special DCA fixed account. FOR RAVA 4 ACCESS - - Before annuity payouts begin, you may transfer contract values between the subaccounts, or from the subaccounts to the GPAs at any time. The amount transferred to any GPA must be at least $1,000. - - You may not make a transfer to the regular fixed account unless it is part of a model portfolio in which you have elected to participate. - - You may transfer contract values from any GPA to the subaccounts, or other GPA any time after 60 days of transfer or payment allocation into such GPA. Transfers made more than 30 days before the end of the guarantee period will receive an MVA, which may result in a gain or loss of contract value, unless an exception applies (see "The Guarantee Period Accounts (GPAs) -- Market Value Adjustment (MVA)"). - - You may not make a transfer to the Special DCA fixed account. - -------------------------------------------------------------------------------- 42 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - Once annuity payouts begin, you may not make transfers to or from the GPAs, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. When annuity payments begin, you must transfer all contract value out of any GPAs and Special DCA fixed account. MARKET TIMING Market timing can reduce the value of your investment in the contract. If market timing causes the returns of an underlying fund to suffer, contract value you have allocated to a subaccount that invests in that underlying fund will be lower, too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a financial loss. WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. DO NOT BUY A CONTRACT IF YOU WISH TO USE SHORT-TERM TRADING STRATEGIES TO MANAGE YOUR INVESTMENT. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CONTRACT. THE UNDERLYING FUNDS IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO TRANSFERS AMONG THE SUBACCOUNTS OF THE CONTRACT, AND MAY INCLUDE REDEMPTION FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE TO YOU. Market timing may hurt the performance of an underlying fund in which a subaccount invests in several ways, including but not necessarily limited to: - - diluting the value of an investment in an underlying fund in which a subaccount invests; - - increasing the transaction costs and expenses of an underlying fund in which a subaccount invests; and - - preventing the investment adviser(s) of an underlying fund in which a subaccount invests from fully investing the assets of the fund in accordance with the fund's investment objectives. Funds available as investment options under the contract that invest in securities that trade in overseas securities markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently. IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY HARMFUL EFFECTS OF MARKET TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CONTRACT VALUE AMONG THE SUBACCOUNTS OF THE VARIABLE ACCOUNT: We try to distinguish market timing from transfers that we believe are not harmful, such as periodic rebalancing for purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three subaccount transfers in any 90 day period. We also reserve the right to refuse any transfer request, if, in our sole judgment, the dollar amount of the transfer request would adversely affect unit values. If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to: - - requiring transfer requests to be submitted only by first-class U.S. mail; - - not accepting hand-delivered transfer requests or requests made by overnight mail; - - not accepting telephone or electronic transfer requests; - - requiring a minimum time period between each transfer; - - not accepting transfer requests of an agent acting under power of attorney; - - limiting the dollar amount that you may transfer at any one time; - - suspending the transfer privilege; or - - modifying instructions under an automated transfer program to exclude a restricted fund if you do not provide new instructions. Subject to applicable state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 43 We cannot guarantee that we will be able to identify and restrict all market timing activity. Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values. IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT, YOU SHOULD CAREFULLY REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS, WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE AND EXCHANGE OF FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION NUMBER OR OTHER UNITED STATES GOVERNMENT-ISSUED IDENTIFIER AND THE DETAILS OF YOUR CONTRACT TRANSACTIONS INVOLVING THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CONTRACT VALUE TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY REDEMPTION FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE CONTRACT IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO: - - Each fund may restrict or refuse trading activity that the fund determines, in its sole discretion, represents market timing. - - Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund's market timing policies and procedures, including instructions we receive from a fund, may require us to reject your transfer request. For example, while we disregard transfers permitted under any asset allocation, dollar-cost averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an underlying fund's market timing policies and procedures will do so. Orders we place to purchase fund shares for the variable accounts are subject to acceptance by the fund. We reserve the right to reject without prior notice to you any transfer request if the fund does not accept our order. - - Each underlying fund is responsible for its own market timing policies, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a fund has adopted. As a result, a fund's returns might be adversely affected, and a fund might terminate our right to offer its shares through the variable account. - - Funds that are available as investment options under the contract may also be offered to other intermediaries who are eligible to purchase and hold shares of the fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a fund's market timing policies, we cannot guarantee that other intermediaries purchasing that same fund's shares will do so, and the returns of that fund could be adversely affected as a result. FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSE TO THAT FUND, AND TO DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT FUND'S PROSPECTUS. HOW TO REQUEST A TRANSFER OR SURRENDER 1 BY LETTER Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: RIVERSOURCE LIFE INSURANCE COMPANY 70100 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers or surrenders: Contract value or entire account balance * Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution. - -------------------------------------------------------------------------------- 44 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS Your financial advisor can help you set up automated transfers or partial surrenders among your subaccounts or regular fixed account (if available). You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. - - Automated transfers to the GPAs, the regular fixed account or the Special DCA fixed account are not allowed. - - Automated transfers from the regular fixed account to the subaccounts under an automated dollar-cost averaging arrangement may not exceed an amount that, if continued, would deplete the regular fixed account within 12 months. - - Automated surrenders may be restricted by applicable law under some contracts. - - You may not make additional purchase payments if automated partial surrenders are in effect. - - Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. - - The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. - - If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. - - If the PN program is in effect, you are not allowed to set up automated transfers except in connection with a Special DCA fixed account. - - If you have a SecureSource rider or GWB for Life rider, you may set up automated partial surrenders up to the benefit amount available for withdrawal under the rider. MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the regular fixed account) 3 BY TELEPHONE Call: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and recording calls. We will not allow telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. SURRENDERS You may surrender all or part of your contract at any time before the settlement date by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. If we receive your surrender request in good order at our corporate office before the close of business, we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender request. If we receive your surrender request at our corporate office at or after the close of business, we will process your surrender using the accumulation unit value we calculate on the next - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 45 valuation date after we received your surrender request. We may ask you to return the contract. You may have to pay contract administrative charges, surrender charges, or any applicable optional rider charges (see "Charges") and IRS taxes and penalties (see "Taxes"). You cannot take surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period - Annuity Payout Plans"). Any partial surrenders you take under the contract will reduce your contract value. As a result, the value of your death benefit or any optional benefits you have elected also will be reduced. If you have elected the SecureSource Flex rider, please consider carefully when you take surrenders. If you take any withdrawals during the 3-year waiting period, your benefits will be set to zero until the end of the waiting period when they will be re-established based on your contract value at that time. Also, if you withdraw more than the allowed withdrawal amount in a contract year under the SecureSource Flex rider ("excess withdrawal"), the guaranteed amounts under the rider will be reduced. If you have elected the GWB for Life rider or SecureSource rider and your partial surrenders in any contract year exceed the permitted surrender amount under the terms of the GWB for Life rider or SecureSource rider, your benefits under the rider may be reduced (see "Optional Benefits"). Any partial surrender request that exceeds the amount allowed under the riders and impacts the guarantees provided, will not be considered in good order until we receive a signed Benefit Impact Acknowledgement form showing the affect of the surrender on the rider benefits or a verbal acknowledgement that you understand and accept the impacts that have been explained to you. In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain death benefits and optional benefits (see "Taxes - Qualified Annuities - Required Minimum Distributions"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the regular fixed account, in the same proportion as your value in each account correlates to your total contract value, less any GPA or Special DCA fixed account, unless you request otherwise. We will not withdraw money for a partial surrender from any GPAs or Special DCA fixed account you may have, unless insufficient amounts are available from your subaccounts and/or regular fixed account. However, you may specifically request surrenders from a GPA or Special DCA fixed account. The minimum contract value after partial surrender is $600. If you elected a SecureSource rider, the minimum contract value after partial surrender is zero and you do not have the option to request from which account to surrender. RECEIVING PAYMENT 1 BY REGULAR OR EXPRESS MAIL - - payable to you; - - mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. 2 BY WIRE - - request that payment be wired to your bank; - - bank account must be in the same ownership as your contract; and - - pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your financial advisor. Normally, we will send the payment within seven days after receiving your request in good order. However, we may postpone the payment if: - the surrender amount includes a purchase payment check that has not cleared; - the NYSE is closed, except for normal holiday and weekend closings; - trading on the NYSE is restricted, according to SEC rules; - an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or - the SEC permits us to delay payment for the protection of security holders. TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES If the contract is intended to be used in connection with an employer sponsored 403(b) plan, additional rules relating to this contract can be found in the annuity endorsement for tax sheltered 403(b) annuities. Unless we have made special - -------------------------------------------------------------------------------- 46 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS arrangements with your employer, the contract is not intended for use in connection with an employer sponsored 403(b) plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event that the employer either by affirmative election or inadvertent action causes contributions under a plan that is subject to ERISA to be made to this contract, we will not be responsible for any obligations and requirements under ERISA and the regulations thereunder, unless we have prior written agreement with the employer. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. In the event we have a written agreement with your employer to administer the plan pursuant to ERISA, special rules apply as set forth in the TSA endorsement. The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. The Code imposes certain restrictions on your right to receive early distributions from a TSA: - - Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: - you are at least age 59 1/2; - you are disabled as defined in the Code; - you severed employment with the employer who purchased the contract; - the distribution is because of your death; - the distribution is due to plan termination; or - you are a military reservist. - - If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. - - Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). - - The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. - - If the contract has a loan provision, the right to receive a loan is described in detail in your contract. Loans will not be available if you have selected the GWB for Life, SecureSource or Accumulation Benefit rider. CHANGING OWNERSHIP You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our corporate office. If you are a natural person and you own a nonqualified annuity, you may change the annuitant or successor annuitant if the request is made before annuity payments begin and while the existing annuitant is living. The change will become binding on us when we receive and record it, subject to state limitations. We will honor any change of ownership request received in good order that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the ROPP, MAV, 5-Year MAV, EEB, EEP, Accumulation Benefit, GWB for Life or SecureSource riders. If you change ownership of your contract, we will terminate the ROPP and EEP. This includes both the EEP Part I benefits and the EEP Part II benefits. (See the description of these terms in "Optional Benefits".) In addition, the terms of the EEB, the MAV and the 5-Year MAV will change due to a change of ownership. If the new owner is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over." We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If the new owner is older than age 75, the MAV and the 5-Year MAV will terminate. If the MAV or the 5-Year MAV on the date of ownership change is greater than the account value on the date of the ownership change, we will set the MAV or the 5-Year MAV equal to the account value. Otherwise, the MAV or the 5-Year MAV value will not change due to a change in ownership. The Accumulation Benefit rider, the GWB for Life rider and SecureSource - Single Life rider will continue upon change of ownership. The SecureSource - Joint Life rider, if selected, only allows transfer of the ownership of the annuity contract between covered spouses or their revocable trust(s). If ownership is transferred from a covered spouse to - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 47 their revocable trust(s), the annuitant must be one of the covered spouses. No other ownership changes are allowed while this rider is in force. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in similar capacity, ownership of the contract may be transferred to the annuitant. BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT We will pay the death benefit to your beneficiary upon your death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If you are age 75 or younger on the date we issue the contract, the beneficiary receives the greater of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders. If you are age 76 or older on the date we issue the contract, the beneficiary receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. ADJUSTED PARTIAL SURRENDERS PS X DB ------- CV
PS = amount by which the contract value is reduced as a result of the partial surrender. DB = the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. EXAMPLE OF STANDARD DEATH BENEFIT CALCULATION WHEN YOU ARE AGE 75 OR YOUNGER ON THE CONTRACT EFFECTIVE DATE: - - You purchase the contract with a payment of $20,000 - - During the second contract year the contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. We calculate the death benefit as follows: The total purchase payments minus adjustments for partial surrenders: Total purchase payments $20,000 minus adjusted partial surrenders, calculated as: $1,500 x $20,000 - ------------ = $18,000 -1,667 ------- for a standard death benefit of: $18,333 since this is greater than your contract value of $16,500
IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date that our death claim requirements are fulfilled. We will determine the contract's value using the accumulation unit value we calculate on that valuation date. We pay interest, if any, at a rate no less than required by law. If requested, we will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. - -------------------------------------------------------------------------------- 48 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse elects to keep the contract as owner, the following describes the standard death benefit: - - If your spouse was age 75 or younger as of the date we issued the contract, the beneficiary of your spouse's contract receives the greater of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. If your spouse was age 76 or older as of the date we issued the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. If you elected any optional contract features or riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. The SecureSource Flex - Joint Life rider, if selected, will continue only if the spouse electing the spousal continuation provision of the contract is a covered spouse and continues the contract as the new owner. The SecureSource Flex - Single Life rider terminates if a spouse chooses to continue the contract under the spousal continuation provision. The SecureSource - Joint Life rider, if selected, will continue only if the spouse electing the spousal continuation provision of the contract is a covered spouse and continues the contract as the new owner. If your beneficiary is not your spouse, we will pay the beneficiary in a lump sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: - - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - - payouts begin no later than one year after your death, or other date as permitted by the IRS; and - - the payout period does not extend beyond the beneficiary's life or life expectancy. Additionally, the optional SecureSource rider, if selected, will terminate. QUALIFIED ANNUITIES - - SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own with the contract value equal to the death benefit that would otherwise have been paid, or elect an annuity payout plan or another plan agreed to by us. If your spouse elects to treat the contract as his/her own, the following describes the standard death benefit: - - If your spouse was age 75 or younger as of the date we issued the contract, the beneficiary of your spouse's contract receives the greater of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. If your spouse was age 76 or older as of the date we issued the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. If you elected any optional contract features or riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. The SecureSource Flex -- Joint Life rider, if selected, will continue only if the spouse electing the spousal continuation provision of the contract is a covered spouse and continues the contract as the new owner. The SecureSource Flex -- Single Life rider terminates if a spouse chooses to continue the contract under the spousal continuation provision. The SecureSource -- Joint Life rider, if selected, will continue only if the spouse electing the spousal continuation provision of the contract is a covered spouse and continues the contract as the new owner. - - NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your beneficiary does not elect a five year payout, or if your death occurs after attaining age 70 1/2, we will pay the beneficiary in a lump sum unless the beneficiary elects to receive payouts under any payout plan available under this contract if: - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 49 - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year following the year of your death; and - the payout period does not extend beyond the beneficiary's life or life expectancy. Additionally, any optional riders, if selected, will terminate. In the event of your beneficiary's death, their beneficiary can elect to take a lump sum payment or to continue the alternative payment plan following the schedule of minimum withdrawals established based on the life expectancy of your beneficiary. - - ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. DEATH BENEFIT PAYMENT IN A LUMP SUM: We may pay all or part of the death benefit to your beneficiary in a lump sum under either a nonqualified or qualified annuity. We will pay the death benefit by check unless your beneficiary has chosen to have the death benefit payment directly deposited into a checking account. We pay all proceeds by check (unless the beneficiary has chosen to have death benefit proceeds directly deposited into another Ameriprise Financial, Inc. account). If the beneficiary chooses the checking account option, the proceeds will be deposited into an interest bearing checking account issued by Ameriprise Bank, FSB, member FDIC, unless the beneficiary fails to meet the requirements of using this option. OPTIONAL BENEFITS The assets held in our general account support the guarantees under your contract, including optional death benefits and optional living benefits. To the extent that we are required to pay you amounts in addition to your contract value under these benefits, such amounts will come from our general account assets. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. You should also be aware that we issue other types of insurance and financial products as well, and we also pay our obligations under these products from assets in our general account. Our general account is not segregated or insulated from the claims of our creditors. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. OPTIONAL DEATH BENEFITS RETURN OF PURCHASE PAYMENTS DEATH BENEFIT (ROPP) The ROPP is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greater of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders. If you are age 76 or older at contract issue, you may choose to add the ROPP to your contract. Generally, you must elect the ROPP at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the ROPP may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the ROPP for new contracts. When annuity payouts begin, or if you terminate the contract for any reason other than death, this rider will terminate. TERMINATING THE ROPP - - You may terminate the ROPP rider within 30 days of the first rider anniversary. - - You may terminate the ROPP rider within 30 days of any rider anniversary beginning with the seventh rider anniversary. - - The ROPP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. If you terminate the ROPP, the standard death benefit applies thereafter. For an example, see Appendix D. IF YOUR SPOUSE IS THE SOLE BENEFICIARY, he or she may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid under the ROPP. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to keep the contract in force. IF YOUR SPOUSE WAS AGE 76 OR OLDER AS OF THE DATE WE ISSUED THE CONTRACT, he or she may choose to continue the ROPP. In that case, the ROPP rider charges described in "Charges -- ROPP Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary. Your spouse also has the option of discontinuing the ROPP rider within 30 days of the date he or she elects to continue the contract. If your spouse is age 75 or younger as of the date we issued the contract, the ROPP will terminate. - -------------------------------------------------------------------------------- 50 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS NOTE: For special tax considerations associated with the ROPP, see "Taxes." MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you are older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider charge continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to the GPAs, regular fixed account or Special DCA fixed account values during the time you have amounts allocated to these accounts. Be sure to discuss with your financial advisor whether or not the MAV is appropriate for your situation. If you are age 75 or younger at contract issue, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the MAV for new contracts. On the first contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Thereafter, we increase the maximum anniversary value by any additional purchase payments and reduce it by adjusted partial surrenders. Every contract anniversary after that prior to your 81st birthday, we compare the maximum anniversary value to the current contract value and we reset the maximum anniversary value to the higher amount. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders; or - - the maximum anniversary value. TERMINATING THE MAV - - You may terminate the MAV rider within 30 days of the first rider anniversary. - - You may terminate the MAV rider within 30 days of any rider anniversary beginning with the seventh rider anniversary. - - The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies thereafter. For an example, see Appendix D. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must give us written instructions to keep the contract in force on the date our death claim requirements are fulfilled. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. MAXIMUM FIVE YEAR ANNIVERSARY VALUE DEATH BENEFIT (5-YEAR MAV) The 5-Year MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The 5-Year MAV does not provide any additional benefit before the fifth contract anniversary after the rider effective date. The 5-Year MAV may be of less value if you are older since we stop resetting the maximum five year anniversary value at age 81. Although we stop resetting the maximum five year anniversary value at age 81, the 5-Year MAV rider charge continues to apply until the rider terminates. In addition, the 5- Year MAV does not provide any additional benefit with respect to the GPAs, regular fixed account or Special DCA fixed account values during the time you have amounts allocated to these accounts. Be sure to discuss with your financial advisor whether or not the 5-Year MAV is appropriate for your situation. If you are age 75 or younger at contract issue, you may choose to add the 5-Year MAV to your contract. Generally, you must elect the 5-Year MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 51 some instances the rider effective date for the 5-Year MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the 5-Year MAV for new contracts. On the fifth contract anniversary after the rider effective date we set the maximum five year anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Thereafter, we increase the maximum anniversary value by any additional purchase payments and reduce it by adjusted partial surrenders. Every fifth contract anniversary after that, through age 80, we compare the maximum five year anniversary value to the current contract value and we reset the maximum five year anniversary value to the higher amount. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - - purchase payments minus adjusted partial surrenders; or - - the maximum five year anniversary value. TERMINATING THE 5-YEAR MAV - - You may terminate the 5-Year MAV rider within 30 days of the first rider anniversary. - - You may terminate the 5-Year MAV rider within 30 days of any rider anniversary beginning with the seventh rider anniversary. - - The 5-Year MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The 5-Year MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the 5-Year MAV, the standard death benefit applies thereafter. For an example, see Appendix D. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the 5-Year MAV. To do this your spouse must give us written instructions to keep the contract in force on the date our death claim requirements are fulfilled. If your spouse has reached age 76 at the time he or she elects to continue the contract, the 5-Year MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the 5-Year MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the 5-Year MAV rider. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract and if he or she chooses not to continue the 5-Year MAV rider, the contract value will be increased to the 5-Year MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT (EEB) The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides for reduced benefits if you are age 70 or older at the rider effective date and it does not provide any additional benefit before the first rider anniversary. The EEB also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEB is appropriate for your situation. If this EEB rider is available in your state and you are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract according to terms determined by us and at our sole discretion. You may not select this rider if you select the EEP. We reserve the right to discontinue offering the EEB for new contracts. The EEB provides that if you die after the first rider anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - - the standard death benefit amount (see "Benefits in Case of Death -- Standard Benefit"), the MAV death benefit amount, if applicable, or the 5-Year MAV death benefit amount, if applicable, PLUS - - 40% of your earnings at death if you were under age 70 on the rider effective date; or - -------------------------------------------------------------------------------- 52 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - 15% of your earnings at death if you were age 70 or older on the rider effective date. Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. EARNINGS AT DEATH FOR THE EEB AND EEP: If the rider effective date for the EEB or EEP is the contract issue date, earnings at death is an amount equal to: - - the standard death benefit amount, the MAV death benefit amount, or the 5-Year MAV death benefit amount if applicable (the "death benefit amount") - - MINUS purchase payments not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount - - MINUS the greater of: (a) the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or (b) an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% multiplied by: - - the greater of: (a) the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or (b) an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. TERMINATING THE EEB - - You may terminate the EEB rider within 30 days of the first rider anniversary. - - You may terminate the EEB rider within 30 days of any rider anniversary beginning with the seventh rider anniversary. - - The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. For an example, see Appendix D. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY and if your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEB. If your spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your spouse is less than age 76 at the time he or she elects to continue the contract, he or she may choose to continue the EEB. In this case, the following conditions will apply: - - the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 53 ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP) The EEP is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEP provides for reduced benefits if you are age 70 or older at the rider effective date. It does not provide any additional benefit before the first rider anniversary, and it does not provide any benefit beyond what is offered under the EEB during the second rider year. The EEP also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because part of the benefit paid by the EEP is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEP is appropriate for your situation. If this EEP rider is available in your state and if you are age 75 or younger at contract issue, you may choose to add the EEP to your contract. You must elect the EEP at the time you purchase your contract and your rider effective date will be the contract issue date. THIS RIDER IS ONLY AVAILABLE UNDER ANNUITIES PURCHASED THROUGH AN EXCHANGE OR DIRECT TRANSFER FROM ANOTHER ANNUITY OR A LIFE INSURANCE POLICY. You may not select this rider if you select the EEB. We reserve the right to discontinue offering the EEP for new contracts. The EEP provides that if you die after the first rider anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - - EEP Part I benefits, which equal the benefits payable under the EEB described above; PLUS - - EEP Part II benefits, which equal a percentage of exchange purchase payments identified at issue and not previously surrendered as follows:
PERCENTAGE IF YOU ARE PERCENTAGE IF YOU ARE RIDER YEAR UNDER AGE 70 ON THE RIDER EFFECTIVE DATE 70 OR OLDER ON THE RIDER EFFECTIVE DATE One and Two 0% 0% Three and Four 10% 3.75% Five or more 20% 7.5%
Additional death benefits payable under the EEP are not included in the adjusted partial surrender calculation. If no exchange purchase payments have been received after 6 months, we will contact you and you will have an additional 30 days to follow-up on exchange purchase payments identified at issue but not received by us. If we have not received any exchange purchase payments after these 30 days, we will convert the EEP rider into an EEB. Another way to describe the benefits payable under the EEP rider is as follows: - - the standard death benefit amount (see "Benefits in Case of Death -- Standard Death Benefit"), the MAV death benefit amount, or 5-Year MAV death benefit amount, if applicable, PLUS
IF YOU ARE UNDER AGE 70 IF YOU ARE AGE 70 RIDER YEAR ON THE RIDER EFFECTIVE DATE, ADD . . . OR OLDER ON THE RIDER EFFECTIVE DATE, ADD . . . One Zero Zero Two 40% x earnings at death (see above) 15% x earnings at death Three and Four 40% x (earnings at death + 25% of exchange 15% x (earnings at death + 25% of exchange purchase payment*) purchase payment*) Five or more 40% x (earnings at death + 50% of exchange 15% x (earnings at death + 50% of exchange purchase payment*) purchase payment*)
* Exchange purchase payments are purchase payments exchanged from another annuity or policy that are identified at issue and not previously surrendered. We are not responsible for identifying exchange purchase payments if we did not receive proper notification from the company from which the purchase payments are exchanged. TERMINATING THE EEP - - You may terminate the EEP rider within 30 days of the first rider anniversary after the rider effective date. - - You may terminate the EEP rider within 30 days of any rider anniversary beginning with the seventh rider anniversary. - - The EEP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - - The EEP rider will terminate in the case of an ownership change. - - The EEP rider will terminate in the case of the spousal continuation if the new owner is age 76 or older. For an example, see Appendix D. - -------------------------------------------------------------------------------- 54 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY and if your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEP. If your spouse has reached age 76 at the time he or she elects to continue the contract, the EEP rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she cannot continue the EEP. However, he or she may choose to convert the EEP rider into an EEB. In this case, the following conditions will apply: - - the EEB rider will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the EEB rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEP rider. If your spouse chooses not to convert the EEP rider into an EEB, the standard death benefit amount (or the MAV or 5-Year MAV death benefit amount, if applicable,) will apply. NOTE: For special tax considerations associated with the EEP, see "Taxes." OPTIONAL LIVING BENEFITS -- CURRENTLY OFFERED SECURESOURCE FLEX RIDERS THE SECURESOURCE FLEX RIDERS ARE NOT AVAILABLE FOR RAVA 4 ACCESS. This is an optional benefit that you can add to your contract for an additional charge. The benefit is intended to provide to you, after the waiting period, a specified withdrawal amount annually for life, even if your contract value is zero, subject to the terms and provisions described in this section. The SecureSource Flex rider may be appropriate for you if you intend to make periodic withdrawals from your annuity contract and wish to ensure that market performance will not adversely affect your ability to withdraw your principal over time. This benefit is intended for assets you plan to hold and let accumulate for at least three years. If you take any withdrawals during the 3- year waiting period, your benefits will be set to zero until the end of the waiting period when they will be re-established based on your contract value at that time. There are two optional SecureSource Flex riders available under your contract: - - SecureSource Flex -- Single Life; or - - SecureSource Flex -- Joint Life. The information in this section applies to both Secure Source Flex riders, unless otherwise noted. For the purpose of this rider, the term "withdrawal" is equal to the term "surrender" in the contract or any other riders. Withdrawals will adjust contract values and benefits in the same manner as surrenders. The SecureSource Flex -- Single Life rider covers one person. The SecureSource Flex -- Joint Life Rider covers two spouses jointly who are named at contract issue. You may elect only the SecureSource Flex -- Single Life rider or the SecureSource Flex -- Joint Life rider, not both, and you may not switch riders later. You must elect the rider when you purchase your contract. The rider effective date will be the contract issue date. The SecureSource Flex rider is an optional benefit that you may select, if approved in your state, for an additional annual charge if: - - you purchase your contract on or after Sept. 14, 2009; and - - SINGLE LIFE: you are 80 or younger on the date the contract is issued or if an owner is a non-natural person, then the annuitant is age 80 or younger; or - - JOINT LIFE: you and your spouse are 80 or younger on the date the contract is issued. The SecureSource Flex riders are not available under an inherited qualified annuity, The SecureSource Flex rider guarantees that after the waiting period, regardless of the investment performance of your contract, you will be able to withdraw up to a certain amount each year from the contract before the annuity payouts begin until: - - SINGLE LIFE: until death (see "At Death" heading below) or until the depletion of the basic benefit. - - JOINT LIFE: until the death of the last surviving covered spouse (see "Joint Life only: Covered Spouses" and "At Death" headings below) or until the depletion of the basic benefit. KEY TERMS The key terms associated with the SecureSource Flex rider are: - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 55 ANNUAL LIFETIME PAYMENT (ALP): the lifetime benefit amount available each contract year after the waiting period and until your death (JOINT LIFE: the death of both covered spouses) or termination of the rider. After the waiting period, the annual withdrawal amount guaranteed by the rider can vary each contract year. The maximum ALP is $300,000. ANNUAL LIFETIME PAYMENT ATTAINED AGE (ALPAA): the age at which the lifetime benefit is established. GUARANTEED BENEFIT AMOUNT (GBA): the total cumulative withdrawals guaranteed by the rider under the basic benefit. The maximum GBA is $5,000,000. The GBA cannot be withdrawn or annuitized and is not payable as a death benefit. It is an interim value used to calculate the amount available for withdrawals each year after the waiting period under the basic benefit (see "Guaranteed Benefit Payment" below). At any time, the total GBA is the sum of the individual GBAs associated with each purchase payment. GUARANTEED BENEFIT PAYMENT (GBP): the basic benefit amount available each contract year after the waiting period until the RBA is reduced to zero. After the waiting period the annual withdrawal amount guaranteed by the rider can vary each contract year. REMAINING ANNUAL LIFETIME PAYMENT (RALP): as you make withdrawals during a contract year, the remaining amount that the rider guarantees will be available for withdrawal that year is reduced. The RALP is the lifetime benefit amount that can be withdrawn during the remainder of the current contract year. REMAINING BENEFIT AMOUNT (RBA): each withdrawal you make reduces the amount that is guaranteed by the rider for future withdrawals. At any point in time, the RBA equals the amount of GBA that remains available for withdrawals for the remainder of the contract's life, and total RBA is the sum of the individual RBAs associated with each purchase payment. The maximum RBA is $5,000,000. REMAINING BENEFIT PAYMENT (RBP): as you make withdrawals during a contract year, the remaining amount that the rider guarantees will be available for withdrawal that year is reduced. The RBP is the basic benefit amount that can be withdrawn during the remainder of the current contract year. WAITING PERIOD: the period of time before you can take a withdrawal without affecting benefits under the rider. The waiting period starts on the rider effective date and ends on the day prior to the third rider anniversary. WITHDRAWAL ADJUSTMENT BASE (WAB): one of the components used to determine the GBP Percentage and ALP Percentage. The WAB cannot be withdrawn or annuitized and is not payable as a death benefit. WITHDRAWAL: the amount by which your contract value is reduced as a result of any withdrawal request. It may differ from the amount of your request due to any surrender charge and any market value adjustment. DESCRIPTION OF THE SECURESOURCE FLEX RIDER Before the lifetime benefit is established, the annual withdrawal amount guaranteed by the riders after the waiting period is the basic benefit amount. After the lifetime benefit is established and after the waiting period, the riders guarantee that you have the option each contract year to cumulatively withdraw an amount up to the lifetime benefit amount or the basic benefit amount, but the riders do not guarantee withdrawal of both in a contract year. The lifetime withdrawal benefit is established automatically: - - SINGLE LIFE: on the rider anniversary date after the covered person reaches age 65, or on the rider effective date if the covered person is age 65 or older on the rider effective date (see "Annual Lifetime Payment Attained Age (ALPAA)" heading below); - - JOINT LIFE: on the rider anniversary date after the younger covered spouse reaches age 65, or on the rider effective date if the younger covered spouse is age 65 or older on the rider effective date (see "Annual Lifetime Payment Attained Age (ALPAA)" and "Annual Lifetime Payments (ALP)" headings below). The basic benefit amount and the lifetime benefit amount can vary based on the relationship of your contract value to the Withdrawal Adjustment Base (WAB). When the first withdrawal is taken each contract year after the waiting period, the percentages used to determine the benefit amounts are set and fixed for the remainder of that year. If you withdraw less than the allowed withdrawal amount in a contract year, the unused portion cannot be carried over to the next year. If you withdraw more than the allowed withdrawal amount in a contract year, we call this an "excess withdrawal" under the rider. Excess withdrawals trigger an adjustment of a benefit's guaranteed amount, which may cause it to be reduced (see "GBA Excess Withdrawal Processing," "RBA Excess Withdrawal Processing," and "ALP Excess Withdrawal Processing" headings below). - -------------------------------------------------------------------------------- 56 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Please note that basic benefit and lifetime benefit each has its own definition of the allowed annual withdrawal amount. Therefore a withdrawal may be considered an excess withdrawal for purposes of the lifetime benefit only, the basic benefit only, or both. At any time after the waiting period, as long as your withdrawal does not exceed the greater of the basic benefit amount or the lifetime benefit amount, if established, you will not be assessed a surrender charge or any market value adjustment. If your withdrawals exceed the greater of the RBP or the RALP, surrender charges under the terms of the contract may apply (see "Charges -- Surrender Charges"). The amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. Market value adjustments, if applicable, will also be made (see "Guarantee Period Accounts (GPAs) -- Market Value Adjustment"). We pay you the amount you request. Any withdrawals you take under the contract will reduce the value of the death benefits (see "Benefits in Case of Death"). Upon full withdrawal, you will receive the remaining contract value less any applicable charges (see "Making the Most of Your Contract -- Surrenders"). Subject to conditions and limitations, an annual step-up can increase the basic benefit amount and the lifetime benefit amount, if your contract value has increased on a rider anniversary. The values associated with the basic benefit are GBA, RBA, GBP and RBP. The values associated with the lifetime benefit are ALP and RALP. ALP and GBP are similar in that they are the annual withdrawal amount for each benefit after the waiting period. RALP and RBP are similar in that they are the remaining amount that can be withdrawn during the current contract year for each benefit. IMPORTANT SECURESOURCE FLEX RIDER CONSIDERATIONS You should consider whether a SecureSource Flex rider is appropriate for you taking into account the following considerations: - - LIFETIME BENEFIT LIMITATIONS: The lifetime benefit is subject to certain limitations, including but not limited to: (a) SINGLE LIFE: Once the contract value equals zero, payments are made for as long as the covered person is living (see "If Contract Value Reduces to Zero" heading below). However, if the contract value is greater than zero, the lifetime benefit terminates at the first death of any owner even if the covered person is still living (see "At Death" heading below). Therefore, if there are multiple contract owners, the lifetime benefit will terminate when one of the contract owners dies even though other contract owners are still living JOINT LIFE: Once the contract value equals zero, payments are made for as long as either covered spouse is living (see "If Contract Value Reduces to Zero" heading below). However, if the contract value is greater than zero, the lifetime benefit terminates at the death of the last surviving covered spouse (see "At Death" heading below). (b) Excess withdrawals can reduce the ALP to zero even though the GBA, RBA, GBP and/or RBP values are greater than zero. If both the ALP and the contract value are zero, the lifetime benefit will terminate. (c) When the lifetime benefit is first established the initial ALP is based on the basic benefit's RBA at that time (see "Annual Lifetime Payment (ALP)" heading below). Any withdrawal you take before the ALP is established reduces the RBA and therefore may result in a lower amount of lifetime withdrawals you are allowed to take. (d) Withdrawals can reduce both the contract value and the RBA to zero prior to the establishment of the ALP. If this happens, the contract and the rider will terminate. - - WITHDRAWALS: Please consider carefully when you start taking withdrawals from this rider. If you take any withdrawals during the 3-year waiting period, your benefits will be set to zero until the end of the waiting period when they will be re-established based on your contract value at that time. The first withdrawal request within the 3-year waiting period must be submitted in writing. Also, after the waiting period if you withdraw more than the allowed withdrawal amount in a contract year ("excess withdrawal"), the guaranteed amounts under the rider may be reduced. - - USE OF PORTFOLIO NAVIGATOR PROGRAM REQUIRED: You must be invested in one of the available PN program model portfolios or investment options of the PN program.. This requirement limits your choice of investments. This means you will not be able to allocate contract value to all of the subaccounts, GPAs or the regular fixed account that are available under the contract to contract owners who do not elect the rider. (See "Making the Most of Your Contract -- Portfolio Navigator Program.") You may allocate purchase payments to the Special DCA fixed account, when available, and we will make monthly transfers into the model portfolio or investment option you have chosen. You may make two elective investment option changes per contract year; we reserve the right to limit investment option changes if required to comply with the written instructions of a fund (see "Market Timing"). You can allocate your contract value to any available investment option during the following times: (1) prior to your first withdrawal and (2) following a benefit reset due to an investment option change as described below but prior to any - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 57 subsequent withdrawal. During these accumulation phases, you may request to change your model portfolio or investment option to any available investment option. Immediately following a withdrawal your contract value will be reallocated to the target investment option classification as shown in your contract if your current investment option is more aggressive than the target investment option classification. If you are in the static model portfolio, this reallocation will be made to the applicable fund of funds investment option. This automatic reallocation is not included in the total number of allowed investment option changes per contract year and will not cause your rider fee to increase. The target investment option classification is currently the Moderate investment option. We reserve the right to change the target investment option classification to an investment option that is more aggressive than the Moderate investment option after 30 days written notice. After you have taken a withdrawal and prior to any benefit reset as described below, you are in a withdrawal phase. During withdrawal phases you may request to change your model portfolio or investment option to the target investment option or investment option that is more conservative than the Moderate investment option without a benefit reset as described below. If you are in a withdrawal phase and you choose to allocate your contract value to an investment option that is more aggressive than the target investment option, you will be in the accumulation phase again. If this is done after the waiting period, your rider benefit will be reset as follows: (a) the total GBA will be reset to the contract value, if your contract value is less; and (b) the total RBA will be reset to the contract value, if your contract value is less; and (c) the ALP, if established, will be reset to your current ALP Percentage (either 6% or 5% as described under "GBP Percentage and ALP Percentage" heading below) times the contract value, if this amount is less than the current ALP; and (d) the GBP will be recalculated as described below, based on the reset GBA and RBA; and (e) the RBP will be recalculated as the reset GBP less all prior withdrawals taken during the current contract year, but not less than zero; and (f) the RALP will be recalculated as the reset ALP less all prior withdrawals taken during the current contract year, but not less than zero; and (g) the WAB will be reset as follows: - if the ALP has not been established, the WAB will be equal to the reset GBA. - if the ALP has been established, the WAB will be equal to the reset ALP, divided by the current ALP Percentage. You may request to change your investment option (or change from a model portfolio to an investment option) by written request on an authorized form or by another method agreed to by us. - - NON-CANCELABLE: Once elected, the SecureSource Flex rider may not be cancelled (except as provided under "Rider Termination" heading below) and the fee will continue to be deducted until the contract or rider is terminated or the contract value reduces to zero (described below). Dissolution of marriage does not terminate the SecureSource Flex -- Joint Life rider and will not reduce the fee we charge for this rider. The benefit under the SecureSource Flex -- Joint Life rider continues for the covered spouse who is the owner of the contract (or annuitant in the case of nonnatural ownership). The rider will terminate at the death of the contract owner (or annuitant in the case of nonnatural ownership) because the original covered spouse will be unable to elect the spousal continuation provision of the contract (see "Joint Life only: Covered Spouses" below). - - JOINT LIFE: LIMITATIONS ON CONTRACT OWNERS, ANNUITANTS AND BENEFICIARIES: Since the joint life benefit will terminate unless the surviving covered spouse continues the contract under the spousal option to continue the contract upon the owner's death provision, only ownership arrangements that permit such continuation, are allowed at rider issue. In general, the covered spouses should be joint owners, or one covered spouse should be the owner and the other covered spouse should be named as the sole primary beneficiary. For non-natural ownership arrangements that allow for spousal continuation one covered spouse should be the annuitant and the other covered spouse should be the sole primary beneficiary. For revocable trust ownerships, the grantor of the trust must be the annuitant and the beneficiary must either be the annuitant's spouse or a trust that names the annuitant's spouse as the sole primary beneficiary. You are responsible for establishing ownership arrangements that will allow for spousal continuation. If you select the SecureSource Flex -- Joint Life rider, please consider carefully whether or not you wish to change the beneficiary of your annuity contract. The rider will terminate if the surviving covered spouse cannot utilize the spousal continuation provision of the contract when the death benefit is payable. - -------------------------------------------------------------------------------- 58 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - LIMITATIONS ON PURCHASE PAYMENTS: We reserve the right to limit the cumulative amount of purchase payments, subject to state restrictions. For current purchase payment restrictions, please see "Buying Your Contract -- Purchase Payments". - - INTERACTION WITH TOTAL FREE AMOUNT (TFA) CONTRACT PROVISION: The TFA is the amount you are allowed to withdraw from the contract in each contract year without incurring a surrender charge (see "Charges -- Surrender Charge"). The TFA may be greater than the RBP or RALP under this rider. Any amount you withdraw under the contract's TFA provision that exceeds the RBP or RALP is subject to the excess withdrawal processing described below for the GBA, RBA and ALP. Also, any amount you withdraw during the waiting period will set all benefits under the rider to zero until the end of the waiting period when they will be reestablished based on the contract value at that time. You should consult your tax advisor before you select this optional rider if you have any questions about the use of the rider in your tax situation because: - - TAX CONSIDERATIONS FOR NONQUALIFIED ANNUITIES: Under current federal income tax law, withdrawals under nonqualified annuities, including withdrawals taken from the contract under the terms of the rider, are treated less favorably than amounts received as annuity payments under the contract (see "Taxes -- Nonqualified Annuities"). Withdrawals are taxable income to the extent of earnings. Withdrawals of earnings before age 59 1/2 may incur a 10% IRS early withdrawal penalty. You should consult your tax advisor before you select this optional rider if you have any questions about the use of the rider in your tax situation. - - TAX CONSIDERATIONS FOR QUALIFIED ANNUITIES: Qualified annuities have minimum distribution rules that govern the timing and amount of distributions from the annuity contract (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). If you have a qualified annuity, you may need to take an RMD during the waiting period and such withdrawals will set all benefits under the rider to zero until the end of the waiting period when they will be reestablished based on the contract value at that time. While the rider permits certain excess withdrawals to be taken after the waiting period for the purpose of satisfying RMD requirements for your contract alone without reducing future benefits guaranteed under the rider, there can be no guarantee that changes in the federal income tax law after the effective date of the rider will not require a larger RMD to be taken, in which case, future guaranteed withdrawals under the rider could be reduced. See Appendix F for additional information. - - LIMITATIONS ON TSAS: Your right to take withdrawals is restricted if your contract is a TSA (see "TSA -- Special Provisions"). BASIC BENEFIT DESCRIPTION THE GBA AND RBA ARE DETERMINED AT THE FOLLOWING TIMES, SUBJECT TO THE MAXIMUM AMOUNT OF $5,000,000, CALCULATED AS DESCRIBED: - - At contract issue -- the GBA and RBA are equal to the initial purchase payment, plus any purchase payment credit. - - When you make additional purchase payments -- If a withdrawal is taken during the waiting period, the GBA and RBA will not change when a subsequent purchase payment is made during the waiting period. Prior to any withdrawal during the waiting period and after the waiting period, each additional purchase payment will have its own GBA and RBA established equal to the amount of the purchase payment, plus any purchase payment credit. - - At step up -- (see "Annual Step Up" heading below). - - At spousal continuation -- (see "Spousal Option to Continue the Contract upon Owner's Death" heading below). - - When an individual RBA is reduced to zero -- the GBA that is associated with that RBA will also be set to zero. - - When you take a withdrawal during the waiting period -- the total GBA and total RBA will be set equal to zero until the end of the waiting period. - - When you take a withdrawal after the waiting period and the amount withdrawn is: (a) less than or equal to the total RBP -- the total RBA is reduced by the amount of the withdrawal and the GBA remains unchanged. If there have been multiple purchase payments, both the total GBA and each payment's GBA remain unchanged, and each payment's RBA is reduced in proportion to its RBP. (b) greater than the total RBP -- EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE GBA AND RBA. - - On the rider anniversary at the end of the waiting period -- If the first withdrawal is taken during the waiting period and you did not decline a rider fee increase, the total GBA and the total RBA will be reset to the contract value. If the first withdrawal is taken during the waiting period and you decline a rider fee increase, the total GBA and the total RBA will be reset to the lesser of (1) the GBA at the time of the first withdrawal, plus any additional purchase payments and any purchase payment credits since the time of the first withdrawal, minus all withdrawals, or (2) the contract value. - - Upon certain changes to your PN program investment option -- (See "Use of Portfolio Navigator Program Required," described above). - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 59 GBA EXCESS WITHDRAWAL PROCESSING The total GBA will automatically be reset to the lesser of (a) the total GBA immediately prior to the withdrawal; or (b) the contract value immediately following the withdrawal. If there have been multiple purchase payments, each payment's GBA after the withdrawal will be reset to equal that payment's RBA after the withdrawal plus (a) times (b), where: (a) is the ratio of the total GBA after the withdrawal less the total RBA after the withdrawal to the total GBA before the withdrawal less the total RBA after the withdrawal; and (b) is each payment's GBA before the withdrawal less that payment's RBA after the withdrawal. RBA EXCESS WITHDRAWAL PROCESSING The total RBA will automatically be reset to the lesser of (a) the contract value immediately following the withdrawal, or (b) the total RBA immediately prior to the withdrawal, less the amount of the withdrawal. If there have been multiple purchase payments, both the total RBA and each payment's RBA will be reset. The total RBA will be reset according to the excess withdrawal processing described above. Each payment's RBA will be reset in the following manner: 1. The withdrawal amount up to the total RBP is taken out of each RBA bucket in proportion to its individual RBP at the time of the withdrawal; and 2. The withdrawal amount above the total RBP and any amount determined by the excess withdrawal processing are taken out of each RBA bucket in proportion to its RBA at the time of the withdrawal. GBP PERCENTAGE AND ALP PERCENTAGE: We use two percentages (6% and 5%) to calculate your GBP and ALP. The percentage used can vary as described below: During the waiting period, 6% will be used to determine the amount payable to beneficiaries under the RBA payout option described below. After the waiting period, a comparison of your contract value and the WAB determines your GBP percentage and ALP percentage, unless the percentage is fixed as described below. On each valuation date, if the benefit determining percentage is less than the 20% adjustment threshold, then 6% is used in calculating your GBP and ALP; otherwise, 5% is used. Market volatility and returns and the deduction of fees could impact your benefit determining percentage. The benefit determining percentage is calculated as follows but will not be less than zero: 1 - (A/B) A = contract value at the end of the prior valuation period B = WAB at the end of the prior valuation period When the first withdrawal in a contract year is taken, the GBP percentage and ALP percentage will be set and fixed for the remainder of that contract year. Beginning on the next rider anniversary, the GBP percentage and ALP percentage can change on each valuation date as described above until a withdrawal is taken in that contract year. Under certain limited situations, your GBP percentage and ALP percentage will not vary each contract year. They will be set at the earliest of (1), (2) or (3) below and remain fixed for as long as the benefit is payable: (1) when the RBA payout option is elected, or (2) if the ALP is established, when your contract value on a rider anniversary is less than two times the ALP (for the purpose of this calculation only, the ALP is determined using 5%; the ALP percentage used to determine your ALP going forward will be either 6% or 5%), or (3) when the contract value reduces to zero. For certain periods of time at our discretion and on a non-discriminatory basis, your GBP percentage and ALP percentage may be set by us to 6% if more favorable to you. WITHDRAWAL ADJUSTMENT BASE (WAB): One of the components used to determine GBP percentage and ALP percentage. The maximum WAB is $5,000,000. The WAB cannot be withdrawn or annuitized and is not payable as a death benefit, THE WAB IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - - At Rider Effective Date -- the WAB is set equal to the initial purchase payment, plus any purchase payment credit. - - When a subsequent purchase payment is made -- before a withdrawal is taken in the waiting period and at any time after the waiting period, the WAB will be increased by the amount of each additional purchase payment, plus any purchase payment credit. - - When a withdrawal is taken -- if the first withdrawal is taken during the waiting period, the WAB will be set equal to zero until the end of the waiting period. - -------------------------------------------------------------------------------- 60 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Whenever a withdrawal is taken after the waiting period, the WAB will be reduced by the amount in (A) unless the withdrawal is an excess withdrawal for the lifetime benefit (or the basic benefit if the ALP is not established) when it will be set equal to the amount in (B). (A) The WAB is reduced by an amount as calculated below: A X B - ----- where: C
A = the amount the contract value is reduced by the withdrawal B = WAB on the date of (but prior to) the withdrawal C = the contract value on the date of (but prior to) the withdrawal. (B) If the ALP is not established and the current withdrawal exceeds the RBP, the WAB will be reset to the GBA immediately following excess withdrawal processing. If the ALP is established and the current withdrawal exceeds the RALP, the WAB will be reset to the ALP divided by the current ALP percentage (either 5% or 6% as described under "GBP Percentage and ALP Percentage" heading above). In this calculation, we use the ALP immediately following excess withdrawal processing. - - On rider anniversaries -- unless you decline a rider fee increase, the WAB will be increased to the contract value on each rider anniversary, if the contract value is greater, except as follows: (A) If a withdrawal is taken during the waiting period, the WAB will be increased to the contract value on each rider anniversary beginning at the end of the waiting period, if the contract value is greater. (B) If you decline a rider fee increase and a withdrawal is taken during the waiting period, on the third anniversary the WAB will be reset to the lesser of (1) the GBA at the time of the first withdrawal, plus any additional purchase payments and any purchase payment credits since the time of the first withdrawal, minus all withdrawals, or (2) the contract value. - - Upon certain changes to your PN program investment option -- (See "Use of Portfolio Navigator Program Required," described above). GUARANTEED BENEFIT PAYMENT (GBP): At any time, the amount available for withdrawal in each contract year after the waiting period, until the RBA is reduced to zero, under the basic benefit. After the waiting period the annual withdrawal amount guaranteed under the rider can vary each contract year. At any point in time, each payment's GBP is the lesser of (a) and (b) where (a) is the GBA for that payment multiplied by the current GBP percentage (either 5% or 6% as described under "GBP Percentage and ALP Percentage" heading above) and (b) is the RBA for that payment. The total GBP is the sum of the GBPs for each purchase payment. REMAINING BENEFIT PAYMENT (RBP): The amount available for withdrawal for the remainder of the contract year under the basic benefit. At any point in time, the total RBP is the sum of the RBPs for each purchase payment. THE RBP IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - - During the waiting period -- the RBP will be zero. - - At the beginning of any contract year after the waiting period and when the GBP percentage changes -- the RBP for each purchase payment is set equal to that purchase payment's GBP. - - When you make additional purchase payments after the waiting period -- each additional purchase payment has its own RBP equal to the purchase payment, plus any purchase payment credit, multiplied by the GBP percentage. - - At step up -- (see "Annual Step Up" heading below). - - At spousal continuation -- (see "Spousal Option to Continue the Contract upon Owner's Death" heading below). - - When you make any withdrawal after the waiting period -- the total RBP is reset to equal the total RBP immediately prior to the withdrawal less the amount of the withdrawal, but not less than zero. If there have been multiple purchase payments, each payment's RBP is reduced proportionately. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RBP, GBA EXCESS WITHDRAWAL PROCESSING AND RBA EXCESS WITHDRAWAL PROCESSING ARE APPLIED and the amount available for future withdrawals for the remainder of the contract's life may be reduced by more than the amount of withdrawal. When determining if a withdrawal will result in the excess withdrawal processing, the applicable RBP will not yet reflect the amount of the current withdrawal. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 61 LIFETIME BENEFIT DESCRIPTION SINGLE LIFE ONLY: COVERED PERSON: The person whose life is used to determine when the ALP is established, and the duration of the ALP payments (see "Annual Lifetime Payment (ALP)" heading below). The covered person is the oldest contract owner. If any owner is a nonnatural person, i.e., a trust or corporation, the covered person is the oldest annuitant. JOINT LIFE ONLY: COVERED SPOUSES: The contract owner and his or her legally married spouse as defined under federal law, as named on the application for as long as the marriage is valid and in effect. If any contract owner is a nonnatural person (e.g., a trust), the covered spouses are the annuitant and the legally married spouse of the annuitant. The covered spouses lives are used to determine when the ALP is established, and the duration of the ALP payments (see "Annual Lifetime Payment (ALP)" heading below). The covered spouses are established on the rider effective date and cannot be changed. ANNUAL LIFETIME PAYMENT ATTAINED AGE (ALPAA): - - SINGLE LIFE: The covered person's age after which time the lifetime benefit can be established. Currently, the lifetime benefit can be established on the later of the contract effective date or the contract anniversary date on/following the date the covered person reaches age 65. - - JOINT LIFE: The age of the younger covered spouse at which time the lifetime benefit is established. ANNUAL LIFETIME PAYMENT (ALP): The ALP is the lifetime benefit amount available for withdrawals in each contract year after the waiting period until the later of: - - SINGLE LIFE: death; or - - JOINT LIFE: death of the last surviving covered spouse; or - - the RBA is reduced to zero. The maximum ALP is $300,000. Prior to establishment of the ALP, the lifetime benefit is not in effect and the ALP is zero. THE ALP IS DETERMINED AT THE FOLLOWING TIMES: - - SINGLE LIFE: Initially the ALP is established on the earliest of the following dates: (a) the rider effective date if the covered person has already reached age 65, (b) the rider anniversary following the date the covered person reaches age 65, - if during the waiting period and no prior withdrawal has been taken; or - if after the waiting period. (c) the rider anniversary following the end of the waiting period if the covered person is age 65 before the end of the waiting period and a prior withdrawal had been taken. The ALP is established as the total RBA multiplied by the ALP percentage (either 5% or 6% as described under "GBP Percentage and ALP Percentage" heading above). - - JOINT LIFE: Initially the ALP is established on the earliest of the following dates: (a) the rider effective date if the younger covered spouse has already reached age 65. (b) the rider anniversary on/following the date the younger covered spouse reaches age 65. (c) upon the first death of a covered spouse, then (1) the date we receive written request when the death benefit is not payable and the surviving covered spouse has already reached age 65; or (2) the date spousal continuation is effective when the death benefit is payable and the surviving covered spouse has already reached age 65; or (3) the rider anniversary on/following the date the surviving covered spouse reaches age 65. (d) Following dissolution of marriage of the covered spouses, (1) the date we receive written request if the remaining covered spouse who is the owner (or annuitant in the case of nonnatural ownership) has already reached age 65; or (2) the rider anniversary on/following the date the remaining covered spouse who is the owner (or annuitant in the case of nonnatural ownership) reaches age 65. For (b), (c) and (d) above, if the date described occurs during the waiting period and a prior withdrawal had been taken, we use the rider anniversary following the end of the waiting period to establish the ALP. The ALP is established as the total RBA multiplied by the ALP percentage (either 5% or 6% as described under "GBP Percentage and ALP Percentage" heading above). - -------------------------------------------------------------------------------- 62 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - Whenever the ALP Percentage changes -- (a) If the ALP percentage is changing from 6% to 5%, the ALP is reset to the ALP multiplied by 5%, divided by 6%. (b) If the ALP percentage is changing from 5% to 6%, the ALP is reset to the ALP multiplied by 6%, divided by 5%. - - When you make an additional purchase payment -- Before a withdrawal is taken in the waiting period and at any time after the waiting period, each additional purchase payment increases the ALP by the amount of the purchase payment, plus any purchase payment credit, multiplied by the ALP percentage. - - When you make a withdrawal: (a) During the waiting period, the ALP, if established, will be set equal to zero until the end of the waiting period. (b) After the waiting period, if the amount withdrawn is: (i) less than or equal to the RALP, the ALP is unchanged. (ii) greater than the RALP, ALP EXCESS WITHDRAWAL PROCESSING will occur. If you withdraw less than the ALP in a contract year, there is no carry over to the next contract year. - - On the rider anniversary at the end of the waiting period -- If you took a withdrawal during the waiting period, the ALP is set equal to the contract value multiplied by the ALP percentage if the covered person (JOINT LIFE: younger covered spouse) has reached age 65. - - At step ups -- (see "Annual Step Up" heading below). - - At spousal continuation -- (see "Spousal Option to Continue the Contract upon Owner's Death" heading below). - - Upon certain changes to your PN program investment option -- (see "Use of Portfolio Navigator Program Required," heading above). ALP EXCESS WITHDRAWAL PROCESSING The ALP is reset to the lesser of the ALP immediately prior to the withdrawal, or the ALP Percentage (either 5% or 6% as described under "GBP Percentage and ALP Percentage" heading above) multiplied by the contract value immediately following the withdrawal. REMAINING ANNUAL LIFETIME PAYMENT (RALP): The amount available for withdrawal for the remainder of the contract year under the lifetime benefit. Prior to establishment of the ALP, the lifetime benefit is not in effect and the RALP is zero. THE RALP IS DETERMINED AT THE FOLLOWING TIMES: - - The RALP is established at the same time as the ALP, and: (a) During the waiting period -- the RALP will be zero. (b) At any other time -- the RALP is established equal to the ALP less all prior withdrawals taken in the contract year but not less than zero. - - At the beginning of each contract year after the waiting period and when the ALP percentage changes -- the RALP is set equal to the ALP. - - When you make additional purchase payments after the waiting period -- each additional purchase payment increases the RALP by the purchase payment, plus any purchase payment credit, multiplied by the ALP percentage (either 5% or 6% as described under "GBP Percentage and ALP Percentage" heading above). - - At step ups -- (see "Annual Step Up" headings below). - - At spousal continuation -- (see "Spousal Option to Continue the Contract upon Owner's Death" heading below). - - When you make any withdrawal after the waiting period -- the RALP equals the RALP immediately prior to the withdrawal less the amount of the withdrawal but not less than zero. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RALP, ALP EXCESS WITHDRAWAL PROCESSING IS APPLIED and may reduce the amount available for future withdrawals. When determining if a withdrawal will result in excess withdrawal processing, the applicable RALP will not yet reflect the amount of the current withdrawal. OTHER PROVISIONS REQUIRED MINIMUM DISTRIBUTIONS (RMD): If you are taking RMDs from your contract and your RMD calculated separately for your contract is greater than the RBP or the RALP on the most recent contract anniversary, the portion of your RMD that exceeds the benefit amount will not be subject to excess withdrawal processing provided that the following conditions are met: - - The withdrawal is after the waiting period; - - The RMD is for your contract alone; - - The RMD is based on your recalculated life expectancy taken from the Uniform Lifetime Table under the Code; and - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 63 - - The RMD amount is otherwise based on the requirements of section 401(a) (9), related Code provisions and regulations thereunder that were in effect on the effective date of the rider. RMD rules follow the calendar year which most likely does not coincide with your contract year and therefore may limit when you can take your RMD and not be subject to excess withdrawal processing. Any withdrawal during the waiting period will reset the basic benefit and lifetime benefit at the end of the waiting period. After the waiting period, withdrawal amounts greater than the RALP or RBP that do not meet the conditions above will result in excess withdrawal processing. The amount in excess of the RBP and/or RALP that is not subject to excess withdrawal processing will be recalculated if the RALP and RBP change due to GBP Percentage and ALP percentage changes. See Appendix F for additional information. ANNUAL STEP UP: Beginning with the first contract anniversary, an increase of the benefit values may be available. A step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be withdrawn in a lump sum or paid upon death. Rather, a step up determines the current values of the GBA, RBA, GBP, RBP, ALP and RALP, and may extend the payment period or increase the allowable payment. If there have been multiple payments and the GBA increases due to the step up, the individual GBAs, RBAs, GBPs, and RBPs will be combined. The annual step up may be available as described below, subject to the maximum GBA, RBA and ALP and subject to the following rules: - - You have not declined a rider fee increase. - - If you take any withdrawals during the waiting period the annual step up will not be available until the rider anniversary following the end of the waiting period. - - On any rider anniversary where your contract value is greater than the RBA or, your contract value multiplied by the ALP Percentage (either 5% or 6% as described under "GBP Percentage and ALP Percentage" heading above) is greater than the ALP, if established, the annual step up will be applied to your contract on the rider anniversary. - - The ALP and RALP are not eligible for step ups until they are established. Prior to being established, the ALP and RALP values are both zero. - - Please note it is possible for the ALP to step up even if the RBA or GBA do not step up, and it is also possible for the RBA and GBA to step up even if the ALP does not step up. The annual step up resets the GBA, RBA, GBP, RBP, ALP and RALP values as follows: - - The total RBA will be increased to the contract value on the rider anniversary, if the contract value is greater. - - The total GBA will be increased to the contract value on the rider anniversary, if the contract value is greater. - - The total GBP will be reset using the calculation as described above based on the increased GBA and RBA. - - The total RBP will be reset as follows: (a) During the waiting period, the RBP will not be affected by the step up. (b) After the waiting period, the RBP will be reset to the increased GBP. - - The ALP will be increased to the contract value on the rider anniversary multiplied by the ALP percentage (either 5% or 6% as described under "GBP Percentage and ALP Percentage" heading above), if greater than the current ALP. - - The RALP will be reset as follows: (a) During the waiting period, the RALP will not be affected by the step up. (b) After the waiting period, the RALP will be reset to the increased ALP. SPOUSAL OPTION TO CONTINUE THE CONTRACT UPON OWNER'S DEATH ("SPOUSAL CONTINUATION"): SINGLE LIFE: If a surviving spouse elects to continue the contract and continues the contract as the new owner under the spousal continuation provision of the contract, the SecureSource Flex -- Single Life rider terminates. JOINT LIFE: If a surviving spouse is a covered spouse and elects the spousal continuation provision of the contract as the new owner, the SecureSource Flex -- Joint Life rider also continues. The surviving covered spouse can name a new beneficiary; however, a new covered spouse cannot be added to the rider. At the time of spousal continuation, a step-up may be available. If you decline a rider fee increase or the spousal continuation occurs during the waiting period and a withdrawal was taken, a step up is not available. All annual step- up rules (see "Annual Step-Up" heading above) also apply to the spousal continuation step-up except that a) the RBP will be calculated as the GBP after the step-up less all prior withdrawals taken during the current contract year, but not less than zero, and b) the RALP will be calculated as the ALP after the step-up less all prior withdrawals taken during the current contract year, but not less than zero. The spousal continuation step-up is processed on the valuation date spousal continuation is effective. - -------------------------------------------------------------------------------- 64 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS RULES FOR WITHDRAWAL PROVISION OF YOUR CONTRACT: Minimum account values following a withdrawal no longer apply to your contract. For withdrawals, the withdrawal will be taken from the variable subaccounts and the regular fixed account (if applicable) in the same proportion as your interest in each bears to the contract value less amounts in any Special DCA fixed account. You cannot specify from which accounts the withdrawal is to be taken. IF CONTRACT VALUE REDUCES TO ZERO: If the contract value reduces to zero, you will be paid in the following scenarios: 1) The ALP has not yet been established, the total RBA is greater than zero and the contract value is reduced to zero as a result of fees or charges or a withdrawal that is less than or equal to the RBP. In this scenario, you can choose to: (a) receive the remaining schedule of GBPs until the RBA equals zero; or (b) SINGLE LIFE: wait until the rider anniversary following the date the covered person reaches age 65, and then receive the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero. JOINT LIFE: wait until the rider anniversary following the date the younger covered spouse reaches age 65, and then receive the ALP annually until the latter of (i) the death of the last surviving covered spouse, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 2) The ALP has been established, the total RBA is greater than zero and the contract value reduces to zero as a result of fees or charges, or a withdrawal that is less than or equal to both the RBP and the RALP. In this scenario, you can choose to receive: (a) the remaining schedule of GBPs until the RBA equals zero; or (b) SINGLE LIFE: the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero. JOINT LIFE: the ALP annually until the latter of (i) the death of the last surviving covered spouse, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 3) The ALP has been established and the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP. In this scenario, the remaining schedule of GBPs will be paid until the RBA equals zero. 4) The ALP has been established and the contract value falls to zero as a result of a withdrawal that is greater than the RBP but less than or equal to the RALP. In this scenario, the ALP will be paid annually until the death of the: - SINGLE LIFE: covered person; - JOINT LIFE: last surviving covered spouse. Under any of these scenarios: - - The annualized amounts will be paid to you in monthly installments. If the monthly payment is less than $100, we have the right to change the frequency but no less frequent than annually; - - We will no longer accept additional purchase payments; - - You will no longer be charged for the rider; - - Any attached death benefit riders will terminate; - - In determining the remaining schedule of GBPs, the current GBP is fixed for as long as payments are made. - - SINGLE LIFE: The death benefit becomes the remaining payments, if any, until the RBA is reduced to zero; and - - JOINT LIFE: If the owner had been receiving the ALP, upon the first death the ALP will continue to be paid annually until the later of: 1) the death of the last surviving covered spouse or 2) the RBA is reduced to zero. In all other situations the death benefit becomes the remaining payments, if any, until the RBA is reduced to zero. The SecureSource Flex rider and the contract will terminate under either of the following two scenarios: - - If the ALP is established and the RBA is zero, and if the contract value falls to zero as a result of a withdrawal that is greater than the RALP. This is full withdrawal of the contract value. - - If the ALP is not established and the RBA is zero, and if the contract value falls to zero as a result of fees, charges or a withdrawal. AT DEATH: SINGLE LIFE: If the contract is jointly owned and an owner dies when the contract value is greater than zero, the lifetime benefit for the covered person will cease even if the covered person is still living. If the contract value is greater than zero when the death benefit becomes payable, the beneficiary may: 1) elect to take the death benefit under the terms of the contract, 2) take the RBA payout option available under this rider, or 3) continue the contract under the spousal continuation provision of the contract which terminates the rider. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 65 If the contract value equals zero and the death benefit becomes payable, the following will occur: - - If the RBA is greater than zero and the owner has been receiving the GBP each year, the GBP will continue to be paid to the beneficiary until the RBA equals zero. - - If the covered person dies and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the RBA equals zero. - - If the covered person is still alive and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the later of the death of the covered person or the RBA equals zero. - - If the covered person is still alive and the RBA equals zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the death of the covered person. - - If the covered person dies and the RBA equals zero, the benefit terminates. No further payments will be made. JOINT LIFE: If the death benefit becomes payable at the death of a covered spouse, the surviving covered spouse must utilize the spousal continuation provision of the contract and continue the contract as the new owner to continue the joint benefit. If spousal continuation is not available under the terms of the contract, the rider terminates. The lifetime benefit of this rider ends at the death of the last surviving covered spouse. If the contract value is greater than zero when the death benefit becomes payable, the beneficiary may: 1) elect to take the death benefit under the terms of the contract, 2) take the RBA payout option available under this rider, or 3) continue the contract under the spousal continuation provision of the contract. If the contract value equals zero at the first death of a covered spouse, the ALP will continue to be paid annually until the later of: 1) the death of the last surviving covered spouse or 2) the RBA is reduced to zero. If the contract value equals zero at the death of the last surviving covered spouse, the following will occur: - - If the RBA is greater than zero and the owner has been receiving the GBP each year, the GBP will continue to be paid to the beneficiary until the RBA equals zero. - - If the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the RBA equals zero. - - If the RBA equals zero, the benefit terminates. No further payments will be made. CONTRACT OWNERSHIP CHANGE: SINGLE LIFE: If allowed by state law, change of ownership is subject to our approval. If there is a change of ownership and the covered person remains the same, the rider continues with no change to any of the rider benefits. If there is a change of ownership and the covered person would be different, the rider terminates. JOINT LIFE: Ownership changes are only allowed between the covered spouses or their revocable trust(s) and are subject to our approval, if allowed by state law. No other ownership changes are allowed as long as the rider is in force. REMAINING BENEFIT AMOUNT (RBA) PAYOUT OPTION: Several annuity payout plans are available under the contract. As an alternative to these annuity payout plans, a fixed annuity payout option is available under the SecureSource Flex rider after the waiting period. Under this option the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid will not exceed the current total RBA at the time you begin this fixed annuity payout option. These annualized amounts will be paid in monthly installments. If the monthly payment is less than $100, we have the right to change the frequency, but no less frequently than annually. If, at the death of the owner, total payouts have been made for less than the RBA, the remaining payouts will be paid to the beneficiary (see "The Annuity Payout Period" and "Taxes"). This option may not be available if the contract is issued to qualify under section 403 or 408 of the Code, as amended. For such contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using a life expectancy table published by the IRS. This annuity payout option may also be elected by the beneficiary when the death benefit is payable. Whenever multiple beneficiaries are designated under the contract, each such beneficiary's share of the proceeds if they elect this option will be in proportion to their applicable designated beneficiary percentage. Beneficiaries of nonqualified contracts may elect this settlement option subject to the distribution requirements of the contract. We reserve the right to adjust the remaining schedule of GBPs if necessary to comply with the Code. RIDER TERMINATION The SecureSource Flex rider cannot be terminated either by you or us except as follows: - -------------------------------------------------------------------------------- 66 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 1. SINGLE LIFE: a change of ownership that would result in a different covered person will terminate the rider. 2. SINGLE LIFE: After the death benefit is payable, continuation of the contract will terminate the rider. 3. JOINT LIFE: After the death benefit is payable the rider will terminate if: (a) any one other than a covered spouse continues the contract, or (b) a covered spouse does not use the spousal continuation provision of the contract to continue the contract. 4. Annuity payouts under an annuity payout plan will terminate the rider. 5. You may terminate the rider if your annual rider fee after any fee increase is more than 0.25% higher than your fee before the increase (See "Charges -- SecureSource Flex rider fee"). 6. When the RBA and contract value are zero and either the ALP is not established or an excess withdrawal of the RALP is taken, the rider will terminate. 7. Termination of the contract for any reason will terminate the rider. GUARANTEED MINIMUM ACCUMULATION BENEFIT (ACCUMULATION BENEFIT) RIDER THE ACCUMULATION BENEFIT RIDER IS NOT AVAILABLE FOR RAVA 4 ACCESS. The Accumulation Benefit rider is an optional benefit that you may select for an additional charge. It is available for nonqualified annuities and qualified annuities except under 401(a) plans. The Accumulation Benefit rider specifies a waiting period that ends on the benefit date. The Accumulation Benefit rider provides a one-time adjustment to your contract value on the benefit date if your contract value is less than the Minimum Contract Accumulation Value (defined below) on that benefit date. On the benefit date, if the contract value is equal to or greater than the Minimum Contract Accumulation Value, as determined under the Accumulation Benefit rider, the Accumulation Benefit rider ends without value and no benefit is payable. If the contract value falls to zero as the result of adverse market performance or the deduction of fees and/or charges at any time during the waiting period and before the benefit date, the contract and all riders, including the Accumulation Benefit rider will terminate without value and no benefits will be paid. EXCEPTION: if you are still living on the benefit date, we will pay you an amount equal to the Minimum Contract Accumulation Value as determined under the Accumulation Benefit rider on the valuation date your contract value reached zero. If you are (or if the owner is a non-natural person, then the annuitant is) 80 or younger at contract issue and this rider is available in your state, you may elect the Accumulation Benefit rider at the time you purchase your contract and the rider effective date will be the contract issue date. The Accumulation Benefit rider may not be terminated once you have elected it except as described in the "Terminating the Rider" section below. An additional charge for the Accumulation Benefit rider will be assessed annually during the waiting period. The rider ends when the waiting period expires and no further benefit will be payable and no further charges for the rider will be deducted. The Accumulation Benefit rider may not be purchased with the optional GWB for Life rider or SecureSource rider. When the rider ends, you may be able to purchase another optional rider we then offer by written request received within 30 days of that contract anniversary date. You should consider whether an Accumulation Benefit rider is appropriate for you because: - - you must participate in the PN program and you must be invested in one of the available model portfolios or investment options. This requirement limits your choice of Investments. This means you will not be able to allocate contract value to all of the subaccounts, GPAs or the regular fixed account that are available under the contract to other contract owners who do not elect this rider. You may allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA fixed account, when available (see "The Special DCA Fixed Account"), and we will make monthly transfers into the model portfolio or investment option you have chosen. (See "Making the Most of Your Contract -- Portfolio Navigator Program"); - - you may not make additional purchase payments to your contract during the waiting period after the first 180 days immediately following the effective date of the Accumulation Benefit rider. Some exceptions apply (see "Additional Purchase Payments with Elective Step Up" below); - - if you purchase this contract as a qualified annuity, for example, an IRA, you may need to take partial surrenders from your contract to satisfy the RMDs under the Code. Partial surrenders, including those used to satisfy RMDs, will reduce any potential benefit that the Accumulation Benefit rider provides. You should consult your tax advisor if you have any questions about the use of this rider in your tax situation; - - if you think you may surrender all of your contract value before you have held your contract with this benefit rider attached for 10 years, or you are considering selecting an annuity payout option within 10 years of the effective date of your contract, you should consider whether this optional benefit is right for you. You must hold the contract a minimum of - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 67 10 years from the effective date of the Accumulation Benefit rider, which is the length of the waiting period under the Accumulation Benefit rider, in order to receive the benefit, if any, provided by the Accumulation Benefit rider. In some cases, as described below, you may need to hold the contract longer than 10 years in order to qualify for any benefit the Accumulation Benefit rider may provide; - - the 10 year waiting period under the Accumulation Benefit rider will restart if you exercise the Elective Step-Up Option (described below) or your surviving spouse exercises the spousal continuation Elective Step-Up (described below); and - - the 10 year waiting period under the Accumulation Benefit rider may be restarted if you elect to change your model portfolio to one that causes the Accumulation Benefit rider charge to increase (see "Charges"). Be sure to discuss with your financial advisor whether an Accumulation Benefit rider is appropriate for your situation. HERE ARE SOME GENERAL TERMS THAT ARE USED TO DESCRIBE THE OPERATION OF THE ACCUMULATION BENEFIT: BENEFIT DATE: This is the first valuation date immediately following the expiration of the waiting period. MINIMUM CONTRACT ACCUMULATION VALUE (MCAV): An amount calculated under the Accumulation Benefit rider. The contract value will be increased to equal the MCAV on the benefit date if the contract value on the benefit date is less than the MCAV on the benefit date. ADJUSTMENTS FOR PARTIAL SURRENDERS: The adjustment made for each partial surrender from the contract is equal to the amount derived from multiplying (a) and (b) where: (a) is 1 minus the ratio of the contract value on the date of (but immediately after) the partial surrender to the contract value on the date of (but immediately prior to) the partial surrender; and (b) is the MCAV on the date of (but immediately prior to) the partial surrender. WAITING PERIOD: The waiting period for the rider is 10 years. We reserve the right to restart the waiting period on the latest contract anniversary if you change your PN program model portfolio or investment option after we have exercised our rights to increase the rider fee. Your initial MCAV is equal to your initial purchase payment and any purchase payment credit. It is increased by the amount of any subsequent purchase payments and purchase payment credits received within the first 180 days that the rider is effective. It is reduced by any adjustments for partial surrenders made during the waiting period. AUTOMATIC STEP UP On each contract anniversary after the effective date of the rider, the MCAV will be set to the greater of: 1. 80% of the contract value on the contract anniversary; or 2. the MCAV immediately prior to the automatic step up. The automatic step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be surrendered or paid upon death. Rather, the Automatic Step Up is an interim calculation used to arrive at the final MCAV, which is used to determine whether a benefit will be paid under the rider on the benefit date. The automatic step up of the MCAV does not restart the waiting period or increase the fee (although the total fee for the rider may increase). ELECTIVE STEP UP OPTION Within thirty days following each contract anniversary after the rider effective date, but prior to the benefit date, you may notify us in writing that you wish to exercise the annual elective step up option. You may exercise this elective step up option only once per contract year during this 30 day period. If your contract value on the valuation date we receive your written request to step up is greater than the MCAV on that date, your MCAV will increase to 100% of that contract value. When you exercise the annual elective step up, we may be charging more for the Accumulation Benefit rider at that time. If your MCAV is increased as a result of the elective step up and we have increased the fee for the Accumulation Benefit rider, the fee will be the fee that is in effect on the valuation date we receive your written request to step up for the entire contract year. In addition, the waiting period will restart as of the most recent contract anniversary. Failure to exercise this elective step up in subsequent years will not reinstate any prior waiting period. Rather, the waiting period under the rider will always commence from the most recent anniversary for which the elective step up option was exercised. The elective step up does not create contract value, guarantee the performance of any investment option or provide any benefit that can be surrendered or paid upon death. Rather the elective step up is an interim calculation used to arrive at the final MCAV, which is used to determine whether a benefit will be paid under the rider on the benefit date. The elective step up option is not available to non-spouse beneficiaries that continue the contract during the waiting period. - -------------------------------------------------------------------------------- 68 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS ADDITIONAL PURCHASE PAYMENTS WITH ANNUAL ELECTIVE STEP UPS If your MCAV is increased as a result of Elective Step Up, you have 180 days from the latest contract anniversary to make additional purchase payments, if allowed under the base contract. The MCAV will include the amount of any additional purchase payments and purchase payment credits (if applicable) received during this period. SPOUSAL CONTINUATION If a spouse chooses to continue the contract under the spousal continuation provision, the rider will continue as part of the contract. Once, within the thirty days following the date of spousal continuation, the spouse may choose to exercise an elective step up. The spousal continuation elective step up is in addition to the annual elective step up. If the contract value on the valuation date we receive the written request to exercise this option is greater than the MCAV on that date, we will increase the MCAV to that contract value. If the MCAV is increased as a result of the elective step up and we have increased the fee for the Accumulation Benefit rider, the spouse will pay the charge based on the fee that is in effect on the valuation date we receive their written request to step up for the entire contract year. In addition, the waiting period will restart as of the most recent contract anniversary. TERMINATING THE RIDER The rider will terminate under the following conditions: - - The rider will terminate before the benefit date without paying a benefit on the date: - - you take a full surrender; or - - annuitization begins; or - - the contract terminates as a result of the death benefit being paid. The rider will terminate on the benefit date. For an example, see Appendix E. OPTIONAL LIVING BENEFITS -- PREVIOUSLY OFFERED GUARANTOR WITHDRAWAL BENEFIT FOR LIFE (GWB FOR LIFE) RIDER Disclosure for GWB for Life rider may be found in the Appendix G. SECURESOURCE RIDERS Disclosure for SecureSource riders may be found in the Appendix H. THE ANNUITY PAYOUT PERIOD As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below except under Plan E. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date after any rider charges have been deducted, plus any positive or negative MVA on GPAs, less any purchase payment credits subject to reversal and less any applicable premium tax. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. AMOUNTS OF FIXED AND VARIABLE PAYOUTS DEPEND ON: - - the annuity payout plan you select; - - the annuitant's age and, in most cases, sex; - - the annuity table in the contract; and - - the amounts you allocated to the accounts at settlement. In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. Fixed payouts remain the same from month to month. For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 69 ANNUITY TABLES The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of contract value according to the annuitant's age and, when applicable, the annuitant's sex. (Where required by law, we will use a unisex table of settlement rates.) Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment return for the 5% Table A in the contract. The assumed investment return affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment return and payouts will decrease if the return is below the assumed investment return. Using the 5% assumed investment return results in a higher initial payout but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract value is used to purchase the payout plan: - - PLAN A: LIFE ANNUITY -- NO REFUND: We make monthly payouts until the annuitant's death. Payouts end with the last payout before the annuitant's death. We will not make any further payouts. This means that if the annuitant dies after we made only ONE monthly payout, we will not make any more payouts. - - PLAN B: LIFE ANNUITY WITH FIVE, TEN, 15, OR 20 YEARS CERTAIN: We make monthly payouts for a guaranteed payout period of five, ten, 15, or 20 years that you elect. This election will determine the length of the payout period to the beneficiary if the annuitant should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant's death. - - PLAN C: LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until the annuitant's death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living. - - PLAN D: JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until the death of the surviving owner. Payouts end with the death of the second annuitant. - - PLAN E: PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether the annuitant is living or not. Depending on the selected time period, it is foreseeable that the annuitant can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the amount of the payout that would have been made 7 days prior to the date we determine the present value. The discount rate we use in the calculations 5.17% for the assumed investment return of 3.5% and 6.67% for the assumed investment return of 5.0%. (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take surrender. (See "Taxes.") - - RBA PAYOUT OPTION: If you have a GWB for Life or SecureSource rider under your contract, you may elect the Withdrawal Benefit RBA payout option as an alternative to the above annuity payout plans. This option may not be available if the contract is issued to qualify under Sections 403 or 408 of the Code. For such contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using life expectancy tables published by IRS. Under this option, the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the total RBA at the time you begin this fixed payout option (see "Optional Benefits"). These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at the time but will be no less frequent than annually. If, at the death of the owner, total payouts have been made for less than the RBA, the remaining payouts will be paid to the beneficiary. - -------------------------------------------------------------------------------- 70 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your contract is a qualified annuity, you must select a payout plan as of the settlement date set forth in your contract. You have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will generally meet certain IRS regulations governing RMDs if the payout plan meets the incidental distribution benefit requirements, if any, and the payouts are made: - - in equal or substantially equal payments over a period not longer than your life or over the joint life of you and your designated beneficiary; or - - in equal or substantially equal payments over a period not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary; or - - over a period certain not longer than your life expectancy or over the life expectancy of you and your designated beneficiary. WRITTEN INSTRUCTIONS: You must give us written instructions for the annuity payouts at least 30 days before the settlement date. Contract values that you allocated to the regular fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of monthly payouts at the time amounts are applied to a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. DEATH AFTER ANNUITY PAYOUTS BEGIN: If you die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. TAXES Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay income tax until there is a taxable distribution (or deemed distribution) from the contract. We will send a tax information reporting form for any year in which we made a taxable or reportable distribution according to our records. NONQUALIFIED ANNUITIES Generally, only the increase in the value of a non-qualified annuity contract over the investment in the contract is taxable. Certain exceptions apply. Federal tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when distributions are taken from any one of those contracts. ANNUITY PAYOUTS: Generally, unlike surrenders described below, the taxation of annuity payouts is subject to exclusion ratios, i.e. a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of your investment in the contract and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity -- no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under all other annuity payout plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "The Annuity Payout Period -- Annuity Payout Plans.") SURRENDERS: Generally, if you surrender all or part of your nonqualified annuity before your annuity payouts begin, including withdrawals under any optional withdrawal benefit rider, your surrender will be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. Different rules may apply if you exchange another contract into this contract. You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. WITHHOLDING: If you receive taxable income as a result of an annuity payout or surrender, including surrenders under any optional withdrawal benefit rider, we may deduct federal, and in some cases state withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, and you have a valid U.S. address, you may be able to elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as partial or full surrender) we compute withholding using 10% of the taxable portion. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 71 The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. DEATH BENEFITS TO BENEFICIARIES: The death benefit under a nonqualified contract is not exempt from estate (federal or state) or income taxes. In addition, any amount your beneficiary receives that exceeds the investment in the contract is taxable as ordinary income to the beneficiary in the year he or she receives the payments. (See also "Benefits in Case of Death -- If You Die Before the Settlement Date"). ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR IRREVOCABLE TRUSTS: For nonqualified annuities, any annual increase in the value of annuities held by such entities (nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person only, the income will generally remain tax-deferred. PENALTIES: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: - - because of your death or in the event of nonnatural ownership, the death of the annuitant; - - because you become disabled (as defined in the Code); - - if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - - if it is allocable to an investment before Aug. 14, 1982; or - - if annuity payouts are made under immediate annuities as defined by the Code. TRANSFER OF OWNERSHIP: Generally, if you transfer ownership of a nonqualified annuity without receiving adequate consideration, the transfer may be treated as a surrender for federal income tax purposes. If the transfer is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Please consult your tax advisor for further details. 1035 EXCHANGES: Section 1035 of the Code permits nontaxable exchanges of certain insurance policies, endowment contracts, annuity contracts and qualified long- term care insurance contract while providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the cost basis from the old policy or contract to the new policy or contract. A 1035 exchange is a transfer from one policy or contract to another policy or contract. The following are nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment, annuity or qualified long-term care insurance contracts, (2) the exchange of an endowment contract for an annuity or qualified long-term care insurance contract, or for an endowment contract under which payments will begin no later than payments would have begun under the contract exchanged, (3) the exchange of an annuity contract for another annuity contract or for a qualified long-term care insurance contract, or (4) the exchange of a qualified long-term care insurance contract for a qualified long-term insurance contract. However, if the life insurance policy has an outstanding loan, there may be tax consequences. Depending on the issue date of your original policy or contract, there may be tax or other benefits that are given up to gain the benefits of the new policy or contract. Consider whether the features and benefits of the new policy or contract outweigh any tax or other benefits of the old contract. For a partial exchange of an annuity contract for another annuity contract, the 1035 exchange is generally tax-free. The investment in the original contract and the earnings on the contract will be allocated proportionately between the original and new contracts. However, IRS Revenue Procedure 2008-24 states if withdrawals are taken from either contract within a 12 month period following a partial exchange, the 1035 exchange may be invalidated. In that case, the following will occur 1) the tax-free nature of the partial exchange can be lost, 2) the exchange will be retroactively treated as a taxable surrender on the lesser of the earnings in the original contract or the amount exchanged and 3) the entire amount of the exchange will be treated as a purchase into the second contract. You may receive an amended form 1099-R reporting an invalidated exchange. (If certain life events occur between the date of the partial exchange and the date of the withdrawal in the first 12 months, the partial exchange could remain valid.) You should consult your tax advisor before taking any surrender from either contract. ASSIGNMENT: If you assign or pledge your contract as collateral for a loan, earnings on purchase payments you made after Aug. 13, 1982 will be taxed as a deemed distribution and you may have to pay a 10% IRS penalty. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of - -------------------------------------------------------------------------------- 72 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. When you use your contract to fund a retirement plan or IRA that is already tax- deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your right to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract. ANNUITY PAYOUTS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. ANNUITY PAYOUTS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. SURRENDERS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. SURRENDERS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans (except for Roth IRAs) are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. RMDs are based on the fair market value of your contract at year-end divided by life expectancy factor. Certain death benefits and optional riders may be considered in determining the fair market value of your contract for RMD purposes. This may cause your RMD to be higher. Inherited IRAs (including inherited Roth IRAs) are subject to special RMD rules. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. WITHHOLDING FOR IRAS, ROTH IRAS, SEPS AND SIMPLE IRAS: If you receive taxable income as a result of an annuity payout or a surrender, including surrenders under any optional withdrawal benefit rider, we may deduct withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. WITHHOLDING FOR ALL OTHER QUALIFIED ANNUITIES: If you receive directly all or part of the contract value from a qualified annuity, mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. This mandatory withholding will not be imposed if instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan. Payments made to a surviving spouse instead of being directly rolled over to an IRA are also subject to mandatory 20% income tax withholding. In the below situations, the distribution is subject to an optional 10% withholding instead of the mandatory 20% withholding. We will withhold 10% of the distribution amount unless you elect otherwise. - - the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; - - the payout is a RMD as defined under the Code; - - the payout is made on account of an eligible hardship; or - - the payout is a corrective distribution. State withholding also may be imposed on taxable distributions. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 73 PENALTIES: If you receive amounts from your qualified contract before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received: - - because of your death; - - because you become disabled (as defined in the Code); - - if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - - if the distribution is made following severance from employment during the calendar year in which you attain age 55 (TSAs and annuities funding 401(a) plans only); - - to pay certain medical or education expenses (IRAs only); or - - if the distribution is made from an inherited IRA. DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he/she receives the payments from the qualified annuity. If you made non-deductible contributions to a traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. You are responsible for keeping all records tracking your non- deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are met. (See also "Benefits in Case of Death -- If You Die Before the Settlement Date"). ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. OTHER PURCHASE PAYMENT CREDITS: These are considered earnings and are taxed accordingly when surrendered or paid out. SPECIAL CONSIDERATIONS IF YOU SELECT ANY OPTIONAL RIDER: As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% tax penalty for surrenders before the age of 59 1/2, if applicable. We reserve the right to report charges for these riders as partial surrenders if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report any benefits attributable to these riders on the death of you or the annuitant as an annuity death benefit distribution, not as proceeds from life insurance. IMPORTANT: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. RIVERSOURCE LIFE'S TAX STATUS: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which each subaccount invests and becomes part of that subaccount's value. This investment income, including realized capital gains, is not subject to any withholding because of federal or state income taxes. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities or in our tax status as we currently understand it. TAX QUALIFICATION: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. VOTING RIGHTS As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. - -------------------------------------------------------------------------------- 74 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS After annuity payouts begin, the number of votes you have is equal to: - - the reserve held in each subaccount for your contract; divided by - - the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. SUBSTITUTION OF INVESTMENTS We may substitute the funds in which the subaccounts invest if: - - laws or regulations change; - - the existing funds become unavailable; or - - in our judgment, the funds no longer are suitable (or no longer the most suitable) for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute a fund currently listed in this prospectus (existing fund) for another fund (new fund). The new fund may have higher fees and/or operating expenses than the existing fund. Also, the new fund may have investment objectives and policies and/or investment advisers which differ from the existing fund. We may also: - - add new subaccounts; - - combine any two or more subaccounts; - - transfer assets to and from the subaccounts or the variable account; and - - eliminate or close any subaccounts. We will notify you of any substitution or change. If we notify you that a subaccount will be eliminated or closed, you will have a certain period of time to tell us where to reallocate purchase payments or contract value currently allocated to that subaccount. If we do not receive your reallocation instructions by the due date, we automatically will reallocate to the subaccount investing in the RiverSource Variable Portfolio -- Cash Management Fund. You may then transfer this reallocated amount in accordance with the transfer provisions of your contract (see "Transferring Between Accounts" above). In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. ABOUT THE SERVICE PROVIDERS PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. (RiverSource Distributors), our affiliate, serves as the principal underwriter and general distributor of the contract. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc. SALES OF THE CONTRACT - - Only securities broker-dealers ("selling firms") registered with the SEC and members of the FINRA may sell the contract. - - The contracts are continuously offered to the public through authorized selling firms. We and RiverSource Distributors have a sales agreement with the selling firm. The sales agreement authorizes the selling firm to offer the contracts to the public. RiverSource Distributors pays the selling firm (or an affiliated insurance agency) for contracts its financial advisors sell. The selling firm may be required to return sales commissions under certain circumstances including but not limited to when contracts are returned under the free look period. PAYMENTS TO SELLING FIRMS - - We may use compensation plans which vary by selling firm. For example, some of these plans pay selling firms a commission of up to 6.00% each time you make a purchase payment. We may also pay ongoing trail commissions of up to 1.25% of the contract value. We do not pay or withhold payment of commissions based on which investment options you select. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 75 - - We may pay selling firms a temporary additional sales commission of up to 1% of purchase payments for a period of time we select. For example, we may offer to pay a temporary additional sales commission to get selling firms to market a new or enhanced contract or to increase sales during the period. - - In addition to commissions, we may, in order to promote sales of the contracts, and as permitted by applicable laws and regulations, pay or provide selling firms with other promotional incentives in cash, credit or other compensation. We generally (but may not) offer these promotional incentives to all selling firms. The terms of such arrangements differ between selling firms. These promotional incentives may include but are not limited to: - sponsorship of marketing, educational, due diligence and compliance meetings and conferences we or the selling firm may conduct for financial advisors, including subsidy of travel, meal, lodging, entertainment and other expenses related to these meetings; - marketing support related to sales of the contract including for example, the creation of marketing materials, advertising and newsletters; - providing service to contract owners; and - funding other events sponsored by a selling firm that may encourage the selling firm's financial advisors to sell the contract. These promotional incentives or reimbursements may be calculated as a percentage of the selling firm's aggregate, net or anticipated sales and/or total assets attributable to sales of the contract, and/or may be a fixed dollar amount. As noted below this additional compensation may cause the selling firm and its financial advisors to favor the contracts. SOURCES OF PAYMENTS TO SELLING FIRMS We pay the commissions and other compensation described above from our assets. Our assets may include: - - revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see "Expense Summary"); - - compensation we or an affiliate receive from the underlying funds in the form of distribution and services fees (see "The Variable Account and the Funds -- The funds"); - - compensation we or an affiliate receive from a fund's investment adviser, subadviser, distributor or an affiliate of any of these (see "The Variable Account and the Funds -- The funds"); and - - revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part or all of the commissions and other compensation described above indirectly through: - - fees and expenses we collect from contract owners, including surrender charges; and - - fees and expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated person. POTENTIAL CONFLICTS OF INTEREST Compensation payment arrangements with selling firms can potentially: - - give selling firms a heightened financial incentive to sell the contract offered in this prospectus over another investment with lower compensation to the selling firm. - - cause selling firms to encourage their financial advisors to sell you the contract offered in this prospectus instead of selling you other alternative investments that may result in lower compensation to the selling firm. - - cause selling firms to grant us access to its financial advisors to promote sales of the contract offered in this prospectus, while denying that access to other firms offering similar contracts or other alternative investments which may pay lower compensation to the selling firm. PAYMENTS TO FINANCIAL ADVISORS - - The selling firm pays its financial advisors. The selling firm decides the compensation and benefits it will pay its financial advisors. - - To inform yourself of any potential conflicts of interest, ask your financial advisor before you buy how the selling firm and its financial advisors are being compensated and the amount of the compensation that each will receive if you buy the contract. - -------------------------------------------------------------------------------- 76 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS ISSUER We issue the contracts. We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc. We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts and life insurance policies. LEGAL PROCEEDINGS RiverSource Life is involved in the normal course of business in legal and regulatory proceedings, or regulatory requests for information, concerning matters arising in connection with the conduct of our general business activities as well as generally applicable to business practices in the insurance industry. From time to time, we receive requests for information from, or have been subject to examination by, the SEC, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities concerning our business activities and practices. These requests generally include suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements with respect to our annuity and insurance products. We have cooperated with and will continue to cooperate with the applicable regulators regarding their inquiries and examinations. RiverSource Life is involved in other proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material adverse impact on results of operations in any particular reporting period as the proceedings are resolved. ADDITIONAL INFORMATION INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE To the extent and only to the extent that any statement in a document incorporated by reference into this prospectus is modified or superseded by a statement in this prospectus or in a later-filed document, such statement is hereby deemed so modified or superseded and not part of this prospectus. The Annual Report on Form 10-K of RiverSource Life Insurance Company for the year ended Dec. 31, 2009 that we previously filed with the SEC under the Securities Exchange Act of 1934 (1934 Act) is incorporated by reference into this prospectus. To access these documents, see "SEC Filings" under "Investors Relations" on our website at www.ameriprise.com. RiverSource Life will furnish you without charge a copy of any or all of the documents incorporated by reference into this prospectus, including any exhibits to such documents which have been specifically incorporated by reference. We will do so upon receipt of your written or oral request. You can contact RiverSource Life at the telephone number and address listed on the first page of this prospectus. AVAILABLE INFORMATION This prospectus is part of a registration statement we file with the SEC. Additional information on RiverSource Life and on this offering is available in the registration statement and other materials we file. You can obtain copies of these materials at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. This prospectus, other information about the contract and other information incorporated by reference are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). INDEMNIFICATION Insofar as indemnification for liabilities arising under the Securities Act of 1933 (1933 Act) may be permitted to directors and officers or persons controlling RiverSource Life pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the 1933 Act and is therefore unenforceable. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 77 APPENDIX A: THE FUNDS UNLESS THE PN PROGRAM IS IN EFFECT, YOU MAY ALLOCATE PURCHASE PAYMENTS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Global Thematic Growth Portfolio (Class B) (previously AllianceBernstein VPS Global Technology Portfolio (Class B)) - ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Growth and Income Portfolio (Class B) - ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS International Value Portfolio (Class B) - ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Large Cap Growth Portfolio (Class B) - ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Mid Cap Value, secondary objective. Investment Management, Class II Inc. - ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. American Century VP Ultra(R), Investment Management, Class II Inc. - ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Value, Class secondary objective. Investment Management, II Inc. - ---------------------------------------------------------------------------------------- Columbia High Seeks total return, consisting of a high Columbia Management Yield Fund, level of income and capital appreciation. Investment Advisers, Variable Series, LLC, advisor; MacKay Class B Shields LLC, subadviser. - ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management Growth Fund, Investment Advisers, Variable Series, LLC, adviser; Marsico Class A Capital Management, LLC, sub-adviser. - ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Investment International Management Advisers, Opportunities LLC, adviser; Marsico Fund, Variable Capital Management, LLC, Series, Class B sub-adviser. - ---------------------------------------------------------------------------------------- Credit Suisse Seeks total return. Credit Suisse Asset Trust - Commodity Management, LLC Return Strategy Portfolio - ---------------------------------------------------------------------------------------- Dreyfus Variable Seeks capital growth. The Dreyfus Corporation; Investment Fund Newton Capital International Management Limited, sub- Equity Portfolio, adviser Service Shares - ---------------------------------------------------------------------------------------- Eaton Vance VT Seeks high level of current income. Eaton Vance Management Floating-Rate Income Fund - ----------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 78 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- Evergreen VA Seeks capital growth with the potential for Evergreen Investment Fundamental Large current income. Management Company, LLC Cap Fund - Class 2 - ---------------------------------------------------------------------------------------- Evergreen VA Seeks long-term capital growth and Evergreen Investment International secondarily, modest income. Management Company, LLC Equity Fund - Class 2 - ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term capital appreciation. Fidelity Management & Contrafund(R) Normally invests primarily in common Research Company (FMR), Portfolio Service stocks. Invests in securities of companies investment manager; FMR Class 2 whose value it believes is not fully U.K. and FMR Far East, recognized by the public. Invests in either sub-advisers. "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. - ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Mid Cap Portfolio invests primarily in common stocks. FMR U.K., FMR Far East, Service Class 2 Normally invests at least 80% of assets in sub-advisers. securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. Invests in domestic and foreign issuers. The Fund invests in either "growth" or "value" common stocks or both. - ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Overseas invests primarily in common stocks FMR U.K., FMR Far East, Portfolio Service allocating investments across different Fidelity International Class 2 countries and regions. Normally invests at Investment Advisors least 80% of assets in non-U.S. securities. (FIIA) and FIIA U.K., sub-advisers. - ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks high total return. Franklin Templeton Global Real Institutional, LLC Estate Securities Fund - Class 2 - ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks long-term total return. Franklin Advisory Small Cap Value Services, LLC Securities Fund - Class 2 - ---------------------------------------------------------------------------------------- FTVIPT Mutual Seeks capital appreciation, with income as Franklin Mutual Shares Securities a secondary goal. Advisers, LLC Fund - Class 2 - ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital and Goldman Sachs Asset Structured U.S. dividend income. Management, L.P. Equity Fund - Instituti- onal Shares - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks growth of capital. Invesco Advisers, Inc. Capital Appreciation Fund, Series II Shares (previously AIM V.I. Capital Appreciation Fund, Series II Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks long-term growth of capital. Invesco Advisers, Inc. Capital Development Fund, Series II Shares (previously AIM V.I. Capital Development Fund, Series II Shares) - ----------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 79
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks capital growth. Invesco Advisers, Inc. Financial Services Fund, Series II Shares (previously AIM V.I. Financial Services Fund, Series II Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks capital growth. Invesco Advisers, Inc. Global Health Care Fund, Series II Shares (previously AIM V.I. Global Health Care Fund, Series II Shares) - ---------------------------------------------------------------------------------------- Invesco V.I. Seeks long-term growth of capital. Invesco Advisers, Inc. International Growth Fund, Series II Shares (previously AIM V.I. International Growth Fund, Series II Shares) - ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital in a Janus Capital Management Series Janus manner consistent with the preservation of LLC Portfolio: capital. Service Shares - ---------------------------------------------------------------------------------------- Legg Mason Seeks long-term growth of capital. Legg Mason Partners Fund ClearBridge Advisor, LLC, adviser; Variable Small ClearBridge Advisors, Cap Growth LLC, sub-adviser. Portfolio, Class I (previously Legg Mason Partners Variable Small Cap Growth Portfolio, Class I) - ---------------------------------------------------------------------------------------- MFS(R) Investors Seeks capital appreciation. MFS Investment Growth Stock Management(R) Series - Service Class - ---------------------------------------------------------------------------------------- MFS(R) Utilities Seeks total return. MFS Investment Series - Service Management(R) Class - ---------------------------------------------------------------------------------------- Neuberger Berman Seeks long-term growth of capital by Neuberger Berman Advisers investing primarily in common stocks of Management LLC Management Trust foreign companies. International Portfolio (Class S) - ---------------------------------------------------------------------------------------- Neuberger Berman Seeks long-term growth of capital by Neuberger Berman Advisers investing primarily in securities of Management LLC Management Trust companies that meet the Fund's financial Socially criteria and social policy. Responsive Portfolio (Class S) - ---------------------------------------------------------------------------------------- Oppenheimer Seeks long-term capital appreciation. OppenheimerFunds, Inc. Global Securities Fund/VA, Service Shares - ---------------------------------------------------------------------------------------- Oppenheimer Seeks high level of current income OppenheimerFunds, Inc. Global Strategic principally derived from interest on debt Income Fund/VA, securities. Service Shares (previously Oppenheimer Strategic Bond Fund/VA, Service Shares) - ----------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 80 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- Oppenheimer Main Seeks capital appreciation. OppenheimerFunds, Inc. Street Small Cap Fund/VA, Service Shares - ---------------------------------------------------------------------------------------- Oppenheimer Value Seeks long-term growth of capital by OppenheimerFunds, Inc. Fund/VA, Service investing primarily in common stocks with Shares low price-earnings ratios and better than anticipated earnings. Realization of income is a secondary consideration. - ---------------------------------------------------------------------------------------- PIMCO VIT All Seeks maximum real return consistent with Pacific Investment Asset Portfolio, preservation of real capital and prudent Management Company LLC Advisor Share investment management. Class - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with an aggressive level of LLC Portfolios - Agg- risk. This is a "fund of funds" and seeks ressive to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a conservative level of LLC Portfolios - Con- risk. This is a "fund of funds" and seeks servative to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate level of risk. LLC Portfolios - Mod- This is a "fund of funds" and seeks to erate achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate aggressive level LLC Portfolios - - of risk. This is a "fund of funds" and Moderately seeks to achieve its objective by investing Aggressive in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate conservative LLC Portfolios - - level of risk. This is a "fund of funds" Moderately and seeks to achieve its objective by Conservative investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. - ----------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 81
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum total investment return RiverSource Investments, Variable through a combination of capital growth and LLC Portfolio - Bala- current income. nced Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum current income consistent RiverSource Investments, Variable with liquidity and stability of principal. LLC Portfolio - Cash Management Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income while RiverSource Investments, Variable attempting to conserve the value of the LLC Portfolio - Dive- investment for the longest period of time. rsified Bond Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and, as RiverSource Investments, Variable a secondary goal, steady growth of capital. LLC Portfolio - Dive- rsified Equity Income Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks capital appreciation. RiverSource Investments, Variable LLC Portfolio - Dyna- mic Equity Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks high total RiverSource Investments, Variable return through income and growth of LLC Portfolio - Glob- capital. al Bond Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks total RiverSource Investments, Variable return that exceeds the rate of inflation LLC Portfolio - Glob- over the long-term. al Inflation Protected Securities Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high current income, with capital RiverSource Investments, Variable growth as a secondary objective. LLC Portfolio - High Yield Bond Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high total return through current RiverSource Investments, Variable income and capital appreciation. LLC Portfolio - Inco- me Opportunities Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Growth Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Value Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Variable LLC Portfolio - S&P 500 Index Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and RiverSource Investments, Variable safety of principal consistent with LLC Portfolio - Short investment in U.S. government and Duration U.S. government agency securities. Government Fund (Class 3) - ----------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 82 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC Portfolio - Grow- th Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Larg- er-Cap Value Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Kenwood Portfolio - Smal- Capital Management LLC, ler-Cap Value sub-adviser. Fund (Class 3) - ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Portfolio - Emer- Threadneedle ging Markets Fund International Limited, (Class 3) an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. - ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks capital appreciation. RiverSource Investments, Variable LLC, adviser; Portfolio - In- Threadneedle ternational International Limited, Opportunity Fund an indirect wholly-owned (Class 3) subsidiary of Ameriprise Financial, sub-adviser. - ---------------------------------------------------------------------------------------- RVST Variable Seeks long-term capital growth. RiverSource Investments, Portfolio - Davis LLC, adviser; Davis New York Venture Selected Advisers, L.P., Fund (Class 3) subadviser. (previously RVST RiverSource Partners Variable Portfolio - Fund- amental Value Fund) - ---------------------------------------------------------------------------------------- RVST Variable Seeks long-term growth of capital. RiverSource Investments, Portfolio - Gold- LLC, adviser; Systematic man Sachs Mid Cap Financial Management, Value Fund (Class L.P. and WEDGE Capital 3) (previously Management L.L.P., sub- RVST RiverSource advisers. Partners Variable Portfolio - Sele- ct Value Fund) - ---------------------------------------------------------------------------------------- RVST Variable Seeks long-term capital appreciation. RiverSource Investments, Portfolio - Part- LLC, adviser; Barrow, ners Small Cap Hanley, Mewhinney & Value Fund (Class Strauss, Inc., Denver 3) (previously Investment Advisors LLC, RVST RiverSource Donald Smith & Co., Partners Variable Inc., River Road Asset Portfolio - Small Management, LLC and Cap Value Fund) Turner Investment Partners, Inc., subadvisers. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Aggr- consistent with an aggressive level of LLC essive Portfolio risk. This is a "fund of funds" and seeks (Class 2) to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a small amount in underlying funds that invest in fixed income securities. - ----------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 83
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Aggr- consistent with an aggressive level of LLC essive Portfolio risk. This is a "fund of funds" and seeks (Class 4) to achieve its objective by investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a small amount in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Cons- consistent with a conservative level of LLC ervative risk. This is a "fund of funds" and seeks Portfolio (Class to achieve its objective by investing in a 2) combination of underlying funds. The fund invests primarily in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Cons- consistent with a conservative level of LLC ervative risk. This is a "fund of funds" and seeks Portfolio (Class to achieve its objective by investing in a 4) combination of underlying funds. The fund invests primarily in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Mode- consistent with a moderate level of risk. LLC rate Portfolio This is a "fund of funds" and seeks to (Class 2) achieve its objective by investing in a combination of underlying funds. The fund invests primarily in a balance of underlying funds that invest in fixed income securities and underlying funds that invest in equity securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Mode- consistent with a moderate level of risk. LLC rate Portfolio This is a "fund of funds" and seeks to (Class 4) achieve its objective by investing in a combination of underlying funds. The fund invests primarily in a balance of underlying funds that invest in fixed income securities and underlying funds that invest in equity securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Mode- consistent with a moderately aggressive LLC rately Aggressive level of risk. This is a "fund of funds" Portfolio (Class and seeks to achieve its objective by 2) investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a moderate amount in underlying funds that invest in fixed income securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Mode- consistent with a moderately aggressive LLC rately Aggressive level of risk. This is a "fund of funds" Portfolio (Class and seeks to achieve its objective by 4) investing in a combination of underlying funds. The fund invests primarily in underlying funds that invest in equity securities and also invests a moderate amount in underlying funds that invest in fixed income securities. - ----------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 84 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
- ---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Mode- consistent with a moderately conservative LLC rately level of risk. This is a "fund of funds" Conservative and seeks to achieve its objective by Portfolio (Class investing in a combination of underlying 2) funds. The fund invests primarily in underlying funds that invest in fixed income securities and also invests a moderate amount in underlying funds that invest in equity securities. - ---------------------------------------------------------------------------------------- RVST Variable Seeks high level of total return that is RiverSource Investments, Portfolio - Mode- consistent with a moderately conservative LLC rately level of risk. This is a "fund of funds" Conservative and seeks to achieve its objective by Portfolio (Class investing in a combination of underlying 4) funds. The fund invests primarily in underlying funds that invest in fixed income securities and also invests a moderate amount in underlying funds that invest in equity securities. - ---------------------------------------------------------------------------------------- Van Kampen Life Seeks capital growth and income through Van Kampen Asset Investment Trust investments in equity securities, including Management Comstock common stocks, preferred stocks and Portfolio, Class securities convertible into common and II Shares preferred stocks. - ---------------------------------------------------------------------------------------- Van Kampen's UIF Seeks current income and capital Morgan Stanley Global Real appreciation. Investment Management Estate Portfolio, Inc., doing business as Class II Shares Van Kampen, adviser; Morgan Stanley Investment Management Limited and Morgan Stanley Investment Management Company, sub- advisers. - ---------------------------------------------------------------------------------------- Van Kampen's UIF Seeks long-term capital growth. Morgan Stanley Mid Cap Growth Investment Management Portfolio, Class Inc., doing business as II Shares Van Kampen. - ---------------------------------------------------------------------------------------- Wanger Seeks long-term growth of capital. Columbia Wanger Asset International Management, L.P. - ---------------------------------------------------------------------------------------- Wanger USA Seeks long-term capital appreciation. Columbia Wanger Asset Management, L.P. - ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Opportunity Fund adviser; Wells Capital Management Incorporated, sub-adviser. - ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Small Cap Growth adviser; Wells Capital Fund Management Incorporated, sub-adviser. - ----------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 85 APPENDIX B: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA) AS THE EXAMPLES BELOW DEMONSTRATE, THE APPLICATION OF AN MVA MAY RESULT IN EITHER A GAIN OR A LOSS OF PRINCIPAL. WE REFER TO ALL OF THE TRANSACTIONS DESCRIBED BELOW AS "EARLY SURRENDERS." THE EXAMPLES MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. GENERAL EXAMPLES ASSUMPTIONS: - - You purchase a contract and allocate part of your purchase payment to the ten- year GPA; and - - we guarantee an interest rate of 3.0% annually for your ten-year Guarantee Period; and - - after three years, you decide to make a surrender from your GPA. In other words, there are seven years left in your guarantee period. Remember that the MVA depends partly on the interest rate of a new GPA for the same number of years as the Guarantee Period remaining on your GPA. In this case, that is seven years. EXAMPLE 1: Remember that your GPA is earning 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 3.5%. We add 0.10% to the 3.5% rate to get 3.6%. Your GPA's 3.0% rate is less than the 3.6% rate so the MVA will be negative. EXAMPLE 2: Remember again that your GPA is earning 3.0%, and assume that new GPAs that we offer with a seven-year Guarantee Period are earning 2.5%. We add 0.10% to the 2.5% rate to get 2.6%. In this example, since your GPA's 3.0% rate is greater than the 2.6% rate, the MVA will be positive. To determine that adjustment precisely, you will have to use the formula described below. SAMPLE MVA CALCULATIONS The precise MVA formula we apply is as follows: 1 + I EARLY WITHDRAWAL AMOUNT X [( --------------- ) (N/12) - 1] = MVA 1 + J + .001
Where i = rate earned in the GPA from which amounts are being transferred or surrendered. j = current rate for a new Guaranteed Period equal to the remaining term in the current Guarantee Period (rounded up to the next year). n = number of months remaining in the current Guarantee Period (rounded up to the next month). EXAMPLES -- MVA Using assumptions similar to those we used in the examples above: - - You purchase a contract and allocate part of your purchase payment to the ten- year GPA; and - - we guarantee an interest rate of 3.0% annually for your ten-year Guarantee Period; and - - after three years, you decide to make a $1,000 surrender from your GPA. In other words, there are seven years left in your guarantee period. EXAMPLE 1: You request an early surrender of $1,000 from your ten-year GPA earning a guaranteed interest rate of 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 3.5%. Using the formula above, we determine the MVA as follows: 1.030 $1,000 X [( --------------- ) (84/12) - 1] = -$39.84 1 + .035 + .001
In this example, the MVA is a negative $39.84. - -------------------------------------------------------------------------------- 86 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS EXAMPLE 2: You request an early surrender of $1,000 from your ten-year GPA earning a guaranteed interest rate of 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 2.5%. Using the formula above, we determine the MVA as follows: 1.030 $1,000 X [( --------------- ) (84/12) - 1] = $27.61 1 + .025 + .001
In this example, the MVA is a positive $27.61. We do not apply MVAs to the amounts we deduct for surrender charges, so we would deduct the surrender charge from your early surrender after we applied the MVA. Also note that when you request an early surrender, we surrender an amount from your GPA that will give you the net amount you requested after we apply the MVA and any applicable surrender charge, unless you request otherwise. The current interest rate we offer on the GPA will change periodically at our discretion. It is the rate we are then paying on purchase payments, renewals and transfers paid under this class of contracts for Guarantee Period durations equaling the remaining Guarantee Period of the GPA to which the formula is being applied. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 87 APPENDIX C: EXAMPLE -- SURRENDER CHARGES THE PURPOSE OF THIS APPENDIX IS TO ILLUSTRATE THE VARIOUS SURRENDER CHARGE CALCULATIONS. THE EXAMPLES MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. FULL SURRENDER CHARGE CALCULATION -- TEN-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a full surrender on a RAVA 4 Advantage contract with a ten-year surrender charge schedule with the following history: - - we receive a single $100,000 purchase payment; and - - you surrender the contract for its total value during the fourth contract year. The surrender charge percentage is 7.0%; and - - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: - --------------------------------------------------------------------------------
CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of full $120,000.00 $ 80,000.00 surrender: Contract Value on prior 115,000.00 85,000.00 anniversary: STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 10% of the prior anniversary's 20,000.00 0.00 contract value: 11,500.00 8,500.00 ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free (PPF): 0.00 8,500.00 STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] WD = 120,000.00 80,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of the surrender PR = 100% 100% = the premium ratio STEP 4. We calculate Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 100% 100% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 100,000.00 91,500.00
- -------------------------------------------------------------------------------- 88 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
CONTRACT CONTRACT WITH GAIN WITH LOSS STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 100,000.00 91,500.00 Surrender Charge Percentage: 7% 7% Surrender Charge: 7,000.00 6,405.00 STEP 6. We calculate the Net Surrender 120,000.00 80,000.00 Value: Contract Value Surrendered: Contract Charge (assessed upon (7,000.00) (6,405.00) full surrender): (30.00) (30.00) Net Full Surrender Proceeds: 112,970.00 73,565.00
PARTIAL SURRENDER CHARGE CALCULATION -- TEN-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a partial surrender on a RAVA 4 Advantage contract with a ten-year surrender charge schedule with the following history: - - we receive a single $100,000 purchase payment; and - - you request a gross partial surrender of $50,000 during the fourth contract year. The surrender charge percentage is 7.0%; and - - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: - --------------------------------------------------------------------------------
CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of $120,000.00 $ 80,000.00 partial surrender: Contract Value on prior 115,000.00 85,000.00 anniversary: STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's 11,500.00 8,500.00 contract value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free (PPF): 0.00 8,500.00 STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] /[CV - TFA] WD = 50,000.00 50,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of surrender PR = 30% 58% = the premium ratio
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 89
CONTRACT CONTRACT WITH GAIN WITH LOSS STEP 4. We calculate the Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 30% 58% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 30,000.00 53,108.39 = chargeable purchase payments being surrendered STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 30,000.00 53,108.39 Surrender Charge Percentage: 7% 7% Surrender Charge: 2,100 3,718 STEP 6. We calculate the Net Surrender Value: Contract Value Surrendered: 50,000.00 50,000.00 Surrender Charge: (2,100.00) (3,717.59) Net Partial Surrender 47,900.00 46,282.41 Proceeds:
FULL SURRENDER CHARGE CALCULATION -- THREE-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a full surrender on a RAVA 4 Select contract with a three-year surrender charge schedule with the following history: - - we receive a single $100,000 purchase payment; and - - you surrender the contract for its total value during the second contract year. The surrender charge percentage is 7.0%; and - - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: - --------------------------------------------------------------------------------
CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of full $120,000.00 $ 80,000.00 surrender: Contract Value on prior 115,000.00 85,000.00 anniversary: STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the Contract: 20,000.00 0.00 10% of the prior anniversary's contract value: 11,500.00 8,500.00 ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA and Amount Free that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free (PPF): 0.00 8,500.00
- -------------------------------------------------------------------------------- 90 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
CONTRACT CONTRACT WITH GAIN WITH LOSS STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] /[CV - TFA] WD = 120,000.00 80,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of the surrender PR = 100% 100% STEP 4. We calculate Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 100% 100% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 100,000.00 91,500.00 STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 100,000.00 91,500.00 Surrender Charge Percentage: 7% 7% Surrender Charge: 7,000.00 6,405.00 STEP 6. We calculate the Net Surrender 120,000.00 80,000.00 Value: Contract Value Surrendered: (7,000.00) (6,405.00) Contract Charge (assessed upon full surrender): (30.00) (30.00) Net Full Surrender Proceeds: 112,970.00 73,565.00
PARTIAL SURRENDER CHARGE CALCULATION -- THREE-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a partial surrender on a RAVA 4 Select contract with a three-year surrender charge schedule with the following history: - - we receive a single $100,000 purchase payment; and - - you request a gross partial surrender of $50,000 during the second contract year. The surrender charge percentage is 7.0%; and - - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: - --------------------------------------------------------------------------------
CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of $120,000.00 $ 80,000.00 partial surrender: Contract Value on prior 115,000.00 85,000.00 anniversary: STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's contract value: 11,500.00 8,500.00 ----------- ----------- Total Free Amount: 20,000.00 8,500.00
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 91
CONTRACT CONTRACT WITH GAIN WITH LOSS STEP 2. We determine the Amount Free that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free (PPF): 0.00 8,500.00 STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] /[CV - TFA] WD = 50,000.00 50,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of surrender PR = 30% 58% = the premium ratio STEP 4. We calculate the Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 30% 58% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 30,000.00 53,108.39 = chargeable purchase payments being surrendered STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 30,000.00 53,108.39 Surrender Charge Percentage: 7% 7% Surrender Charge: 2,100 3,718 STEP 6. We calculate the Net Surrender Value: Contract Value Surrendered: 50,000.00 50,000.00 Surrender Charge: (2,100.00) (3,717.59) Net Partial Surrender 47,900.00 46,282.41 Proceeds:
- -------------------------------------------------------------------------------- 92 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS APPENDIX D: EXAMPLE -- OPTIONAL DEATH BENEFITS THE PURPOSE OF THIS APPENDIX IS TO ILLUSTRATE THE OPERATION OF VARIOUS OPTIONAL DEATH BENEFIT RIDERS. IN ORDER TO DEMONSTRATE THESE CONTRACT RIDERS, AN EXAMPLE MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. THE EXAMPLES OF THE OPTIONAL DEATH BENEFITS IN APPENDIX INCLUDE PARTIAL SURRENDERS TO ILLUSTRATE THE EFFECT OF PARTIAL SURRENDERS ON THE PARTICULAR BENEFIT. THESE EXAMPLES ARE INTENDED TO SHOW HOW THE OPTIONAL DEATH BENEFITS OPERATE, AND DO NOT TAKE INTO ACCOUNT WHETHER A PARTICULAR OPTIONAL DEATH BENEFIT IS PART OF A QUALIFIED ANNUITY. QUALIFIED ANNUITIES ARE SUBJECT TO RMDS AT CERTAIN AGES (SEE "TAXES -- QUALIFIED ANNUITIES -- REQUIRED MINIMUM DISTRIBUTIONS") WHICH MAY REQUIRE YOU TO TAKE PARTIAL SURRENDERS FROM THE CONTRACT. IF YOU ARE CONSIDERING THE ADDITION OF CERTAIN DEATH BENEFITS TO A QUALIFIED ANNUITY, YOU SHOULD CONSULT YOUR TAX ADVISOR PRIOR TO MAKING A PURCHASE FOR AN EXPLANATION OF THE POTENTIAL TAX IMPLICATION TO YOU. EXAMPLE -- ROPP DEATH BENEFIT - - You purchase the contract (with the ROPP rider) with a payment of $20,000. - - The contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: The total purchase payments minus adjustments for partial surrenders: Total purchase payments minus adjusted partial surrenders, calculated as: $20,000 $1,500 x $20,000 ------------------- = 1,667 $18,000 ------- a death benefit of: $18,333 -------
EXAMPLE -- MAV DEATH BENEFIT - - You purchase the contract (with the MAV rider) with a payment of $20,000. - - On the first contract anniversary the contract value grows to $24,000. - - During the second contract year the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 x $24,000 ---------------- = 1,636 $22,000 ------- for a death benefit of: $22,364 -------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 93 EXAMPLE -- 5-YEAR MAV DEATH BENEFIT - - You purchase the contract (with the 5-Year MAV rider) with a payment of $20,000. - - On the fifth contract anniversary the contract value grows to $30,000. - - During the sixth contract year the contract value falls to $25,000, at which point you take a $1,500 partial surrender, leaving a contract value of $23,500. WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: THE MAXIMUM 5-YEAR ANNIVERSARY VALUE IMMEDIATELY PRECEDING THE DATE OF DEATH PLUS ANY PAYMENTS MADE SINCE THAT ANNIVERSARY MINUS ADJUSTED PARTIAL SURRENDERS: Greatest of your 5-year contract anniversary contract values: $30,000 plus purchase payments made since that anniversary: +0 adjusted partial surrenders, calculated as: $1,500 x $30,000 ---------------- = 1,800 $25,000 ------- for a death benefit of: $28,200 -------
EXAMPLE -- EEB DEATH BENEFIT - - You purchase the contract with a payment of $100,000 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEB. - - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so the EEB does not provide any additional benefit at this time. - - On the first contract anniversary the contract value grows to $110,000. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): +4,000 -------- 0.40 x ($110,000 - $100,000) = Total death benefit of: $114,000 --------
- - On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): +4,000 -------- 0.40 x ($110,000 - $100,000) = Total death benefit of: $114,000 --------
- - During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $48,025. We calculate purchase payments not previously surrendered as $100,000 -- $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): $110,000 - ($50,000 x $110,000) = ----------------------------- $57,619 $105,000 plus the EEB (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 ------- Total death benefit of: $58,667 -------
- - On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58,667. The reduction in contract value has no effect. - -------------------------------------------------------------------------------- 94 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $255,000 --------
- - During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit equals: MAV death benefit amount (contract value less purchase payment credits reversed): $250,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $305,000 --------
- - During the eleventh contract year the contract value remains $250,500 and the "new" purchase payment is now one year old. The value of the EEB changes. The death benefit equals: MAV death benefit amount (contract value): $250,500 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 x ($250,500 - $105,000) = +58,200 -------- Total death benefit of: $308,700 --------
EXAMPLE -- EEP DEATH BENEFIT - - You purchase the contract with an exchange purchase payment of $100,000 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEP. - - During the first contract year the contract value grows to $105,000. The death benefit on equals the standard death benefit amount, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so neither the EEP Part I nor Part II provides any additional benefit at this time. - - On the first contract anniversary the contract value grows to $110,000. You have not reached the second contract anniversary so the EEP Part II does not provide any additional benefit at this time. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit amount minus purchase payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000 --------
- - On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $100,000 = +10,000 -------- Total death benefit of: $124,000 --------
- - During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 95 Altogether, we will surrender $50,000 and pay you $47,235. We calculate purchase payments not previously surrendered as $100,000 -- $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): $110,000 -- ($50,000 x $110,000) -------------------- = $57,619 $105,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered +5,500 ------- 0.10 x $55,000 = Total death benefit of: $64,167 -------
- - On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $64,167. The reduction in contract value has no effect. - - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. Because we are beyond the fourth contract anniversary the EEP also reaches its maximum of 20%. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEP Part I (40% of earnings at death) ..40 x (2.50 x $55,000) = +55,000 plus the EEP Part II which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $266,000 --------
- - During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on either the EEP Part I or EEP Part II. The death benefit equals: MAV death benefit amount (contract value less purchase payment credits reversed): $250,000 plus the EEP Part I (40% of earnings at death) ..40 x (2.50 x $55,000) = +55,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $316,000 --------
- - During the eleventh contract year the contract value remains $250,500 and the "new" purchase payment is now one year old. The value of the EEP Part I changes but the value of the EEP Part II remains constant. The death benefit equals: MAV death benefit amount (contract value): $250,500 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit minus payments not previously surrendered): 0.40 x ($250,500 - $105,000) = +58,200 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x +11,000 $55,000 = -------- Total death benefit of: $319,700 --------
- -------------------------------------------------------------------------------- 96 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS APPENDIX E: EXAMPLE -- OPTIONAL LIVING BENEFITS THE PURPOSE OF THIS APPENDIX IS TO ILLUSTRATE THE OPERATION OF VARIOUS OPTIONAL LIVING BENEFIT RIDERS. IN ORDER TO DEMONSTRATE THESE CONTRACT RIDERS, AN EXAMPLE MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. THESE EXAMPLES ARE INTENDED TO SHOW HOW THE OPTIONAL RIDERS OPERATE, AND DO NOT TAKE INTO ACCOUNT WHETHER A PARTICULAR OPTIONAL RIDER IS PART OF A QUALIFIED ANNUITY. QUALIFIED ANNUITIES ARE SUBJECT TO RMDS AT CERTAIN AGES (SEE "TAXES -- QUALIFIED ANNUITIES -- REQUIRED MINIMUM DISTRIBUTIONS") WHICH MAY REQUIRE YOU TO TAKE PARTIAL SURRENDERS FROM THE CONTRACT. IF YOU ARE CONSIDERING THE ADDITION OF CERTAIN OPTIONAL RIDERS TO A QUALIFIED ANNUITY, YOU SHOULD CONSULT YOUR TAX ADVISOR PRIOR TO MAKING A PURCHASE FOR AN EXPLANATION OF THE POTENTIAL TAX IMPLICATION TO YOU. EXAMPLE -- ACCUMULATION BENEFIT The following example shows how the Accumulation Benefit rider works based on hypothetical values. It is not intended to depict investment performance of the contract. THE EXAMPLE ASSUMES: - - You purchase the contract (with the Accumulation Benefit rider) with a payment of $100,000. No purchase payment credit applies. - - You make no additional purchase payments. - - You do not exercise the elective step-up option
HYPOTHETICAL PARTIAL SURRENDER MCAV ADJUSTMENT ACCUMULATION ASSUMED END OF (BEGINNING OF FOR PARTIAL BENEFIT CONTRACT CONTRACT YEAR YEAR) SURRENDER MCAV AMOUNT VALUE 1 0 0 100,000 0 112,000 2 0 0 102,400 0 128,000 3 0 0 108,000 0 135,000 4 0 0 108,000 0 125,000 5 0 0 108,000 0 110,000 6 2,000 1,964 106,036 0 122,000 7 0 0 112,000 0 140,000 8 0 0 112,000 0 121,000 9 5,000 4,628 107,372 0 98,000 10 0 0 107,372 22,372 85,000
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 97 EXAMPLE -- SECURESOURCE FLEX RIDERS EXAMPLE #1: LIFETIME BENEFIT NOT ESTABLISHED AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - - You purchase the contract with a payment of $100,000 and make no additional payments to the contract. - - You are the sole owner. You are age 61. For the joint benefit, you and your spouse are age 63. - - Annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or the contract value times the ALP percentage is greater than the ALP. Applied annual step-ups are indicated in BOLD. - - You elect the Moderate PN program model portfolio or investment option at issue.
HYPOTHETICAL CONTRACT ASSUMED BASIC BENEFIT LIFETIME BENEFIT DURATION PURCHASE PARTIAL CONTRACT ------------------------------------- ----------------- IN YEARS PAYMENTS WITHDRAWALS VALUE WAB BDP GBA RBA GBP RBP ALP RALP At Issue $100,000 NA $100,000 $100,000 0.0% $100,000 $100,000 $6,000 $ 0 NA NA 1 0 0 98,000 100,000 2.0% 100,000 100,000 6,000 0 NA NA 2 0 0 105,000 105,000 0.0% 105,000 105,000 6,300 0 NA NA 3 0 0 125,000 125,000 0.0% 125,000 125,000 7,500 7,500 NA NA 3.5 0 6,000 111,000 118,590 6.4% 125,000 119,000 7,500 1,500 NA NA 4 0 0 104,000 118,590 12.3% 125,000 119,000 7,500 7,500 7,140(1) 7,140(1) 5 0 0 90,000 118,590 24.1% 125,000 119,000 6,250(2) 6,250(2) 5,950(2) 5,950(2) 6 0 0 95,000 118,590 19.9% 125,000 119,000 7,500 7,500 7,140 7,140 6.5 0 7,500 87,500 87,500(3) 0.0% 125,000 111,500 7,500 0 5,250(3) 0 7 0 0 90,000 90,000 0.0% 125,000 111,500 7,500 7,500 5,400 5,400 7.5 0 10,000 70,000 70,000(4) 0.0% 70,000(4) 70,000(4) 4,200(4) 0 4,200(4) 0 8 0 0 75,000 75,000 0.0% 75,000 75,000 4,500 4,500 4,500 4,500
(1) The ALP and RALP are established on the contract anniversary following the date the covered person reaches age 65 (Joint benefit: younger covered spouse reaches age 67) as the RBA times the ALP percentage. (2) The ALP percentage and GBP percentage are 6% when the BDP is less than 20% and 5% when the BDP is greater than or equal to 20%. (3) The $7,500 withdrawal is greater than the $7,140 RALP allowed under the lifetime benefit and therefore excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or the ALP Percentage times the contract value following the withdrawal. The WAB is reset to the ALP after the reset divided by the current ALP Percentage. The BDP at the time of withdrawal is less than 20%, so the ALP percentage and GBP percentage are set at 6% for the remainder of the contract year. (4) The $10,000 withdrawal is greater than both the $7,500 RBP allowed under the basic benefit and the $5,400 RALP allowed under the lifetime benefit and therefore excess withdrawal processing is applied to both benefits. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or the ALP percentage times the contract value following the withdrawal. The WAB is reset to the ALP after the reset divided by the current ALP percentage. The BDP at the time of withdrawal is less than 20%, so the ALP percentage and GBP percentage are set at 6% for the remainder of the contract year. - -------------------------------------------------------------------------------- 98 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS EXAMPLE #2: LIFETIME BENEFIT ESTABLISHED AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - - You purchase the contract with a payment of $100,000 and make no additional payments to the contract. - - You are the sole owner. You (and your spouse for the joint benefit) are age 67. - - Annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or the contract value times the ALP percentage is greater than the ALP. Applied annual step-ups are indicated in BOLD. - - You elect the Moderate PN program model portfolio or investment option at issue. On the 7th contract anniversary, you elect to change to the Moderately Aggressive PN program model portfolio or investment option. The target PN program model portfolio or investment option under the contract is the Moderate PN program model portfolio or investment option.
HYPOTHETICAL CONTRACT ASSUMED BASIC BENEFIT LIFETIME BENEFIT DURATION PURCHASE PARTIAL CONTRACT ------------------------------------- ----------------- IN YEARS PAYMENTS WITHDRAWALS VALUE WAB BDP GBA RBA GBP RBP ALP RALP At Issue $100,000 NA $100,000 $100,000 0.0% $100,000 $100,000 $6,000 $ 0 $6,000 $ 0 1 0 0 105,000 105,000 0.0% 105,000 105,000 6,300 0 6,300 0 2 0 0 110,000 110,000 0.0% 110,000 110,000 6,600 0 6,600 0 3 0 0 105,000 110,000 4.5% 110,000 110,000 6,600 6,600(1) 6,600 6,600(1) 3.5 0 6,000 99,000 103,714 4.5% 110,000 104,000 6,600 600 6.600 600 4 0 0 95,000 103,714 8.4% 110,000 104,000 6,600 6,600 6,600 6,600 5 0 0 75,000 103,714 27.7% 90,000 104,000 5,500(2) 5,500(2) 5,500(2) 5,500(2) 5.5 0 10,000 70,000 70,000(3) 0.0% 70,000 70,000 3,500(3) 3,500(3) 3,500(3) 3,500(3) 6 0 0 75,000 75,000 0.0% 75,000 75,000 4,500 4,500 4,500 4,500 7 0 0 70,000 70,000(4) 0.0% 70,000(4) 70,000(4) 4,200(4) 4,200(4) 4,200(4) 4,200(4)
(1) At the end of the 3-Year waiting period, the RBP and RALP are set equal to the GBP and ALP, respectively. (2) The ALP percentage and GBP percentage are 6% when the BDP is less than 20% and 5% when the BDP is greater than or equal to 20%. (3) The $10,000 withdrawal is greater than both the $5,500 RBP and RALP allowed under the basic benefit and lifetime benefit, therefore excess withdrawal processing is applied to both benefits. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or the ALP percentage times the contract value following the withdrawal. The WAB is reset to the ALP after the reset divided by the current ALP percentage. The BDP at the time of withdrawal is greater than or equal to 20%, so the ALP percentage and GBP percentage are set at 5% for the remainder of the contract year. (4) Allocation to the Moderately Aggressive PN program model portfolio or investment option during a withdrawal phase will reset the benefit. The GBA is reset to the lesser of the prior GBA or the contract value. The RBA is reset to the lesser of the prior RBA or the contract value. The ALP is reset to the lesser of the prior ALP or the ALP percentage times the contract value. Any future withdrawals will reallocate your contract value to the Moderate PN program model portfolio or investment option if you are invested more aggressively than the Moderate PN program model portfolio or investment option. The WAB is reset to the ALP after the reset divided by the current ALP percentage. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 99 EXAMPLE -- SECURESOURCE RIDERS EXAMPLE #1: SINGLE LIFE BENEFIT: COVERED PERSON HAS NOT REACHED AGE 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - - You purchase the contract with a payment of $100,000 and make no additional payments to the contract. - - You are the sole owner and also the annuitant. You are age 60. - - Automatic annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied annual step-ups are indicated in BOLD. - - You elect the Moderate PN program model portfolio at issue. On the 1st contract anniversary, you elect to change to the Moderately Aggressive model portfolio or investment option. The target model portfolio under the contract is the Moderate model portfolio or investment option.
HYPOTHETICAL LIFETIME WITHDRAWAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT BENEFIT DURATION PURCHASE PARTIAL CONTRACT ------------------------------------------- ------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $ N/A $ N/A 0.5 0 5,000 92,000 100,000 95,000 7,000 2,000 N/A N/A 1 0 0 90,000 90,000(1) 90,000(1) 6,300 6,300 N/A N/A 2 0 0 81,000 90,000 90,000 6,300 6,300 N/A N/A 5 0 0 75,000 90,000 90,000 6,300 6,300 5,400(2) 5,400(2) 5.5 0 5,400 70,000 90,000 84,600 6,300 900 5,400 0 6 0 0 69,000 90,000 84,600 6,300 6,300 5,400 5,400 6.5 0 6,300 62,000 90,000 78,300 6,300 0 3,720(3) 0 7 0 0 64,000 90,000 78,300 6,300 6,300 3,840 3,840 7.5 0 10,000 51,000 51,000(4) 51,000(4) 3,570 0 3,060(4) 0 8 0 0 55,000 55,000 55,000 3,850 3,850 3,300 3,300
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, spousal continuation, contract ownership change, or PN program model portfolio or investment option changes), you can continue to withdraw up to either the GBP of $3,850 each year until the RBA is reduced to zero, or the ALP of $3,300 each year until the later of your death or the RBA is reduced to zero. (1) Allocation to the Moderately Aggressive model portfolio or investment option during a withdrawal phase will reset the benefit. The GBA is reset to the lesser of the prior GBA or the contract value. The RBA is reset to the lesser of the prior RBA or the contract value. The ALP (if established) is reset to the lesser of the prior ALP or 6% of the contract value. Any future withdrawals will reallocate your contract value to the Moderate model portfolio if you are invested more aggressively than the Moderate model portfolio or investment option. (2) The ALP and RALP are established on the contract anniversary date following the date the covered person reaches age 65 as 6% of the RBA. (3) The $6,300 withdrawal is greater than the $5,400 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $6,300 RBP allowed under the basic withdrawal benefit and the $3,840 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. - -------------------------------------------------------------------------------- 100 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS EXAMPLE #2: SINGLE LIFE BENEFIT: COVERED PERSON HAS REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - - You purchase the contract with a payment of $100,000 and make no additional payments to the contract. - - You are the sole owner and also the annuitant. You are age 65. - - Automatic annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied annual step-ups are indicated in BOLD. - - Your death occurs after 6 1/2 contract years and your spouse continues the contract and rider. Your spouse is over age 65 and is the new covered person.
HYPOTHETICAL LIFETIME WITHDRAWAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT BENEFIT DURATION PURCHASE PARTIAL CONTRACT ------------------------------------------- ------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $6,000 $6,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 6,300 6,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 6,600 6,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 6,600 6,600(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 6,600 0 4 0 0 115,000 115,000 115,000 8,050 8,050 6,900 6,900 4.5 0 8,050 116,000 115,000 106,950 8,050 0 6,900(3) 0 5 0 0 120,000 120,000 120,000 8,400 8,400 7,200 7,200 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 7,200(4) 0 6 0 0 125,000 125,000 125,000 8,750 8,750 7,500 7,500 6.5 0 0 110,000 125,000 125,000 8,750 8,750 6,600(5) 6,600(5) 7 0 0 105,000 125,000 125,000 8,750 8,750 6,600 6,600
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, contract ownership change, or PN program model portfolio or investment option changes), your spouse can continue to withdraw up to either the GBP of $8,750 each year until the RBA is reduced to zero, or the ALP of $6,600 each year until the later of your spouse's death or the RBA is reduced to zero. (1) The annual step-up has not been applied to the RBP or RALP because any withdrawal after step up during the waiting period would reverse any prior step ups prior to determining if the withdrawal is excess. Therefore, during the waiting period, the RBP is the amount you can withdraw without incurring the GBA and RBA excess withdrawal processing, and the RALP is the amount you can withdraw without incurring the ALP excess withdrawal processing. (2) On the third anniversary (after the end of the waiting period), the RBP and RALP are set equal to the GBP and ALP, respectively. (3) The $8,050 withdrawal is greater than the $6,900 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $8,400 RBP allowed under the basic withdrawal benefit and the $7,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (5) At spousal continuation, the ALP is reset to the lesser of the prior ALP or 6% of the contract value and the RALP is reset to the ALP. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 101 EXAMPLE #3: JOINT LIFE BENEFIT: YOUNGER COVERED SPOUSE HAS NOT REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - - You purchase the contract with a payment of $100,000 and make no additional payments to the contract. - - You are age 59 and your spouse is age 60. - - Automatic annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied annual step-ups are indicated in BOLD. - - You elect the Moderate PN program model portfolio at issue. On the 1st contract anniversary, you elect to change to the Moderately Aggressive model portfolio or investment option . The target model portfolio under the contract is the Moderate model portfolio. - - Your death occurs after 9 1/2 contract years and your spouse continues the contract and rider; the lifetime benefit is not reset.
HYPOTHETICAL LIFETIME WITHDRAWAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT BENEFIT DURATION PURCHASE PARTIAL CONTRACT ------------------------------------------- ------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $ N/A $ N/A 0.5 0 5,000 92,000 100,000 95,000 7,000 2,000 N/A N/A 1 0 0 90,000 90,000(1) 90,000(1) 6,300 6,300 N/A N/A 2 0 0 81,000 90,000 90,000 6,300 6,300 N/A N/A 6 0 0 75,000 90,000 90,000 6,300 6,300 5,400(2) 5,400(2) 6.5 0 5,400 70,000 90,000 84,600 6,300 900 5,400 0 7 0 0 69,000 90,000 84,600 6,300 6,300 5,400 5,400 7.5 0 6,300 62,000 90,000 78,300 6,300 0 3,720(3) 0 8 0 0 64,000 90,000 78,300 6,300 6,300 3,840 3,840 8.5 0 10,000 51,000 51,000(4) 51,000(4) 3,570 0 3,060(4) 0 9 0 0 55,000 55,000 55,000 3,850 3,850 3,300 3,300 9.5 0 0 54,000 55,000 55,000 3,850 3,850 3,300 3,300 10 0 0 52,000 55,000 55,000 3,850 3,850 3,300 3,300
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, or PN program model portfolio or investment option changes), your spouse can continue to withdraw up to either the GBP of $3,850 each year until the RBA is reduced to zero, or the ALP of $3,300 each year until the later of your spouse's death or the RBA is reduced to zero. (1) The ALP and RALP are established on the contract anniversary date following the date the younger covered spouse reaches age 65 as 6% of the RBA. (2) Allocation to the Moderately Aggressive model portfolio or investment option during a withdrawal phase will reset the benefit. The GBA is reset to the lesser of the prior GBA or the contract value. The RBA is reset to the lesser of the prior RBA or the contract value. The ALP is reset to the lesser of the prior ALP or 6% of the contract value. Any future withdrawals will reallocate your contract value to the Moderate model portfolio or investment option if you are invested more aggressively than the Moderate model portfolio or investment option. (3) The $6,300 withdrawal is greater than the $5,400 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $6,300 RBP allowed under the basic withdrawal benefit and the $3,840 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. - -------------------------------------------------------------------------------- 102 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS EXAMPLE #4: JOINT LIFE BENEFIT: YOUNGER COVERED SPOUSE HAS REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - - You purchase the contract with a payment of $100,000 and make no additional payments to the contract - - You are age 71 and your spouse is age 70. - - Automatic annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied annual step-ups are indicated in BOLD. - - Your death occurs after 6 1/2 contract years and your spouse continues the contract and rider; the lifetime benefit is not reset.
HYPOTHETICAL LIFETIME WITHDRAWAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT BENEFIT DURATION PURCHASE PARTIAL CONTRACT ------------------------------------------- ------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $6,000 $6,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 6,300 6,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 6,600 6,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 6,600 6,600(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 6,600 0 4 0 0 115,000 115,000 115,000 8,050 8,050 6,900 6,900 4.5 0 8,050 116,000 115,000 106,950 8,050 0 6,900(3) 0 5 0 0 120,000 120,000 120,000 8,400 8,400 7,200 7,200 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 7,200(4) 0 6 0 0 125,000 125,000 125,000 8,750 8,750 7,500 7,500 6.5 0 0 110,000 125,000 125,000 8,750 8,750 7,500 7,500 7 0 0 105,000 125,000 125,000 8,750 8,750 7,500 7,500
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, or PN program model portfolio or investment option changes), your spouse can continue to withdraw up to either the GBP of $8,750 each year until the RBA is reduced to zero, or the ALP of $7,500 each year until the later of your spouse's death or the RBA is reduced to zero (1) The annual step-up has not been applied to the RBP or RALP because any withdrawal after step up during the waiting period would reverse any prior step ups prior to determining if the withdrawal is excess. Therefore, during the waiting period, the RBP is the amount you can withdraw without incurring the GBA and RBA excess withdrawal processing, and the RALP is the amount you can withdraw without incurring the ALP excess withdrawal processing. (2) On the third anniversary (after the end of the waiting period), the RBP and RALP are set equal to the GBP and ALP, respectively. (3) The $8,050 withdrawal is greater than the $6,900 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $8,400 RBP allowed under the basic withdrawal benefit and the $7,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 103 APPENDIX F: ADDITIONAL RMD DISCLOSURE This appendix describes our current administrative practice for determining the amount of withdrawals in any contract year which an owner may take under the SecureSource rider or GWB for Life rider to satisfy the RMD rules under 401(a)(9) of the Code without application of the excess withdrawal processing described in the rider. We reserve the right to modify this administrative practice at any time upon 30 days' written notice to you. For SecureSource Flex riders, owners subject to annual RMD rules under the Section 401(a)(9) of the Code, withdrawing from this contract during the waiting period to satisfy these rules will set your benefits to zero. Amounts you withdraw from this contract (for SecureSource Flex riders, amounts you withdraw from this contract after the waiting period) to satisfy these rules are not subject to excess withdrawal processing under the terms of the rider, subject to the following rules and our current administrative practice: (1) If on the date we calculated your Annual Life Expectancy Required Minimum Distribution Amount (ALERMDA), it is greater than the RBP from the beginning of the current contract year (1) - Basic Additional Benefit Amount (BABA) will be set equal to that portion of your ALERMDA that exceeds the value of the RBP from the beginning of the current contract year. (1) - Any withdrawals taken in a contract year will count first against and reduce the RBP for that contract year. These withdrawals will not be considered excess withdrawals as long as they do not exceed combined RBP and BABA values. - Once the RBP for the current contract year has been depleted, any additional amounts withdrawn will count against and reduce the BABA. These withdrawals will not be considered excess withdrawals with regard to the GBA and RBA as long as they do not exceed the remaining BABA. - Once the BABA has been depleted, any additional withdrawal amounts will be considered excess withdrawals with regard to the GBA and RBA and will subject them all to the excess withdrawal processing described by the SecureSource rider or GWB for Life rider. (2) If on the date we calculated your ALERMDA, it is greater than the RALP from the beginning of the current contract year(1), - A Lifetime Additional Benefit Amount (LABA) will be set equal to that portion of your ALERMDA that exceeds the value of RALP from the beginning of the current contract year(1). - Any withdrawals taken in a contract year will count first against and reduce the RALP for that contract year. These withdrawals will not be considered excess withdrawals as long as they do not exceed combined RALP and LABA values. - Once the RALP for the current contract year has been depleted, any additional amounts withdrawn will count against and reduce the LABA. These withdrawals will not be considered excess withdrawals with regard to the ALP as long as they do not exceed the remaining LABA. - Once the LABA has been depleted, any additional withdrawal amounts will be considered excess withdrawals with regard to the ALP and will subject the ALP to the excess withdrawal processing described by the SecureSource or GWB for Life rider. (3) If the ALP is established on a contract anniversary where your current ALERMDA is greater than the new RALP, - An initial LABA will be set equal to that portion of your ALERMDA that exceeds the new RALP. - This new LABA will be immediately reduced by the amount that total withdrawals in the current calendar year exceed the new RALP, but shall not be reduced to less than zero. (1) For SecureSource Flex riders, adjusted for any subsequent changes between 5% and 6% as described under "GBP Percentage and ALP Percentage." The ALERMDA is: (1) determined by us each calendar year (for SecureSource Flex riders, starting with the one in which the waiting period ends); (2) based on your initial purchase payment and not the entire interest value in the calendar year of contract issue and therefore may not be sufficient to allow you to withdraw your RMD without causing an excess withdrawal; (3) based solely on the value of the contract to which the SecureSource rider is attached as of the date we make the determination; (4) based on your recalculated life expectancy taken from the Uniform Lifetime Table under the Code (applicable only to SecureSource riders); and - -------------------------------------------------------------------------------- 104 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS (5) based on the company's understanding and interpretation of the requirements for life expectancy distributions intended to satisfy the required minimum distribution rules under Code Section 401(a)(9) and the Treasury Regulations promulgated thereunder as applicable on the effective date of this prospectus, to: 1. IRAs under Section 408(b) of the Code; 2. Roth IRAs under Section 408A of the Code; 3. SIMPLE IRAs under Section 408(p) of the Code; 4. Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code; 5. Custodial and investment only plans under Section 401(a) of the Code; 6. TSAs under Section 403(b) of the Code. In the future, the requirements under tax law for such distributions may change and the life expectancy amount calculation provided under your SecureSource rider or GWB for Life rider may not be sufficient to satisfy the requirements under the tax law for these types of distributions. In such a situation, amounts withdrawn to satisfy such distribution requirements will exceed your available RBP or RALP amount and may result in the reduction of your GBA, RBA, and/or ALP as described under the excess withdrawal provision of the rider. In cases where the Code does not allow the life expectancy of a natural person to be used to calculate the required minimum distribution amount (e.g., some ownerships by trusts and charities), we will calculate the life expectancy RMD amount as zero in all years. Please consult your tax advisor about the impact of these rules prior to purchasing the SecureSource rider. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 105 APPENDIX G: GUARANTOR WITHDRAWAL BENEFIT FOR LIFE RIDER DISCLOSURE GUARANTOR WITHDRAWAL BENEFIT FOR LIFE (GWB FOR LIFE) RIDER THE GWB FOR LIFE RIDER IS NO LONGER AVAILABLE FOR SALE. The GWB for Life rider is an optional benefit that you may select for an additional annual charge if: - - the rider is available in your state; and - - you are age 80 or younger on the contract issue date; or, if an owner is a nonnatural person, then the annuitant is age 80 or younger on the contract issue date. The GWB for Life rider is not available under an inherited qualified annuity. You must have elected the GWB for Life rider when you purchased your contract. The rider effective date will be the contract issue date. It is available for nonqualified annuities and qualified annuities except under 401(a) plans. The GWB for Life rider guarantees that you will be able to withdraw up to a certain amount each year from the contract, regardless of the investment performance of your contract before the annuity payments begin, until you have recovered at minimum all of your purchase payments plus any purchase payment credits. And, under certain limited circumstances defined in the rider, you have the right to take a specified amount of partial withdrawals in each contract year until death (see "At Death" heading below) -- even if the contract value is zero. Your contract provides for annuity payouts to begin on the settlement date (see "Buying Your Contract -- Settlement Date"). Before the settlement date, you have the right to surrender some or all of your contract value, less applicable administrative, surrender and rider charges imposed under the contract at the time of the surrender (see "Surrenders"). Because your contract value will fluctuate depending on the performance of the underlying funds in which the subaccounts invest, the contract itself does not guarantee that you will be able to take a certain surrender amount each year before the annuity payouts begin, nor does it guarantee the length of time over which such surrenders can be made before the annuity payouts begin. The GWB for Life rider may be appropriate for you if you intend to make periodic withdrawals from your annuity contract and wish to ensure that market performance will not adversely affect your ability to withdraw your principal over time. Under the terms of the GWB for Life rider, the calculation of the amount which can be withdrawn in each contract year varies depending on several factors, including but not limited to the waiting period (see "Waiting period" heading below) and whether or not the lifetime withdrawal benefit has become effective: (1) The basic withdrawal benefit gives you the right to take limited partial withdrawals in each contract year and guarantees that over time the withdrawals will total an amount equal to, at minimum, your purchase payments plus any purchase payment credits. Key terms associated with the basic withdrawal benefit are "Guaranteed Benefit Payment (GBP)," "Remaining Benefit Payment (RBP)," "Guaranteed Benefit Amount (GBA)," and "Remaining Benefit Amount (RBA)." See these headings below for more information. (2) The lifetime withdrawal benefit gives you the right, under certain limited circumstances defined in the rider, to take limited partial withdrawals until the later of death (see "At Death" heading below) or until the RBA (under the basic withdrawal benefit)is reduced to zero. Key terms associated with the lifetime withdrawal benefit are "Annual Lifetime Payment (ALP)," "Remaining Annual Lifetime Payment (RALP)," "Covered Person," and "Annual Lifetime Payment Attained Age (ALPAA)." See these headings below for more information. Only the basic withdrawal benefit will be in effect prior to the date that the lifetime withdrawal benefit becomes effective. The lifetime withdrawal benefit becomes effective automatically on the rider anniversary date after the covered person reaches age 65 or the rider effective date if the covered person is age 65 or older on the rider effective date (see "Annual Lifetime Payment Attained Age (ALPAA)" heading below). Provided the annuity payouts have not begun, the GWB for Life rider guarantees that you may take the following partial withdrawal amounts each contract year: - - After the waiting period and before the establishment of the ALP, the rider guarantees that each contract year you can cumulatively withdraw an amount equal to the GBP; - - During the waiting period and before the establishment of the ALP, the rider guarantees that each contract year you can cumulatively withdraw an amount equal to the value of the RBP at the beginning of the contract year; - - After the waiting period and after the establishment of the ALP, the rider guarantees that each contract year you have the option to cumulatively withdraw an amount equal to the ALP or the GBP, but the rider does not guarantee withdrawals of the sum of both the ALP and the GBP in a contract year; - -------------------------------------------------------------------------------- 106 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - During the waiting period and after the establishment of the ALP, the rider guarantees that each contract year you have the option to cumulatively withdraw an amount equal to the value of the RALP or the RBP at the beginning of the contract year, but the rider does not guarantee withdrawals of the sum of both the RALP and the RBP in a contract year. If you withdraw less than the allowed partial withdrawal amount in a contract year, the unused portion cannot be carried over to the next contract year. As long as your partial withdrawals in each contract year do not exceed the annual partial withdrawal amount allowed under the rider, and there has not been a contract ownership change or spousal continuation of the contract, the guaranteed amounts available for partial withdrawals are protected (i.e., will not decrease). If you withdraw more than the allowed partial withdrawal amount in a contract year, we call this an "excess withdrawal" under the rider. Excess withdrawals trigger an adjustment of a benefit's guaranteed amount, which may cause it to be reduced (see "GBA Excess Withdrawal Processing", "RBA Excess Withdrawal Processing", and "ALP Excess Withdrawal Processing" headings below). Please note that each of the two benefits has its own definition of the allowed annual withdrawal amount. Therefore, a partial withdrawal may be considered an excess withdrawal for purposes of the lifetime withdrawal benefit only, basic benefit only, or both. If your withdrawals exceed the greater of the RBP or the RALP, surrender charges under the terms of the contract may apply (see "Charges -- Surrender Charges"). The amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. Market value adjustments, if applicable, will also be made (see "Guarantee Period Accounts (GPAs) -- Market Value Adjustment"). We pay you the amount you request. Any partial withdrawals you take under the contract will reduce the value of the death benefits. (see "Benefits in Case of Death" and "Optional Benefits"). Upon full surrender of the contract, you will receive the remaining contract value less any applicable charges (see "Surrenders"). The rider's guaranteed amounts can be increased at the specified intervals if your contract value has increased. An annual step up feature is available at each contract anniversary, subject to certain conditions, and may be applied automatically to your contract or may require you to elect the step up (see "Annual Step Up" heading below). If you exercise the annual step up election, the spousal continuation step up election (see "Spousal Continuation Step Up" heading below) or change your PN program model portfolio or investment option, the rider charge may increase (see "Charges"). If you take withdrawals during the waiting period, any prior steps ups applied will be reversed and step ups will not be available until the end of waiting period. You may take withdrawals after the waiting period without reversal of prior step ups. You should consider whether the GWB for Life rider is appropriate for you because: - - LIFETIME WITHDRAWAL BENEFIT LIMITATIONS: The lifetime withdrawal benefit is subject to certain limitations, including but not limited to: (a) Once the contract value is less than $600*, payments are made for as long as the oldest owner or, if an owner is a nonnatural person, the oldest annuitant, is living (see "If Contract Value Reduces to Less than $600" heading below). However, if the contract value is $600 or greater, the lifetime withdrawal benefit terminates when a death benefit becomes payable (see "At Death" heading below). Therefore, if there are multiple contract owners, the rider may terminate or the lifetime benefit may be reduced. When one of the contract owners dies the benefit terminates even though other contract owners are still living (except, if the contract is continued under the spousal continuation provision of the contract). * Under our current administrative practice, we allow the minimum contract value to be $0. Therefore, these limitations will only apply when the contract value is reduced to zero. (b) Excess withdrawals can reduce the ALP to zero even though the GBA, RBA, GBP and/or RBP values are greater than zero. If the both the ALP and the contract value are zero, the lifetime withdrawal benefit will terminate. (c) When the lifetime withdrawal benefit is first established, the initial ALP is based on the basic withdrawal benefit's RBA at that time (see "Annual Lifetime Payment (ALP)" heading below), unless there has been a spousal continuation or ownership change. Any withdrawal you take before the ALP is established reduces the RBA and therefore may result in a lower amount of lifetime withdrawals you are allowed to take. (d) Withdrawals can reduce both the contract value and the RBA to zero prior to the establishment of the ALP. If this happens, the contract and the GWB for Life rider will terminate. - - USE OF THE PORTFOLIO NAVIGATOR PROGRAM IS REQUIRED: You must be invested in one of the model portfolios or investment options of the PN program. This requirement limits your choice of investments. You may allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA fixed account, when available (see "The Special DCA Fixed Account"), and we will make monthly transfers into the model portfolio or investment option you have chosen. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 107 This means you will not be able to allocate contract value to all of the subaccounts, GPAs or the regular fixed account that are available under the contract to contract owners who do not elect this rider. (See "Making the Most of Your Contract -- Portfolio Navigator Program".) Subject to state restrictions, we reserve the right to limit the number of model portfolios or investment options from which you can select based on the dollar amount of purchase payments you make. - - LIMITATIONS ON PURCHASE PAYMENTS: We reserve the right to limit the cumulative amount of purchase payments, subject to state restrictions. For current limitation, see "Buying Your Contract -- Purchase Payments". - - LIMITATIONS ON PURCHASE OF OTHER RIDERS UNDER THIS CONTRACT: If you select the GWB for Life rider, you may not elect the Accumulation Benefit rider. - - NON-CANCELABLE: Once elected, the GWB for Life rider may not be cancelled and the fee will continue to be deducted until the contract is terminated, the contract value reduces to zero (described below) or annuity payouts begin. - - INTERACTION WITH TOTAL FREE AMOUNT (TFA) CONTRACT PROVISION: The TFA is the amount you are allowed to withdraw from the contract in each contract year without incurring a surrender charge (see "Charges -- Surrender Charge"). The TFA may be greater than the RBP or RALP under this rider. Any amount you withdraw under the contract's TFA provision that exceeds the RBP or RALP is subject to the excess withdrawal processing described below for the GBA, RBA and ALP. - - You should consult your tax advisor before you select this optional rider if you have any questions about the use of this rider in your tax situation: - - TAX CONSIDERATIONS FOR NONQUALIFIED ANNUITIES: Under current federal income tax law, withdrawals under nonqualified annuities, including partial withdrawals taken from the contract under the terms of this rider, are treated less favorably than amounts received as annuity payments under the contract. (See "Taxes -- Nonqualified Annuities".) Withdrawals are taxable income to the extent of earnings. Withdrawals of earnings before age 59 1/2 may incur a 10% IRS early withdrawal penalty. You should consult your tax advisor before you select this optional rider if you have any questions about the use of this rider in your tax situation. - - TAX CONSIDERATIONS FOR QUALIFIED ANNUITIES: Qualified annuities have minimum distribution rules that govern the timing and amount of distributions from the annuity contract (see "Taxes -- Qualified Annuities -- Required Minimum Distributions.") If you have a qualified annuity, you may need to take an RMD that exceeds the guaranteed amount of withdrawal available under the rider and such withdrawals may reduce future benefits guaranteed under the rider. While the rider permits certain excess withdrawals to be made for the purpose of satisfying RMD requirements for this contract alone without reducing future benefits guaranteed under the rider, there can be no guarantee that changes in the federal income tax law after the effective date of the rider will not require a larger RMD to be taken, in which case, future guaranteed withdrawals under the rider could be reduced. You should consult your tax advisor before you select this optional rider if you have any questions about the use of this rider in your tax situation. - - See Appendix F for additional information. - - TAX CONSIDERATIONS FOR TSAS: If your contract is a TSA, your right to take a surrender is restricted (see "TSA -- Special Provisions"). KEY TERMS AND PROVISIONS OF THE GWB FOR LIFE RIDER ARE DESCRIBED BELOW: WITHDRAWAL: For the purposes of this rider, the term "withdrawal" is equal to the term "surrender" in the contract or any other riders. Withdrawals will adjust contract values and benefits in the same manner as surrenders. PARTIAL WITHDRAWALS: A withdrawal of an amount that does not result in a surrender of the contract. The partial withdrawal amount is a gross amount and will include any surrender charge and any market value adjustment. WAITING PERIOD: The period of time starting on the rider effective date during which the annual step up is not available if you take withdrawals. The current waiting period is three years. GUARANTEED BENEFIT AMOUNT (GBA): The total cumulative amount available for partial withdrawals over the life of the rider under the basic withdrawal benefit. The maximum GBA is $5,000,000. The GBA cannot be withdrawn and is not payable as a death benefit. Rather, the GBA is an interim value used to calculate the amount available for withdrawals each year under the basic withdrawal benefit (see "Guaranteed Benefit Payment" below). At any time, the total GBA is the sum of the individual GBAs associated with each purchase payment. The GBA is determined at the following times, calculated as described: - - At contract issue -- the GBA is equal to the initial purchase payment, plus any purchase payment credit; - - When you make additional purchase payments -- each additional purchase payment has its own GBA equal to the amount of the purchase payment plus any purchase payment credit. - - At step up -- (see "Annual Step Up," and "Spousal Continuation Step Up" headings below). - - When an individual RBA is reduced to zero -- the GBA that is associated with that RBA will also be set to zero. - -------------------------------------------------------------------------------- 108 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - When you make a partial withdrawal during the waiting period and after a step- up -- Any prior annual step-ups will be reversed. Step up reversal means that the GBA associated with each purchase payment will be reset to the amount of that purchase payment plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBA remains unchanged. If there have been multiple purchase payments, both the total GBA and each payment's GBA remain unchanged. (b) is greater than the total RBP -- GBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE GBA. If the partial withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. GBA EXCESS WITHDRAWAL PROCESSING The total GBA will automatically be reset to the lesser of (a) the total GBA immediately prior to the excess withdrawal; or (b) the contract value immediately following the withdrawal. If there have been multiple purchase payments, each payment's GBA after the withdrawal will be reset to equal that payment's RBA after the withdrawal plus (a) times (b), where: (a) is the ratio of the total GBA after the withdrawal less the total RBA after the withdrawal to the total GBA before the withdrawal less the total RBA after the withdrawal; and (b) is each payment's GBA before the withdrawal less that payment's RBA after the withdrawal. REMAINING BENEFIT AMOUNT (RBA): Each withdrawal you make reduces the amount of GBA that is guaranteed by this rider as future withdrawals. At any point in time, the RBA equals the amount of GBA that remains available for withdrawals for the remainder of the contract's life, and total RBA is the sum of the individual RBAs associated with each purchase payment. The maximum RBA is $5,000,000. The RBA is determined at the following times, calculated as described: - - At contract issue -- the RBA is equal to the initial purchase payment plus any purchase payment credit. - - When you make additional purchase payments -- each additional purchase payment has its own RBA initially set equal to that payment's GBA (the amount of the purchase payment plus any purchase payment credit). - - At step up -- (see "Annual Step Up," and "Spousal Continuation Step Up" headings below). - - When you make a partial withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the RBA associated with each purchase payment will be reset to the amount of that purchase payment plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the total RBA is reduced by the amount of the withdrawal. If there have been multiple purchase payments, each payment's RBA is reduced in proportion to its RBP. (b) is greater than the total RBP -- RBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE RBA. If the partial withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. RBA EXCESS WITHDRAWAL PROCESSING The total RBA will automatically be reset to the lesser of (a) the contract value immediately following the withdrawal, or (b) the total RBA immediately prior to the withdrawal, less the amount of the withdrawal. If there have been multiple purchase payments, both the total RBA and each payment's RBA will be reset. The total RBA will be reset according to the excess withdrawal processing described above. Each payment's RBA will be reset in the following manner: 1. The withdrawal amount up to the total RBP is taken out of each RBA bucket in proportion to its individual RBP at the time of the withdrawal; and 2. The withdrawal amount above the total RBP and any amount determined by the excess withdrawal processing are taken out of each RBA bucket in proportion to its RBA at the time of the withdrawal. GUARANTEED BENEFIT PAYMENT (GBP): At any time, the amount available for partial withdrawals in each contract year after the waiting period, until the RBA is reduced to zero, under the basic withdrawal benefit. At any point in time, each purchase - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 109 payment has its own GBP, which is equal to the lesser of that payment's RBA or 7% of that payment's GBA, and the total GBP is the sum of the individual GBPs. During the waiting period, the guaranteed annual withdrawal amount may be less than the GBP due to the limitations the waiting period imposes on your ability to utilize both annual step ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual withdrawal amount during the waiting period is equal to the value of the RBP at the beginning of the contract year. The GBP is determined at the following times, calculated as described: - - At contract issue -- the GBP is established as 7% of the GBA value. - - At each contract anniversary -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value. - - When you make additional purchase payments -- each additional purchase payment has its own GBP equal to that purchase payment amount plus any purchase payment credit, multiplied by 7%. - - At step up -- (see "Annual Step Up," and "Spousal Continuation Step Up" headings below). - - When an individual RBA is reduced to zero -- the GBP associated with that RBA will also be reset to zero. - - When you make a partial withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the GBA and the RBA associated with each purchase payment will be reset to the amount of that purchase payment. Each payment's GBP will be reset to the sum of that purchase payment and any purchase payment credit, multiplied by 7%. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBP remains unchanged. (b) is greater than the total RBP -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value, based on the RBA and GBA after the withdrawal. If the partial withdrawal is made during the waiting period, these calculations are done AFTER any previously applied annual step ups have been reversed. REMAINING BENEFIT PAYMENT (RBP): The amount available for partial withdrawals for the remainder of the contract year under the basic withdrawal benefit. At any point in time, the total RBP is the sum of the RBPs for each purchase payment. During the waiting period, when the guaranteed amount may be less than the GBP, the value of the RBP at the beginning of the contract year will be that amount that is actually guaranteed each contract year. The RBP is determined at the following times, calculated as described: - - At the beginning of each contract year during the waiting period and prior to any withdrawal -- the RBP for each purchase payment is set equal to that purchase payment plus any purchase payment credit, multiplied by 7%. - - At the beginning of any other contract year -- the RBP for each purchase payment is set equal to that purchase payment's GBP. - - When you make additional purchase payments -- each additional purchase payment has its own RBP equal to that payment's GBP. - - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - - At spousal continuation -- See "Spousal Option to Continue the Contract" heading below. - - When an individual RBA is reduced to zero -- the RBP associated with that RBA will also be reset to zero. - - When you make any partial withdrawal -- the total RBP is reset to equal the total RBP immediately prior to the partial withdrawal less the amount of the partial withdrawal, but not less than zero. If there have been multiple purchase payments, each payment's RBP is reduced proportionately. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RBP, GBA EXCESS WITHDRAWAL PROCESSING AND RBA EXCESS WITHDRAWAL PROCESSING ARE APPLIED and the amount available for the future partial withdrawals for the remainder of the contract's life may be reduced by more than the amount of withdrawal. When determining if a withdrawal will result in the excess withdrawal processing, the applicable RBP will not yet reflect the amount of the current withdrawal. COVERED PERSON: The person whose life is used to determine when the ALP is established, and the duration of the ALP payments. The covered person is the oldest contract owner unless otherwise specified on your contract data page. If an owner is a nonnatural person (i.e. trust or corporation), the covered person is the oldest annuitant. A spousal continuation or a change of contract ownership may reduce the amount of the lifetime withdrawal benefit and may change the covered person. - -------------------------------------------------------------------------------- 110 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS ANNUAL LIFETIME PAYMENT ATTAINED AGE (ALPAA): The covered person's age after which time the lifetime benefit can be established. Currently, the lifetime benefit can be established on the later of the contract effective date or the contract anniversary date on/following the date the covered person reaches age 65. ANNUAL LIFETIME PAYMENT (ALP): Once established, the ALP at any time is the amount available for withdrawals in each contract year after the waiting period until the later of death (see "At Death" heading below), or the RBA is reduced to zero, under the lifetime withdrawal benefit. The maximum ALP is $300,000. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the ALP is zero. During the waiting period, the guaranteed annual lifetime withdrawal amount may be less than the ALP due to the limitations the waiting period imposes on your ability to utilize both annual step-ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual lifetime withdrawal amount during the waiting period is equal to the value of the RALP at the beginning of the contract year. The ALP is determined at the following times: - - The later of the contract effective date or the contract anniversary date on/following the date the covered person reaches age 65 -- the ALP is established as 6% of the total RBA. - - When you make additional purchase payments -- each additional purchase payment increases the ALP by the amount of the purchase payment plus any purchase payment credit, multiplied by 6%. - - At step ups -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - - At contract ownership change -- (see "Spousal Option to Continue the Contract" and "Contract Ownership Change" headings below). - - When you make a partial withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the ALP will be reset to equal total purchase payments plus any purchase payment credits, multiplied by 6%. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the RALP -- the ALP remains unchanged. (b) is greater than the RALP -- ALP EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE ALP. Please note that if the partial withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. ALP EXCESS WITHDRAWAL PROCESSING The ALP is reset to the lesser of the ALP immediately prior to the withdrawal, or 6% of the contract value immediately following the withdrawal. REMAINING ANNUAL LIFETIME PAYMENT (RALP): The amount available for partial withdrawals for the remainder of the contract year under the lifetime withdrawal benefit. During the waiting period, when the guaranteed annual withdrawal amount may be less than the ALP, the value of the RALP at the beginning of the contract year will be the amount that is actually guaranteed each contract year. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the RALP is zero. THE RALP IS DETERMINED AT THE FOLLOWING TIMES: - - The later of the contract effective date or the contract anniversary date following the date the covered person reaches age 65, and: (a) During the waiting period and Prior to any withdrawals -- the RALP is established equal to the sum of purchase payments and purchase payment credits, multiplied by 6%. (b) At any other time -- the RALP is established equal to the ALP. - - At the beginning of each contract year during the waiting period and prior to any withdrawals -- the RALP is set equal to the total purchase payments plus any purchase payment credits, multiplied by 6%. - - At the beginning of any other contract year -- the RALP is set equal to ALP. - - At step ups -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - - When you make additional purchase payments -- each additional purchase payment increases the RALP by the sum of the purchase payment and any purchase payment credit, multiplied by 6%. - - When you make any partial withdrawal -- the RALP equals the RALP immediately prior to the partial withdrawal less the amount of the partial withdrawal, but not less than zero. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RALP, ALP EXCESS WITHDRAWAL PROCESSING IS APPLIED and the amount available for future partial withdrawals for the remainder of the - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 111 contract's life may be reduced by more than the amount of withdrawal. When determining if a withdrawal will result in excess withdrawal processing, the applicable RALP will not yet reflect the amount of the current withdrawal. REQUIRED MINIMUM DISTRIBUTIONS (RMD): If you are taking RMDs from this contract and the RMD calculated separately for this contract is greater than the RBP or the RALP on the most recent contract anniversary, the portion of the RMD that exceeds the RBP or RALP will not be subject to excess withdrawal processing provided that the following conditions are met: - - The RMD is the life expectancy RMD for this contract alone; and - - The RMD amount is based on the requirements of the Code section 401(a) (9), related Code provisions and regulations thereunder that were in effect on the effective date of this rider. RMD rules follow the calendar year which most likely does not coincide with your contract year and therefore may limit when you can take your RMD and not be subject to excess withdrawal processing. Withdrawal amounts greater than the RBP or RALP on the contract anniversary date that do not meet these conditions will result in excess withdrawal processing as described above. See Appendix F for additional information. STEP UP DATE: The date any step up becomes effective, and depends on the type of step up being applied (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). ANNUAL STEP UP: Beginning with the first contract anniversary, an increase of the GBA, RBA, GBP, RBP, ALP, and/or RALP values may be available. A step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be withdrawn or paid upon death. Rather, a step up determines the current values of the GBA, RBA, GBP, RBP, ALP, and RALP, and may extend the payment period or increase the allowable payment. The annual step up is subject to the following rules: - - The annual step up is available when the RBA, or if established, the ALP, would increase on the step up date. - - Only one step up is allowed each contract year. - - If you take any withdrawals during the waiting period, any previously applied step ups will be reversed and the annual step up will not be available until the end of the waiting period. - - If the application of the step up does not increase the rider charge, the annual step up will be automatically applied to your contract, and the step up date is the contract anniversary date. - - If the application of the step up would increase the rider charge, the annual step up is not automatically applied. Instead, you have the option to step up for 30 days after the contract anniversary. If you exercise the elective annual step up option, you will pay the rider charge in effect on the step up date. If you wish to exercise the elective annual step up option, we must receive a request from you or your financial advisor. The step up date is the date we receive your request to step up. If your request is received after the close of business, the step up date will be the next valuation day. - - The ALP and RALP are not eligible for step ups until they are established. Prior to being established, the ALP and RALP values are both zero. - - Please note it is possible for the ALP to step up even if the RBA or GBA do not step up and it is also possible for the RBA and GBA to step up even if the ALP does not step up. The annual step up resets the GBA, RBA, GBP, RBP, ALP and RALP values as follows: - - The total RBA will be reset to the greater of the total RBA immediately prior to the step up date or the contract value on the step up date. - - The total GBA will be reset to the greater of the total GBA immediately prior to the step up date or the contract value on the step up date. - - The total GBP will be reset using the calculation as described above based on the increased GBA and RBA. - - The total RBP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RBP will not be affected by the step up. (b) At any other time, the RBP will be reset as the increased GBP less all prior withdrawals made in the current contract year, but not less than zero. - - The ALP will be reset to the greater of the ALP immediately prior to the step up date or 6% of the contract value on the step up date. - - The RALP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RALP will not be affected by the step up. - -------------------------------------------------------------------------------- 112 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS (b) At any other time, the RALP will be reset as the increased ALP less all prior withdrawals made in the current contract year, but not less than zero. SPOUSAL OPTION TO CONTINUE THE CONTRACT: If a surviving spouse elects to continue the contract and continues the contract as the new owner under the spousal continuation provision of the contract, the GWB for Life rider also continues. When the spouse elects to continue the contract, any remaining waiting period is cancelled; the covered person will be re-determined and is the covered person referred to below; and the GBA, RBA, GBP, RBP, ALP and RALP values are affected as follows: - - The GBA, RBA, and GBP values remain unchanged. - - The RBP is automatically reset to the GBP less all prior withdrawals made in the current contract year, but not less than zero. - - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the date of continuation -- the ALP will be established on the contract anniversary following the date the covered person reaches age 65 as the lesser of the RBA or the anniversary contract value, multiplied by 6%. The RALP will be established on the same date equal to the ALP. - - If the ALP has not yet been established but the new covered person is age 65 or older as of the date of continuation -- the ALP will be established on the date of continuation as the lesser of the RBA or the contract value, multiplied by 6%. The RALP will be established on the same date in an amount equal to the ALP less all prior partial withdrawals made in the current contract year, but will never be less than zero. - - If the ALP has been established but the new covered person has not yet reached age 65 as of the date of continuation -- the ALP and RALP will be automatically reset to zero for the period of time beginning with the date of continuation and ending with the contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%, and the RALP will be reset to the ALP. - - If the ALP has been established and the new covered person is age 65 or older as of the date of continuation -- the ALP will be automatically reset to the lesser of the current ALP or 6% of the contract value on the date of continuation. The RALP will be reset to the ALP less all prior withdrawals made in the current contract year, but not less than zero. Please note that the lifetime withdrawal benefit amount may be reduced as a result of the spousal continuation. SPOUSAL CONTINUATION STEP UP: If a surviving spouse elects to continue the contract, another elective step up option becomes available. To exercise the step up, the spouse or the spouse's financial advisor must submit a request within 30 days of the date of continuation. The step up date is the date we receive the spouse's request to step up. If the request is received after the close of business, the step up date will be the next valuation day. The GBA, RBA, GBP, RBP, ALP and RALP will be reset in the same fashion as the annual step up. If the spousal continuation step up option is exercised and we have increased the charge for the rider, the spouse will pay the charge that is in effect on the step up date. It is our current administrative practice to process the spousal continuation step up as described in the next paragraph; however, we reserve the right to discontinue the administrative practice and will give you 30 days' written notice of any such change. At the time of spousal continuation, a step-up may be available. All annual step-up rules (see "Annual Step-Up" heading above), other than those that apply to the waiting period, also apply to the spousal continuation step-up. If the spousal continuation step-up is processed automatically, the step-up date is the valuation date the spousal continuation is effective. If not, the spouse must elect the step up and must do so within 30 days of the spousal continuation date. If the spouse elects the spousal continuation step up, the step-up date is the valuation date we receive the spouse's written request to step up if we receive the request by the close of business on that day, otherwise the next valuation date. IF CONTRACT VALUE REDUCES TO LESS THAN $600*: If the contract value reduces to less than $600 and the total RBA remains greater than zero, you will be paid in the following scenarios: 1) The ALP has not yet been established and the contract value is reduced to less than $600 for any reason other than full or partial surrender of more than the RBP. In this scenario, you can choose to: (a) receive the remaining schedule of GBPs until the RBA equals zero; or (b) wait until the rider anniversary on/following the date the covered person reaches age 65, and then receive the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 113 2) The ALP has been established and the contract value reduces to less than $600 as a result of fees or charges, or a withdrawal that is less than or equal to both the RBP and the RALP. In this scenario, you can choose to receive: (a) the remaining schedule of GBPs until the RBA equals zero; or (b) the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 3) The ALP has been established and the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP. In this scenario, the remaining schedule of GBPs will be paid until the RBA equals zero. 4) The ALP has been established and the contract value falls to zero as a result of a partial withdrawal that is greater than the RBP but less than or equal to the RALP. In this scenario, the ALP will be paid annually until the death of the Covered Person. Under any of these scenarios: - - The annualized amounts will be paid to you in the frequency you elect. You may elect a frequency offered by us at the time payments begin. Available payment frequencies will be no less frequent than annually. - - We will no longer accept additional purchase payments; - - You will no longer be charged for the rider; - - Any attached death benefit riders will terminate; and - - The death benefit becomes the remaining payments, if any, until the RBA is reduced to zero. The GWB for Life rider and the contract will terminate under either of the following two scenarios: - - If the contract value falls to zero as a result of a withdrawal that is greater than the RBP and RALP. This is full surrender of the contract. - - If the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP, and the total RBA is reduced to zero. * Under the current administrative practice, we allow the minimum contract value to be $0. Therefore, these scenarios will only apply when the contract value is reduced to zero. AT DEATH: If the contract value is greater than zero when the death benefit becomes payable, the beneficiary may elect to take the death benefit as a lump sum under the terms of the contract (see "Benefits in Case of Death") or the annuity payout option (see "Remaining Benefit Amount Payout Option" heading below). If the contract value equals zero and the death benefit becomes payable, the following will occur: - - If the RBA is greater than zero and the owner has been receiving the GBP each year, the GBP will continue to be paid to the beneficiary until the RBA equals zero. - - If the covered person dies and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the RBA equals zero. - - If the covered person is still alive and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the later of the death of the covered person or the RBA equals zero. - - If the covered person is still alive and the RBA equals zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the death of the covered person. - - If the covered person dies and the RBA equals zero, the benefit terminates. No further payments will be made. CONTRACT OWNERSHIP CHANGE: If the contract changes ownership (see "Changing Ownership"), the covered person will be redetermined and is the covered person referred to below. The GBA, RBA, GBP, RBP values will remain unchanged. The ALP and RALP will be reset as follows. Our current administrative practice is to only reset the ALP and RALP if the covered person changes due to the ownership change. - - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be established on the contract anniversary following the date the covered person reaches age 65. The ALP will be set equal to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the anniversary date occurs during the waiting period and prior to a withdrawal, the RALP will be set equal to the lesser of the ALP or total purchase payments plus purchase payment credits, multiplied by 6%. If the anniversary date occurs at any other time, the RALP will be set to the ALP. - - If the ALP has not yet been established but the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be established on the ownership change date. The ALP will be set equal to the lesser of the - -------------------------------------------------------------------------------- 114 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS RBA or the contract value, multiplied by 6%. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be set to the lesser of the ALP or total purchase payments plus purchase payment credits, multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be set equal to the ALP less all prior withdrawals made in the current contract year but not less than zero. - - If the ALP has been established but the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be reset to zero for the period of time beginning with the ownership change date and ending with the contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the time period ends during the waiting period and prior to any withdrawals, the RALP will be reset to the lesser of the ALP or total purchase payments plus any purchase payment credits, multiplied by 6%. If the time period ends at any other time, the RALP will be reset to the ALP. - - If the ALP has been established and the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be reset on the ownership change date. The ALP will be reset to the lesser of the current ALP or 6% of the contract value. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be reset to the lesser of the ALP or total purchase payments plus purchase payment credits, multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be reset to the ALP less all prior withdrawals made in the current contract year but not less than zero. Please note that the lifetime withdrawal benefit amount may be reduced as a result of the ownership change. REMAINING BENEFIT AMOUNT PAYOUT OPTION: Several annuity payout plans are available under the contract. As an alternative to these annuity payout plans, a fixed annuity payout option is available under the GWB for Life rider. Under this option the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the current total RBA at the time you begin this fixed annuity payout option. These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at that time but will be no less frequent than annually. If, at the death of the owner, total payments have been made for less than the RBA, the remaining payments will be paid to the beneficiary (see "The Annuity Payout Period" and "Taxes"). This option may not be available if the contract is issued to qualify under Section 403 or 408 of the Code. For such contracts, this option will be available only if the number of years it will take to deplete the RBA by paying the GBP each year is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using a life expectancy table published by the IRS. This annuity payout option may also be elected by the beneficiary of a contract as a settlement option. Whenever multiple beneficiaries are designated under the contract, each such beneficiary's share of the proceeds if they elect this option will be in proportion to their applicable designated beneficiary percentage. Beneficiaries of nonqualified contracts may elect this settlement option subject to the distribution requirements of the contract. We reserve the right to adjust the future schedule of GBPs if necessary to comply with the Code. RIDER TERMINATION The GWB for Life rider cannot be terminated either by you or us except as follows: 1. Annuity payouts under an annuity payout plan will terminate the rider. 2. Termination of the contract for any reason will terminate the rider. EXAMPLE -- GWB FOR LIFE RIDER EXAMPLE #1: COVERED PERSON HAS NOT REACHED AGE 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - - You purchase the RAVA 4 Select contract with a payment of $100,000. - - You are the sole owner and also the annuitant. You are age 60. - - You make no additional payments to the contract. - - Automatic annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied annual step-ups are indicated in BOLD. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 115
HYPOTHETICAL LIFETIME WITHDRAWAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT BENEFIT DURATION PURCHASE PARTIAL CONTRACT ------------------------------------------- ------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $ N/A $ N/A 0.5 0 7,000 92,000 100,000 93,000 7,000 0 N/A N/A 1 0 0 91,000 100,000 93,000 7,000 7,000 N/A N/A 1.5 0 7,000 83,000 100,000 86,000 7,000 0 N/A N/A 2 0 0 81,000 100,000 86,000 7,000 7,000 N/A N/A 5 0 0 75,000 100,000 86,000 7,000 7,000 5,160(1) 5,160(1) 5.5 0 5,160 70,000 100,000 80,840 7,000 1,840 5,160 0 6 0 0 69,000 100,000 80,840 7,000 7,000 5,160 5,160 6.5 0 7,000 62,000 100,000 73,840 7,000 0 3,720(2) 0 7 0 0 70,000 100,000 73,840 7,000 7,000 4,200 4,200 7.5 0 10,000 51,000 51,000(3) 51,000(3) 3,570 0 3,060(3) 0 8 0 0 55,000 55,000 55,000 3,850 3,850 3,300 3,300
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, spousal continuation or contract ownership change), you can continue to withdraw up to either the GBP of $3,850 each year until the RBA is reduced to zero, or the ALP of $3,300 each year until the later of your death or the RBA is reduced to zero. (1) The ALP and RALP are established on the contract anniversary date following the date the covered person reaches age 65. (2) The $7,000 withdrawal is greater than the $5,160 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (3) The $10,000 withdrawal is greater than both the $7,000 RBP allowed under the basic withdrawal benefit and the $4,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. EXAMPLE #2: COVERED PERSON HAS REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - - You purchase the RAVA 4 Select contract with a payment of $100,000. - - You are the sole owner and also the annuitant. You are age 65. - - You make no additional payments to the contract. - - Automatic annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied annual step-ups are indicated in BOLD.
HYPOTHETICAL LIFETIME WITHDRAWAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT BENEFIT DURATION PURCHASE PARTIAL CONTRACT ------------------------------------------- ------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $6,000 $6,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 6,300 6,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 6,600 6,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 6,600 6,600(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 6,600 0 4 0 0 115,000 115,000 115,000 8,050 8,050 6,900 6,900 4.5 0 8,050 116,000 115,000 106,950 8,050 0 6,900(3) 0 5 0 0 120,000 120,000 120,000 8,400 8,400 7,200 7,200 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 7,200(4) 0 6 0 0 125,000 125,000 125,000 8,750 8,750 7,500 7,500
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, spousal continuation or contract ownership change), you can continue to withdraw up to either the GBP of $8,750 each year until the RBA is reduced to zero, or the ALP of $7,500 each year until the later of your death or the RBA is reduced to zero. - -------------------------------------------------------------------------------- 116 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS (1) The annual step-up has not been applied to the RBP or RALP because any withdrawal after step up during the waiting period would reverse any prior step ups prior to determining if the withdrawal is excess. Therefore, during the waiting period, the RBP is the amount you can withdraw without incurring the GBA and RBA excess withdrawal processing, and the RALP is the amount you can withdraw without incurring the ALP excess withdrawal processing. (2) On the third anniversary (after the end of the waiting period), the RBP and RALP are set equal to the GBP and ALP, respectively. (3) The $8,050 withdrawal is greater than the $6,900 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $8,400 RBP allowed under the basic withdrawal benefit and the $7,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 117 APPENDIX H: SECURESOURCE RIDERS DISCLOSURE SECURESOURCE RIDERS THE SECURESOURCE RIDERS ARE NOT AVAILABLE FOR RAVA4 ACCESS. There are two optional SecureSource riders available under your contract: - - SecureSource - Single Life; or - - SecureSource - Joint Life. The information in this section applies to both SecureSource riders, unless otherwise noted. The SecureSource - Single Life rider covers one person. The SecureSource - Joint Life Rider covers two spouses jointly who are named at contract issue. You may elect only the SecureSource - Single Life rider or the SecureSource - Joint Life rider, not both, and you may not switch riders later. The SecureSource rider is an optional benefit that you may select for an additional annual charge if: - - SINGLE LIFE: you are 80 or younger on the contract issue date, or , if an owner is a nonnatural person, then the annuitant is age 80 or younger on the contract issue date; or - - JOINT LIFE: you and your spouse are 80 or younger on the contract issue date. The SecureSource rider is not available under an inherited qualified annuity. You must elect the rider when you purchase your contract. The rider effective date will be the contract issue date. The SecureSource rider guarantees (unless the rider is terminated. See "Rider Termination" heading below.) that regardless of the investment performance of your contract you will be able to withdraw up to a certain amount each year from the contract before the annuity payouts begin until: - - SINGLE LIFE: you have recovered at minimum all of your purchase payments plus any purchase payment credit or, if later, until death (see "At Death" heading below) -- even if the contract value is zero. - - JOINT LIFE: you have recovered at minimum all of your purchase payments plus any purchase payment credit or, if later, until the death of the last surviving covered spouse (see "Joint Life only: Covered Spouses" and "At Death" headings below) -- even if the contract value is zero. Your contract provides for annuity payouts to begin on the settlement date (see "Buying Your Contract -- Settlement Date"). Before the settlement date, you have the right to surrender some or all of your contract value, less applicable administrative, surrender and rider charges imposed under the contract at the time of the surrender (see "Making the Most of Your Contract -- Surrenders"). Because your contract value will fluctuate depending on the performance of the underlying funds in which the subaccounts invest, the contract itself does not guarantee that you will be able to take a certain surrender amount each year before the annuity payouts begin, nor does it guarantee the length of time over which such surrenders can be made before the annuity payouts begin. For the purposes of this rider, the term "withdrawal" is equal to the term "surrender" in the contract or any other riders. Withdrawals will adjust contract values and benefits in the same manner as surrenders. The SecureSource rider may be appropriate for you if you intend to make periodic withdrawals from your annuity contract and wish to ensure that market performance will not adversely affect your ability to withdraw your principal over time. Under the terms of the SecureSource rider, the calculation of the amount which can be withdrawn in each contract year varies depending on several factors, including but not limited to the waiting period (see "Waiting period" heading below) and whether or not the lifetime withdrawal benefit has become effective: (1) The basic withdrawal benefit gives you the right to take limited withdrawals in each contract year until the lifetime withdrawal benefit becomes effective and guarantees that over time the withdrawals will total an amount equal to, at minimum, your purchase payments plus any purchase payment credits (unless the rider is terminated. See "Rider Termination" heading below). Key terms associated with the basic withdrawal benefit are "Guaranteed Benefit Payment (GBP)", "Remaining Benefit Payment (RBP)", "Guaranteed Benefit Amount (GBA)" and "Remaining Benefit Amount (RBA)." See these headings below for more information. (2) The lifetime withdrawal benefit gives you the right, under certain limited circumstances defined in the rider, to take limited withdrawals until the later of: - - SINGLE LIFE: death (see "At Death" heading below) or until the RBA (under the basic withdrawal benefit) is reduced to zero (unless the rider is terminated. See "Rider Termination" heading below); - - JOINT LIFE: death of the last surviving covered spouse (see "At Death" heading below) or until the RBA (under the basic withdrawal benefit) is reduced to zero (unless the rider is terminated. See "Rider Termination" heading below). - -------------------------------------------------------------------------------- 118 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Key terms associated with the lifetime withdrawal benefit are "Annual Lifetime Payment (ALP)", "Remaining Annual Lifetime Payment (RALP)", "Single Life only: Covered Person", "Joint Life only: Covered Spouses" and "Annual Lifetime Payment Attained Age (ALPAA)." See these headings below for more information. Only the basic withdrawal benefit will be in effect prior to the date that the lifetime withdrawal benefit becomes effective. The lifetime withdrawal benefit becomes effective automatically on the rider anniversary date after the: - - SINGLE LIFE: covered person reaches age 65, or the rider effective date if the covered person is age 65 or older on the rider effective date (see "Annual Lifetime Payment Attained Age (ALPAA)" heading below); - - JOINT LIFE: younger covered spouse reaches age 65, or the rider effective date if the younger covered spouse is age 65 or older on the rider effective date (see "Annual Lifetime Payment Attained Age (ALPAA)" and "Annual Lifetime Payment (ALP)" headings below). Provided annuity payouts have not begun, the SecureSource rider guarantees that you may take the following withdrawal amounts each contract year: - - Before the establishment of the ALP, the rider guarantees that each year you have the option to cumulatively withdraw an amount equal to the value of the RBP at the beginning of the contract year; - - After the establishment of the ALP, the rider guarantees that each year you have the option to cumulatively withdraw an amount equal to the value of the RALP or the RBP at the beginning of the contract year, but the rider does not guarantee withdrawal of the sum of both the RALP and the RBP in a contract year. If you withdraw less than the allowed withdrawal amount in a contract year, the unused portion cannot be carried over to the next contract year. As long as your withdrawals in each contract year do not exceed the allowed annual withdrawal amount under the rider: - - SINGLE LIFE: and there has not been a contract ownership change or spousal continuation of the contract, the guaranteed amounts available for withdrawal will not decrease; - - JOINT LIFE: the guaranteed amounts available for withdrawal will not decrease. If you withdraw more than the allowed annual withdrawal amount in a contract year, we call this an "excess withdrawal" under the rider. Excess withdrawals trigger an adjustment of a benefit's guaranteed amount, which may cause it to be reduced (see "GBA Excess Withdrawal Processing," "RBA Excess Withdrawal Processing," and "ALP Excess Withdrawal Processing" headings below). Please note that basic withdrawal benefit and lifetime withdrawal benefit each has its own definition of the allowed annual withdrawal amount. Therefore a withdrawal may be considered an excess withdrawal for purposes of the lifetime withdrawal benefit only, the basic withdrawal benefit only, or both. If your withdrawals exceed the greater of the RBP or the RALP, surrender charges under the terms of the contract may apply (see "Charges -- Surrender Charges"). The amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. Market value adjustments, if applicable, will also be made (see "Guarantee Period Accounts (GPAs) -- Market Value Adjustment"). We pay you the amount you request. Any withdrawals you take under the contract will reduce the value of the death benefits (see "Benefits in Case of Death"). Upon full surrender of the contract, you will receive the remaining contract value less any applicable charges (see "Making the Most of Your Contract -- Surrenders"). The rider's guaranteed amounts can be increased at the specified intervals if your contract value has increased. An annual step up feature is available at each contract anniversary, subject to certain conditions, and may be applied automatically to your contract or may require you to elect the step up (see "Annual Step Up" heading below). If you exercise the annual step up election, the spousal continuation step up election (see "Spousal Continuation Step Up" heading below) or change your Portfolio Navigator model portfolio, the rider charge may change (see "Charges"). If you take withdrawals during the waiting period, any prior steps ups applied will be reversed and step ups will not be available until the end of the waiting period. You may take withdrawals after the waiting period without reversal of prior step ups. You should consider whether a SecureSource rider is appropriate for you because: - - LIFETIME WITHDRAWAL BENEFIT LIMITATIONS: The lifetime withdrawal benefit is subject to certain limitations, including but not limited to: (a) SINGLE LIFE: Once the contract value equals zero, payments are made for as long as the oldest owner or, if an owner is a nonnatural person, the oldest annuitant is living (see "If Contract Value Reduces to Zero" heading below). However, if the contract value is greater than zero, the lifetime withdrawal benefit terminates when a death benefit becomes payable (see "At Death" heading below). Therefore, if there are multiple contract owners, the rider may terminate or the lifetime - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 119 withdrawal benefit may be reduced when one of the contract owners dies the benefit terminates even though other contract owners are still living (except if the contract is continued under the spousal continuation provision of the contract). JOINT LIFE: Once the contract value equals zero, payments are made for as long as either covered spouse is living (see "If Contract Value Reduces to Zero" heading below). However, if the contract value is greater than zero, the lifetime withdrawal benefit terminates at the death of the last surviving covered spouse (see "At Death" heading below). (b) Excess withdrawals can reduce the ALP to zero even though the GBA, RBA, GBP and/or RBP values are greater than zero. If the both the ALP and the contract value are zero, the lifetime withdrawal benefit will terminate. (c) When the lifetime withdrawal benefit is first established, the initial ALP is based on (i) SINGLE LIFE: the basic withdrawal benefit's RBA at that time (see "Annual Lifetime Payment (ALP)" heading below), unless there has been a spousal continuation or ownership change; or (ii) JOINT LIFE: the basic withdrawal benefit's RBA at that time (see "Annual Lifetime Payment (ALP)" heading below). Any withdrawal you take before the ALP is established reduces the RBA and therefore may result in a lower amount of lifetime withdrawals you are allowed to take. (d) Withdrawals can reduce both the contract value and the RBA to zero prior to the establishment of the ALP. If this happens, the contract and the rider will terminate. - - USE OF PORTFOLIO NAVIGATOR PROGRAM REQUIRED: You must be invested in one of the available PN program model portfolios or investment options of the PN program. This requirement limits your choice of investments. This means you will not be able to allocate contract value to all of the subaccounts, GPAs or the regular fixed account that are available under the contract to contract owners who do not elect the rider. (See "Making the Most of Your Contract -- Portfolio Navigator Program.") You may allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA fixed account, when available (see "The Special DCA Fixed Account"), and we will make monthly transfers into the model portfolio or investment option you have chosen. You may make two elective model portfolio or investment option changes per contract year; we reserve the right to limit elective model portfolio or investment option changes if required to comply with the written instructions of a fund (see "Market Timing"). You can allocate your contract value to any available investment option during the following times: (1) prior to your first withdrawal and (2) following a benefit reset as described below but prior to any subsequent withdrawal. During these accumulation phases, you may request to change your model portfolio or investment option to any available investment option. Immediately following a withdrawal your contract value will be reallocated to the target investment option as shown in your contract if your current model portfolio or investment option is more aggressive than the target model portfolio or investment option. If you are in the static model portfolio, this reallocation will be made to the applicable fund of funds investment option. This automatic reallocation is not included in the total number of allowed model changes per contract year and will not cause your rider fee to increase. The target investment option is currently the Moderate investment option. We reserve the right to change the target investment option to an investment option that is more aggressive than the current target investment option after 30 days written notice. After you have taken a withdrawal and prior to any benefit reset as described below, you are in a withdrawal phase. During withdrawal phases you may request to change your model portfolio or investment option to the target investment option or any model portfolio or investment option that is more conservative than the target investment option without a benefit reset as described below. If you are in a withdrawal phase and you choose to allocate your contract value to an investment option that is more aggressive than the target investment option, your rider benefit will be reset as follows: (a) the total GBA will be reset to the lesser of its current value or the contract value; and (b) the total RBA will be reset to the lesser of its current value or the contract value; and (c) the ALP, if established, will be reset to the lesser of its current value or 6% of the contract value; and (d) the GBP will be recalculated as described below, based on the reset GBA and RBA; and (e) the RBP will be recalculated as the reset GBP less all prior withdrawals made during the current contract year, but not less than zero; and (f) the RALP will be recalculated as the reset ALP less all prior withdrawals made during the current contract year, but not less than zero. - -------------------------------------------------------------------------------- 120 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS You may request to change your investment option (or change from a model portfolio to an investment option) by written request on an authorized form or by another method agreed to by us. - - LIMITATIONS ON PURCHASE OF OTHER RIDERS UNDER YOUR CONTRACT: You may elect only the SecureSource - Single Life rider or the SecureSource - Joint Life rider. If you elect the SecureSource rider, you may not elect the Accumulation Benefit rider. - - NON-CANCELABLE: Once elected, the SecureSource rider may not be cancelled (except as provided under "Rider Termination" heading below) and the fee will continue to be deducted until the contract or rider is terminated or the contract value reduces to zero (described below). Dissolution of marriage does not terminate the SecureSource - Joint Life rider and will not reduce the fee we charge for this rider. The benefit under the SecureSource - Joint Life rider continues for the covered spouse who is the owner of the contract (or annuitant in the case of nonnatural ownership). The rider will terminate at the death of the contract owner (or annuitant in the case of nonnatural ownership) because the original spouse will be unable to elect the spousal continuation provision of the contract (see "Joint Life only: Covered Spouses" below). - - JOINT LIFE: LIMITATIONS ON CONTRACT OWNERS, ANNUITANTS AND BENEFICIARIES: Since the joint life benefit will terminate unless the surviving covered spouse continues the contract under the spousal continuation provision of the contract upon the owner's death, only ownership arrangements that permit such continuation are allowed at rider issue. In general, the covered spouses should be joint owners, or one covered spouse should be the owner and the other covered spouse should be named as the sole primary beneficiary. For non- natural ownership arrangements that allow for spousal continuation one covered spouse should be the annuitant and the other covered spouse should be the sole primary beneficiary. For revocable trust ownerships, the grantor of the trust must be the annuitant and the beneficiary must either be the annuitant's spouse or a trust that names the annuitant's spouse as the sole primary beneficiary. You are responsible for establishing ownership arrangements that will allow for spousal continuation. If you select the SecureSource - Joint Life rider, please consider carefully whether or not you wish to change the beneficiary of your annuity contract. The rider will terminate if the surviving covered spouse can not utilize the spousal continuation provision of the contract when the death benefit is payable. - - LIMITATIONS ON PURCHASE PAYMENTS: We reserve the right to limit the cumulative amount of purchase payments, subject to state restrictions. For current limitations, see "Buying Your Contract -- Purchase Payments." - - INTERACTION WITH TOTAL FREE AMOUNT (TFA) CONTRACT PROVISION: The TFA is the amount you are allowed to surrender from the contract in each contract year without incurring a surrender charge (see "Charges -- Surrender Charge"). The TFA may be greater than the RBP or RALP under this rider. Any amount you withdraw in a contract year under the contract's TFA provision that exceeds the RBP or RALP is subject to the excess withdrawal processing described below for the GBA, RBA and ALP. You should consult your tax advisor before you select this optional rider if you have any questions about the use of the rider in your tax situation because: - - TAX CONSIDERATIONS FOR NONQUALIFIED ANNUITIES: Under current federal income tax law, withdrawals under nonqualified annuities, including withdrawals taken from the contract under the terms of the rider, are treated less favorably than amounts received as annuity payments under the contract (see "Taxes -- Nonqualified Annuities"). Withdrawals are taxable income to the extent of earnings. Withdrawals of earnings before age 59 1/2 may incur a 10% IRS early withdrawal penalty. You should consult your tax advisor before you select this optional rider if you have any questions about the use of the rider in your tax situation. - - TAX CONSIDERATIONS FOR QUALIFIED ANNUITIES: Qualified annuities have minimum distribution rules that govern the timing and amount of distributions from the annuity contract (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). If you have a qualified annuity, you may need to take an RMD that exceeds the guaranteed amount of withdrawal available under the rider and such withdrawals may reduce future benefits guaranteed under the rider. While the rider permits certain excess withdrawals to be made for the purpose of satisfying RMD requirements for your contract alone without reducing future benefits guaranteed under the rider, there can be no guarantee that changes in the federal income tax law after the effective date of the rider will not require a larger RMD to be taken, in which case, future guaranteed withdrawals under the rider could be reduced. See Appendix F for additional information. - - LIMITATIONS ON TSAS: Your right to take withdrawals is restricted if your contract is a TSA (see "TSA -- Special Provisions"). Therefore, a SecureSource rider may be of limited value to you. KEY TERMS AND PROVISIONS OF THE SECURESOURCE RIDER ARE DESCRIBED BELOW: WITHDRAWAL: The amount by which your contract value is reduced as a result of any withdrawal request. It may differ from the amount of your request due to any surrender charge and any market value adjustment. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 121 WAITING PERIOD: The period of time starting on the rider effective date during which the annual step up is not available if you take withdrawals. The current waiting period is three years. GUARANTEED BENEFIT AMOUNT (GBA): The total cumulative withdrawals guaranteed by the rider under the basic benefit. The maximum GBA is $5,000,000. The GBA cannot be withdrawn and is not payable as a death benefit. It is an interim value used to calculate the amount available for withdrawals each year under the basic withdrawal benefit (see "Guaranteed Benefit Payment" below). At any time, the total GBA is the sum of the individual GBAs associated with each purchase payment. THE GBA IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - - At contract issue -- the GBA is equal to the initial purchase payment, plus any purchase payment credit. - - When you make additional purchase payments -- each additional purchase payment has its own GBA equal to the amount of the purchase payment, plus any purchase payment credit. - - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - - When an individual RBA is reduced to zero -- the GBA that is associated with that RBA will also be set to zero. - - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the GBA associated with each purchase payment will be reset to the amount of that purchase payment, plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. - - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBA remains unchanged. If there have been multiple purchase payments, both the total GBA and each payment's GBA remain unchanged. (b) is greater than the total RBP -- GBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE GBA. If the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. GBA EXCESS WITHDRAWAL PROCESSING The total GBA will automatically be reset to the lesser of (a) the total GBA immediately prior to the withdrawal; or (b) the contract value immediately following the withdrawal. If there have been multiple purchase payments, each payment's GBA after the withdrawal will be reset to equal that payment's RBA after the withdrawal plus (a) times (b), where: (a) is the ratio of the total GBA after the withdrawal less the total RBA after the withdrawal to the total GBA before the withdrawal less the total RBA after the withdrawal; and (b) is each payment's GBA before the withdrawal less that payment's RBA after the withdrawal. REMAINING BENEFIT AMOUNT (RBA): Each withdrawal you make reduces the amount that is guaranteed by the rider as future withdrawals. At any point in time, the RBA equals the amount of GBA that remains available for withdrawals for the remainder of the contract's life, and total RBA is the sum of the individual RBAs associated with each purchase payment. The maximum RBA is $5,000,000. THE RBA IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - - At contract issue -- the RBA is equal to the initial purchase payment plus any purchase payment credit. - - When you make additional purchase payments -- each additional purchase payment has its own RBA initially set equal to that payment's GBA (the amount of the purchase payment, plus any purchase payment credit). - - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the RBA associated with each purchase payment will be reset to the amount of that purchase payment, plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. - - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the total RBA is reduced by the amount of the withdrawal. If there have been multiple purchase payments, each payment's RBA is reduced in proportion to its RBP. (b) is greater than the total RBP -- RBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE RBA. Please note that if the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. - -------------------------------------------------------------------------------- 122 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS RBA EXCESS WITHDRAWAL PROCESSING The total RBA will automatically be reset to the lesser of (a) the contract value immediately following the withdrawal, or (b) the total RBA immediately prior to the withdrawal, less the amount of the withdrawal. If there have been multiple purchase payments, both the total RBA and each payment's RBA will be reset. The total RBA will be reset according to the excess withdrawal processing described above. Each payment's RBA will be reset in the following manner: 1. The withdrawal amount up to the total RBP is taken out of each RBA bucket in proportion to its individual RBP at the time of the withdrawal; and 2. The withdrawal amount above the total RBP and any amount determined by the excess withdrawal processing are taken out of each RBA bucket in proportion to its RBA at the time of the withdrawal. GUARANTEED BENEFIT PAYMENT (GBP): At any time, the amount available for withdrawal in each contract year after the waiting period, until the RBA is reduced to zero, under the basic withdrawal benefit. At any point in time, each purchase payment has its own GBP, which is equal to the lesser of that payment's RBA or 7% of that payment's GBA, and the total GBP is the sum of the individual GBPs. During the waiting period, the guaranteed annual withdrawal amount may be less than the GBP due to the limitations the waiting period imposes on your ability to utilize both annual step-ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual withdrawal amount during the waiting period is equal to the value of the RBP at the beginning of the contract year. THE GBP IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - - At contract issue -- the GBP is established as 7% of the GBA value. - - At each contract anniversary -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value. - - When you make additional purchase payments -- each additional purchase payment has its own GBP equal to the purchase payment amount, plus any purchase payment credit multiplied by 7%. - - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - - When an individual RBA is reduced to zero -- the GBP associated with that RBA will also be reset to zero. - - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the GBA and the RBA associated with each purchase payment will be reset to the amount of that purchase payment plus any purchase payment credit. Each payment's GBP will be reset to 7% of the sum of purchase payment and any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. - - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBP remains unchanged. (b) is greater than the total RBP -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value, based on the RBA and GBA after the withdrawal. If the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. REMAINING BENEFIT PAYMENT (RBP): The amount available for withdrawal for the remainder of the contract year under the basic withdrawal benefit. At any point in time, the total RBP is the sum of the RBPs for each purchase payment. During the waiting period, when the guaranteed amount may be less than the GBP, the value of the RBP at the beginning of the contract year will be that amount that is actually guaranteed each contract year. THE RBP IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - - At the beginning of each contract year during the waiting period and prior to any withdrawal -- the RBP for each purchase payment is set equal to that purchase payment plus any purchase payment credit, multiplied by 7%. - - At the beginning of any other contract year -- the RBP for each purchase payment is set equal to that purchase payment's GBP. - - When you make additional purchase payments -- each additional purchase payment has its own RBP equal to that payment's GBP. - - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - - At spousal continuation -- (see "Spousal Option to Continue the Contract" heading below). - - When an individual RBA is reduced to zero -- the RBP associated with that RBA will also be reset to zero. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 123 - - When you make any withdrawal -- the total RBP is reset to equal the total RBP immediately prior to the withdrawal less the amount of the withdrawal, but not less than zero. If there have been multiple purchase payments, each payment's RBP is reduced proportionately. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RBP, GBA EXCESS WITHDRAWAL PROCESSING AND RBA EXCESS WITHDRAWAL PROCESSING ARE APPLIED and the amount available for future withdrawals for the remainder of the contract's life may be reduced by more than the amount of withdrawal. When determining if a withdrawal will result in the excess withdrawal processing, the applicable RBP will not yet reflect the amount of the current withdrawal. SINGLE LIFE ONLY: COVERED PERSON: The person whose life is used to determine when the ALP is established, and the duration of the ALP payments (see "Annual Lifetime Payment (ALP)" heading below). The covered person is the oldest contract owner. If the owner is a nonnatural person, e.g., a trust or corporation, the covered person is the oldest annuitant. A spousal continuation or a change of contract ownership may reduce the amount of the lifetime withdrawal benefit and may change the covered person. JOINT LIFE ONLY: COVERED SPOUSES: The contract owner and his or her legally married spouse as defined under federal law, as named on the application and as shown in the contract for as long as the marriage is valid and in effect. If the contract owner is a nonnatural person (e.g., a revocable trust), the covered spouses are the annuitant and the legally married spouse of the annuitant. The covered spouses lives are used to determine when the ALP is established, and the duration of the ALP payments (see "Annual Lifetime Payment (ALP)" heading below). The covered spouses are established on the rider effective date and cannot be changed. ANNUAL LIFETIME PAYMENT ATTAINED AGE (ALPAA): - - SINGLE LIFE: The covered person's age after which time the lifetime benefit can be established. Currently, the lifetime benefit can be established on the later of the contract effective date or the contract anniversary date on/following the date the covered person reaches age 65. - - JOINT LIFE: The age of the younger covered spouse at which time the lifetime benefit is established. ANNUAL LIFETIME PAYMENT (ALP): Once established, the ALP under the lifetime withdrawal benefit is at any time the amount available for withdrawals in each contract year after the waiting period until the later of: - - SINGLE LIFE: death; or - - JOINT LIFE: death of the last surviving covered spouse; or - - the RBA is reduced to zero. The maximum ALP is $300,000. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the ALP is zero. During the waiting period, the guaranteed annual lifetime withdrawal amount may be less than the ALP due to the limitations the waiting period imposes on your ability to utilize both annual step-ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual lifetime withdrawal amount during the waiting period is equal to the value of the RALP at the beginning of the contract year. THE ALP IS DETERMINED AT THE FOLLOWING TIMES: - - SINGLE LIFE: The later of the contract effective date or the contract anniversary date on/following the date the covered person reaches age 65 -- the ALP is established as 6% of the total RBA. - - JOINT LIFE: The ALP is established as 6% of the total RBA on the earliest of the following dates: (a) the rider effective date if the younger covered spouse has already reached age 65. (b) the rider anniversary on/following the date the younger covered spouse reaches age 65. (c) upon the first death of a covered spouse, then (1) the date we receive written request when the death benefit is not payable and the surviving covered spouse has already reached age 65; or (2) the date spousal continuation is effective when the death benefit is payable and the surviving covered spouse has already reached age 65; or (3) the rider anniversary on/following the date the surviving covered spouse reaches age 65. (d) Following dissolution of marriage of the covered spouses, (1) the date we receive written request if the remaining covered spouse who is the owner (or annuitant in the case of nonnatural ownership) has already reached age 65; or (2) the rider anniversary on/following the date the remaining covered spouse who is the owner (or annuitant in the case of nonnatural ownership) reaches age 65. - -------------------------------------------------------------------------------- 124 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - When you make additional purchase payments -- each additional purchase payment increases the ALP by 6% of the sum of the purchase payment plus any purchase payment credits. - - At step ups -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - - SINGLE LIFE: At spousal continuation or contract ownership change -- (see "Spousal Option to Continue the Contract" and "Contract Ownership Change" headings below). - - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the ALP will be reset to equal total purchase payments plus any purchase payment credit, multiplied by 6%. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. - - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the RALP -- the ALP remains unchanged. (b) is greater than the RALP -- ALP EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE ALP. If the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. ALP EXCESS WITHDRAWAL PROCESSING The ALP is reset to the lesser of the ALP immediately prior to the withdrawal, or 6% of the contract value immediately following the withdrawal. REMAINING ANNUAL LIFETIME PAYMENT (RALP): The amount available for withdrawal for the remainder of the contract year under the lifetime withdrawal benefit. During the waiting period, when the guaranteed annual withdrawal amount may be less than the ALP, the value of the RALP at the beginning of the contract year will be the amount that is actually guaranteed each contract year. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the RALP is zero. - - THE RALP IS DETERMINED AT THE FOLLOWING TIMES: - - The RALP is established at the same time as the ALP, and: (a) During the waiting period and prior to any withdrawals -- the RALP is established equal to the purchase payments, plus purchase payment credit, multiplied by 6%. (b) At any other time -- the RALP is established equal to the ALP less all prior withdrawals made in the contract year but not less than zero. - - At the beginning of each contract year during the waiting period and prior to any withdrawals -- the RALP is set equal to the total purchase payments plus any purchase payment credit, multiplied by 6%. - - At the beginning of any other contract year -- the RALP is set equal to ALP. - - When you make additional purchase payments -- each additional purchase payment increases the RALP by 6% of the sum of the purchase payment amount plus any purchase payment credit. - - At step ups -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - - When you make any withdrawal -- the RALP equals the RALP immediately prior to the withdrawal less the amount of the withdrawal but not less than zero. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RALP, ALP EXCESS WITHDRAWAL PROCESSING IS APPLIED and may reduce the amount available for future withdrawals. When determining if a withdrawal will result in excess withdrawal processing, the applicable RALP will not yet reflect the amount of the current withdrawal. REQUIRED MINIMUM DISTRIBUTIONS (RMD): If you are taking RMDs from your contract and the RMD calculated separately for your contract is greater than the RBP or the RALP on the most recent contract anniversary, the portion of the RMD that exceeds the RBP or RALP on the most recent rider anniversary will not be subject to excess withdrawal processing provided that the following conditions are met: - - The RMD is for your contract alone; - - The RMD is based on your recalculated life expectancy taken from the Uniform Lifetime Table under the Code; and - - The RMD amount is otherwise based on the requirements of section 401(a) (9), related Code provisions and regulations there under that were in effect on the effective date of the rider. RMD rules follow the calendar year which most likely does not coincide with your contract year and therefore may limit when you can take your RMD and not be subject to excess withdrawal processing. Withdrawal amounts greater than the RBP or RALP on the contract anniversary date that do not meet these conditions will result in excess withdrawal processing as described above. See Appendix F for additional information. STEP UP DATE: The date any step up becomes effective, and depends on the type of step up being applied (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 125 ANNUAL STEP UP: Beginning with the first contract anniversary, an increase of the GBA, RBA, GBP, RBP, ALP and/or RALP values may be available. A step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be withdrawn or paid upon death. Rather, a step up determines the current values of the GBA, RBA, GBP, RBP, ALP and RALP, and may extend the payment period or increase the allowable payment. The annual step up may be available as described below, subject to the following rules: - - The annual step up is effective on the step up date. - - Only one step up is allowed each contract year. - - If you take any withdrawals during the waiting period, any previously applied step ups will be reversed and the Annual step up will not be available until the end of the waiting period. - - On any rider anniversary where the RBA or, if established, the ALP would increase and the application of the step up would not increase the rider charge, the annual step up will be automatically applied to your contract, and the step up date is the contract anniversary date. - - If the application of the step up would increase the rider charge, the annual step up is not automatically applied. Instead, you have the option to step up for 30 days after the contract anniversary as long as either the contract value is greater than the total RBA or 6% of the contract value is greater than the ALP, if established, on the step-up date. If you exercise the elective annual step up option, you will pay the rider charge in effect on the step up date. If you wish to exercise the elective annual step up option, we must receive a request from you or your financial advisor. The step up date is the date we receive your request to step up. If your request is received after the close of business, the step up date will be the next valuation day. - - The ALP and RALP are not eligible for step ups until they are established. Prior to being established, the ALP and RALP values are both zero. - - Please note it is possible for the ALP to step up even if the RBA or GBA do not step up, and it is also possible for the RBA and GBA to step up even if the ALP does not step up. The annual step up resets the GBA, RBA, GBP, RBP, ALP and RALP values as follows: - - The total RBA will be reset to the greater of the total RBA immediately prior to the step up date or the contract value on the step up date. - - The total GBA will be reset to the greater of the total GBA immediately prior to the step up date or the contract value on the step up date. - - The total GBP will be reset using the calculation as described above based on the increased GBA and RBA. - - The total RBP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RBP will not be affected by the step up. (b) At any other time, the RBP will be reset to the increased GBP less all prior withdrawals made in the current contract year, but not less than zero. - - The ALP will be reset to the greater of the ALP immediately prior to the step up date or 6% of the contract value on the step up date. - - The RALP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RALP will not be affected by the step up. (b) At any other time, the RALP will be reset to the increased ALP less all prior withdrawals made in the current contract year, but not less than zero. SPOUSAL OPTION TO CONTINUE THE CONTRACT UPON OWNER'S DEATH: SINGLE LIFE: If a surviving spouse elects to continue the contract and continues the contract as the new owner under the spousal continuation provision of the contract, the SecureSource - Single Life rider also continues. When the spouse elects to continue the contract, any remaining waiting period is cancelled and any waiting period limitations on withdrawals and step-ups terminate; if the covered person changes due to a spousal continuation the GBA, RBA, GBP, RBP, ALP and RALP values are affected as follows: - - The GBA, RBA and GBP values remain unchanged. - - The RBP is automatically reset to the GBP less all prior withdrawals made in the current contract year, but not less than zero. - - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the date of continuation -- the ALP will be established on the contract anniversary following the date the covered person reaches - -------------------------------------------------------------------------------- 126 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS age 65 as the lesser of the RBA or the contract anniversary value, multiplied by 6%. The RALP will be established on the same date equal to the ALP. - - If the ALP has not yet been established but the new covered person is age 65 or older as of the date of continuation -- the ALP will be established on the date of continuation as the lesser of the RBA or the contract value, multiplied by 6%. The RALP will be established on the same date in an amount equal to the ALP less all prior withdrawals made in the current contract year, but not less than zero. - - If the ALP has been established but the new covered person has not yet reached age 65 as of the date of continuation -- the ALP and RALP will be automatically reset to zero for the period of time beginning with the date of continuation and ending with the contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%, and the RALP will be reset to the ALP. - - If the ALP has been established and the new covered person is age 65 or older as of the date of continuation -- the ALP will be automatically reset to the lesser of the current ALP or 6% of the contract value on the date of continuation. The RALP will be reset to the ALP less all prior withdrawals made in the current contract year, but not less than zero. Please note that the lifetime withdrawal benefit amount may be reduced as a result of the spousal continuation. JOINT LIFE: If a surviving spouse is a covered spouse and elects the spousal continuation provision of the contract as the new owner, the SecureSource - Joint Life rider also continues. When the spouse elects to continue the contract, any remaining waiting period is cancelled and any waiting period limitations on withdrawals and step-ups terminate. The surviving covered spouse can name a new beneficiary; however, a new covered spouse cannot be added to the rider. SPOUSAL CONTINUATION STEP UP: At the time of spousal continuation, a step-up may be available. All annual step-up rules (see "Annual Step-Up" heading above), other than those that apply to the waiting period, also apply to the spousal continuation step-up. If the spousal continuation step-up is processed automatically, the step-up date is the valuation date spousal continuation is effective. If not, the spouse must elect the step up and must do so within 30 days of the spousal continuation date. If the spouse elects the spousal continuation step up, the step-up date is the valuation date we receive the spouse's written request to step-up if we receive the request by the close of business on that day, otherwise the next valuation date. RULES FOR SURRENDER PROVISION OF YOUR CONTRACT: Minimum contract values following surrender no longer apply to your contract. For surrenders, the surrender will be made from the variable subaccounts, and the Regular Fixed Account (if applicable) in the same proportion as your interest in each bears to the contract value less amounts in any Special DCA fixed account. You cannot specify from which accounts the surrender is to be made. IF CONTRACT VALUE REDUCES TO ZERO: If the contract value reduces to zero and the total RBA remains greater than zero, you will be paid in the following scenarios: 1) The ALP has not yet been established and the contract value is reduced to zero as a result of fees or charges or a withdrawal that is less than or equal to the RBP. In this scenario, you can choose to: (a) receive the remaining schedule of GBPs until the RBA equals zero; or (b) SINGLE LIFE: wait until the rider anniversary on/following the date the covered person reaches age 65, and then receive the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero; or (c) JOINT LIFE: wait until the rider anniversary on/following the date the younger covered spouse reaches age 65, and then receive the ALP annually until the latter of (i) the death of the last surviving covered spouse, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 2) The ALP has been established and the contract value reduces to zero as a result of fees or charges, or a withdrawal that is less than or equal to both the RBP and the RALP. In this scenario, you can choose to receive: (a) the remaining schedule of GBPs until the RBA equals zero; or (b) SINGLE LIFE: the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero; or (c) JOINT LIFE: the ALP annually until the latter of (i) the death of the last surviving covered spouse, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 3) The ALP has been established and the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP. In this scenario, the remaining schedule of GBPs will be paid until the RBA equals zero. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 127 4) The ALP has been established and the contract value falls to zero as a result of a withdrawal that is greater than the RBP but less than or equal to the RALP. In this scenario, the ALP will be paid annually until the death of the: - - SINGLE LIFE: covered person; - - JOINT LIFE: last surviving covered spouse. Under any of these scenarios: - - The annualized amounts will be paid to you in the frequency you elect. You may elect a frequency offered by us at the time payments begin. Available payment frequencies will be no less frequent than annually; - - We will no longer accept additional purchase payments; - - You will no longer be charged for the rider; - - Any attached death benefit riders will terminate; and - - SINGLE LIFE: The death benefit becomes the remaining payments, if any, until the RBA is reduced to zero. - - JOINT LIFE: If the owner had been receiving the ALP, upon the first death the ALP will continue to be paid annually until the later of: 1) the death of the last surviving covered spouse or 2) the RBA is reduced to zero. In all other situations the death benefit becomes the remaining payments, if any, until the RBA is reduced to zero. The SecureSource rider and the contract will terminate under either of the following two scenarios: - - If the contract value falls to zero as a result of a withdrawal that is greater than both the RALP and the RBP. This is full surrender of the contract value. - - If the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP, and the total RBA is reduced to zero. AT DEATH: SINGLE LIFE: If the contract value is greater than zero when the death benefit becomes payable, the beneficiary may: 1) elect to take the death benefit under the terms of the contract, 2) take the fixed payout option available under this rider, or 3) continue the contract under the spousal continuation provision of the contract above. If the contract value equals zero and the death benefit becomes payable, the following will occur: - - If the RBA is greater than zero and the owner has been receiving the GBP each year, the GBP will continue to be paid to the beneficiary until the RBA equals zero. - - If the covered person dies and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the RBA equals zero. - - If the covered person is still alive and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the later of the death of the covered person or the RBA equals zero. - - If the covered person is still alive and the RBA equals zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the death of the covered person. - - If the covered person dies and the RBA equals zero, the benefit terminates. No further payments will be made. JOINT LIFE: If the death benefit becomes payable at the death of a covered spouse, the surviving covered spouse must utilize the spousal continuation provision of the contract and continue the contract as the new owner to continue the joint benefit. If spousal continuation is not available under the terms of the contract, the rider terminates. The lifetime benefit of this rider ends at the death of the last surviving covered spouse. If the contract value is greater than zero when the death benefit becomes payable, the beneficiary may: 1) elect to take the death benefit under the terms of the contract, 2) take the fixed payout option available under this rider, or 3) continue the contract under the spousal continuation provision of the contract above. If the contract value equals zero at the first death of a covered spouse, the ALP will continue to be paid annually until the later of: 1) the death of the last surviving covered spouse or 2) the RBA is reduced to zero. If the contract value equals zero at the death of the last surviving covered spouse, the following will occur: - - If the RBA is greater than zero and the owner has been receiving the GBP each year, the GBP will continue to be paid to the beneficiary until the RBA equals zero. - - If the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the RBA equals zero. - - If the RBA equals zero, the benefit terminates. No further payments will be made. - -------------------------------------------------------------------------------- 128 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS CONTRACT OWNERSHIP CHANGE: SINGLE LIFE: If the contract changes ownership (see "Changing Ownership"), the GBA, RBA, GBP, RBP values will remain unchanged and the ALP and RALP will be reset as follows. Our current administrative practice is to only reset the ALP and RALP if the covered person changes due to the ownership change. - - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be established on the contract anniversary following the date the covered person reaches age 65. The ALP will be set equal to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the anniversary date occurs during the waiting period and prior to a withdrawal, the RALP will be set equal to the lesser of the ALP or total purchase payments plus any purchase payment credits, multiplied by 6%. If the anniversary date occurs at any other time, the RALP will be set equal to the ALP. - - If the ALP has not yet been established but the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be established on the ownership change date. The ALP will be set equal to the lesser of the RBA or the contract value, multiplied by 6%. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be set to the lesser of the ALP or total purchase payments plus any purchase payment credits multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be set to the ALP less all prior withdrawals made in the current contract year but not less than zero. - - If the ALP has been established but the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be reset to zero for the period of time beginning with the ownership change date and ending with the contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the time period ends during the waiting period and prior to any withdrawals, the RALP will be reset to the lesser of the ALP or total purchase payments plus any purchase payment credits, multiplied by 6%. If the time period ends at any other time, the RALP will be reset to the ALP. - - If the ALP has been established and the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be reset on the ownership change date. The ALP will be reset to the lesser of the current ALP or 6% of the contract value. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be reset to the lesser of the ALP or total purchase payments plus any purchase payment credits multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be reset to the ALP less all prior withdrawals made in the current contract year but not less than zero. Please note that the lifetime withdrawal benefit amount may be reduced as a result of the ownership change. JOINT LIFE: Ownership changes are only allowed between the covered spouses or their revocable trust(s). No other ownership changes are allowed as long as the rider is in force. REMAINING BENEFIT AMOUNT (RBA) PAYOUT OPTION: Several annuity payout plans are available under the contract. As an alternative to these annuity payout plans, a fixed annuity payout option is available under the SecureSource riders. Under this option the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the current total RBA at the time you begin this fixed annuity payout option. These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at that time but will be no less frequent than annually. If, at the death of the owner, total payouts have been made for less than the RBA, the remaining payouts will be paid to the beneficiary (see "The Annuity Payout Period" and "Taxes"). This option may not be available if the contract is issued to qualify under section 403 or 408 of the Code, as amended. For such contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using a life expectancy table published by the IRS. This annuity payout option may also be elected by the beneficiary of a contract as a settlement option. Whenever multiple beneficiaries are designated under the contract, each such beneficiary's share of the proceeds if they elect this option will be in proportion to their applicable designated beneficiary percentage. Beneficiaries of nonqualified contracts may elect this settlement option subject to the distribution requirements of the contract. We reserve the right to adjust the remaining schedule of GBPs if necessary to comply with the Code. - -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 129 RIDER TERMINATION The SecureSource rider cannot be terminated either by you or us except as follows: 1. SINGLE LIFE: After the death benefit is payable the rider will terminate if: (a) any one other than your spouse continues the contract, or (b) your spouse does not use the spousal continuation provision of the contract to continue the contract. 2. JOINT LIFE: After the death benefit is payable the rider will terminate if: (a) any one other than a covered spouse continues the contract, or (b) a covered spouse does not use the spousal continuation provision of the contract to continue the contract. 3. Annuity payouts under an annuity payout plan will terminate the rider. 4. Termination of the contract for any reason will terminate the rider. - -------------------------------------------------------------------------------- 130 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS APPENDIX I: CONDENSED FINANCIAL INFORMATION (UNAUDITED) The following tables give per-unit information about the financial history of each subaccount. The date in which operations commenced in each subaccount is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2009.
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ---------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (06/26/2006) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.71 $1.37 $1.15 $1.00 Accumulation unit value at end of period $1.09 $0.71 $1.37 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 3,313 1,964 1,519 6,467 - ---------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.22 $1.17 $1.00 Accumulation unit value at end of period $0.86 $0.72 $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 6,136 5,992 7,074 1,936 - ---------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.60 $1.30 $1.24 $1.00 Accumulation unit value at end of period $0.80 $0.60 $1.30 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 130,094 295,091 140,364 33,087 - ---------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.23 $1.10 $1.00 Accumulation unit value at end of period $1.00 $0.74 $1.23 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,603 1,325 1,295 346 - ---------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.84 $1.12 $1.16 $1.00 Accumulation unit value at end of period $1.08 $0.84 $1.12 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 71,544 74,527 79,523 987 - ---------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.25 $1.04 $1.00 Accumulation unit value at end of period $0.96 $0.72 $1.25 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 3,365 3,395 2,725 36,949 - ---------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.79 $1.09 $1.16 $1.00 Accumulation unit value at end of period $0.94 $0.79 $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 12,296 10,333 11,609 3,143 - ---------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.82 $1.09 $1.08 $1.00 Accumulation unit value at end of period $1.16 $0.82 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 10,915 8,519 8,110 2,469 - ---------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.28 $1.09 $1.00 Accumulation unit value at end of period $0.96 $0.77 $1.28 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 626,487 391,002 205,091 48,403 - ---------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.43 $1.20 $1.00 Accumulation unit value at end of period $1.00 $0.73 $1.43 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 10,385 10,806 7,134 23,001 - ---------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.18 $1.02 $1.00 Accumulation unit value at end of period $0.92 $0.78 $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 8,768 6,606 4,051 23,928 - ---------------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.37 $1.18 $1.00 Accumulation unit value at end of period $0.97 $0.78 $1.37 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 3,106 3,075 2,094 733 - ---------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.03 $1.03 $1.00 Accumulation unit value at end of period $1.07 $0.75 $1.03 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 261,015 165,981 112,633 46,638 - ----------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 131
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ---------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.80 $1.20 $1.12 $1.00 Accumulation unit value at end of period $1.07 $0.80 $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 3,772 1,827 1,105 403 - ---------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.34 $1.17 $1.00 Accumulation unit value at end of period $0.89 $0.77 $1.34 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 298,706 4,123 4,214 1,467 - ---------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.28 $1.10 $1.00 Accumulation unit value at end of period $0.97 $0.73 $1.28 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 180,001 379,751 246,455 94,738 - ---------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.25 $1.09 $1.00 Accumulation unit value at end of period $1.04 $0.75 $1.25 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 199,837 248,092 127,339 36,125 - ---------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.35 $1.16 $1.00 Accumulation unit value at end of period $0.94 $0.75 $1.35 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 10,921 10,113 8,721 2,653 - ---------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.55 $0.95 $1.22 $1.00 Accumulation unit value at end of period $0.64 $0.55 $0.95 $1.22 Number of accumulation units outstanding at end of period (000 omitted) 13,465 13,508 15,015 6,443 - ---------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.70 $1.06 $1.09 $1.00 Accumulation unit value at end of period $0.90 $0.70 $1.06 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 13,709 12,625 11,602 4,228 - ---------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.17 $1.14 $1.00 Accumulation unit value at end of period $0.91 $0.73 $1.17 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 17,365 17,652 20,093 5,798 - ---------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.10 $1.13 $1.00 Accumulation unit value at end of period $0.83 $0.69 $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 7,238 7,321 9,453 4,040 - ---------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.69 $1.20 $1.09 $1.00 Accumulation unit value at end of period $0.82 $0.69 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 3,103 2,879 2,330 1,060 - ---------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.63 $1.21 $1.10 $1.00 Accumulation unit value at end of period $0.89 $0.63 $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 2,424 2,546 2,798 719 - ---------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.36 $0.90 $1.17 $1.00 Accumulation unit value at end of period $0.46 $0.36 $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 5,983 3,711 1,648 695 - ---------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.85 $1.20 $1.09 $1.00 Accumulation unit value at end of period $1.07 $0.85 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 3,258 3,220 2,213 16,983 - ---------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.83 $1.40 $1.24 $1.00 Accumulation unit value at end of period $1.11 $0.83 $1.40 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 238,183 191,749 79,002 607 - ----------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 132 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ---------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- Accumulation unit value at end of period $0.85 $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 639,872 430,107 255,815 -- - ---------------------------------------------------------------------------------------------------------- LEGG MASON CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) (PREVIOUSLY LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I) Accumulation unit value at beginning of period $0.60 $1.02 $1.00 -- Accumulation unit value at end of period $0.85 $0.60 $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 2,226 1,683 864 -- - ---------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.76 $1.21 $1.10 $1.00 Accumulation unit value at end of period $1.04 $0.76 $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 2,648 1,141 650 320 - ---------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.97 $1.57 $1.24 $1.00 Accumulation unit value at end of period $1.28 $0.97 $1.57 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 17,912 18,559 16,501 4,446 - ---------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.20 $1.17 $1.00 Accumulation unit value at end of period $0.85 $0.64 $1.20 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 137,644 119,726 86,117 26,194 - ---------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.21 $1.14 $1.00 Accumulation unit value at end of period $0.95 $0.73 $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,127 833 629 164 - ---------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.23 $1.17 $1.00 Accumulation unit value at end of period $1.00 $0.73 $1.23 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 7,911 7,145 6,835 2,542 - ---------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (06/26/2006) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.00 $1.17 $1.08 $1.00 Accumulation unit value at end of period $1.17 $1.00 $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 577,448 420,661 316,103 64,310 - ---------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.66 $1.08 $1.10 $1.00 Accumulation unit value at end of period $0.90 $0.66 $1.08 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 8,026 7,814 7,765 3,088 - ---------------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $0.65 $1.12 $1.07 $1.00 Accumulation unit value at end of period $0.85 $0.65 $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 2,171 1,604 1,833 138 - ---------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.96 $1.15 $1.07 $1.00 Accumulation unit value at end of period $1.15 $0.96 $1.15 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 351,435 346,275 235,995 82,883 - ---------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- Accumulation unit value at end of period $0.87 $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,743 877 -- -- - ---------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,302 1,569 -- -- - ---------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,970 2,114 -- -- - ----------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 133
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ---------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,707 1,980 -- -- - ---------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- Accumulation unit value at end of period $0.94 $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,756 1,295 -- -- - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.79 $1.14 $1.13 $1.00 Accumulation unit value at end of period $0.97 $0.79 $1.14 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 9,918 2,682 3,274 829 - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)* (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.07 $1.07 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 56,313 97,399 60,832 34,337 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (0.87%) and (0.86%), respectively. - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.10 $1.05 $1.00 Accumulation unit value at end of period $1.16 $1.02 $1.10 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 972,289 788,507 586,913 145,290 - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.21 $1.13 $1.00 Accumulation unit value at end of period $0.90 $0.71 $1.21 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 784,644 581,359 300,203 93,936 - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.68 $1.18 $1.15 $1.00 Accumulation unit value at end of period $0.83 $0.68 $1.18 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,264 1,237 1,353 461 - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.12 $1.05 $1.00 Accumulation unit value at end of period $1.23 $1.11 $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 313,653 259,518 199,962 41,689 - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.11 $1.03 $1.00 Accumulation unit value at end of period $1.16 $1.10 $1.11 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 489,118 159,105 125,450 53,228 - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.81 $1.09 $1.08 $1.00 Accumulation unit value at end of period $1.23 $0.81 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 18,658 13,874 16,917 6,215 - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.88 $1.09 $1.07 $1.00 Accumulation unit value at end of period $1.24 $0.88 $1.09 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 425,767 209,056 151,929 49,975 - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.65 $1.19 $1.05 $1.00 Accumulation unit value at end of period $1.05 $0.65 $1.19 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 3,392 1,407 1,461 338 - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.65 $1.20 $1.09 $1.00 Accumulation unit value at end of period $0.91 $0.65 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 66,735 94,511 58,370 50,393 - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.19 $1.14 $1.00 Accumulation unit value at end of period $0.93 $0.74 $1.19 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 5,694 4,520 3,380 1,079 - ----------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 134 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ---------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.08 $1.03 $1.00 Accumulation unit value at end of period $1.09 $1.04 $1.08 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 19,314 18,319 9,945 2,091 - ---------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.16 $1.14 $1.00 Accumulation unit value at end of period $0.87 $0.64 $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 4,123 3,524 4,502 1,470 - ---------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.15 $1.16 $1.00 Accumulation unit value at end of period $0.86 $0.69 $1.15 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 915 794 881 285 - ---------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.04 $1.10 $1.00 Accumulation unit value at end of period $0.88 $0.63 $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,459 1,213 1,104 397 - ---------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.84 $1.84 $1.34 $1.00 Accumulation unit value at end of period $1.46 $0.84 $1.84 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 96,670 170,447 72,075 18,150 - ---------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.32 $1.18 $1.00 Accumulation unit value at end of period $0.98 $0.78 $1.32 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 4,460 3,440 3,482 1,285 - ---------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.70 $1.15 $1.12 $1.00 Accumulation unit value at end of period $0.91 $0.70 $1.15 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 634,379 315,690 173,483 64,829 - ---------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.73 $1.16 $1.10 $1.00 Accumulation unit value at end of period $0.99 $0.73 $1.16 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 738 671 780 107 - ---------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $0.72 $1.06 $1.12 $1.00 Accumulation unit value at end of period $0.97 $0.72 $1.06 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 373,857 309,935 185,435 24,338 - ---------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.70 $1.10 $1.13 $1.00 Accumulation unit value at end of period $0.89 $0.70 $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 201,934 251,843 151,420 67,895 - ---------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.17 $1.29 $1.00 Accumulation unit value at end of period $0.90 $0.64 $1.17 $1.29 Number of accumulation units outstanding at end of period (000 omitted) 96,054 117,566 42,226 21,964 - ---------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.31 $1.08 $1.00 Accumulation unit value at end of period $1.08 $0.69 $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 5,604 4,975 4,591 17,766 - ---------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.43 $1.24 $1.00 Accumulation unit value at end of period $1.15 $0.77 $1.43 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 187,502 120,530 56,104 23,903 - ---------------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $0.68 $1.13 $1.08 $1.00 Accumulation unit value at end of period $0.95 $0.68 $1.13 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 153,936 123,418 77,217 9,756 - ----------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 135
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ---------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $0.70 $1.18 $1.12 $1.00 Accumulation unit value at end of period $1.03 $0.70 $1.18 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 2,178 1,767 2,129 556 - ---------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.29 $1.15 $1.00 Accumulation unit value at end of period $1.14 $0.75 $1.29 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 7,416 5,757 5,179 1,212 - ----------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (06/26/2006) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.71 $1.37 $1.15 $1.00 Accumulation unit value at end of period $1.08 $0.71 $1.37 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,422 868 826 2,366 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.22 $1.17 $1.00 Accumulation unit value at end of period $0.85 $0.71 $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 3,606 3,339 3,809 815 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.60 $1.30 $1.24 $1.00 Accumulation unit value at end of period $0.80 $0.60 $1.30 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 55,082 134,103 71,496 17,586 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.23 $1.09 $1.00 Accumulation unit value at end of period $0.99 $0.73 $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,097 905 839 170 - --------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.83 $1.12 $1.16 $1.00 Accumulation unit value at end of period $1.07 $0.83 $1.12 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 25,534 34,239 39,420 1,124 - --------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.24 $1.04 $1.00 Accumulation unit value at end of period $0.96 $0.72 $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 1,872 2,187 1,670 16,170 - --------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.79 $1.09 $1.16 $1.00 Accumulation unit value at end of period $0.93 $0.79 $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 9,000 8,788 9,147 3,228 - --------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.81 $1.09 $1.08 $1.00 Accumulation unit value at end of period $1.16 $0.81 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 6,860 5,532 5,720 2,032 - --------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $0.76 $1.27 $1.09 $1.00 Accumulation unit value at end of period $0.95 $0.76 $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 250,317 170,602 98,884 25,237 - --------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.42 $1.20 $1.00 Accumulation unit value at end of period $0.99 $0.73 $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 6,844 7,828 5,334 11,268 - --------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.18 $1.02 $1.00 Accumulation unit value at end of period $0.91 $0.77 $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 6,272 4,552 2,404 11,513 - --------------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.37 $1.18 $1.00 Accumulation unit value at end of period $0.96 $0.78 $1.37 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 1,869 2,216 1,461 334 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 136 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.03 $1.03 $1.00 Accumulation unit value at end of period $1.06 $0.74 $1.03 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 118,218 85,447 67,726 27,120 - --------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.79 $1.20 $1.12 $1.00 Accumulation unit value at end of period $1.07 $0.79 $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 3,082 1,757 1,013 252 - --------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.33 $1.17 $1.00 Accumulation unit value at end of period $0.88 $0.77 $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 122,714 2,444 2,285 776 - --------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.27 $1.10 $1.00 Accumulation unit value at end of period $0.97 $0.72 $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 80,198 170,866 120,474 48,092 - --------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.24 $1.09 $1.00 Accumulation unit value at end of period $1.03 $0.74 $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 79,888 111,747 60,463 18,038 - --------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.34 $1.16 $1.00 Accumulation unit value at end of period $0.93 $0.75 $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 5,548 5,707 4,948 1,434 - --------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.54 $0.95 $1.21 $1.00 Accumulation unit value at end of period $0.64 $0.54 $0.95 $1.21 Number of accumulation units outstanding at end of period (000 omitted) 5,633 6,070 7,265 3,157 - --------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.70 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.89 $0.70 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 6,619 6,684 6,312 2,407 - --------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.17 $1.14 $1.00 Accumulation unit value at end of period $0.91 $0.73 $1.17 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 12,441 13,358 15,116 4,294 - --------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $0.68 $1.10 $1.13 $1.00 Accumulation unit value at end of period $0.82 $0.68 $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 3,784 3,714 4,307 1,797 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.68 $1.20 $1.09 $1.00 Accumulation unit value at end of period $0.81 $0.68 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,761 1,891 1,961 1,047 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.63 $1.21 $1.10 $1.00 Accumulation unit value at end of period $0.89 $0.63 $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,623 1,750 2,258 575 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.36 $0.90 $1.17 $1.00 Accumulation unit value at end of period $0.45 $0.36 $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 3,518 2,599 982 377 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.84 $1.20 $1.08 $1.00 Accumulation unit value at end of period $1.06 $0.84 $1.20 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,339 1,902 1,489 7,279 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 137
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.82 $1.40 $1.24 $1.00 Accumulation unit value at end of period $1.10 $0.82 $1.40 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 94,818 82,817 36,588 566 - --------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- Accumulation unit value at end of period $0.85 $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 250,167 182,177 115,892 -- - --------------------------------------------------------------------------------------------------------- LEGG MASON CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) (PREVIOUSLY LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I) Accumulation unit value at beginning of period $0.60 $1.02 $1.00 -- Accumulation unit value at end of period $0.84 $0.60 $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 1,238 929 534 -- - --------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.21 $1.10 $1.00 Accumulation unit value at end of period $1.04 $0.75 $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,651 807 641 321 - --------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.96 $1.57 $1.24 $1.00 Accumulation unit value at end of period $1.27 $0.96 $1.57 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 10,420 10,996 10,760 2,967 - --------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.20 $1.17 $1.00 Accumulation unit value at end of period $0.85 $0.64 $1.20 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 52,314 49,940 38,901 12,041 - --------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.21 $1.14 $1.00 Accumulation unit value at end of period $0.94 $0.72 $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 607 615 433 124 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.22 $1.17 $1.00 Accumulation unit value at end of period $1.00 $0.72 $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 5,430 5,426 5,428 2,158 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (06/26/2006) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $0.99 $1.17 $1.08 $1.00 Accumulation unit value at end of period $1.16 $0.99 $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 270,231 222,194 182,029 37,454 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.66 $1.07 $1.10 $1.00 Accumulation unit value at end of period $0.89 $0.66 $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 5,411 5,373 5,501 2,177 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $0.65 $1.12 $1.07 $1.00 Accumulation unit value at end of period $0.85 $0.65 $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,308 1,236 1,705 113 - --------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.95 $1.14 $1.07 $1.00 Accumulation unit value at end of period $1.14 $0.95 $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 143,534 158,174 117,365 42,994 - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- Accumulation unit value at end of period $0.87 $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 904 494 -- -- - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,575 776 -- -- - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 138 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,378 1,254 -- -- - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,983 764 -- -- - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- Accumulation unit value at end of period $0.93 $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,673 660 -- -- - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.79 $1.13 $1.13 $1.00 Accumulation unit value at end of period $0.97 $0.79 $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 7,468 2,260 3,045 692 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)* (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.06 $1.07 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 40,034 78,386 66,258 30,300 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (1.05%) and (1.05%), respectively. - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.01 $1.09 $1.05 $1.00 Accumulation unit value at end of period $1.15 $1.01 $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 442,738 396,544 332,535 82,281 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.20 $1.13 $1.00 Accumulation unit value at end of period $0.90 $0.71 $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 313,086 252,046 139,948 47,849 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.67 $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.83 $0.67 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,185 914 1,147 275 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.12 $1.05 $1.00 Accumulation unit value at end of period $1.22 $1.10 $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 143,161 130,420 111,551 23,263 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.10 $1.03 $1.00 Accumulation unit value at end of period $1.15 $1.09 $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 214,008 81,236 68,621 29,756 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.80 $1.09 $1.08 $1.00 Accumulation unit value at end of period $1.22 $0.80 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 12,921 10,347 11,949 4,619 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.87 $1.08 $1.07 $1.00 Accumulation unit value at end of period $1.23 $0.87 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 180,301 95,420 75,951 28,107 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.65 $1.18 $1.05 $1.00 Accumulation unit value at end of period $1.04 $0.65 $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 2,466 951 867 201 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.65 $1.19 $1.09 $1.00 Accumulation unit value at end of period $0.90 $0.65 $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 26,538 41,871 28,850 23,159 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 139
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.19 $1.14 $1.00 Accumulation unit value at end of period $0.92 $0.74 $1.19 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 3,971 3,649 2,723 808 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.07 $1.03 $1.00 Accumulation unit value at end of period $1.08 $1.03 $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 14,488 13,686 5,824 1,511 - --------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.16 $1.14 $1.00 Accumulation unit value at end of period $0.86 $0.64 $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 2,841 2,743 3,731 1,229 - --------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.15 $1.16 $1.00 Accumulation unit value at end of period $0.86 $0.69 $1.15 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 753 543 624 255 - --------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.04 $1.10 $1.00 Accumulation unit value at end of period $0.87 $0.63 $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,107 745 671 344 - --------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.84 $1.83 $1.34 $1.00 Accumulation unit value at end of period $1.45 $0.84 $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 37,952 71,157 31,794 8,077 - --------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.31 $1.18 $1.00 Accumulation unit value at end of period $0.98 $0.77 $1.31 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 3,620 3,288 3,183 1,483 - --------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.70 $1.15 $1.12 $1.00 Accumulation unit value at end of period $0.91 $0.70 $1.15 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 244,849 135,010 80,555 31,988 - --------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.72 $1.16 $1.10 $1.00 Accumulation unit value at end of period $0.98 $0.72 $1.16 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 792 682 661 84 - --------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $0.72 $1.06 $1.12 $1.00 Accumulation unit value at end of period $0.97 $0.72 $1.06 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 145,260 131,215 85,865 10,682 - --------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.70 $1.10 $1.13 $1.00 Accumulation unit value at end of period $0.88 $0.70 $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 81,027 107,604 68,660 32,553 - --------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.16 $1.28 $1.00 Accumulation unit value at end of period $0.90 $0.64 $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 38,110 50,443 20,119 11,119 - --------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.31 $1.08 $1.00 Accumulation unit value at end of period $1.07 $0.69 $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 3,043 2,825 2,863 8,501 - --------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.43 $1.24 $1.00 Accumulation unit value at end of period $1.14 $0.77 $1.43 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 75,441 53,867 29,049 11,710 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 140 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $0.67 $1.13 $1.08 $1.00 Accumulation unit value at end of period $0.95 $0.67 $1.13 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 60,871 53,861 36,284 4,737 - --------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $0.70 $1.18 $1.11 $1.00 Accumulation unit value at end of period $1.02 $0.70 $1.18 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 1,197 1,080 959 327 - --------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.29 $1.14 $1.00 Accumulation unit value at end of period $1.13 $0.75 $1.29 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 4,669 3,444 3,245 854 - ---------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (06/26/2006) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.71 $1.37 $1.15 $1.00 Accumulation unit value at end of period $1.08 $0.71 $1.37 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,057 587 365 1,142 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.22 $1.17 $1.00 Accumulation unit value at end of period $0.85 $0.71 $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,039 1,592 1,556 507 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.60 $1.30 $1.24 $1.00 Accumulation unit value at end of period $0.80 $0.60 $1.30 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 40,250 87,244 38,356 8,397 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.23 $1.09 $1.00 Accumulation unit value at end of period $0.99 $0.73 $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 239 150 158 111 - --------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.83 $1.12 $1.16 $1.00 Accumulation unit value at end of period $1.07 $0.83 $1.12 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 17,413 21,846 20,594 250 - --------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.24 $1.04 $1.00 Accumulation unit value at end of period $0.95 $0.72 $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 821 577 514 7,306 - --------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.79 $1.09 $1.16 $1.00 Accumulation unit value at end of period $0.93 $0.79 $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 4,264 3,835 3,320 1,105 - --------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.81 $1.09 $1.08 $1.00 Accumulation unit value at end of period $1.15 $0.81 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,847 2,027 1,780 588 - --------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $0.76 $1.27 $1.09 $1.00 Accumulation unit value at end of period $0.95 $0.76 $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 185,351 110,062 51,553 11,519 - --------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.42 $1.20 $1.00 Accumulation unit value at end of period $0.99 $0.73 $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 4,454 4,367 2,855 5,330 - --------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.18 $1.02 $1.00 Accumulation unit value at end of period $0.91 $0.77 $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 4,737 3,330 1,797 5,526 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 141
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.37 $1.18 $1.00 Accumulation unit value at end of period $0.96 $0.78 $1.37 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 1,405 1,322 712 187 - --------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.03 $1.03 $1.00 Accumulation unit value at end of period $1.06 $0.74 $1.03 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 85,892 52,812 32,564 11,485 - --------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.79 $1.20 $1.12 $1.00 Accumulation unit value at end of period $1.06 $0.79 $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 1,476 508 272 85 - --------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.33 $1.17 $1.00 Accumulation unit value at end of period $0.88 $0.77 $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 91,809 1,394 1,157 403 - --------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.27 $1.10 $1.00 Accumulation unit value at end of period $0.97 $0.72 $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 55,492 108,730 62,826 21,709 - --------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.24 $1.09 $1.00 Accumulation unit value at end of period $1.03 $0.74 $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 55,298 70,935 30,848 8,140 - --------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.34 $1.16 $1.00 Accumulation unit value at end of period $0.93 $0.74 $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,988 1,887 1,417 577 - --------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.54 $0.95 $1.21 $1.00 Accumulation unit value at end of period $0.64 $0.54 $0.95 $1.21 Number of accumulation units outstanding at end of period (000 omitted) 3,724 3,060 2,707 1,034 - --------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.70 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.89 $0.70 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 3,930 3,508 3,160 896 - --------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.17 $1.14 $1.00 Accumulation unit value at end of period $0.90 $0.73 $1.17 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 7,366 7,976 8,346 2,910 - --------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $0.68 $1.10 $1.13 $1.00 Accumulation unit value at end of period $0.82 $0.68 $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 1,364 1,887 2,280 1,088 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.68 $1.20 $1.09 $1.00 Accumulation unit value at end of period $0.81 $0.68 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 504 452 376 159 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.63 $1.20 $1.10 $1.00 Accumulation unit value at end of period $0.88 $0.63 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,177 1,144 1,126 320 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.36 $0.90 $1.17 $1.00 Accumulation unit value at end of period $0.45 $0.36 $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,989 1,065 278 92 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 142 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.84 $1.20 $1.08 $1.00 Accumulation unit value at end of period $1.06 $0.84 $1.20 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 923 830 730 3,445 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.82 $1.40 $1.24 $1.00 Accumulation unit value at end of period $1.10 $0.82 $1.40 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 69,225 53,378 18,933 98 - --------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- Accumulation unit value at end of period $0.85 $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 186,397 119,627 61,515 -- - --------------------------------------------------------------------------------------------------------- LEGG MASON CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) (PREVIOUSLY LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I) Accumulation unit value at beginning of period $0.60 $1.02 $1.00 -- Accumulation unit value at end of period $0.84 $0.60 $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 836 406 182 -- - --------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.21 $1.10 $1.00 Accumulation unit value at end of period $1.03 $0.75 $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,309 556 314 77 - --------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.96 $1.56 $1.24 $1.00 Accumulation unit value at end of period $1.26 $0.96 $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 4,766 4,903 4,728 1,198 - --------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.20 $1.17 $1.00 Accumulation unit value at end of period $0.84 $0.63 $1.20 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 38,615 32,229 20,665 5,540 - --------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.21 $1.14 $1.00 Accumulation unit value at end of period $0.94 $0.72 $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 473 442 467 131 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.22 $1.17 $1.00 Accumulation unit value at end of period $0.99 $0.72 $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,662 2,483 2,223 890 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (06/26/2006) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $0.99 $1.17 $1.08 $1.00 Accumulation unit value at end of period $1.16 $0.99 $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 187,936 133,107 88,028 15,783 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.66 $1.07 $1.10 $1.00 Accumulation unit value at end of period $0.89 $0.66 $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 3,623 3,710 3,313 1,148 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $0.65 $1.12 $1.07 $1.00 Accumulation unit value at end of period $0.85 $0.65 $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 614 558 739 14 - --------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.95 $1.14 $1.07 $1.00 Accumulation unit value at end of period $1.14 $0.95 $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 106,125 101,673 60,132 18,644 - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- Accumulation unit value at end of period $0.87 $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 525 169 -- -- - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 143
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,688 436 -- -- - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- Accumulation unit value at end of period $0.90 $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,246 634 -- -- - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,800 965 -- -- - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- Accumulation unit value at end of period $0.93 $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,815 324 -- -- - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.79 $1.13 $1.13 $1.00 Accumulation unit value at end of period $0.97 $0.79 $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 4,084 1,157 1,380 306 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)* (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.06 $1.07 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 19,630 37,395 21,785 9,715 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (1.12%) and (1.12%), respectively. - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.01 $1.09 $1.05 $1.00 Accumulation unit value at end of period $1.14 $1.01 $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 328,316 248,818 163,183 34,539 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.20 $1.13 $1.00 Accumulation unit value at end of period $0.89 $0.71 $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 227,242 159,469 71,512 20,717 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.67 $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.82 $0.67 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 375 366 461 129 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.12 $1.05 $1.00 Accumulation unit value at end of period $1.21 $1.10 $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 103,933 79,449 54,634 9,735 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.10 $1.03 $1.00 Accumulation unit value at end of period $1.15 $1.09 $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 157,675 48,593 33,414 12,575 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.80 $1.08 $1.08 $1.00 Accumulation unit value at end of period $1.22 $0.80 $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 5,553 2,850 3,380 1,111 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.87 $1.08 $1.07 $1.00 Accumulation unit value at end of period $1.23 $0.87 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 132,844 59,935 38,612 11,996 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.18 $1.05 $1.00 Accumulation unit value at end of period $1.04 $0.64 $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 899 309 239 160 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 144 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.65 $1.19 $1.09 $1.00 Accumulation unit value at end of period $0.90 $0.65 $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 16,209 25,171 13,681 10,320 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.19 $1.14 $1.00 Accumulation unit value at end of period $0.92 $0.74 $1.19 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,603 1,026 1,015 235 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.07 $1.03 $1.00 Accumulation unit value at end of period $1.08 $1.03 $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 6,712 3,556 1,592 369 - --------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.16 $1.14 $1.00 Accumulation unit value at end of period $0.86 $0.64 $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,096 1,181 1,382 367 - --------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.14 $1.16 $1.00 Accumulation unit value at end of period $0.85 $0.69 $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 286 100 168 24 - --------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.04 $1.10 $1.00 Accumulation unit value at end of period $0.87 $0.63 $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 362 263 187 54 - --------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.84 $1.83 $1.34 $1.00 Accumulation unit value at end of period $1.45 $0.84 $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 25,932 45,352 16,836 3,634 - --------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.31 $1.18 $1.00 Accumulation unit value at end of period $0.97 $0.77 $1.31 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 1,873 1,656 1,210 490 - --------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.88 $0.69 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 59,457 70,085 36,823 14,779 - --------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.70 $1.15 $1.12 $1.00 Accumulation unit value at end of period $0.90 $0.70 $1.15 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 182,362 88,037 42,507 14,138 - --------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.72 $1.16 $1.10 $1.00 Accumulation unit value at end of period $0.98 $0.72 $1.16 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 179 95 225 61 - --------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $0.71 $1.06 $1.12 $1.00 Accumulation unit value at end of period $0.97 $0.71 $1.06 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 107,087 85,156 45,243 4,783 - --------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.88 $0.69 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 59,457 70,085 36,823 14,779 - --------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.16 $1.28 $1.00 Accumulation unit value at end of period $0.89 $0.64 $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 28,363 32,801 11,264 5,010 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 145
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.31 $1.08 $1.00 Accumulation unit value at end of period $1.07 $0.69 $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,865 2,003 1,241 3,807 - --------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.43 $1.24 $1.00 Accumulation unit value at end of period $1.14 $0.77 $1.43 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 52,684 32,472 14,103 5,176 - --------------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $0.67 $1.12 $1.08 $1.00 Accumulation unit value at end of period $0.94 $0.67 $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 42,795 34,099 19,102 2,525 - --------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $0.70 $1.17 $1.11 $1.00 Accumulation unit value at end of period $1.02 $0.70 $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 701 883 413 120 - --------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.29 $1.14 $1.00 Accumulation unit value at end of period $1.13 $0.75 $1.29 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,953 1,467 1,102 248 - ---------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (06/26/2006) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.71 $1.36 $1.15 $1.00 Accumulation unit value at end of period $1.07 $0.71 $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 84 38 42 66 - ------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.21 $1.17 $1.00 Accumulation unit value at end of period $0.84 $0.71 $1.21 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 220 213 268 73 - ------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.60 $1.29 $1.24 $1.00 Accumulation unit value at end of period $0.79 $0.60 $1.29 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 2,588 5,358 3,278 875 - ------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.23 $1.09 $1.00 Accumulation unit value at end of period $0.99 $0.73 $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 9 12 15 12 - ------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.83 $1.11 $1.16 $1.00 Accumulation unit value at end of period $1.07 $0.83 $1.11 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 844 1,325 1,557 76 - ------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.24 $1.04 $1.00 Accumulation unit value at end of period $0.95 $0.71 $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 96 60 54 508 - ------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.09 $1.16 $1.00 Accumulation unit value at end of period $0.93 $0.78 $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 753 477 423 118 - ------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.81 $1.09 $1.08 $1.00 Accumulation unit value at end of period $1.15 $0.81 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 504 321 388 166 - ------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $0.76 $1.27 $1.09 $1.00 Accumulation unit value at end of period $0.95 $0.76 $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 8,903 5,685 3,534 1,110 - -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 146 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.42 $1.20 $1.00 Accumulation unit value at end of period $0.98 $0.72 $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 523 415 517 474 - ------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.18 $1.02 $1.00 Accumulation unit value at end of period $0.91 $0.77 $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 769 609 510 738 - ------------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.36 $1.18 $1.00 Accumulation unit value at end of period $0.96 $0.78 $1.36 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 312 230 123 66 - ------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.03 $1.02 $1.00 Accumulation unit value at end of period $1.05 $0.74 $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 5,344 4,095 3,491 1,613 - ------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.79 $1.19 $1.12 $1.00 Accumulation unit value at end of period $1.06 $0.79 $1.19 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 168 66 26 3 - ------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.33 $1.17 $1.00 Accumulation unit value at end of period $0.87 $0.77 $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 4,686 97 111 62 - ------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.27 $1.10 $1.00 Accumulation unit value at end of period $0.96 $0.72 $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 4,468 6,247 4,856 1,983 - ------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.24 $1.09 $1.00 Accumulation unit value at end of period $1.02 $0.74 $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 3,636 4,270 2,609 824 - ------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.34 $1.16 $1.00 Accumulation unit value at end of period $0.92 $0.74 $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 449 372 336 120 - ------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.53 $0.94 $1.20 $1.00 Accumulation unit value at end of period $0.63 $0.53 $0.94 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 600 374 322 108 - ------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.70 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.89 $0.70 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 328 274 319 119 - ------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.91 $0.73 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 936 862 939 403 - ------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $0.68 $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.81 $0.68 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 278 233 489 186 - ------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.68 $1.20 $1.09 $1.00 Accumulation unit value at end of period $0.81 $0.68 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 69 38 37 15 - -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 147
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.63 $1.20 $1.10 $1.00 Accumulation unit value at end of period $0.88 $0.63 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 108 95 140 33 - ------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.36 $0.90 $1.17 $1.00 Accumulation unit value at end of period $0.45 $0.36 $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 199 142 77 25 - ------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.84 $1.19 $1.08 $1.00 Accumulation unit value at end of period $1.06 $0.84 $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 42 21 34 203 - ------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.82 $1.39 $1.23 $1.00 Accumulation unit value at end of period $1.09 $0.82 $1.39 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 3,232 2,467 1,191 21 - ------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- Accumulation unit value at end of period $0.84 $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 8,361 5,624 3,686 -- - ------------------------------------------------------------------------------------------------------- LEGG MASON CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) (PREVIOUSLY LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I) Accumulation unit value at beginning of period $0.59 $1.02 $1.00 -- Accumulation unit value at end of period $0.84 $0.59 $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 51 16 5 -- - ------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.20 $1.10 $1.00 Accumulation unit value at end of period $1.03 $0.75 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 341 166 147 60 - ------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.96 $1.56 $1.24 $1.00 Accumulation unit value at end of period $1.26 $0.96 $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 499 436 440 101 - ------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.19 $1.17 $1.00 Accumulation unit value at end of period $0.84 $0.63 $1.19 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,622 1,455 1,246 432 - ------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.21 $1.14 $1.00 Accumulation unit value at end of period $0.93 $0.72 $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 71 70 31 13 - ------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.22 $1.16 $1.00 Accumulation unit value at end of period $0.99 $0.72 $1.22 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 631 521 383 108 - ------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (06/26/2006) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $0.99 $1.17 $1.08 $1.00 Accumulation unit value at end of period $1.15 $0.99 $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 13,258 11,659 10,327 3,211 - ------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.66 $1.07 $1.10 $1.00 Accumulation unit value at end of period $0.89 $0.66 $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 378 262 374 133 - -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 148 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $0.64 $1.12 $1.07 $1.00 Accumulation unit value at end of period $0.84 $0.64 $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 120 74 45 -- - ------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.95 $1.14 $1.07 $1.00 Accumulation unit value at end of period $1.14 $0.95 $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 5,695 5,995 4,401 1,767 - ------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- Accumulation unit value at end of period $0.86 $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 90 14 -- -- - ------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 673 107 -- -- - ------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- Accumulation unit value at end of period $0.90 $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,149 78 -- -- - ------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- Accumulation unit value at end of period $0.88 $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 134 52 -- -- - ------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- Accumulation unit value at end of period $0.93 $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 603 141 -- -- - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.13 $1.13 $1.00 Accumulation unit value at end of period $0.96 $0.78 $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 874 134 177 42 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)* (06/26/2006) Accumulation unit value at beginning of period $1.06 $1.05 $1.02 $1.00 Accumulation unit value at end of period $1.05 $1.06 $1.05 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 7,805 12,817 6,443 2,340 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (1.31%) and (1.30%), respectively. - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.01 $1.09 $1.05 $1.00 Accumulation unit value at end of period $1.14 $1.01 $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 21,366 18,072 15,662 3,649 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.20 $1.13 $1.00 Accumulation unit value at end of period $0.89 $0.71 $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 11,781 9,201 5,950 2,080 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.67 $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.82 $0.67 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 160 123 116 17 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.12 $1.05 $1.00 Accumulation unit value at end of period $1.21 $1.10 $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 7,312 6,376 5,574 1,823 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.10 $1.03 $1.00 Accumulation unit value at end of period $1.15 $1.09 $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 9,808 3,985 3,202 1,572 - -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 149
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.80 $1.08 $1.08 $1.00 Accumulation unit value at end of period $1.21 $0.80 $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 732 714 778 163 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.87 $1.08 $1.07 $1.00 Accumulation unit value at end of period $1.22 $0.87 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 7,104 3,302 2,730 1,216 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.18 $1.05 $1.00 Accumulation unit value at end of period $1.04 $0.64 $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 95 46 47 28 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.19 $1.09 $1.00 Accumulation unit value at end of period $0.90 $0.64 $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 951 1,356 1,081 810 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.18 $1.14 $1.00 Accumulation unit value at end of period $0.91 $0.74 $1.18 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 294 214 205 12 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.07 $1.03 $1.00 Accumulation unit value at end of period $1.07 $1.03 $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 2,470 1,011 451 45 - ------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.15 $1.13 $1.00 Accumulation unit value at end of period $0.86 $0.63 $1.15 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 255 110 192 64 - ------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.68 $1.14 $1.16 $1.00 Accumulation unit value at end of period $0.85 $0.68 $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 53 5 4 3 - ------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.04 $1.10 $1.00 Accumulation unit value at end of period $0.87 $0.63 $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 83 22 46 24 - ------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.84 $1.83 $1.34 $1.00 Accumulation unit value at end of period $1.44 $0.84 $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 1,478 2,146 1,134 297 - ------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.31 $1.17 $1.00 Accumulation unit value at end of period $0.97 $0.77 $1.31 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 271 145 164 97 - ------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.69 $1.14 $1.12 $1.00 Accumulation unit value at end of period $0.90 $0.69 $1.14 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 7,802 4,317 2,683 1,144 - ------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.72 $1.15 $1.10 $1.00 Accumulation unit value at end of period $0.97 $0.72 $1.15 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 32 32 20 2 - ------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $0.71 $1.05 $1.12 $1.00 Accumulation unit value at end of period $0.96 $0.71 $1.05 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 4,674 3,930 2,808 336 - -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 150 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.88 $0.69 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 3,240 3,645 2,734 1,254 - ------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.16 $1.28 $1.00 Accumulation unit value at end of period $0.89 $0.64 $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 1,306 1,624 799 494 - ------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.31 $1.08 $1.00 Accumulation unit value at end of period $1.07 $0.69 $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 206 163 210 295 - ------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $0.76 $1.42 $1.24 $1.00 Accumulation unit value at end of period $1.13 $0.76 $1.42 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 2,664 1,819 1,115 495 - ------------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $0.67 $1.12 $1.08 $1.00 Accumulation unit value at end of period $0.94 $0.67 $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,463 2,064 1,447 279 - ------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.17 $1.11 $1.00 Accumulation unit value at end of period $1.01 $0.69 $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 61 40 29 7 - ------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.28 $1.14 $1.00 Accumulation unit value at end of period $1.12 $0.74 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 260 183 186 65 - -------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (06/26/2006) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.71 $1.36 $1.15 $1.00 Accumulation unit value at end of period $1.07 $0.71 $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 419 280 300 564 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.21 $1.17 $1.00 Accumulation unit value at end of period $0.84 $0.71 $1.21 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 733 800 801 293 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.60 $1.29 $1.24 $1.00 Accumulation unit value at end of period $0.79 $0.60 $1.29 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 17,833 45,368 24,195 5,843 - --------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.23 $1.09 $1.00 Accumulation unit value at end of period $0.99 $0.73 $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 242 206 102 23 - --------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.83 $1.11 $1.16 $1.00 Accumulation unit value at end of period $1.06 $0.83 $1.11 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 6,247 11,348 12,685 267 - --------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.24 $1.04 $1.00 Accumulation unit value at end of period $0.95 $0.71 $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 482 466 414 4,125 - --------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.08 $1.16 $1.00 Accumulation unit value at end of period $0.93 $0.78 $1.08 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 3,160 2,591 2,786 903 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 151
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.81 $1.09 $1.08 $1.00 Accumulation unit value at end of period $1.14 $0.81 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,059 1,829 1,757 576 - --------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $0.76 $1.27 $1.09 $1.00 Accumulation unit value at end of period $0.95 $0.76 $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 81,378 54,827 31,528 7,437 - --------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.42 $1.20 $1.00 Accumulation unit value at end of period $0.98 $0.72 $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 2,414 2,757 2,052 3,503 - --------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.18 $1.01 $1.00 Accumulation unit value at end of period $0.91 $0.77 $1.18 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 2,321 1,653 1,007 3,433 - --------------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.36 $1.18 $1.00 Accumulation unit value at end of period $0.95 $0.77 $1.36 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 764 826 586 205 - --------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.03 $1.02 $1.00 Accumulation unit value at end of period $1.05 $0.74 $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 44,355 33,621 26,240 10,136 - --------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.79 $1.19 $1.12 $1.00 Accumulation unit value at end of period $1.06 $0.79 $1.19 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 1,233 634 277 35 - --------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.76 $1.33 $1.17 $1.00 Accumulation unit value at end of period $0.87 $0.76 $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 42,775 1,018 830 382 - --------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.27 $1.10 $1.00 Accumulation unit value at end of period $0.96 $0.72 $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 26,262 55,331 38,145 14,254 - --------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.24 $1.09 $1.00 Accumulation unit value at end of period $1.02 $0.74 $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 23,688 36,142 18,414 5,441 - --------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.34 $1.16 $1.00 Accumulation unit value at end of period $0.92 $0.74 $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,556 1,670 1,294 483 - --------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.54 $0.95 $1.21 $1.00 Accumulation unit value at end of period $0.63 $0.54 $0.95 $1.21 Number of accumulation units outstanding at end of period (000 omitted) 2,586 2,319 2,457 1,107 - --------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.89 $0.69 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,834 2,047 2,059 1,064 - --------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.16 $1.14 $1.00 Accumulation unit value at end of period $0.90 $0.72 $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 5,084 5,780 6,302 2,030 - --------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $0.68 $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.81 $0.68 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 698 825 1,284 665 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 152 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.68 $1.20 $1.08 $1.00 Accumulation unit value at end of period $0.81 $0.68 $1.20 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 334 387 388 257 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.63 $1.20 $1.10 $1.00 Accumulation unit value at end of period $0.88 $0.63 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 668 674 879 252 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.36 $0.89 $1.17 $1.00 Accumulation unit value at end of period $0.45 $0.36 $0.89 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 727 507 155 60 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.84 $1.19 $1.08 $1.00 Accumulation unit value at end of period $1.05 $0.84 $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 583 577 362 1,832 - --------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.82 $1.39 $1.23 $1.00 Accumulation unit value at end of period $1.09 $0.82 $1.39 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 29,799 26,041 11,042 102 - --------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- Accumulation unit value at end of period $0.84 $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 80,099 57,559 35,017 -- - --------------------------------------------------------------------------------------------------------- LEGG MASON CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) (PREVIOUSLY LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I) Accumulation unit value at beginning of period $0.59 $1.01 $1.00 -- Accumulation unit value at end of period $0.84 $0.59 $1.01 -- Number of accumulation units outstanding at end of period (000 omitted) 292 292 125 -- - --------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.20 $1.10 $1.00 Accumulation unit value at end of period $1.03 $0.75 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 698 479 325 80 - --------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.96 $1.56 $1.24 $1.00 Accumulation unit value at end of period $1.26 $0.96 $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 4,001 3,917 3,235 1,005 - --------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.19 $1.17 $1.00 Accumulation unit value at end of period $0.84 $0.63 $1.19 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 15,761 15,089 11,632 3,205 - --------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.20 $1.14 $1.00 Accumulation unit value at end of period $0.93 $0.72 $1.20 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 165 155 142 29 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.22 $1.16 $1.00 Accumulation unit value at end of period $0.99 $0.72 $1.22 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,750 1,612 1,649 663 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (06/26/2006) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $0.98 $1.17 $1.08 $1.00 Accumulation unit value at end of period $1.15 $0.98 $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 104,395 90,372 69,486 12,934 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 153
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.65 $1.07 $1.10 $1.00 Accumulation unit value at end of period $0.88 $0.65 $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,891 1,925 2,045 715 - --------------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $0.64 $1.11 $1.07 $1.00 Accumulation unit value at end of period $0.84 $0.64 $1.11 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 623 441 420 98 - --------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.95 $1.14 $1.07 $1.00 Accumulation unit value at end of period $1.13 $0.95 $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 48,834 54,964 38,718 12,825 - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- Accumulation unit value at end of period $0.86 $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 325 197 -- -- - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- Accumulation unit value at end of period $0.97 $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,346 275 -- -- - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- Accumulation unit value at end of period $0.90 $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 868 782 -- -- - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- Accumulation unit value at end of period $0.88 $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 394 705 -- -- - --------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- Accumulation unit value at end of period $0.93 $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,041 264 -- -- - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.13 $1.13 $1.00 Accumulation unit value at end of period $0.96 $0.78 $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 2,917 622 930 225 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)* (06/26/2006) Accumulation unit value at beginning of period $1.06 $1.05 $1.02 $1.00 Accumulation unit value at end of period $1.05 $1.06 $1.05 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 14,792 30,883 25,294 9,800 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (1.32%) and (1.31%), respectively. - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.01 $1.09 $1.05 $1.00 Accumulation unit value at end of period $1.14 $1.01 $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 167,503 147,502 119,779 26,100 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.20 $1.13 $1.00 Accumulation unit value at end of period $0.89 $0.71 $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 98,890 78,564 42,436 14,023 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.67 $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.82 $0.67 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 304 444 536 207 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.12 $1.05 $1.00 Accumulation unit value at end of period $1.21 $1.10 $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 53,805 47,521 39,217 7,409 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 154 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.10 $1.03 $1.00 Accumulation unit value at end of period $1.14 $1.09 $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 79,690 30,533 23,879 9,303 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.80 $1.08 $1.08 $1.00 Accumulation unit value at end of period $1.21 $0.80 $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 4,227 2,938 3,520 1,205 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.87 $1.08 $1.07 $1.00 Accumulation unit value at end of period $1.22 $0.87 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 62,856 31,638 24,436 8,700 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.18 $1.05 $1.00 Accumulation unit value at end of period $1.04 $0.64 $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 529 153 191 44 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.19 $1.09 $1.00 Accumulation unit value at end of period $0.90 $0.64 $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 6,758 12,410 8,621 6,289 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.18 $1.14 $1.00 Accumulation unit value at end of period $0.91 $0.73 $1.18 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 911 1,062 1,259 361 - --------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.07 $1.03 $1.00 Accumulation unit value at end of period $1.07 $1.03 $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 6,519 5,026 2,324 623 - --------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.15 $1.13 $1.00 Accumulation unit value at end of period $0.86 $0.63 $1.15 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 473 586 868 220 - --------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.68 $1.14 $1.16 $1.00 Accumulation unit value at end of period $0.85 $0.68 $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 274 159 73 20 - --------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.04 $1.10 $1.00 Accumulation unit value at end of period $0.87 $0.63 $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 285 123 147 51 - --------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.84 $1.83 $1.34 $1.00 Accumulation unit value at end of period $1.44 $0.84 $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 10,719 21,216 9,418 2,130 - --------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.31 $1.17 $1.00 Accumulation unit value at end of period $0.97 $0.77 $1.31 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,358 1,342 1,247 266 - --------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.69 $1.14 $1.11 $1.00 Accumulation unit value at end of period $0.90 $0.69 $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 76,995 42,822 24,777 8,957 - --------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.72 $1.15 $1.10 $1.00 Accumulation unit value at end of period $0.97 $0.72 $1.15 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 158 145 181 32 - ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 155
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - --------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $0.71 $1.05 $1.12 $1.00 Accumulation unit value at end of period $0.96 $0.71 $1.05 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 44,669 40,609 26,141 2,786 - --------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.88 $0.69 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 26,277 34,546 21,804 9,512 - --------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.16 $1.28 $1.00 Accumulation unit value at end of period $0.89 $0.64 $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 11,746 15,705 6,278 3,387 - --------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.31 $1.08 $1.00 Accumulation unit value at end of period $1.06 $0.69 $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,329 1,340 1,013 2,328 - --------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $0.76 $1.42 $1.24 $1.00 Accumulation unit value at end of period $1.13 $0.76 $1.42 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 22,622 16,160 9,249 3,490 - --------------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $0.67 $1.12 $1.08 $1.00 Accumulation unit value at end of period $0.94 $0.67 $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 18,458 16,958 11,392 1,995 - --------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.17 $1.11 $1.00 Accumulation unit value at end of period $1.01 $0.69 $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 325 296 211 37 - --------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.28 $1.14 $1.00 Accumulation unit value at end of period $1.12 $0.74 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,279 1,063 968 178 - ---------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (06/26/2006) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.70 $1.36 $1.15 $1.00 Accumulation unit value at end of period $1.06 $0.70 $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 215 114 83 43 - ------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.21 $1.17 $1.00 Accumulation unit value at end of period $0.84 $0.71 $1.21 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 212 193 302 65 - ------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.59 $1.29 $1.24 $1.00 Accumulation unit value at end of period $0.79 $0.59 $1.29 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 2,691 7,868 5,603 1,561 - ------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.22 $1.09 $1.00 Accumulation unit value at end of period $0.98 $0.73 $1.22 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 25 50 38 4 - ------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.83 $1.11 $1.16 $1.00 Accumulation unit value at end of period $1.06 $0.83 $1.11 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 730 2,024 2,413 40 - -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 156 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.24 $1.04 $1.00 Accumulation unit value at end of period $0.94 $0.71 $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 47 127 152 530 - ------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.08 $1.16 $1.00 Accumulation unit value at end of period $0.92 $0.78 $1.08 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 881 939 802 213 - ------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.80 $1.08 $1.08 $1.00 Accumulation unit value at end of period $1.14 $0.80 $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,227 1,097 885 286 - ------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $0.75 $1.26 $1.09 $1.00 Accumulation unit value at end of period $0.94 $0.75 $1.26 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 9,757 8,302 5,811 1,493 - ------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.42 $1.20 $1.00 Accumulation unit value at end of period $0.98 $0.72 $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 668 887 819 748 - ------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.17 $1.01 $1.00 Accumulation unit value at end of period $0.90 $0.77 $1.17 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 1,097 883 655 700 - ------------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.36 $1.18 $1.00 Accumulation unit value at end of period $0.95 $0.77 $1.36 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 454 317 164 35 - ------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.03 $1.02 $1.00 Accumulation unit value at end of period $1.05 $0.74 $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 8,753 8,356 9,232 4,655 - ------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.79 $1.19 $1.12 $1.00 Accumulation unit value at end of period $1.05 $0.79 $1.19 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 410 208 34 32 - ------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.76 $1.32 $1.17 $1.00 Accumulation unit value at end of period $0.87 $0.76 $1.32 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 5,717 194 198 79 - ------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.71 $1.27 $1.09 $1.00 Accumulation unit value at end of period $0.95 $0.71 $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 4,857 9,818 8,451 3,216 - ------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.24 $1.09 $1.00 Accumulation unit value at end of period $1.01 $0.74 $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 3,813 6,011 4,186 1,152 - ------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.34 $1.16 $1.00 Accumulation unit value at end of period $0.92 $0.74 $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 683 624 609 234 - ------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.53 $0.94 $1.20 $1.00 Accumulation unit value at end of period $0.62 $0.53 $0.94 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 593 433 489 414 - ------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.88 $0.69 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 717 685 602 232 - -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 157
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.90 $0.72 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,338 1,691 1,979 485 - ------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $0.68 $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.81 $0.68 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 224 335 494 196 - ------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.68 $1.19 $1.08 $1.00 Accumulation unit value at end of period $0.80 $0.68 $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 143 188 124 96 - ------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.62 $1.20 $1.10 $1.00 Accumulation unit value at end of period $0.87 $0.62 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 79 95 149 13 - ------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.36 $0.89 $1.17 $1.00 Accumulation unit value at end of period $0.45 $0.36 $0.89 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 542 603 286 114 - ------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.83 $1.19 $1.08 $1.00 Accumulation unit value at end of period $1.05 $0.83 $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 166 138 69 222 - ------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.81 $1.39 $1.23 $1.00 Accumulation unit value at end of period $1.08 $0.81 $1.39 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 3,323 3,345 1,942 14 - ------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- Accumulation unit value at end of period $0.84 $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 9,009 7,617 5,761 -- - ------------------------------------------------------------------------------------------------------- LEGG MASON CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) (PREVIOUSLY LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I) Accumulation unit value at beginning of period $0.59 $1.01 $1.00 -- Accumulation unit value at end of period $0.83 $0.59 $1.01 -- Number of accumulation units outstanding at end of period (000 omitted) 205 103 33 -- - ------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.20 $1.10 $1.00 Accumulation unit value at end of period $1.02 $0.74 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 223 224 122 57 - ------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.95 $1.56 $1.24 $1.00 Accumulation unit value at end of period $1.25 $0.95 $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 892 1,003 1,091 467 - ------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.19 $1.17 $1.00 Accumulation unit value at end of period $0.83 $0.63 $1.19 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,600 1,895 2,072 680 - ------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.20 $1.14 $1.00 Accumulation unit value at end of period $0.93 $0.72 $1.20 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 59 84 42 5 - -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 158 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.72 $1.22 $1.16 $1.00 Accumulation unit value at end of period $0.98 $0.72 $1.22 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 679 693 779 266 - ------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (06/26/2006) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $0.98 $1.16 $1.08 $1.00 Accumulation unit value at end of period $1.14 $0.98 $1.16 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 20,034 21,803 18,995 3,974 - ------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $0.65 $1.07 $1.10 $1.00 Accumulation unit value at end of period $0.88 $0.65 $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 266 350 487 231 - ------------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $0.64 $1.11 $1.07 $1.00 Accumulation unit value at end of period $0.84 $0.64 $1.11 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 403 323 375 6 - ------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $0.94 $1.14 $1.07 $1.00 Accumulation unit value at end of period $1.13 $0.94 $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 7,054 9,430 7,577 2,481 - ------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.71 $1.00 -- -- Accumulation unit value at end of period $0.86 $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 13 11 -- -- - ------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- Accumulation unit value at end of period $0.96 $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 375 253 -- -- - ------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- Accumulation unit value at end of period $0.90 $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 581 656 -- -- - ------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- Accumulation unit value at end of period $0.88 $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 169 44 -- -- - ------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- Accumulation unit value at end of period $0.93 $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 637 421 -- -- - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.78 $1.13 $1.13 $1.00 Accumulation unit value at end of period $0.95 $0.78 $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 907 375 619 350 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)* (06/26/2006) Accumulation unit value at beginning of period $1.06 $1.05 $1.02 $1.00 Accumulation unit value at end of period $1.04 $1.06 $1.05 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 11,291 21,135 15,777 7,385 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (1.50%) and (1.49%), respectively. - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.00 $1.09 $1.05 $1.00 Accumulation unit value at end of period $1.13 $1.00 $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 31,929 31,170 28,774 5,708 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.70 $1.20 $1.12 $1.00 Accumulation unit value at end of period $0.88 $0.70 $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 12,785 12,673 9,098 3,489 - -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 159
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.67 $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.81 $0.67 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 89 86 136 38 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.11 $1.05 $1.00 Accumulation unit value at end of period $1.20 $1.09 $1.11 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 9,993 9,621 9,331 1,982 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.10 $1.03 $1.00 Accumulation unit value at end of period $1.14 $1.08 $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 13,553 7,067 5,715 2,119 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.80 $1.08 $1.07 $1.00 Accumulation unit value at end of period $1.21 $0.80 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,816 1,461 1,856 514 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.86 $1.08 $1.07 $1.00 Accumulation unit value at end of period $1.21 $0.86 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 8,735 4,855 4,738 1,866 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.18 $1.05 $1.00 Accumulation unit value at end of period $1.03 $0.64 $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 178 81 89 16 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.64 $1.19 $1.09 $1.00 Accumulation unit value at end of period $0.89 $0.64 $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 929 1,749 1,681 1,085 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.73 $1.18 $1.14 $1.00 Accumulation unit value at end of period $0.91 $0.73 $1.18 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 728 476 499 10 - ------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.07 $1.03 $1.00 Accumulation unit value at end of period $1.07 $1.02 $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 4,922 2,703 1,689 130 - ------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.15 $1.13 $1.00 Accumulation unit value at end of period $0.85 $0.63 $1.15 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 245 206 237 69 - ------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.68 $1.14 $1.16 $1.00 Accumulation unit value at end of period $0.84 $0.68 $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 17 23 41 15 - ------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.03 $1.09 $1.00 Accumulation unit value at end of period $0.86 $0.63 $1.03 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 90 22 19 5 - ------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.83 $1.82 $1.34 $1.00 Accumulation unit value at end of period $1.43 $0.83 $1.82 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 1,330 2,601 1,669 340 - ------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (06/26/2006) Accumulation unit value at beginning of period $0.77 $1.30 $1.17 $1.00 Accumulation unit value at end of period $0.96 $0.77 $1.30 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 250 182 260 100 - -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 160 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 - ------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.69 $1.14 $1.11 $1.00 Accumulation unit value at end of period $0.89 $0.69 $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 7,956 5,981 4,256 1,499 - ------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.72 $1.15 $1.10 $1.00 Accumulation unit value at end of period $0.97 $0.72 $1.15 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 151 119 35 6 - ------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $0.71 $1.05 $1.12 $1.00 Accumulation unit value at end of period $0.95 $0.71 $1.05 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 4,518 5,050 4,362 417 - ------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.87 $0.69 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 3,610 5,243 4,556 1,999 - ------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.63 $1.16 $1.28 $1.00 Accumulation unit value at end of period $0.88 $0.63 $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 1,188 2,112 1,085 624 - ------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.68 $1.30 $1.08 $1.00 Accumulation unit value at end of period $1.06 $0.68 $1.30 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 215 268 387 397 - ------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $0.76 $1.42 $1.24 $1.00 Accumulation unit value at end of period $1.12 $0.76 $1.42 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 2,622 2,386 1,978 779 - ------------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $0.67 $1.12 $1.08 $1.00 Accumulation unit value at end of period $0.93 $0.67 $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,189 2,340 2,054 422 - ------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $0.69 $1.17 $1.11 $1.00 Accumulation unit value at end of period $1.00 $0.69 $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 55 67 86 9 - ------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $0.74 $1.28 $1.14 $1.00 Accumulation unit value at end of period $1.11 $0.74 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 377 334 363 74 - -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 161 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts................ p. 3 Rating Agencies............................ p. 4 Revenues Received During Calendar Year p. 2009..................................... 4 Principal Underwriter...................... p. 5 Independent Registered Public Accounting p. Firm..................................... 6 Financial Statements
- -------------------------------------------------------------------------------- 162 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 1 (800) 862-7919 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc. (C)2008-2010 RiverSource Life Insurance Company. All rights reserved. S-6503 H (4/10) PART B. STATEMENT OF ADDITIONAL INFORMATION FOR RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY(R) RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR SELECT(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR SELECT PLUS(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR 4 ADVANTAGE(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR 4 SELECT(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR 4 ACCESS(R) VARIABLE ANNUITY RIVERSOURCE(R) FLEXIBLE PORTFOLIO ANNUITY RIVERSOURCE VARIABLE ACCOUNT 10 (previously IDS Life Variable Account 10) APRIL 30, 2010 RiverSource Variable Account 10 is a separate account of RiverSource Life Insurance Company (RiverSource Life). This Statement of Additional Information (SAI) is not a prospectus. It should be read together with the prospectus dated the same date as this SAI, which may be obtained from your sales representative, or by writing or calling us at the address and telephone number below. This SAI contains financial information for all the subaccounts of RiverSource Variable Account 10. Not all subaccounts of RiverSource Variable Account 10 apply to your specific contract. RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 (800) 862-7919 S-6325 H (4/10) TABLE OF CONTENTS Calculating Annuity Payouts..................................................... p. 3 Rating Agencies ................................................................ p. 4 Revenues Received During Calendar Year 2009..................................... p. 4 Principal Underwriter........................................................... p. 5 Independent Registered Public Accounting Firm................................... p. 5 Financial Statements
2 RIVERSOURCE VARIABLE ACCOUNT 10 CALCULATING ANNUITY PAYOUTS THE VARIABLE ACCOUNT We do the following calculations separately for each of the subaccounts of the variable account. The separate monthly payouts, added together, make up your total variable annuity payout. INITIAL PAYOUT: To compute your first monthly payout, we: - - determine the dollar value of your contract on the valuation date and deduct any applicable premium tax; then - - apply the result to the annuity table contained in the contract or another table at least as favorable. The annuity table shows the amount of the first monthly payout for each $1,000 of value which depends on factors built into the table, as described below. ANNUITY UNITS: We then convert the value of your subaccount to annuity units. To compute the number of units credited to you, we divide the first monthly payout by the annuity unit value (see below) on the valuation date. The number of units in your subaccount is fixed. The value of the units fluctuates with the performance of the underlying fund. SUBSEQUENT PAYOUTS: To compute later payouts, we multiply: - - the annuity unit value on the valuation date; by - - the fixed number of annuity units credited to you. ANNUITY UNIT VALUES: We originally set this value at $1 for each subaccount. To calculate later values we multiply the last annuity value by the product of: - - the net investment factor; and - - the neutralizing factor. The purpose of the neutralizing factor is to offset the effect of the assumed rate built into the annuity table. With an assumed investment rate of 5%, the neutralizing factor is 0.999866 for a one day valuation period. NET INVESTMENT FACTOR: We determine the net investment factor by: - - adding the fund's current net asset value per share plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - - dividing that sum by the previous adjusted net asset value per share; and - - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the net investment factor may be greater or less than one, and the annuity unit value may increase or decrease. You bear this investment risk in a subaccount. THE FIXED ACCOUNT We guarantee your fixed annuity payout amounts. Once calculated, your payout will remain the same and never change. To calculate your annuity payouts we: - - take the value of your fixed account at the retirement/settlement date or the date you selected to begin receiving your annuity payouts; then - - using an annuity table, we apply the value according to the annuity payout plan you select. The annuity payout table we use will be the one in effect at the time you choose to begin your annuity payouts. The values in the table will be equal to or greater than the table in your contract. RIVERSOURCE VARIABLE ACCOUNT 10 3 RATING AGENCIES We receive ratings from independent rating agencies. These agencies evaluate the financial soundness and claims-paying ability of insurance companies based on a number of different factors. The ratings reflect each agency's estimation of our ability to meet our contractual obligations such as making annuity payouts and paying death benefits and other distributions. As such, the ratings relate to our fixed account and not to the subaccounts. This information generally does not relate to the management or performance of the subaccounts. For detailed information on the agency ratings given to RiverSource Life, see "Debt & Ratings Information" under "Investors Relations" on our website at ameriprise.com or contact your sales representative. You also may view our current ratings by visiting the agency websites directly at: A.M. Best www.ambest.com Fitch www.fitchratings.com Moody's www.moodys.com/insurance Standard & Poor's www.standardandpoors.com
A.M. Best -- Rates insurance companies for their financial strength. Fitch -- Rates insurance companies for their claims-paying ability. Moody's -- Rates insurance companies for their financial strength. Standard & Poor's -- Rates insurance companies for their financial strength. REVENUES RECEIVED DURING CALENDAR YEAR 2009 The following table shows the unaffiliated funds ranked according to highest to lowest total dollar amounts the funds and their affiliates paid to us and/or our affiliates in 2009. Some of these funds may not be available under your contract or policy. Please see your contract or policy prospectus regarding the investment options available to you.
- -------------------------------------------------------------------------------------------- Fidelity(R) Variable Insurance Products $16,862,538.30 Oppenheimer Variable Account Funds $16,181,350.38 Wanger Advisors Trust $ 9,058,474.96 Columbia Funds Variable Insurance Trust $ 8,079,865.39 Janus Aspen Series $ 8,045,298.84 Invesco Variable Insurance Funds (previously AIM Variable Insurance Funds) $ 7,421,603.88 AllianceBernstein Variable Products Series Fund, Inc. $ 6,944,576.59 Van Kampen Life Investment Trust $ 6,875,389.20 PIMCO Variable Insurance Trust $ 6,211,733.09 American Century(R) Variable Portfolios, Inc. $ 4,784,673.03 Franklin(R) Templeton(R) Variable Insurance Products Trust $ 4,340,994.50 Eaton Vance Variable Trust $ 3,894,123.46 Goldman Sachs Variable Insurance Trust $ 2,774,705.10 MFS(R) Variable Insurance Trust(SM) $ 2,592,681.47 The Universal Institutional Funds, Inc. $ 2,356,481.41 Evergreen Variable Annuity Trust $ 1,975,681.74 Neuberger Berman Advisers Management Trust $ 1,350,137.36 Wells Fargo Advantage Variable Trust Funds $ 1,276,378.48 Putnam Variable Trust $ 1,146,355.35 Credit Suisse Trust $ 728,188.25 Royce Capital Fund $ 275,541.01 Third Avenue Variable Series Trust $ 262,253.82 Lazard Retirement Series, Inc. $ 149,294.72 Calvert Variable Series, Inc. $ 98,468.89 Dreyfus Investment Portfolios/Dreyfus Variable Investment Fund $ 94,399.82 Pioneer Variable Contracts Trust $ 82,957.41 Legg Mason Partners Variable Portfolios $ 23,855.82 STI Classic Variable Trust $ 15,842.14 Premier VIT $ 3,804.89 Lincoln Variable Insurance Products Trust $ 2,495.59 J.P. Morgan Series Trust II $ 1,187.23 - --------------------------------------------------------------------------------------------
If the revenue received from affiliated funds were included in the table above, payment to us or our affiliates by the RiverSource Variable Series Trust Funds (RVST) or their affiliates would be at the top of the list. 4 RIVERSOURCE VARIABLE ACCOUNT 10 PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. (RiverSource Distributors), our affiliate, serves as principal underwriter for the contracts, which are offered on a continuous basis. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is registered with the Securities and Exchange Commission under the Securities Act of 1934 as a broker dealer and is a member of the Financial Industry Regulatory Authority (FINRA). The contracts are offered to the public through certain securities broker- dealers that have entered into sales agreements with us and RiverSource Distributors and whose personnel are legally authorized to sell annuity and life insurance products. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial. The aggregate dollar amount of underwriting commissions paid to RiverSource Distributors for the variable account in 2009 was $307,628,681; in 2008 was $383,542,107; and in 2007 was $322,665,705. RiverSource Distributors retained no underwriting commissions from the sale of the contracts. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP, independent registered public accounting firm, has audited the consolidated financial statements of RiverSource Life Insurance Company at Dec. 31, 2009 and 2008, and for each of the three years in the period ended Dec. 31, 2009, and the individual financial statements of the segregated asset divisions of RiverSource Variable Account 10, sponsored by RiverSource Life Insurance Company, at Dec. 31, 2009, and for each of the periods indicated therein, as set forth in their reports thereon appearing elsewhere herein. We've included our financial statements in the Statement of Additional Information in reliance upon such reports given on the authority of Ernst & Young LLP as experts in accounting and auditing. RIVERSOURCE VARIABLE ACCOUNT 10 5 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS RIVERSOURCE LIFE INSURANCE COMPANY We have audited the accompanying individual statements of assets and liabilities of the divisions of RiverSource Variable Account 10 (the Account) sponsored by RiverSource Life Insurance Company, referred to in Note 1, as of December 31, 2009, and the related statements of operations and changes in net assets for the periods disclosed in the financial statements. These financial statements are the responsibility of the management of RiverSource Life Insurance Company. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform audits of the Account's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009 by correspondence with the affiliated and unaffiliated mutual fund managers. 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 financial position of the divisions of RiverSource Variable Account 10, referred to in Note 1, at December 31, 2009, and the individual results of their operations and the changes in their net assets for the periods described above, in conformity with U.S. generally accepted accounting principles. (-s- ERNST & YOUNG LLP) Minneapolis, Minnesota April 23, 2010 6 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, DEC. 31, 2009 SER I SER II SER I SER II SER I ASSETS Investments, at fair value(1),(2) $25,047,908 $104,160,856 $19,893,722 $33,383,822 $135,401,629 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 5,354 479 655 -- Receivable for share redemptions 42,589 111,314 30,901 82,835 207,166 - ------------------------------------------------------------------------------------------------------------------------ Total assets 25,090,497 104,277,524 19,925,102 33,467,312 135,608,795 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 17,929 75,771 14,376 24,955 144,985 Contract terminations 24,660 35,543 16,526 57,880 62,181 Payable for investments purchased -- 5,354 479 655 -- - ------------------------------------------------------------------------------------------------------------------------ Total liabilities 42,589 116,668 31,381 83,490 207,166 - ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 24,939,296 104,145,121 19,845,329 33,366,402 133,856,799 Net assets applicable to contracts in payment period 108,612 15,735 48,392 17,420 1,544,830 Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Total net assets $25,047,908 $104,160,856 $19,893,721 $33,383,822 $135,401,629 - ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 1,232,066 5,208,043 1,762,066 3,037,654 5,433,452 (2) Investments, at cost $37,798,660 $113,644,442 $21,689,278 $39,957,763 $115,896,889 - ------------------------------------------------------------------------------------------------------------------------ INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH, INTL GRO, DEC. 31, 2009 (CONTINUED) SER I SER I SER II SER II SER II ASSETS Investments, at fair value(1),(2) $ 6,407,247 $ 14,737,258 $ 5,910,494 $23,380,545 $767,970,930 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 13,274 4,938 28,359 244,272 Receivable for share redemptions 9,859 24,864 5,013 48,365 599,069 - ------------------------------------------------------------------------------------------------------------------------ Total assets 6,417,106 14,775,396 5,920,445 23,457,269 768,814,271 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 4,552 10,632 5,013 17,697 597,911 Contract terminations 5,307 14,232 -- 30,668 1,158 Payable for investments purchased -- 13,274 4,938 28,359 244,272 - ------------------------------------------------------------------------------------------------------------------------ Total liabilities 9,859 38,138 9,951 76,724 843,341 - ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 6,392,625 14,735,983 5,878,069 23,379,236 767,884,478 Net assets applicable to contracts in payment period 14,622 1,275 32,425 1,309 86,452 Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Total net assets $ 6,407,247 $ 14,737,258 $ 5,910,494 $23,380,545 $767,970,930 - ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 450,263 2,889,658 1,170,395 1,498,753 29,963,751 (2) Investments, at cost $ 5,228,198 $ 23,231,124 $ 7,960,674 $25,574,673 $787,598,439 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 7 STATEMENTS OF ASSETS AND LIABILITIES
INVESCO VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL THEMATIC GRO & INC, INTL VAL, LG CAP GRO, DEC. 31, 2009 (CONTINUED) SER I GRO, CL B CL B CL B CL B ASSETS Investments, at fair value(1),(2) $28,223,341 $17,971,619 $127,984,486 $647,669,201 $ 3,203,763 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 8,943 33,843 2,513 64,333 354 Receivable for share redemptions 22,850 30,085 208,517 786,521 3,200 - ------------------------------------------------------------------------------------------------------------------------ Total assets 28,255,134 18,035,547 128,195,516 648,520,055 3,207,317 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 20,075 13,641 94,256 490,458 2,600 Contract terminations 2,775 16,444 114,261 296,063 599 Payable for investments purchased 8,943 33,843 2,513 64,333 354 - ------------------------------------------------------------------------------------------------------------------------ Total liabilities 31,793 63,928 211,030 850,854 3,553 - ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 28,222,542 17,917,535 127,848,081 646,983,348 3,203,764 Net assets applicable to contracts in payment period 799 54,084 136,405 685,853 -- Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Total net assets $28,223,341 $17,971,619 $127,984,486 $647,669,201 $ 3,203,764 - ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 2,139,753 1,099,854 8,487,035 44,543,962 129,602 (2) Investments, at cost $24,689,450 $16,901,116 $177,069,553 $749,196,050 $ 3,202,623 - ------------------------------------------------------------------------------------------------------------------------ AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, DEC. 31, 2009 (CONTINUED) CL I CL II CL II CL II CL I ASSETS Investments, at fair value(1),(2) $28,827,243 $59,609,752 $203,460,054 $ 26,369,904 $71,320,714 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 3,820 11,354 88,437 8,596 18,856 Receivable for share redemptions 26,786 75,394 159,090 109,292 51,396 - ------------------------------------------------------------------------------------------------------------------------ Total assets 28,857,849 59,696,500 203,707,581 26,487,792 71,390,966 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 20,972 43,529 156,988 19,850 51,396 Contract terminations 5,814 31,865 2,102 89,441 -- Payable for investments purchased 3,820 11,354 88,437 8,596 18,856 - ------------------------------------------------------------------------------------------------------------------------ Total liabilities 30,606 86,748 247,527 117,887 70,252 - ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 28,787,108 59,455,200 203,383,376 26,361,003 71,036,298 Net assets applicable to contracts in payment period 40,135 154,552 76,678 8,902 284,416 Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Total net assets $28,827,243 $59,609,752 $203,460,054 $ 26,369,905 $71,320,714 - ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 3,729,268 7,721,470 16,773,294 3,279,839 13,507,711 (2) Investments, at cost $32,675,046 $55,674,108 $207,811,891 $ 30,589,684 $90,628,425 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 8 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
AC VP CALVERT COL COL COL VAL, VS SOCIAL HI YIELD, MARSICO GRO, MARSICO INTL DEC. 31, 2009 (CONTINUED) CL II BAL VS CL B VS CL A OPP, VS CL B ASSETS Investments, at fair value(1),(2) $206,108,543 $27,571,546 $92,024,220 $1,713,729,732 $ 78,881,553 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 12,212 180 993 551,978 43,917 Receivable for share redemptions 263,471 69,756 514,971 1,343,019 60,799 - ------------------------------------------------------------------------------------------------------------------------- Total assets 206,384,226 27,641,482 92,540,184 1,715,624,729 78,986,269 - ------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 154,972 20,038 71,734 1,339,656 60,294 Contract terminations 108,499 49,718 443,237 3,363 506 Payable for investments purchased 12,212 180 993 551,978 43,917 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities 275,683 69,936 515,964 1,894,997 104,717 - ------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 205,816,699 27,493,065 91,938,256 1,713,373,199 78,645,750 Net assets applicable to contracts in payment period 291,844 78,481 85,964 356,533 235,802 Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Total net assets $206,108,543 $27,571,546 $92,024,220 $1,713,729,732 $ 78,881,552 - ------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 38,961,917 17,985,353 9,438,382 101,344,159 5,574,668 (2) Investments, at cost $271,062,917 $31,954,868 $97,845,128 $1,746,575,572 $108,800,343 - ------------------------------------------------------------------------------------------------------------------------- CS CS DREY VIF EV VT EG VA COMMODITY U.S. EQ INTL EQ, FLOATING-RATE FUNDAMENTAL DEC. 31, 2009 (CONTINUED) RETURN FLEX I SERV INC LG CAP, CL 2 ASSETS Investments, at fair value(1),(2) $ 89,247,216 $62,834,612 $ 7,624,237 $ 884,458,995 $ 36,686,464 Dividends receivable 8,662,684 -- -- 3,338,988 -- Accounts receivable from RiverSource Life for contract purchase payments 32,294 -- 8,077 296,714 39,605 Receivable for share redemptions 104,326 104,326 14,072 979,803 41,193 - ------------------------------------------------------------------------------------------------------------------------- Total assets 98,046,520 62,938,938 7,646,386 889,074,500 36,767,262 - ------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 67,899 63,581 6,718 699,536 27,718 Contract terminations 36,428 40,745 7,353 280,268 13,475 Payable for investments purchased 8,694,977 -- 8,077 3,635,702 39,605 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities 8,799,304 104,326 22,148 4,615,506 80,798 - ------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 89,198,960 62,446,594 7,624,238 884,168,035 36,547,536 Net assets applicable to contracts in payment period 48,256 388,018 -- 290,959 138,848 Net assets applicable to seed money -- -- -- -- 80 - ------------------------------------------------------------------------------------------------------------------------- Total net assets $ 89,247,216 $62,834,612 $ 7,624,238 $ 884,458,994 $ 36,686,464 - ------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 11,651,073 5,038,862 502,587 97,730,276 2,150,438 (2) Investments, at cost $117,634,425 $75,650,078 $ 8,916,513 $ 879,626,224 $ 34,662,594 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 9 STATEMENTS OF ASSETS AND LIABILITIES
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, GRO & INC, MID CAP, DEC. 31, 2009 (CONTINUED) CL 2 SERV CL 2 SERV CL SERV CL 2 SERV CL ASSETS Investments, at fair value(1),(2) $ 752,301,534 $ 791,181,505 $ 85,041,637 $171,003,098 $205,621,358 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 310,497 72,201 -- 2,066 348 Receivable for share redemptions 592,285 806,155 102,859 212,887 226,728 - ---------------------------------------------------------------------------------------------------------------------------- Total assets 753,204,316 792,059,861 85,144,496 171,218,051 205,848,434 - ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 591,585 606,190 61,502 124,439 148,521 Contract terminations 699 199,965 41,357 88,447 78,207 Payable for investments purchased 310,497 72,201 -- 2,066 348 - ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 902,781 878,356 102,859 214,952 227,076 - ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 752,147,851 790,229,457 84,830,625 170,694,573 204,742,932 Net assets applicable to contracts in payment period 153,684 952,048 211,012 308,526 878,426 Net assets applicable to seed money -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Total net assets $ 752,301,535 $ 791,181,505 $ 85,041,637 $171,003,099 $205,621,358 - ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 71,038,861 38,993,667 7,731,058 15,688,358 8,092,143 (2) Investments, at cost $ 643,429,863 $1,005,446,749 $109,098,706 $198,856,933 $186,060,024 - ---------------------------------------------------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FTVIPT FTVIPT MID CAP, OVERSEAS, OVERSEAS, FRANK GLOBAL FRANK SM CAP DEC. 31, 2009 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 REAL EST, CL 2 VAL, CL 2 ASSETS Investments, at fair value(1),(2) $1,036,330,593 $ 43,185,087 $129,326,024 $170,846,852 $183,263,851 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 401,571 -- 135,123 -- 22,253 Receivable for share redemptions 963,881 59,074 150,549 163,209 160,042 - ---------------------------------------------------------------------------------------------------------------------------- Total assets 1,037,696,045 43,244,161 129,611,696 171,010,061 183,446,146 - ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 785,381 31,265 96,443 125,668 136,000 Contract terminations 178,501 27,809 54,105 37,542 24,042 Payable for investments purchased 401,571 -- 135,123 -- 22,253 - ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,365,453 59,074 285,671 163,210 182,295 - ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 1,035,464,462 42,874,329 129,008,596 170,536,965 183,050,634 Net assets applicable to contracts in payment period 866,130 310,758 317,429 309,886 213,217 Net assets applicable to seed money -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Total net assets $1,036,330,592 $ 43,185,087 $129,326,025 $170,846,851 $183,263,851 - ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 41,288,071 2,880,926 8,667,964 15,645,316 14,351,124 (2) Investments, at cost $1,106,717,339 $ 52,619,923 $147,976,581 $318,366,161 $196,789,734 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 10 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
FTVIPT GS VIT GS VIT GS VIT JANUS ASPEN MUTUAL SHARES MID CAP VAL, STRUCTD SM CAP STRUCTD U.S. ENTERPRISE, DEC. 31, 2009 (CONTINUED) SEC, CL 2 INST EQ, INST EQ, INST SERV ASSETS Investments, at fair value(1),(2) $178,999,271 $ 326,736,273 $ 10,406,120 $180,207,162 $18,311,609 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 27,334 287,695 -- 1,528 -- Receivable for share redemptions 249,342 437,132 21,205 243,998 27,764 - --------------------------------------------------------------------------------------------------------------------------- Total assets 179,275,947 327,461,100 10,427,325 180,452,688 18,339,373 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 137,219 237,601 7,590 132,326 12,927 Contract terminations 112,122 199,531 13,615 111,672 14,837 Payable for investments purchased 27,334 287,695 -- 1,528 -- - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 276,675 724,827 21,205 245,526 27,764 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 178,746,009 326,295,876 10,374,916 180,034,995 18,311,609 Net assets applicable to contracts in payment period 253,263 440,397 31,204 172,167 -- Net assets applicable to seed money -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total net assets $178,999,272 $ 326,736,273 $ 10,406,120 $180,207,162 $18,311,609 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 12,277,042 28,787,337 1,179,832 18,969,175 612,428 (2) Investments, at cost $210,244,338 $ 406,329,769 $ 13,187,678 $228,392,161 $21,781,291 - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN JANUS ASPEN LM CB VAR MFS GLOBAL JANUS, OVERSEAS, SM CAP GRO, INV GRO STOCK, DEC. 31, 2009 (CONTINUED) TECH, SERV SERV SERV CL I SERV CL ASSETS Investments, at fair value(1),(2) $ 21,824,264 $1,454,728,162 $160,461,026 $ 7,330,810 $88,112,067 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 46,281 588,340 285 1,543 673 Receivable for share redemptions 17,766 1,139,774 230,135 6,797 138,730 - --------------------------------------------------------------------------------------------------------------------------- Total assets 21,888,311 1,456,456,276 160,691,446 7,339,150 88,251,470 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 15,276 1,139,300 115,065 5,852 64,474 Contract terminations 2,490 475 115,071 945 74,256 Payable for investments purchased 46,281 588,340 285 1,543 673 - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 64,047 1,728,115 230,421 8,340 139,403 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 21,678,628 1,454,707,503 160,158,876 7,330,810 87,990,047 Net assets applicable to contracts in payment period 145,636 20,658 302,149 -- 121,946 Net assets applicable to seed money -- -- -- -- 74 - --------------------------------------------------------------------------------------------------------------------------- Total net assets $ 21,824,264 $1,454,728,161 $160,461,025 $ 7,330,810 $88,112,067 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 4,796,542 68,911,803 3,559,473 593,588 9,159,259 (2) Investments, at cost $ 24,735,606 $1,466,331,287 $126,795,923 $ 7,344,296 $87,829,590 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 11 STATEMENTS OF ASSETS AND LIABILITIES
MFS MFS NB AMT NB AMT SOC OPPEN NEW DIS, UTILITIES, INTL, RESPONSIVE, GLOBAL SEC DEC. 31, 2009 (CONTINUED) SERV CL SERV CL CL S CL S VA, SERV ASSETS Investments, at fair value(1),(2) $52,364,708 $ 236,943,402 $309,505,108 $ 2,360,291 $101,815,668 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 24 182,521 119,714 1,118 160,519 Receivable for share redemptions 93,456 318,946 241,690 2,065 81,140 - -------------------------------------------------------------------------------------------------------------------------------- Total assets 52,458,188 237,444,869 309,866,512 2,363,474 102,057,327 - -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 37,909 177,348 241,538 2,002 77,055 Contract terminations 55,546 141,598 152 64 4,085 Payable for investments purchased 24 182,521 119,714 1,118 160,519 - -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 93,479 501,467 361,404 3,184 241,659 - -------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 52,312,819 236,579,286 309,491,833 2,360,290 101,559,240 Net assets applicable to contracts in payment period 51,890 364,116 13,275 -- 256,428 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total net assets $52,364,709 $ 236,943,402 $309,505,108 $ 2,360,290 $101,815,668 - -------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 4,012,621 10,461,077 32,545,227 194,423 3,874,264 (2) Investments, at cost $55,134,046 $ 254,431,456 $345,941,931 $ 2,745,375 $115,605,351 - -------------------------------------------------------------------------------------------------------------------------------- OPPEN OPPEN OPPEN PIMCO PUT VT MAIN ST SM CAP GLOBAL STRATEGIC INC VAL VIT ALL ASSET, GLOBAL HLTH CARE, DEC. 31, 2009 (CONTINUED) VA, SERV VA, SERV VA, SERV ADVISOR CL CL IB ASSETS Investments, at fair value(1),(2) $73,523,240 $2,606,148,542 $ 4,443,200 $1,199,776,050 $ 26,090,706 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 3,091 884,774 678 490,911 5,108 Receivable for share redemptions 112,007 2,047,873 4,732 1,274,752 19,362 - -------------------------------------------------------------------------------------------------------------------------------- Total assets 73,638,338 2,609,081,189 4,448,610 1,201,541,713 26,115,176 - -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 56,320 2,045,076 3,891 939,931 19,031 Contract terminations 55,687 2,797 840 334,822 332 Payable for investments purchased 3,091 884,774 678 490,911 5,108 - -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 115,098 2,932,647 5,409 1,765,664 24,471 - -------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 73,451,742 2,604,114,293 4,443,201 1,199,070,355 26,054,263 Net assets applicable to contracts in payment period 71,498 2,034,249 -- 705,694 36,442 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total net assets $73,523,240 $2,606,148,542 $ 4,443,201 $1,199,776,049 $ 26,090,705 - -------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 5,148,686 484,414,227 494,238 114,264,386 2,145,617 (2) Investments, at cost $84,548,321 $2,542,668,588 $ 5,146,797 $1,262,277,848 $ 24,614,657 - --------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 12 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
PUT VT PUT VT PUT VT ROYCE DISC INTL EQ, NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, DEC. 31, 2009 (CONTINUED) CL IB CL IA CL IB INVEST CL AGGR ASSETS Investments, at fair value(1),(2) $36,019,320 $71,207,360 $30,947,612 $61,287,688 $ 20,077,483 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 19,335 -- -- 15 1,291 Receivable for share redemptions 30,650 88,786 63,992 80,346 -- - ------------------------------------------------------------------------------------------------------------------------- Total assets 36,069,305 71,296,146 31,011,604 61,368,049 20,078,774 - ------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 26,291 76,179 22,102 44,388 14,323 Contract terminations 4,360 12,607 41,891 35,958 -- Payable for investments purchased 19,335 -- -- 15 -- - ------------------------------------------------------------------------------------------------------------------------- Total liabilities 49,986 88,786 63,993 80,361 14,323 - ------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 35,984,803 70,649,233 30,833,627 61,094,675 19,931,138 Net assets applicable to contracts in payment period 34,516 558,127 113,984 193,013 133,249 Net assets applicable to seed money -- -- -- -- 64 - ------------------------------------------------------------------------------------------------------------------------- Total net assets $36,019,319 $71,207,360 $30,947,611 $61,287,688 $ 20,064,451 - ------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 3,250,841 4,106,538 2,684,095 6,431,027 2,293,626 (2) Investments, at cost $43,776,577 $93,244,449 $47,379,096 $56,572,701 $ 18,197,730 - ------------------------------------------------------------------------------------------------------------------------- DISC DISC DISC DISC VP DAVIS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, NY VENTURE, DEC. 31, 2009 (CONTINUED) CONSERV MOD MOD AGGR MOD CONSERV CL 3 ASSETS Investments, at fair value(1),(2) $40,560,281 $85,411,505 $49,647,175 $50,768,300 $1,519,549,215 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 35,105 10,080 20,402 171,388 559,127 Receivable for share redemptions -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Total assets 40,595,386 85,421,585 49,667,577 50,939,688 1,520,108,342 - ------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 30,647 62,038 35,920 38,177 1,189,548 Contract terminations 38,263 653,344 2,075 14,489 140 Payable for investments purchased -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Total liabilities 68,910 715,382 37,995 52,666 1,189,688 - ------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 40,346,267 84,355,737 48,964,041 50,872,579 1,518,842,446 Net assets applicable to contracts in payment period 180,209 350,466 665,541 14,354 76,208 Net assets applicable to seed money -- -- -- 89 -- - ------------------------------------------------------------------------------------------------------------------------- Total net assets $40,526,476 $84,706,203 $49,629,582 $50,887,022 $1,518,918,654 - ------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 4,119,308 9,324,956 5,535,008 5,368,507 169,636,432 (2) Investments, at cost $37,078,596 $79,136,030 $45,824,998 $46,505,227 $1,445,296,567 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 13 STATEMENTS OF ASSETS AND LIABILITIES
VP GS VP PTNRS RVS VP RVS VP MID CAP SM CAP RVS VP CASH DIV DEC. 31, 2009 (CONTINUED) VAL, CL 3 VAL, CL 3 BAL, CL 3 MGMT, CL 3 BOND, CL 3 ASSETS Investments, at fair value(1),(2) $ 12,872,234 $1,090,682,020 $ 264,485,095 $ 646,091,771 $4,160,787,722 Dividends receivable -- -- -- 174 -- Accounts receivable from RiverSource Life for contract purchase payments 17,649 288,788 9,013 338,837 1,456,483 Receivable for share redemptions -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total assets 12,889,883 1,090,970,808 264,494,108 646,430,782 4,162,244,205 - -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 9,595 843,909 225,999 518,188 3,295,118 Contract terminations 1,233 21,206 227,243 1,174,349 648,879 Payable for investments purchased -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 10,828 865,115 453,242 1,692,537 3,943,997 - -------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 12,871,527 1,089,727,629 260,291,472 644,416,147 4,153,798,271 Net assets applicable to contracts in payment period 7,528 378,064 3,749,394 322,098 4,501,937 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total net assets $ 12,879,055 $1,090,105,693 $ 264,040,866 $ 644,738,245 $4,158,300,208 - -------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 1,403,078 88,932,990 21,519,993 646,091,771 386,646,839 (2) Investments, at cost $ 14,693,062 $1,120,642,752 $ 301,548,497 $ 645,772,741 $4,013,758,108 - -------------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP DIV EQ DYN GLOBAL GLOBAL INFLATION HI YIELD DEC. 31, 2009 (CONTINUED) INC, CL 3 EQ, CL 3 BOND, CL 3 PROT SEC, CL 3 BOND, CL 3 ASSETS Investments, at fair value(1),(2) $2,728,139,356 $ 452,804,516 $1,429,340,223 $1,786,161,644 $ 538,448,744 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 577,690 304 782,519 717,973 229,109 Receivable for share redemptions -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total assets 2,728,717,046 452,804,820 1,430,122,742 1,786,879,617 538,677,853 - -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 2,130,891 377,398 1,129,260 1,408,232 422,827 Contract terminations 336,343 200,628 -- 2,088 563,636 Payable for investments purchased -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 2,467,234 578,026 1,129,260 1,410,320 986,463 - -------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 2,722,626,361 447,785,525 1,428,292,612 1,785,340,351 535,199,080 Net assets applicable to contracts in payment period 3,623,451 4,441,269 700,870 128,946 2,492,310 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total net assets $2,726,249,812 $ 452,226,794 $1,428,993,482 $1,785,469,297 $ 537,691,390 - -------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 242,014,868 27,499,482 124,317,365 189,953,160 80,291,975 (2) Investments, at cost $2,981,373,217 $ 620,287,025 $1,363,806,241 $1,808,728,718 $ 528,931,102 - --------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 14 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
RVS VP RVS VP RVS VP RVS VP INC MID CAP MID CAP RVS VP SHORT DEC. 31, 2009 (CONTINUED) OPP, CL 3 GRO, CL 3 VAL, CL 3 S&P 500, CL 3 DURATION, CL 3 ASSETS Investments, at fair value(1),(2) $1,565,464,164 $128,811,864 $220,510,539 $151,666,821 $346,017,847 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 515,157 15,751 28,310 265,477 172,099 Receivable for share redemptions -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total assets 1,565,979,321 128,827,615 220,538,849 151,932,298 346,189,946 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 1,230,617 105,056 168,186 111,742 262,944 Contract terminations 386,344 3,647 34,961 64,406 28,366 Payable for investments purchased -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,616,961 108,703 203,147 176,148 291,310 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 1,564,154,607 128,005,905 220,269,316 151,017,927 345,183,650 Net assets applicable to contracts in payment period 207,753 713,007 66,386 738,223 714,986 Net assets applicable to seed money -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total net assets $1,564,362,360 $128,718,912 $220,335,702 $151,756,150 $345,898,636 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 146,131,275 11,195,148 24,671,474 20,205,158 34,026,466 (2) Investments, at cost $1,416,066,663 $124,588,763 $277,909,619 $154,574,307 $348,810,791 - --------------------------------------------------------------------------------------------------------------------------- SEL SEL VP SEL VP THDL VP THDL VP VP LG CAP SM CAP EMER INTL DEC. 31, 2009 (CONTINUED) GRO, CL 3 VAL, CL 3 VAL, CL 3 MKTS, CL 3 OPP, CL 3 ASSETS Investments, at fair value(1),(2) $ 155,386,747 $ 13,067,448 $ 59,236,160 $657,467,942 $163,484,607 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 892 2,831 2,991 270,517 68,718 Receivable for share redemptions -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total assets 155,387,639 13,070,279 59,239,151 657,738,459 163,553,325 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 112,850 9,597 43,142 524,814 142,735 Contract terminations 107,135 2,523 153,122 53,092 32,439 Payable for investments purchased -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 219,985 12,120 196,264 577,906 175,174 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 154,651,865 13,046,549 58,947,810 656,482,125 162,316,219 Net assets applicable to contracts in payment period 515,789 11,610 95,077 678,428 1,061,932 Net assets applicable to seed money -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total net assets $ 155,167,654 $ 13,058,159 $ 59,042,887 $657,160,553 $163,378,151 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 26,694,388 1,571,759 6,525,506 43,255,968 15,184,977 (2) Investments, at cost $ 200,192,631 $ 15,106,630 $ 75,651,800 $559,187,203 $163,765,772 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 15 STATEMENTS OF ASSETS AND LIABILITIES
THIRD VANK LIT VANK UIF VANK UIF AVE COMSTOCK, GLOBAL MID CAP GRO, WANGER DEC. 31, 2009 (CONTINUED) VAL CL II REAL EST, CL II CL II INTL ASSETS Investments, at fair value(1),(2) $ 62,619,736 $681,300,780 $264,521,914 $47,117,081 $893,101,535 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 168,266 49,548 16,814 241,718 Receivable for share redemptions 53,081 549,126 250,150 56,273 736,609 - -------------------------------------------------------------------------------------------------------------------------- Total assets 62,672,817 682,018,172 264,821,612 47,190,168 894,079,862 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 45,527 525,165 205,599 35,699 680,819 Contract terminations 7,554 23,961 44,551 20,574 55,789 Payable for investments purchased -- 168,266 49,548 16,814 241,718 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 53,081 717,392 299,698 73,087 978,326 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 62,364,911 681,144,653 264,453,867 47,070,294 892,616,883 Net assets applicable to contracts in payment period 254,825 156,127 68,047 46,787 484,653 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total net assets $ 62,619,736 $681,300,780 $264,521,914 $47,117,081 $893,101,536 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 4,628,214 67,455,523 34,264,497 5,189,106 30,091,022 (2) Investments, at cost $ 77,421,329 $811,576,638 $291,987,922 $56,515,188 $847,902,056 - -------------------------------------------------------------------------------------------------------------------------- WF ADV WF ADV WF ADV WF ADV WANGER VT INDEX VT INTL VT VT DEC. 31, 2009 (CONTINUED) USA ASSET ALLOC CORE OPP SM CAP GRO ASSETS Investments, at fair value(1),(2) $745,595,633 $ 41,323,976 $ 7,251,113 $47,588,712 $ 84,640,004 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 653,346 13,156 14,785 5,735 39,748 Receivable for share redemptions 864,725 37,014 5,271 96,749 85,697 - -------------------------------------------------------------------------------------------------------------------------- Total assets 747,113,704 41,374,146 7,271,169 47,691,196 84,765,449 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 563,180 30,522 5,256 34,852 63,057 Contract terminations 301,544 6,492 15 61,897 22,640 Payable for investments purchased 653,346 13,156 14,785 5,735 39,748 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,518,070 50,170 20,056 102,484 125,445 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 745,163,833 41,124,023 7,242,543 47,571,808 84,580,249 Net assets applicable to contracts in payment period 431,801 199,953 8,570 16,904 59,755 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total net assets $745,595,634 $ 41,323,976 $ 7,251,113 $47,588,712 $ 84,640,004 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 27,161,954 3,924,404 1,441,573 3,170,467 13,329,135 (2) Investments, at cost $763,664,026 $ 48,327,211 $ 10,545,768 $57,478,713 $ 96,548,742 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 16 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2009 SER I SER II SER I SER II SER I INVESTMENT INCOME Dividend income $ 145,394 $ 262,423 $ -- $ -- $ 2,237,368 Variable account expenses 204,647 815,039 156,938 264,934 1,611,625 - ------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (59,253) (552,616) (156,938) (264,934) 625,743 - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 6,551,248 18,799,064 5,146,159 7,715,295 34,025,541 Cost of investments sold 11,656,026 24,371,207 6,982,743 11,650,376 35,142,947 - ------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (5,104,778) (5,572,143) (1,836,584) (3,935,081) (1,117,406) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 9,491,963 23,330,361 8,340,478 14,524,850 30,337,230 - ------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 4,387,185 17,758,218 6,503,894 10,589,769 29,219,824 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 4,327,932 $17,205,602 $ 6,346,956 $ 10,324,835 $ 29,845,567 - ------------------------------------------------------------------------------------------------------------------------- INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH, INTL GRO, YEAR ENDED DEC. 31, 2009 (CONTINUED) SER I SER I SER II SER II SER II INVESTMENT INCOME Dividend income $ -- $ 420,531 $ 163,513 $ 26,773 $ 9,159,737 Variable account expenses 47,684 103,543 43,476 179,413 5,514,284 - ------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (47,684) 316,988 120,037 (152,640) 3,645,453 - ------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 1,475,965 3,979,575 1,301,206 4,861,332 43,192,877 Cost of investments sold 1,565,690 8,301,513 2,243,264 6,350,588 58,148,727 - ------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (89,725) (4,321,938) (942,058) (1,489,256) (14,955,850) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 2,086,156 7,376,218 2,101,914 6,527,759 196,856,943 - ------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 1,996,431 3,054,280 1,159,856 5,038,503 181,901,093 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 1,948,747 $ 3,371,268 $ 1,279,893 $ 4,885,863 $185,546,546 - ------------------------------------------------------------------------------------------------------------------------- INVESCO VI AB VPS GLOBAL AB VPS AB VPS AB VPS TECH, THEMATIC GRO, GRO & INC, INTL VAL, LG CAP GRO, YEAR ENDED DEC. 31, 2009 (CONTINUED) SER I CL B CL B CL B CL B INVESTMENT INCOME Dividend income $ -- $ -- $ 4,320,789 $ 6,281,031 $ -- Variable account expenses 174,465 111,610 1,061,827 6,611,650 23,281 - ------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (174,465) (111,610) 3,258,962 (330,619) (23,281) - ------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 3,137,524 2,887,410 29,012,319 488,196,235 553,872 Cost of investments sold 3,677,905 3,494,382 46,433,973 730,895,342 710,319 - ------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (540,381) (606,972) (17,421,654) (242,699,107) (156,447) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 9,879,261 5,777,996 35,443,487 444,152,316 930,904 - ------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 9,338,880 5,171,024 18,021,833 201,453,209 774,457 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 9,164,415 $ 5,059,414 $ 21,280,795 $ 201,122,590 $ 751,176 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 17 STATEMENTS OF OPERATIONS
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL I CL II CL II CL II CL I INVESTMENT INCOME Dividend income $ 575,799 $ 1,099,088 $ 7,335,391 $ 39,171 $ 3,911,219 Variable account expenses 228,252 467,218 1,719,669 202,440 566,731 - ------------------------------------------------------------------------------------------------------------------------ Investment income (loss) -- net 347,547 631,870 5,615,722 (163,269) 3,344,488 - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 7,221,875 13,288,563 74,386,801 5,996,513 14,524,974 Cost of investments sold 10,320,268 15,747,640 96,828,574 8,845,296 21,742,074 - ------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments (3,098,393) (2,459,077) (22,441,773) (2,848,783) (7,217,100) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 10,135,527 16,870,540 63,020,683 9,632,641 15,305,129 - ------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments 7,037,134 14,411,463 40,578,910 6,783,858 8,088,029 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ 7,384,681 $15,043,333 $ 46,194,632 $ 6,620,589 $ 11,432,517 - ------------------------------------------------------------------------------------------------------------------------ AC VP CALVERT COL COL COL VAL, VS SOCIAL HI YIELD, MARSICO GRO, MARSICO INTL YEAR ENDED DEC. 31, 2009 (CONTINUED) CL II BAL VS CL B VS CL A OPP, VS CL B INVESTMENT INCOME Dividend income $ 10,290,944 $ 545,171 $ 8,429,526 $ 11,325,737 $ 1,314,397 Variable account expenses 1,659,496 224,616 748,945 11,962,593 637,153 - ------------------------------------------------------------------------------------------------------------------------ Investment income (loss) -- net 8,631,448 320,555 7,680,581 (636,856) 677,244 - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 35,043,151 5,467,446 16,256,753 80,541,136 18,693,051 Cost of investments sold 54,514,028 7,285,728 19,479,358 96,308,507 33,500,909 - ------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments (19,470,877) (1,818,282) (3,222,605) (15,767,371) (14,807,858) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 43,667,336 7,185,010 23,912,800 356,601,733 35,247,373 - ------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments 24,196,459 5,366,728 20,690,195 340,834,362 20,439,515 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ 32,827,907 $ 5,687,283 $ 28,370,776 $340,197,506 $ 21,116,759 - ------------------------------------------------------------------------------------------------------------------------ CS CS DREY VIF EV VT EG VA COMMODITY U.S. EQ INTL EQ, FLOATING-RATE FUNDAMENTAL YEAR ENDED DEC. 31, 2009 (CONTINUED) RETURN FLEX I SERV INC LG CAP, CL 2 INVESTMENT INCOME Dividend income $ 8,762,312 $ 557,832 $ 242,212 $ 32,827,518 $ 313,753 Variable account expenses 645,329 640,379 66,579 6,499,145 240,801 - ------------------------------------------------------------------------------------------------------------------------ Investment income (loss) -- net 8,116,983 (82,547) 175,633 26,328,373 72,952 - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 7,490,071 14,109,106 1,865,343 44,376,586 4,455,806 Cost of investments sold 10,891,696 21,668,953 2,726,885 51,597,242 5,240,470 - ------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments (3,401,625) (7,559,847) (861,542) (7,220,656) (784,664) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 8,523,612 18,384,073 2,060,582 198,712,069 8,956,333 - ------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments 5,121,987 10,824,226 1,199,040 191,491,413 8,171,669 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ 13,238,970 $10,741,679 $ 1,374,673 $217,819,786 $ 8,244,621 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 18 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, GRO & INC, MID CAP, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 2 SERV CL 2 SERV CL SERV CL 2 SERV CL INVESTMENT INCOME Dividend income $ 1,732,630 $ 8,388,298 $ 766,775 $ 1,334,849 $ 1,073,274 Variable account expenses 3,528,022 8,151,414 683,482 1,381,858 1,611,397 - -------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (1,795,392) 236,884 83,293 (47,009) (538,123) - -------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 50,133,611 593,649,540 18,895,345 37,420,333 43,290,656 Cost of investments sold 46,040,475 946,628,913 29,024,471 52,134,624 48,410,668 - -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 4,093,136 (352,979,373) (10,129,126) (14,714,291) (5,120,012) Distributions from capital gains -- 193,105 -- -- 930,948 Net change in unrealized appreciation or depreciation of investments 127,731,038 584,421,899 28,532,661 51,670,655 66,598,441 - -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 131,824,174 231,635,631 18,403,535 36,956,364 62,409,377 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 130,028,782 $ 231,872,515 $ 18,486,828 $ 36,909,355 $ 61,871,254 - -------------------------------------------------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FTVIPT FTVIPT MID CAP, OVERSEAS, OVERSEAS, FRANK GLOBAL FRANK SM CAP YEAR ENDED DEC. 31, 2009 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 REAL EST, CL 2 VAL, CL 2 INVESTMENT INCOME Dividend income $ 4,196,663 $ 788,091 $ 2,204,208 $ 19,636,860 $ 2,775,348 Variable account expenses 8,750,522 340,838 1,033,553 1,322,079 1,456,522 - -------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (4,553,859) 447,253 1,170,655 18,314,781 1,318,826 - -------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 317,796,938 10,027,162 27,446,413 35,888,851 37,384,693 Cost of investments sold 426,047,659 15,042,840 38,591,411 82,974,294 48,917,502 - -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (108,250,721) (5,015,678) (11,144,998) (47,085,443) (11,532,809) Distributions from capital gains 4,714,168 130,406 384,952 -- 7,642,928 Net change in unrealized appreciation or depreciation of investments 419,401,944 13,219,075 35,438,317 52,846,215 43,213,432 - -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 315,865,391 8,333,803 24,678,271 5,760,772 39,323,551 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 311,311,532 $ 8,781,056 $ 25,848,926 $ 24,075,553 $ 40,642,377 - -------------------------------------------------------------------------------------------------------------------------- FTVIPT GS VIT GS VIT GS VIT JANUS ASPEN MUTUAL SHARES MID CAP VAL, STRUCTD SM CAP STRUCTD U.S. ENTERPRISE, YEAR ENDED DEC. 31, 2009 (CONTINUED) SEC, CL 2 INST EQ, INST EQ, INST SERV INVESTMENT INCOME Dividend income $ 3,137,611 $ 5,168,256 $ 107,720 $ 3,373,063 $ -- Variable account expenses 1,485,895 2,553,776 80,476 1,462,467 135,292 - -------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 1,651,716 2,614,480 27,244 1,910,596 (135,292) - -------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 34,330,734 70,885,044 2,482,542 38,429,046 3,629,917 Cost of investments sold 48,326,485 110,423,843 3,945,778 57,400,630 5,514,350 - -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (13,995,751) (39,538,799) (1,463,236) (18,971,584) (1,884,433) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 48,608,825 119,134,008 3,616,257 47,711,018 7,927,346 - -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 34,613,074 79,595,209 2,153,021 28,739,434 6,042,913 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 36,264,790 $ 82,209,689 $ 2,180,265 $ 30,650,030 $ 5,907,621 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 19 STATEMENTS OF OPERATIONS
JANUS ASPEN JANUS ASPEN JANUS ASPEN LM CB VAR MFS INV GLOBAL JANUS, OVERSEAS, SM CAP GRO, GRO STOCK, YEAR ENDED DEC. 31, 2009 (CONTINUED) TECH, SERV SERV SERV CL I SERV CL INVESTMENT INCOME Dividend income $ -- $ 4,019,693 $ 531,656 $ -- $ 296,485 Variable account expenses 134,539 9,954,712 1,114,433 51,860 609,550 - --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (134,539) (5,935,019) (582,777) (51,860) (313,065) - --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 1,973,810 68,346,239 21,139,478 1,471,205 8,922,337 Cost of investments sold 3,087,842 83,170,377 24,002,704 1,904,168 11,160,136 - --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (1,114,032) (14,824,138) (2,863,226) (432,963) (2,237,799) Distributions from capital gains -- -- 3,684,756 -- -- Net change in unrealized appreciation or depreciation of investments 8,155,612 366,845,252 71,467,925 2,471,524 25,721,007 - --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 7,041,580 352,021,114 72,289,455 2,038,561 23,483,208 - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 6,907,041 $346,086,095 $ 71,706,678 $ 1,986,701 $23,170,143 - --------------------------------------------------------------------------------------------------------------------------- MFS MFS NB AMT NB AMT SOC OPPEN NEW DIS, UTILITIES, INTL, RESPONSIVE, GLOBAL SEC YEAR ENDED DEC. 31, 2009 (CONTINUED) SERV CL SERV CL CL S CL S VA, SERV INVESTMENT INCOME Dividend income $ -- $ 10,067,044 $ 9,449,792 $ 39,411 $ 1,723,508 Variable account expenses 361,694 1,873,094 2,358,018 19,143 783,920 - --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (361,694) 8,193,950 7,091,774 20,268 939,588 - --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 7,312,292 43,909,962 42,550,390 294,571 17,109,654 Cost of investments sold 10,851,527 58,181,190 57,565,083 430,746 25,238,513 - --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (3,539,235) (14,271,228) (15,014,693) (136,175) (8,128,859) Distributions from capital gains -- -- -- -- 1,911,246 Net change in unrealized appreciation or depreciation of investments 24,075,207 64,272,529 84,857,173 634,486 33,275,208 - --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 20,535,972 50,001,301 69,842,480 498,311 27,057,595 - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $20,174,278 $ 58,195,251 $ 76,934,254 $ 518,579 $27,997,183 - --------------------------------------------------------------------------------------------------------------------------- OPPEN OPPEN OPPEN PIMCO PUT VT MAIN ST SM CAP GLOBAL STRATEGIC VAL VA, VIT ALL ASSET, GLOBAL HLTH YEAR ENDED DEC. 31, 2009 (CONTINUED) VA, SERV INC VA, SERV SERV ADVISOR CL CARE, CL IB INVESTMENT INCOME Dividend income $ 416,213 $ 5,356,672 $ 5,872 $ 74,841,194 $ 2,890,642 Variable account expenses 577,988 21,201,271 34,555 10,070,375 213,815 - --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (161,775) (15,844,599) (28,683) 64,770,819 2,676,827 - --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 13,595,071 202,352,671 860,462 335,511,201 6,301,149 Cost of investments sold 19,895,378 227,495,407 1,263,162 384,410,558 6,779,556 - --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (6,300,307) (25,142,736) (402,700) (48,899,357) (478,407) Distributions from capital gains -- 1,678,820 -- -- -- Net change in unrealized appreciation or depreciation of investments 26,119,350 409,458,541 1,322,607 186,231,108 3,326,109 - --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 19,819,043 385,994,625 919,907 137,331,751 2,847,702 - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $19,657,268 $370,150,026 $ 891,224 $202,102,570 $ 5,524,529 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 20 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
PUT VT PUT VT PUT VT ROYCE DISC INTL EQ, NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL IB CL IA CL IB INVEST CL AGGR INVESTMENT INCOME Dividend income $ -- $ 464,356 $ -- $ -- $ -- Variable account expenses 291,880 834,379 234,099 442,430 118,653 - ----------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (291,880) (370,023) (234,099) (442,430) (118,653) - ----------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 8,923,631 16,020,272 6,372,430 10,758,974 3,170,961 Cost of investments sold 13,296,480 25,695,804 12,242,227 13,507,824 3,161,780 - ----------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (4,372,849) (9,675,532) (5,869,797) (2,748,850) 9,181 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 11,638,232 27,869,479 15,114,482 26,634,339 3,541,173 - ----------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 7,265,383 18,193,947 9,244,685 23,885,489 3,550,354 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 6,973,503 $ 17,823,924 $ 9,010,586 $ 23,443,059 $ 3,431,701 - ----------------------------------------------------------------------------------------------------------------------- DISC DISC DISC DISC VP DAVIS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, NY VENTURE, YEAR ENDED DEC. 31, 2009 (CONTINUED) CONSERV MOD MOD AGGR MOD CONSERV CL 3 INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ -- $ -- Variable account expenses 275,208 501,654 328,141 313,165 9,602,379 - ----------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (275,208) (501,654) (328,141) (313,165) (9,602,379) - ----------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 15,899,380 13,394,794 12,013,242 8,475,792 115,888,817 Cost of investments sold 15,619,059 14,286,548 12,366,338 8,550,776 130,719,745 - ----------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 280,321 (891,754) (353,096) (74,984) (14,830,928) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 4,873,371 12,661,873 9,250,822 6,965,312 365,129,530 - ----------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 5,153,692 11,770,119 8,897,726 6,890,328 350,298,602 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 4,878,484 $ 11,268,465 $ 8,569,585 $ 6,577,163 $340,696,223 - ----------------------------------------------------------------------------------------------------------------------- VP GS VP PTNRS RVS VP RVS VP RVS VP MID CAP VAL, SM CAP VAL, BAL, CASH MGMT, DIV BOND, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ 719,234 $157,729,719 Variable account expenses 98,184 8,045,658 2,476,443 8,923,010 35,205,378 - ----------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (98,184) (8,045,658) (2,476,443) (8,203,776) 122,524,341 - ----------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 3,191,218 102,711,181 62,418,736 765,173,507 578,191,962 Cost of investments sold 4,776,150 124,156,736 84,705,680 765,013,424 587,890,480 - ----------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (1,584,932) (21,445,555) (22,286,944) 160,083 (9,698,518) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 5,098,851 315,695,353 80,267,710 863,327 347,434,702 - ----------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 3,513,919 294,249,798 57,980,766 1,023,410 337,736,184 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 3,415,735 $286,204,140 $ 55,504,323 $ (7,180,366) $460,260,525 - -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 21 STATEMENTS OF OPERATIONS
RVS VP RVS VP RVS VP RVS VP RVS VP DIV EQ INC, DYN EQ, GLOBAL BOND, GLOBAL INFLATION HI YIELD YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 PROT SEC, CL 3 BOND, CL 3 INVESTMENT INCOME Dividend income $ -- $ -- $ 23,351,342 $103,558,609 $ 48,879,456 Variable account expenses 20,498,525 4,081,507 12,031,501 11,089,903 4,464,690 - --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (20,498,525) (4,081,507) 11,319,841 92,468,706 44,414,766 - --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 278,395,039 91,891,002 228,600,212 39,959,352 85,662,962 Cost of investments sold 354,652,582 156,838,392 230,917,926 40,466,873 96,254,324 - --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (76,257,543) (64,947,390) (2,317,714) (507,521) (10,591,362) Distributions from capital gains -- -- -- 51,598 -- Net change in unrealized appreciation or depreciation of investments 689,203,430 153,856,250 115,381,226 (19,359,768) 163,884,654 - --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 612,945,887 88,908,860 113,063,512 (19,815,691) 153,293,292 - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $592,447,362 $ 84,827,353 $124,383,353 $ 72,653,015 $197,708,058 - --------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP INC OPP, MID CAP GRO, MID CAP VAL, S&P 500 SHORT DURATION, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 INVESTMENT INCOME Dividend income $ 47,817,177 $ -- $ -- $ -- $ 11,117,888 Variable account expenses 9,735,437 1,003,663 1,960,228 1,173,407 3,177,949 - --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 38,081,740 (1,003,663) (1,960,228) (1,173,407) 7,939,939 - --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 47,815,322 15,294,084 98,877,264 28,021,847 106,839,620 Cost of investments sold 52,690,060 20,330,511 163,010,996 34,572,974 108,580,565 - --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (4,874,738) (5,036,427) (64,133,732) (6,551,127) (1,740,945) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 289,109,296 52,849,944 133,998,190 38,794,603 9,874,729 - --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 284,234,558 47,813,517 69,864,458 32,243,476 8,133,784 - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $322,316,298 $ 46,809,854 $ 67,904,230 $ 31,070,069 $ 16,073,723 - --------------------------------------------------------------------------------------------------------------------------- SEL SEL VP SEL VP THDL VP THDL VP VP GRO, LG CAP VAL, SM CAP VAL, EMER MKTS, INTL OPP, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ 2,164,010 $ 2,319,313 Variable account expenses 1,198,578 89,110 437,572 5,523,565 1,541,024 - --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (1,198,578) (89,110) (437,572) (3,359,555) 778,289 - --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 33,257,395 2,656,070 11,985,564 341,897,181 37,152,293 Cost of investments sold 54,869,229 3,913,288 20,260,719 423,548,858 47,325,026 - --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (21,611,834) (1,257,218) (8,275,155) (81,651,677) (10,172,733) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 65,311,646 3,727,958 25,589,634 405,264,252 43,374,939 - --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 43,699,812 2,470,740 17,314,479 323,612,575 33,202,206 - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 42,501,234 $ 2,381,630 $ 16,876,907 $320,253,020 $ 33,980,495 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 22 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
THIRD VANK LIT VANK UIF VANK UIF AVE COMSTOCK, GLOBAL REAL MID CAP WANGER YEAR ENDED DEC. 31, 2009 (CONTINUED) VAL CL II EST, CL II GRO, CL II INTL INVESTMENT INCOME Dividend income $ -- $ 30,298,265 $ 48,245 $ -- $ 25,335,904 Variable account expenses 487,695 6,080,899 2,274,817 326,427 6,191,065 - ------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (487,695) 24,217,366 (2,226,572) (326,427) 19,144,839 - ------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 14,816,120 270,974,044 115,096,898 7,650,227 104,604,197 Cost of investments sold 20,959,101 400,942,366 163,882,982 13,129,148 125,629,402 - ------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (6,142,981) (129,968,322) (48,786,084) (5,478,921) (21,025,205) Distributions from capital gains 13,374,296 -- -- -- -- Net change in unrealized appreciation or depreciation of investments 13,926,594 257,412,229 135,827,610 21,516,169 276,679,585 - ------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 21,157,909 127,443,907 87,041,526 16,037,248 255,654,380 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $20,670,214 $ 151,661,273 $ 84,814,954 $15,710,821 $274,799,219 - -------------------------------------------------------------------------------------------------------------------------
WF ADV WF ADV WF ADV WF ADV WANGER VT INDEX VT INTL VT VT YEAR ENDED DEC. 31, 2009 (CONTINUED) USA ASSET ALLOC CORE OPP SM CAP GRO INVESTMENT INCOME Dividend income $ -- $ 825,491 $ 208,042 $ -- $ -- Variable account expenses 5,504,013 352,130 58,385 360,099 571,333 - ---------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (5,504,013) 473,361 149,657 (360,099) (571,333) - ---------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 99,982,181 12,670,072 1,781,128 9,438,155 9,170,652 Cost of investments sold 126,878,286 17,352,445 3,071,430 14,713,518 14,583,274 - ---------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (26,896,105) (4,682,373) (1,290,302) (5,275,363) (5,412,622) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 255,617,339 9,125,744 1,821,933 21,395,093 32,780,362 - ---------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 228,721,234 4,443,371 531,631 16,119,730 27,367,740 - ---------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $223,217,221 $ 4,916,732 $ 681,288 $15,759,631 $26,796,407 - ----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 23 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2009 SER I SER II SER I SER II SER I OPERATIONS Investment income (loss) -- net $ (59,253) $ (552,616) $ (156,938) $ (264,934) $ 625,743 Net realized gain (loss) on sales of investments (5,104,778) (5,572,143) (1,836,584) (3,935,081) (1,117,406) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 9,491,963 23,330,361 8,340,478 14,524,850 30,337,230 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 4,327,932 17,205,602 6,346,956 10,324,835 29,845,567 - ----------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 514,497 1,712,109 307,792 873,334 2,326,222 Net transfers(1) (4,637,324) (8,453,732) (3,482,557) (5,093,513) (5,993,364) Transfers for policy loans 41,453 10,470 745 9,686 313,459 Adjustments to net assets allocated to contracts in payment period (5,594) (8,848) 56,512 (3,089) (486,274) Contract charges (19,213) (365,768) (11,705) (25,274) (172,599) Contract terminations: Surrender benefits (1,628,007) (4,414,512) (1,294,429) (1,522,090) (25,155,941) Death benefits (291,319) (696,294) (177,815) (323,407) (1,797,415) - ----------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (6,025,507) (12,216,575) (4,601,457) (6,084,353) (30,965,912) - ----------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 26,745,483 99,171,829 18,148,222 29,143,340 136,521,974 - ----------------------------------------------------------------------------------------------------------------------- Net assets at end of year $25,047,908 $104,160,856 $19,893,721 $33,383,822 $135,401,629 - ----------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 41,116,063 139,781,286 16,729,519 36,124,153 92,624,670 Contract purchase payments 772,065 2,400,730 246,713 1,064,035 1,520,479 Net transfers(1) (7,015,244) (12,050,025) (2,862,370) (5,583,200) (4,209,615) Transfers for policy loans 60,117 15,707 3,547 10,865 206,808 Contract charges (29,150) (495,405) (9,544) (28,009) (112,406) Contract terminations: Surrender benefits (2,419,200) (5,995,182) (1,009,724) (1,600,041) (16,299,857) Death benefits (444,076) (950,939) (139,371) (343,847) (1,189,517) - ----------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 32,040,575 122,706,172 12,958,770 29,643,956 72,540,562 - -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 24 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH, INTL GRO, YEAR ENDED DEC. 31, 2009 (CONTINUED) SER I SER I SER II SER II SER II OPERATIONS Investment income (loss) -- net $ (47,684) $ 316,988 $ 120,037 $ (152,640) $ 3,645,453 Net realized gain (loss) on sales of investments (89,725) (4,321,938) (942,058) (1,489,256) (14,955,850) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 2,086,156 7,376,218 2,101,914 6,527,759 196,856,943 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 1,948,747 3,371,268 1,279,893 4,885,863 185,546,546 - ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 131,490 358,052 663,785 927,327 98,838,649 Net transfers(1) (870,546) 1,343,659 1,023,687 1,216,565 45,595,755 Transfers for policy loans 3,761 10,083 186 (7,670) 19,914 Adjustments to net assets allocated to contracts in payment period (1,197) (372) (1,898) 794 34,271 Contract charges (6,293) (12,573) (3,960) (17,440) (2,762,858) Contract terminations: Surrender benefits (359,479) (977,788) (115,009) (1,032,948) (17,344,547) Death benefits (70,748) (110,561) (66,808) (155,924) (3,466,091) - ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (1,173,012) 610,500 1,499,983 930,704 120,915,093 - ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 5,631,512 10,755,490 3,130,618 17,563,978 461,509,291 - ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 6,407,247 $14,737,258 $ 5,910,494 $23,380,545 $767,970,930 - ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 7,742,275 25,118,996 8,625,759 21,603,800 537,766,644 Contract purchase payments 161,210 854,920 1,796,989 1,038,017 107,607,053 Net transfers(1) (1,138,661) 3,687,670 3,007,079 1,491,463 46,928,415 Transfers for policy loans 4,496 24,351 497 (7,789) 20,855 Contract charges (7,504) (28,606) (10,881) (19,933) (2,920,526) Contract terminations: Surrender benefits (439,046) (2,176,049) (299,261) (1,178,284) (17,432,382) Death benefits (87,189) (276,718) (161,954) (166,871) (3,626,240) - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 6,235,581 27,204,564 12,958,228 22,760,403 668,343,819 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 25 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL THEMATIC GRO, GRO & INC, INTL VAL, LG CAP GRO, YEAR ENDED DEC. 31, 2009 (CONTINUED) SER I CL B CL B CL B CL B OPERATIONS Investment income (loss) -- net $ (174,465) $ (111,610) $ 3,258,962 $ (330,619) $ (23,281) Net realized gain (loss) on sales of investments (540,381) (606,972) (17,421,654) (242,699,107) (156,447) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 9,879,261 5,777,996 35,443,487 444,152,316 930,904 - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 9,164,415 5,059,414 21,280,795 201,122,590 751,176 - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 353,513 985,340 2,972,730 68,004,011 361,909 Net transfers(1) 4,666,749 4,746,354 (19,956,545) (386,003,689) 251,528 Transfers for policy loans 7,114 46 59,124 77,934 (785) Adjustments to net assets allocated to contracts in payment period 710 53,096 (23,047) (32,717) -- Contract charges (60,057) (11,822) (113,546) (2,199,705) (1,670) Contract terminations: Surrender benefits (1,047,745) (526,484) (6,940,999) (30,517,203) (94,178) Death benefits (221,433) (92,649) (963,351) (5,876,984) (7,670) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 3,698,851 5,153,881 (24,965,634) (356,548,353) 509,134 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 15,360,075 7,758,324 131,669,325 803,094,964 1,943,454 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $28,223,341 $17,971,619 $127,984,486 $ 647,669,201 $3,203,764 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 32,200,674 10,969,877 166,185,303 949,299,324 2,648,525 Contract purchase payments 610,358 1,093,975 3,744,311 106,732,637 424,736 Net transfers(1) 7,373,502 5,340,956 (24,569,997) (494,939,271) 268,289 Transfers for policy loans 11,641 394 69,876 49,277 (708) Contract charges (101,111) (13,469) (139,235) (2,841,346) (1,991) Contract terminations: Surrender benefits (1,730,886) (603,842) (8,377,676) (28,054,317) (113,889) Death benefits (390,772) (99,306) (1,150,330) (6,146,635) (9,620) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 37,973,406 16,688,585 135,762,252 524,099,669 3,215,342 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 26 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL I CL II CL II CL II CL I OPERATIONS Investment income (loss) -- net $ 347,547 $ 631,870 $ 5,615,722 $ (163,269) $ 3,344,488 Net realized gain (loss) on sales of investments (3,098,393) (2,459,077) (22,441,773) (2,848,783) (7,217,100) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 10,135,527 16,870,540 63,020,683 9,632,641 15,305,129 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 7,384,681 15,043,333 46,194,632 6,620,589 11,432,517 - ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 342,565 1,015,452 31,224,291 720,607 1,020,477 Net transfers(1) (5,013,160) (9,026,555) (54,126,313) (1,271,973) (6,946,438) Transfers for policy loans 4,541 223 (20,398) (8,173) 34,941 Adjustments to net assets allocated to contracts in payment period 3,450 15,941 7,249 7,763 (18,209) Contract charges (13,011) (48,269) (866,564) (25,200) (32,612) Contract terminations: Surrender benefits (1,816,469) (3,190,905) (5,334,037) (1,143,669) (5,480,651) Death benefits (148,270) (341,344) (1,155,107) (158,628) (693,415) - ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (6,640,354) (11,575,457) (30,270,879) (1,879,273) (12,115,907) - ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 28,082,916 56,141,876 187,536,301 21,628,589 72,004,104 - ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $28,827,243 $ 59,609,752 $203,460,054 $26,369,905 $ 71,320,714 - ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 34,033,062 60,220,944 242,954,980 31,148,264 56,646,998 Contract purchase payments 388,537 990,239 36,658,694 931,345 809,083 Net transfers(1) (5,941,053) (9,448,096) (65,255,435) (1,860,766) (5,499,371) Transfers for policy loans 7,202 2,266 (23,959) (11,286) 31,830 Contract charges (15,026) (48,360) (1,064,132) (33,904) (26,037) Contract terminations: Surrender benefits (1,969,347) (3,087,308) (6,929,861) (1,516,388) (4,219,172) Death benefits (169,924) (338,800) (1,477,106) (209,589) (559,541) - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 26,333,451 48,290,885 204,863,181 28,447,676 47,183,790 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 27 STATEMENTS OF CHANGES IN NET ASSETS
AC VP CALVERT COL HI COL MARSICO COL MARSICO VAL, VS SOCIAL YIELD, GRO, INTL OPP, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL II BAL VS CL B VS CL A VS CL B OPERATIONS Investment income (loss) -- net $ 8,631,448 $ 320,555 $ 7,680,581 $ (636,856) $ 677,244 Net realized gain (loss) on sales of investments (19,470,877) (1,818,282) (3,222,605) (15,767,371) (14,807,858) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 43,667,336 7,185,010 23,912,800 356,601,733 35,247,373 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 32,827,907 5,687,283 28,370,776 340,197,506 21,116,759 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 6,117,891 744,727 4,580,738 218,405,347 3,000,510 Net transfers(1) (14,473,405) (3,426,846) (2,752,901) 242,957,334 (10,886,155) Transfers for policy loans 54,011 23,552 (10,309) (76,420) (838) Adjustments to net assets allocated to contracts in payment period (143,926) (7,233) (3,677) (29,425) (49,831) Contract charges (172,480) (27,893) (116,341) (5,946,947) (55,336) Contract terminations: Surrender benefits (11,559,375) (1,442,336) (3,522,545) (37,839,442) (3,064,098) Death benefits (2,032,581) (278,791) (1,105,723) (7,891,422) (584,529) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (22,209,865) (4,414,820) (2,930,758) 409,579,025 (11,640,277) - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 195,490,501 26,299,083 66,584,202 963,953,201 69,405,070 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $206,108,543 $27,571,546 $92,024,220 $1,713,729,732 $ 78,881,552 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 188,664,402 33,641,067 82,427,527 1,298,130,787 103,623,136 Contract purchase payments 6,707,931 879,962 4,567,458 268,218,501 3,692,483 Net transfers(1) (12,927,452) (4,124,819) (2,249,626) 330,178,071 (16,624,986) Transfers for policy loans 45,904 29,932 (9,549) (86,524) 425 Contract charges (166,706) (33,160) (119,083) (7,374,951) (73,320) Contract terminations: Surrender benefits (11,000,983) (1,701,743) (3,648,285) (47,732,937) (4,015,015) Death benefits (1,944,911) (325,388) (1,131,860) (10,006,182) (783,233) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 169,378,185 28,365,851 79,836,582 1,831,326,765 85,819,490 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 28 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
CS CS DREY EV VT EG VA COMMODITY U.S. EQ VIF INTL EQ, FLOATING-RATE FUNDAMENTAL YEAR ENDED DEC. 31, 2009 (CONTINUED) RETURN FLEX I SERV INC LG CAP, CL 2 OPERATIONS Investment income (loss) -- net $ 8,116,983 $ (82,547) $ 175,633 $ 26,328,373 $ 72,952 Net realized gain (loss) on sales of investments (3,401,625) (7,559,847) (861,542) (7,220,656) (784,664) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 8,523,612 18,384,073 2,060,582 198,712,069 8,956,333 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 13,238,970 10,741,679 1,374,673 217,819,786 8,244,621 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,617,445 1,246,283 970,233 111,928,449 2,293,434 Net transfers(1) 18,475,133 7,854,878 (599,485) 153,556,412 6,506,963 Transfers for policy loans (8,107) 153,441 (3,584) (61,086) (1,987) Adjustments to net assets allocated to contracts in payment period 8,002 (127,041) -- (63,434) 71,606 Contract charges (50,436) (60,673) (5,615) (2,851,337) (19,657) Contract terminations: Surrender benefits (4,222,306) (10,637,623) (209,379) (24,776,426) (1,045,949) Death benefits (502,449) (662,043) (131,308) (5,532,118) (390,400) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 17,317,282 (2,232,778) 20,862 232,200,460 7,414,010 - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 58,690,964 54,325,711 6,228,703 434,438,748 21,027,833 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 89,247,216 $ 62,834,612 $7,624,238 $884,458,994 $36,686,464 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 78,359,789 61,041,326 7,986,062 581,542,099 26,240,985 Contract purchase payments 4,532,105 1,389,346 1,162,318 118,075,823 2,491,225 Net transfers(1) 23,778,039 7,467,440 (818,158) 163,400,576 6,937,462 Transfers for policy loans (9,305) 175,412 (3,946) (60,880) (1,694) Contract charges (64,750) (67,550) (6,816) (2,988,034) (21,937) Contract terminations: Surrender benefits (5,385,713) (11,778,955) (258,459) (25,876,119) (1,147,721) Death benefits (657,307) (768,502) (150,795) (5,815,707) (435,957) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 100,552,858 57,458,517 7,910,206 828,277,758 34,062,363 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 29 STATEMENTS OF CHANGES IN NET ASSETS
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, GRO & INC, MID CAP, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 2 SERV CL 2 SERV CL SERV CL 2 SERV CL OPERATIONS Investment income (loss) -- net $ (1,795,392) $ 236,884 $ 83,293 $ (47,009) $ (538,123) Net realized gain (loss) on sales of investments 4,093,136 (352,979,373) (10,129,126) (14,714,291) (5,120,012) Distributions from capital gains -- 193,105 -- -- 930,948 Net change in unrealized appreciation or depreciation of investments 127,731,038 584,421,899 28,532,661 51,670,655 66,598,441 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 130,028,782 231,872,515 18,486,828 36,909,355 61,871,254 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 67,703,389 106,140,699 1,245,681 3,086,539 2,692,237 Net transfers(1) 533,788,776 (531,127,441) (12,556,456) (27,411,536) (28,949,237) Transfers for policy loans 488 (22,265) 87,874 71,271 64,350 Adjustments to net assets allocated to contracts in payment period 109,568 39,918 (10,459) (132,768) (230,621) Contract charges (1,658,931) (2,997,515) (47,130) (158,180) (105,905) Contract terminations: Surrender benefits (12,051,111) (30,319,995) (5,631,614) (9,394,187) (13,419,647) Death benefits (1,949,339) (6,294,341) (869,744) (1,564,712) (1,598,880) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 585,942,840 (464,580,940) (17,781,848) (35,503,573) (41,547,703) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 36,329,913 1,023,889,930 84,336,657 169,597,317 185,297,807 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $752,301,535 $ 791,181,505 $ 85,041,637 $171,003,099 $205,621,358 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 36,965,891 1,455,856,516 114,759,467 209,939,118 85,755,225 Contract purchase payments 81,505,259 142,228,951 1,613,457 3,653,759 1,106,566 Net transfers(1) 673,475,027 (703,614,876) (16,444,936) (32,533,342) (12,306,418) Transfers for policy loans (3,462) (18,849) 113,881 85,379 29,165 Contract charges (1,874,171) (4,057,295) (60,951) (185,973) (43,847) Contract terminations: Surrender benefits (12,314,599) (40,363,388) (7,116,043) (10,926,787) (5,344,305) Death benefits (2,081,526) (8,335,315) (1,155,097) (1,850,907) (659,205) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 775,672,419 841,695,744 91,709,778 168,181,247 68,537,181 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 30 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
FID VIP FID VIP FID VIP FTVIPT FTVIPT MID CAP, OVERSEAS, OVERSEAS, FRANK GLOBAL FRANK SM CAP YEAR ENDED DEC. 31, 2009 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 REAL EST, CL 2 VAL, CL 2 OPERATIONS Investment income (loss) -- net $ (4,553,859) $ 447,253 $ 1,170,655 $ 18,314,781 $ 1,318,826 Net realized gain (loss) on sales of investments (108,250,721) (5,015,678) (11,144,998) (47,085,443) (11,532,809) Distributions from capital gains 4,714,168 130,406 384,952 -- 7,642,928 Net change in unrealized appreciation or depreciation of investments 419,401,944 13,219,075 35,438,317 52,846,215 43,213,432 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 311,311,532 8,781,056 25,848,926 24,075,553 40,642,377 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 92,913,877 600,674 3,935,209 5,006,870 5,078,813 Net transfers(1) (283,420,845) (6,696,583) (18,146,050) (24,975,597) (24,785,989) Transfers for policy loans 37,346 7,772 25,682 122,912 26,890 Adjustments to net assets allocated to contracts in payment period (71,901) 27,300 8,343 (58,588) (44,461) Contract charges (2,785,054) (19,454) (101,749) (146,779) (128,526) Contract terminations: Surrender benefits (40,005,053) (2,623,443) (6,379,976) (9,067,317) (9,307,303) Death benefits (7,287,776) (353,069) (890,311) (1,526,290) (1,413,171) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (240,619,406) (9,056,803) (21,548,852) (30,644,789) (30,573,747) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 965,638,466 43,460,834 125,025,951 177,416,087 173,195,221 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,036,330,592 $43,185,087 $129,326,025 $170,846,851 $183,263,851 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 913,299,589 50,013,395 123,288,887 143,021,012 128,040,351 Contract purchase payments 106,280,016 686,234 4,432,989 5,868,465 5,251,877 Net transfers(1) (275,614,062) (7,867,442) (17,658,085) (19,832,923) (16,940,874) Transfers for policy loans 6,153 10,331 27,857 90,497 14,954 Contract charges (2,724,953) (22,063) (99,502) (128,401) (93,668) Contract terminations: Surrender benefits (29,655,641) (2,869,173) (5,940,658) (7,778,014) (6,419,428) Death benefits (5,908,768) (410,338) (871,284) (1,286,195) (954,646) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 705,682,334 39,540,944 103,180,204 119,954,441 108,898,566 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 31 STATEMENTS OF CHANGES IN NET ASSETS
FTVIPT GS VIT GS VIT GS VIT JANUS ASPEN MUTUAL SHARES MID CAP VAL, STRUCTD SM STRUCTD U.S. ENTERPRISE, YEAR ENDED DEC. 31, 2009 (CONTINUED) SEC, CL 2 INST CAP EQ, INST EQ, INST SERV OPERATIONS Investment income (loss) -- net $ 1,651,716 $ 2,614,480 $ 27,244 $ 1,910,596 $ (135,292) Net realized gain (loss) on sales of investments (13,995,751) (39,538,799) (1,463,236) (18,971,584) (1,884,433) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 48,608,825 119,134,008 3,616,257 47,711,018 7,927,346 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 36,264,790 82,209,689 2,180,265 30,650,030 5,907,621 - ----------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 5,516,800 4,633,242 152,884 3,936,669 364,030 Net transfers(1) (21,570,462) (51,657,316) (1,317,502) (25,762,079) (2,346,611) Transfers for policy loans 42,154 82,328 8,556 45,777 8,667 Adjustments to net assets allocated to contracts in payment period (33,530) (5,951) (2,280) (78,646) (11,758) Contract charges (136,511) (345,677) (6,378) (376,083) (15,733) Contract terminations: Surrender benefits (8,734,631) (17,933,706) (651,179) (9,043,125) (1,023,971) Death benefits (1,616,085) (2,429,890) (181,226) (1,625,734) (74,898) - ----------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (26,532,265) (67,656,970) (1,997,125) (32,903,221) (3,100,274) - ----------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 169,266,747 312,183,554 10,222,980 182,460,353 15,504,262 - ----------------------------------------------------------------------------------------------------------------------- Net assets at end of year $178,999,272 $326,736,273 $10,406,120 $180,207,162 $18,311,609 - ----------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 186,091,220 191,346,086 9,648,051 255,181,535 38,477,835 Contract purchase payments 6,293,726 2,796,870 143,086 5,485,438 811,599 Net transfers(1) (23,123,861) (30,390,275) (1,280,675) (35,773,647) (5,181,202) Transfers for policy loans 40,737 49,585 8,058 64,695 22,189 Contract charges (143,417) (199,849) (6,001) (506,769) (33,590) Contract terminations: Surrender benefits (8,793,218) (10,798,973) (594,690) (12,140,042) (2,194,256) Death benefits (1,652,196) (1,414,048) (164,302) (2,296,624) (168,624) - ----------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 158,712,991 151,389,396 7,753,527 210,014,586 31,733,951 - -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 32 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
JANUS ASPEN JANUS ASPEN JANUS ASPEN LM CB MFS INV GLOBAL TECH, JANUS, OVERSEAS, VAR SM CAP GRO STOCK, YEAR ENDED DEC. 31, 2009 (CONTINUED) SERV SERV SERV GRO, CL I SERV CL OPERATIONS Investment income (loss) -- net $ (134,539) $ (5,935,019) $ (582,777) $ (51,860) $ (313,065) Net realized gain (loss) on sales of investments (1,114,032) (14,824,138) (2,863,226) (432,963) (2,237,799) Distributions from capital gains -- -- 3,684,756 -- -- Net change in unrealized appreciation or depreciation of investments 8,155,612 366,845,252 71,467,925 2,471,524 25,721,007 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 6,907,041 346,086,095 71,706,678 1,986,701 23,170,143 - ----------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 343,279 196,595,671 1,967,193 627,245 2,505,556 Net transfers(1) 3,623,220 178,714,104 (7,896,575) 997,694 7,068,142 Transfers for policy loans 16,649 (60,390) 32,502 1,031 31,583 Adjustments to net assets allocated to contracts in payment period 57,795 5,014 (88,708) -- 30,059 Contract charges (14,219) (5,401,166) (84,656) (6,187) (59,315) Contract terminations: Surrender benefits (970,444) (28,551,067) (7,580,842) (309,467) (4,214,452) Death benefits (136,989) (6,105,534) (825,531) (64,038) (597,352) - ----------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 2,919,291 335,196,632 (14,476,617) 1,246,278 4,764,221 - ----------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 11,997,932 773,445,434 103,230,964 4,097,831 60,177,703 - ----------------------------------------------------------------------------------------------------------------------- Net assets at end of year $21,824,264 $1,454,728,161 $160,461,025 $7,330,810 $ 88,112,067 - ----------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 41,021,714 1,226,178,470 126,354,829 6,855,681 119,102,705 Contract purchase payments 951,058 277,372,407 1,774,307 885,979 3,564,389 Net transfers(1) 8,902,632 263,736,061 (10,087,576) 1,462,606 10,523,749 Transfers for policy loans 50,689 (80,070) 37,772 1,604 59,164 Contract charges (38,006) (7,581,864) (74,989) (8,780) (101,564) Contract terminations: Surrender benefits (2,655,545) (39,550,723) (6,507,426) (434,270) (6,827,256) Death benefits (359,110) (8,593,547) (716,052) (88,605) (1,016,257) - ----------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 47,873,432 1,711,480,734 110,780,865 8,674,215 125,304,930 - -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 33 STATEMENTS OF CHANGES IN NET ASSETS
MFS MFS NB AMT NB AMT OPPEN GLOBAL NEW DIS, UTILITIES, INTL, SOC RESPONSIVE, SEC VA, YEAR ENDED DEC. 31, 2009 (CONTINUED) SERV CL SERV CL CL S CL S SERV OPERATIONS Investment income (loss) -- net $ (361,694) $ 8,193,950 $ 7,091,774 $ 20,268 $ 939,588 Net realized gain (loss) on sales of investments (3,539,235) (14,271,228) (15,014,693) (136,175) (8,128,859) Distributions from capital gains -- -- -- -- 1,911,246 Net change in unrealized appreciation or depreciation of investments 24,075,207 64,272,529 84,857,173 634,486 33,275,208 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 20,174,278 58,195,251 76,934,254 518,579 27,997,183 - ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 776,346 6,064,675 45,215,574 225,149 3,464,049 Net transfers(1) (1,899,757) (26,424,009) (21,702,697) 57,043 (8,361,153) Transfers for policy loans 21,604 (39,871) (12,969) 4,890 (23,149) Adjustments to net assets allocated to contracts in payment period (4,362) (68,956) (2,147) -- 41,166 Contract charges (39,955) (173,996) (1,286,407) (2,426) (74,641) Contract terminations: Surrender benefits (2,600,108) (11,266,280) (6,575,925) (34,020) (4,512,683) Death benefits (366,061) (2,067,554) (1,486,159) (2,762) (941,929) - ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (4,112,293) (33,975,991) 14,149,270 247,874 (10,408,340) - ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 36,302,724 212,724,142 218,421,584 1,593,837 84,226,825 - ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $52,364,709 $236,943,402 $309,505,108 $2,360,290 $101,815,668 - ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 59,530,900 163,176,639 358,115,808 2,198,217 93,205,980 Contract purchase payments 1,054,385 4,948,632 64,594,356 286,218 3,724,004 Net transfers(1) (3,489,206) (19,250,030) (29,705,511) 60,245 (9,114,970) Transfers for policy loans 36,789 (26,166) (15,745) 6,255 (15,877) Contract charges (53,549) (125,895) (1,879,693) (3,095) (75,988) Contract terminations: Surrender benefits (3,389,355) (7,594,238) (9,790,393) (41,099) (4,437,523) Death benefits (473,343) (1,500,577) (2,208,466) (4,050) (977,113) - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 53,216,621 139,628,365 379,110,356 2,502,691 82,308,513 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 34 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
OPPEN MAIN OPPEN GLOBAL OPPEN PIMCO VIT PUT VT ST SM CAP VA, STRATEGIC INC VA, VAL VA, ALL ASSET, GLOBAL HLTH CARE, YEAR ENDED DEC. 31, 2009 (CONTINUED) SERV SERV SERV ADVISOR CL CL IB OPERATIONS Investment income (loss) -- net $ (161,775) $ (15,844,599) $ (28,683) $ 64,770,819 $ 2,676,827 Net realized gain (loss) on sales of investments (6,300,307) (25,142,736) (402,700) (48,899,357) (478,407) Distributions from capital gains -- 1,678,820 -- -- -- Net change in unrealized appreciation or depreciation of investments 26,119,350 409,458,541 1,322,607 186,231,108 3,326,109 - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 19,657,268 370,150,026 891,224 202,102,570 5,524,529 - ------------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 2,480,270 279,415,438 729,979 182,656,126 447,886 Net transfers(1) (6,749,153) 4,385,281 246,706 (172,168,472) (3,236,550) Transfers for policy loans 22,394 (87,100) (275) (122,776) 15,006 Adjustments to net assets allocated to contracts in payment period (15,440) (352,780) -- 102,936 (6,585) Contract charges (53,276) (7,485,305) (2,444) (4,992,541) (26,145) Contract terminations: Surrender benefits (3,102,442) (98,091,702) (115,961) (32,295,549) (1,551,571) Death benefits (484,434) (17,745,503) (43,206) (7,588,359) (167,492) - ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (7,902,081) 160,038,329 814,799 (34,408,635) (4,525,451) - ------------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 61,768,053 2,075,960,187 2,737,178 1,032,082,114 25,091,627 - ------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $73,523,240 $2,606,148,542 $4,443,201 $1,199,776,049 $26,090,705 - ------------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 76,585,330 2,013,494,974 4,235,237 1,091,785,066 27,807,296 Contract purchase payments 3,143,605 263,869,090 937,582 179,579,273 465,345 Net transfers(1) (7,958,487) 3,026,213 304,509 (172,489,339) (3,346,971) Transfers for policy loans 31,188 (81,761) (206) (114,380) 15,540 Contract charges (61,081) (6,940,735) (3,313) (4,917,370) (27,213) Contract terminations: Surrender benefits (3,406,621) (88,670,241) (167,143) (31,789,893) (1,586,653) Death benefits (557,048) (16,313,095) (67,170) (7,545,003) (174,490) - ------------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 67,776,886 2,168,384,445 5,239,496 1,054,508,354 23,152,854 - ------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 35 STATEMENTS OF CHANGES IN NET ASSETS
PUT VT PUT VT PUT VT ROYCE DISC INTL EQ, NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL IB CL IA CL IB INVEST CL AGGR OPERATIONS Investment income (loss) -- net $ (291,880) $ (370,023) $ (234,099) $ (442,430) $ (118,653) Net realized gain (loss) on sales of investments (4,372,849) (9,675,532) (5,869,797) (2,748,850) 9,181 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 11,638,232 27,869,479 15,114,482 26,634,339 3,541,173 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 6,973,503 17,823,924 9,010,586 23,443,059 3,431,701 - ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 593,132 1,547,222 786,869 703,820 1,277,682 Net transfers(1) (6,346,826) (3,168,023) (4,577,310) (6,460,187) 7,374,049 Transfers for policy loans 17,397 225,525 34,553 28,762 5,531 Adjustments to net assets allocated to contracts in payment period (2,592) (75,176) (4,658) (10,826) 97,566 Contract charges (29,376) (112,800) (33,934) (24,598) (11,832) Contract terminations: Surrender benefits (2,034,844) (12,507,839) (1,683,802) (3,400,816) (451,051) Death benefits (288,030) (736,506) (212,198) (364,255) -- - ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (8,091,139) (14,827,597) (5,690,480) (9,528,100) 8,291,945 - ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 37,136,955 68,211,033 27,627,505 47,372,729 8,340,805 - ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $36,019,319 $ 71,207,360 $30,947,611 $61,287,688 $20,064,451 - ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 37,946,874 71,705,241 46,674,073 24,388,119 11,766,349 Contract purchase payments 594,496 1,517,058 1,210,540 312,664 1,694,750 Net transfers(1) (6,418,134) (3,258,198) (7,038,658) (2,987,693) 10,041,638 Transfers for policy loans 17,846 225,558 55,117 13,216 7,195 Contract charges (29,308) (110,056) (52,634) (10,990) (15,427) Contract terminations: Surrender benefits (2,021,287) (12,162,675) (2,558,053) (1,422,782) (580,614) Death benefits (292,843) (738,904) (327,706) (167,457) -- - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 29,797,644 57,178,024 37,962,679 20,125,077 22,913,891 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 36 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
DISC ASSET DISC ASSET DISC ASSET DISC ASSET VP DAVIS ALLOC, ALLOC, ALLOC, ALLOC, NY VENTURE, YEAR ENDED DEC. 31, 2009 (CONTINUED) CONSERV MOD MOD AGGR MOD CONSERV CL 3 OPERATIONS Investment income (loss) -- net $ (275,208) $ (501,654) $ (328,141) $ (313,165) $ (9,602,379) Net realized gain (loss) on sales of investments 280,321 (891,754) (353,096) (74,984) (14,830,928) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 4,873,371 12,661,873 9,250,822 6,965,312 365,129,530 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 4,878,484 11,268,465 8,569,585 6,577,163 340,696,223 - ----------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,648,730 6,280,973 3,003,388 3,060,903 193,811,413 Net transfers(1) 14,149,239 33,850,556 14,897,998 23,043,759 387,884,579 Transfers for policy loans 1,887 (72,056) 24,155 (6,326) (57,059) Adjustments to net assets allocated to contracts in payment period 97,460 (26,476) 329,293 (818) (167,583) Contract charges (21,462) (46,451) (30,608) (22,762) (5,252,706) Contract terminations: Surrender benefits (3,305,645) (3,742,953) (1,623,616) (1,760,464) (27,276,922) Death benefits (280,018) (579,914) (1,146) (82,003) (5,579,903) - ----------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 14,290,191 35,663,679 16,599,464 24,232,289 543,361,819 - ----------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 21,357,801 37,774,059 24,460,533 20,077,570 634,860,612 - ----------------------------------------------------------------------------------------------------------------------- Net assets at end of year $40,526,476 $84,706,203 $49,629,582 $50,887,022 $1,518,918,654 - ----------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 25,426,346 49,366,147 33,063,290 25,257,929 917,373,476 Contract purchase payments 4,022,471 7,745,946 3,847,358 3,597,553 254,298,809 Net transfers(1) 16,118,249 41,233,188 20,119,570 27,698,214 563,251,468 Transfers for policy loans 2,525 (88,205) 30,461 (7,908) (69,745) Contract charges (23,987) (57,143) (39,247) (26,753) (6,876,184) Contract terminations: Surrender benefits (3,758,213) (4,565,238) (2,022,705) (2,081,766) (35,608,041) Death benefits (300,984) (739,687) (1,323) (97,496) (7,407,159) - ----------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 41,486,407 92,895,008 54,997,404 54,339,773 1,684,962,624 - -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 37 STATEMENTS OF CHANGES IN NET ASSETS
VP GS VP PTNRS RVS VP RVS VP RVS VP MID CAP VAL, SM CAP VAL, BAL, CASH MGMT, DIV BOND, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (98,184) $ (8,045,658) $ (2,476,443) $ (8,203,776) $ 122,524,341 Net realized gain (loss) on sales of investments (1,584,932) (21,445,555) (22,286,944) 160,083 (9,698,518) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 5,098,851 315,695,353 80,267,710 863,327 347,434,702 - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 3,415,735 286,204,140 55,504,323 (7,180,366) 460,260,525 - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 413,786 141,097,176 4,425,409 111,309,005 534,815,810 Net transfers(1) (1,378,025) (52,221,515) 38,598,572 (585,789,438) 91,396,565 Transfers for policy loans 4,915 9,993 161,614 126,432 (19,836) Adjustments to net assets allocated to contracts in payment period (1,367) (140,262) (678,459) (381,892) (939,678) Contract charges (12,841) (4,130,032) (245,710) (685,096) (14,239,960) Contract terminations: Surrender benefits (614,869) (26,888,122) (23,786,790) (171,471,117) (172,084,203) Death benefits (109,630) (5,409,223) (4,283,391) (16,337,378) (36,430,179) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,698,031) 52,318,015 14,191,245 (663,229,484) 402,498,519 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 11,161,351 751,583,538 194,345,298 1,315,148,095 3,295,541,164 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $12,879,055 $1,090,105,693 $264,040,866 $ 644,738,245 $4,158,300,208 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 13,412,863 856,113,697 189,680,215 1,121,064,760 2,911,692,108 Contract purchase payments 463,931 178,338,447 4,384,134 102,188,492 488,736,740 Net transfers(1) (1,546,125) (56,014,627) 52,019,449 (508,068,806) 47,459,400 Transfers for policy loans 5,412 (588) 122,053 73,217 (40,839) Contract charges (14,372) (4,624,791) (234,261) (585,059) (12,341,133) Contract terminations: Surrender benefits (690,992) (25,260,483) (20,280,031) (146,217,563) (134,265,003) Death benefits (124,967) (5,578,856) (4,099,247) (14,026,899) (29,818,009) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 11,505,750 942,972,799 221,592,312 554,428,142 3,271,423,264 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 38 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
RVS VP RVS VP RVS VP RVS VP RVS VP DIV EQ INC, DYN EQ, GLOBAL BOND, GLOBAL INFLATION HI YIELD YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 PROT SEC, CL 3 BOND, CL 3 OPERATIONS Investment income (loss) -- net $ (20,498,525) $ (4,081,507) $ 11,319,841 $ 92,468,706 $ 44,414,766 Net realized gain (loss) on sales of investments (76,257,543) (64,947,390) (2,317,714) (507,521) (10,591,362) Distributions from capital gains -- -- -- 51,598 -- Net change in unrealized appreciation or depreciation of investments 689,203,430 153,856,250 115,381,226 (19,359,768) 163,884,654 - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 592,447,362 84,827,353 124,383,353 72,653,015 197,708,058 - ------------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 268,448,843 10,366,692 176,249,965 193,823,411 11,581,660 Net transfers(1) 105,137,049 (44,031,005) (17,016,350) 847,698,096 (6,607,633) Transfers for policy loans 341,739 1,064,518 (14,902) (36,371) 69,739 Adjustments to net assets allocated to contracts in payment period (17,368) (926,944) (396,021) (178,250) (336,873) Contract charges (7,595,119) (974,361) (4,804,027) (5,122,580) (323,535) Contract terminations: Surrender benefits (100,624,477) (41,286,507) (57,605,911) (42,222,133) (39,757,216) Death benefits (16,696,537) (4,793,771) (11,474,401) (8,569,293) (7,041,964) - ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 248,994,130 (80,581,378) 84,938,353 985,392,880 (42,415,822) - ------------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 1,884,808,320 447,980,819 1,219,671,776 727,423,402 382,399,154 - ------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $2,726,249,812 $452,226,794 $1,428,993,482 $1,785,469,297 $537,691,390 - ------------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 2,062,785,467 685,480,996 950,254,996 658,300,417 373,276,720 Contract purchase payments 351,804,290 15,592,874 151,307,717 171,729,059 9,922,731 Net transfers(1) 144,288,091 (72,271,312) (22,522,635) 749,263,374 294,262 Transfers for policy loans 287,067 1,534,351 (18,817) (31,663) 53,153 Contract charges (8,971,881) (1,502,258) (3,847,201) (4,505,352) (253,972) Contract terminations: Surrender benefits (94,456,321) (55,051,454) (39,832,521) (37,000,549) (29,900,721) Death benefits (17,011,042) (7,164,735) (8,499,488) (7,551,823) (5,391,841) - ------------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 2,438,725,671 566,618,462 1,026,842,051 1,530,203,463 348,000,332 - ------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 39 STATEMENTS OF CHANGES IN NET ASSETS
RVS VP RVS VP RVS VP RVS VP RVS VP INC OPP, MID CAP GRO, MID CAP VAL, S&P 500, SHORT DURATION, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ 38,081,740 $ (1,003,663) $ (1,960,228) $ (1,173,407) $ 7,939,939 Net realized gain (loss) on sales of investments (4,874,738) (5,036,427) (64,133,732) (6,551,127) (1,740,945) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 289,109,296 52,849,944 133,998,190 38,794,603 9,874,729 - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 322,316,298 46,809,854 67,904,230 31,070,069 16,073,723 - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 180,961,005 3,489,270 24,105,329 4,596,308 19,730,459 Net transfers(1) 529,372,071 11,368,054 (89,329,966) (7,822,475) (28,023,624) Transfers for policy loans (65,936) 143,783 3,025 60,596 83,520 Adjustments to net assets allocated to contracts in payment period (64,478) (71,305) (14,037) (76,014) (78,935) Contract charges (4,758,862) (122,117) (709,168) (115,835) (246,445) Contract terminations: Surrender benefits (32,310,069) (10,412,358) (7,355,476) (8,336,902) (26,975,888) Death benefits (7,025,166) (1,141,397) (1,549,854) (1,300,040) (6,603,441) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 666,108,565 3,253,930 (74,850,147) (12,994,362) (42,114,354) - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 575,937,497 78,655,128 227,281,619 133,680,443 371,939,267 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,564,362,360 $128,718,912 $ 220,335,702 $151,756,150 $345,898,636 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 643,014,466 114,373,202 315,807,987 200,311,464 306,947,929 Contract purchase payments 165,997,714 3,907,246 34,543,046 6,313,633 18,063,103 Net transfers(1) 470,367,351 10,219,597 (120,351,036) (11,215,349) (22,360,068) Transfers for policy loans (55,406) 177,587 4,123 89,059 63,422 Contract charges (4,285,341) (141,800) (954,714) (166,958) (199,480) Contract terminations: Surrender benefits (28,252,815) (12,535,428) (8,952,766) (11,534,448) (21,858,805) Death benefits (6,298,180) (1,253,392) (1,920,220) (1,878,936) (5,307,373) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,240,487,789 114,747,012 218,176,420 181,918,465 275,348,728 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 40 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEL VP SEL VP SEL VP THDL VP THDL VP GRO, LG CAP VAL, SM CAP VAL, EMER MKTS, INTL OPP, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (1,198,578) $ (89,110) $ (437,572) $ (3,359,555) $ 778,289 Net realized gain (loss) on sales of investments (21,611,834) (1,257,218) (8,275,155) (81,651,677) (10,172,733) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 65,311,646 3,727,958 25,589,634 405,264,252 43,374,939 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 42,501,234 2,381,630 16,876,907 320,253,020 33,980,495 - ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 3,564,331 507,432 1,423,261 65,761,712 3,874,703 Net transfers(1) (22,322,492) 2,067,361 (6,625,317) (210,383,860) (10,566,665) Transfers for policy loans 152,928 3,215 30,831 139,408 162,858 Adjustments to net assets allocated to contracts in payment period (46,491) (1,401) (44,034) 258,893 106,358 Contract charges (177,091) (9,772) (50,336) (2,052,532) (141,633) Contract terminations: Surrender benefits (8,258,876) (634,568) (3,600,435) (31,908,000) (18,858,255) Death benefits (1,347,845) (187,841) (409,376) (3,536,131) (1,764,975) - ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (28,435,536) 1,744,426 (9,275,406) (181,720,510) (27,187,609) - ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 141,101,956 8,932,103 51,441,386 518,628,043 156,585,265 - ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $155,167,654 $13,058,159 $59,042,887 $ 657,160,553 $163,378,151 - ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 326,510,210 11,453,724 51,553,089 506,028,130 184,146,213 Contract purchase payments 7,045,275 635,452 1,502,844 61,956,469 4,452,625 Net transfers(1) (50,732,792) 2,351,549 (6,212,974) (180,497,217) (13,821,962) Transfers for policy loans 344,761 3,862 30,943 101,166 177,541 Contract charges (361,596) (11,992) (46,973) (1,725,283) (158,431) Contract terminations: Surrender benefits (16,484,485) (753,533) (3,238,713) (21,711,111) (19,338,655) Death benefits (2,809,305) (232,157) (366,013) (2,679,860) (2,034,694) - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 263,512,068 13,446,905 43,222,203 361,472,294 153,422,637 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 41 STATEMENTS OF CHANGES IN NET ASSETS
VANK LIT VANK UIF VANK UIF THIRD AVE COMSTOCK, GLOBAL REAL MID CAP WANGER YEAR ENDED DEC. 31, 2009 (CONTINUED) VAL CL II EST, CL II GRO, CL II INTL OPERATIONS Investment income (loss) -- net $ (487,695) $ 24,217,366 $ (2,226,572) $ (326,427) $ 19,144,839 Net realized gain (loss) on sales of investments (6,142,981) (129,968,322) (48,786,084) (5,478,921) (21,025,205) Distributions from capital gains 13,374,296 -- -- -- -- Net change in unrealized appreciation or depreciation of investments 13,926,594 257,412,229 135,827,610 21,516,169 276,679,585 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 20,670,214 151,661,273 84,814,954 15,710,821 274,799,219 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 829,043 88,400,293 38,133,834 1,518,824 72,372,025 Net transfers(1) (9,743,686) (208,655,125) (89,502,242) 2,784,545 34,461,137 Transfers for policy loans 33,169 (4,914) 3,311 (13,460) 23,027 Adjustments to net assets allocated to contracts in payment period (53,056) 21,376 (26,215) 29,480 10,030 Contract charges (28,440) (2,959,949) (1,088,617) (28,565) (2,116,439) Contract terminations: Surrender benefits (4,319,512) (23,461,825) (7,394,245) (1,700,521) (28,516,988) Death benefits (478,193) (4,807,594) (1,422,698) (303,570) (4,014,030) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (13,760,675) (151,467,738) (61,296,872) 2,286,733 72,218,762 - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 55,710,197 681,107,245 241,003,832 29,119,527 546,083,555 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 62,619,736 $ 681,300,780 $ 264,521,914 $47,117,081 $893,101,536 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 31,931,493 890,311,612 382,715,240 44,919,664 486,121,150 Contract purchase payments 420,308 123,646,333 56,982,252 1,793,414 74,568,276 Net transfers(1) (5,130,212) (275,116,164) (125,439,763) 2,386,886 42,293,517 Transfers for policy loans 19,162 (4,329) 9,984 (13,941) 12,421 Contract charges (14,577) (3,850,993) (1,618,018) (35,706) (1,885,022) Contract terminations: Surrender benefits (2,083,130) (28,447,872) (10,885,602) (2,121,818) (19,082,502) Death benefits (246,016) (6,110,204) (2,173,879) (395,429) (3,083,949) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 24,897,028 700,428,383 299,590,214 46,533,070 578,943,891 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 42 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
WF ADV WF ADV WF ADV WF ADV WANGER VT INDEX VT VT VT YEAR ENDED DEC. 31, 2009 (CONTINUED) USA ASSET ALLOC INTL CORE OPP SM CAP GRO OPERATIONS Investment income (loss) -- net $ (5,504,013) $ 473,361 $ 149,657 $ (360,099) $ (571,333) Net realized gain (loss) on sales of investments (26,896,105) (4,682,373) (1,290,302) (5,275,363) (5,412,622) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 255,617,339 9,125,744 1,821,933 21,395,093 32,780,362 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 223,217,221 4,916,732 681,288 15,759,631 26,796,407 - ----------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 56,565,889 626,419 101,138 1,471,978 3,182,460 Net transfers(1) (51,552,364) (8,523,514) (818,137) (5,285,110) 7,750,193 Transfers for policy loans 54,005 7,346 4,051 15,174 (2,583) Adjustments to net assets allocated to contracts in payment period (156,771) (8,813) (15,704) (1,723) 34,230 Contract charges (1,695,123) (36,115) (5,611) (38,689) (45,747) Contract terminations: Surrender benefits (27,017,021) (2,990,837) (407,753) (2,264,374) (3,115,446) Death benefits (4,095,804) (609,771) (101,921) (347,323) (627,875) - ----------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (27,897,189) (11,535,285) (1,243,937) (6,450,067) 7,175,232 - ----------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 550,275,602 47,942,529 7,813,762 38,279,148 50,668,365 - ----------------------------------------------------------------------------------------------------------------------- Net assets at end of year $745,595,634 $ 41,323,976 $ 7,251,113 $47,588,712 $84,640,004 - ----------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 572,582,227 49,869,060 9,679,627 45,513,898 65,402,599 Contract purchase payments 71,497,300 656,607 129,491 1,601,807 3,408,574 Net transfers(1) (40,870,469) (9,224,322) (1,099,931) (5,659,705) 7,559,651 Transfers for policy loans 45,414 6,475 4,746 15,613 (3,746) Contract charges (1,871,502) (38,318) (7,314) (39,188) (49,793) Contract terminations: Surrender benefits (23,544,045) (3,076,115) (520,771) (2,259,191) (3,323,571) Death benefits (3,849,326) (671,038) (126,691) (357,533) (653,121) - ----------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 573,989,599 37,522,349 8,059,157 38,815,701 72,340,593 - -----------------------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 43 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2008 SER I SER II SER I SER II SER I OPERATIONS Investment income (loss) -- net $ (379,095) $ (1,292,973) $ (280,713) $ (459,754) $ 1,375,020 Net realized gain (loss) on sales of investments (5,162,404) 1,191,086 1,136,022 (343,627) 12,590,765 Distributions from capital gains -- -- 3,674,733 5,996,103 -- Net change in unrealized appreciation or depreciation of investments (18,379,803) (79,900,125) (23,806,007) (36,080,606) (83,608,169) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (23,921,302) (80,002,012) (19,275,965) (30,887,884) (69,642,384) - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 985,754 4,878,252 459,953 2,018,326 3,723,360 Net transfers(1) (11,473,780) (22,897,465) (9,044,994) (15,946,346) (8,845,740) Transfers for policy loans 38,235 13,266 11,052 6,614 380,757 Adjustments to net assets allocated to contracts in payment period (8,221) (1,881) 798 4,021 (213,998) Contract charges (24,412) (524,784) (14,602) (38,606) (203,317) Contract terminations: Surrender benefits (3,328,859) (7,710,927) (2,272,300) (2,411,631) (59,522,035) Death benefits (501,576) (1,171,935) (198,671) (467,305) (2,685,728) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (14,312,859) (27,415,474) (11,058,764) (16,834,927) (67,366,701) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 64,979,644 206,589,315 48,482,951 76,866,151 273,531,059 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 26,745,483 $ 99,171,829 $ 18,148,222 $ 29,143,340 $136,521,974 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 57,017,970 165,545,770 23,477,624 49,607,310 128,470,099 Contract purchase payments 1,085,244 4,879,165 288,340 1,827,671 2,009,301 Net transfers(1) (12,744,204) (21,286,947) (5,567,835) (12,950,614) (5,287,340) Transfers for policy loans 43,057 18,291 7,888 4,151 207,661 Contract charges (27,882) (513,653) (9,439) (31,691) (110,051) Contract terminations: Surrender benefits (3,704,130) (7,685,284) (1,346,678) (1,927,921) (31,195,517) Death benefits (553,992) (1,176,056) (120,381) (404,753) (1,469,483) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 41,116,063 139,781,286 16,729,519 36,124,153 92,624,670 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 44 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH, INTL GRO, YEAR ENDED DEC. 31, 2008 (CONTINUED) SER I SER I SER II SER II SER II OPERATIONS Investment income (loss) -- net $ (87,674) $ 361,593 $ 99,756 $ (175,425) $ (840,450) Net realized gain (loss) on sales of investments 875,893 (2,008,552) (728,777) (322,141) (1,854,572) Distributions from capital gains -- 1,440,571 413,432 4,617,654 8,565,475 Net change in unrealized appreciation or depreciation of investments (7,062,572) (13,737,719) (3,205,095) (10,809,499) (215,133,394) - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (6,274,353) (13,944,107) (3,420,684) (6,689,411) (209,262,941) - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 233,189 532,632 1,342,887 1,933,226 118,335,866 Net transfers(1) (2,937,594) 7,536,306 2,236,456 5,002,995 224,227,960 Transfers for policy loans 180 1,012 31 (1,004) (48,555) Adjustments to net assets allocated to contracts in payment period (1,676) (665) 32,507 239 (2,250) Contract charges (8,957) (15,709) (2,938) (17,038) (1,788,225) Contract terminations: Surrender benefits (671,224) (976,080) (129,690) (1,005,490) (10,102,009) Death benefits (48,683) (108,998) (8,640) (160,011) (2,231,481) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (3,434,765) 6,968,498 3,470,613 5,752,917 328,391,306 - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 15,340,630 17,731,099 3,080,689 18,500,472 342,380,926 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 5,631,512 $ 10,755,490 $ 3,130,618 $ 17,563,978 $ 461,509,291 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 10,864,203 16,656,560 3,427,045 16,065,485 234,064,317 Contract purchase payments 211,525 726,313 2,050,892 1,842,950 106,979,403 Net transfers(1) (2,674,482) 9,207,543 3,373,856 4,903,368 209,333,702 Transfers for policy loans 39 3,009 (620) (1,445) (34,685) Contract charges (8,478) (21,174) (4,841) (17,123) (1,635,189) Contract terminations: Surrender benefits (594,614) (1,326,142) (203,859) (1,025,817) (8,969,092) Death benefits (55,918) (127,113) (16,714) (163,618) (1,971,812) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 7,742,275 25,118,996 8,625,759 21,603,800 537,766,644 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 45 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL THEMATIC GRO & INC, INTL VAL, LG CAP GRO, YEAR ENDED DEC. 31, 2008 (CONTINUED) SER I GRO, CL B CL B CL B CL B OPERATIONS Investment income (loss) -- net $ (201,490) $ (103,794) $ 2,142,434 $ (86,704) $ (27,143) Net realized gain (loss) on sales of investments 92,519 (746,338) (12,955,858) 1,532,880 (199,629) Distributions from capital gains -- -- 41,135,459 71,754,420 -- Net change in unrealized appreciation or depreciation of investments (12,981,479) (6,462,418) (140,323,608) (841,823,790) (1,172,785) - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (13,090,450) (7,312,550) (110,001,573) (768,623,194) (1,399,557) - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 586,751 975,261 6,409,990 161,253,262 574,827 Net transfers(1) (2,254,640) 304,566 (60,132,996) 23,971,567 (175,310) Transfers for policy loans 3,673 (33,350) 13,581 (17,013) (1,775) Adjustments to net assets allocated to contracts in payment period -- -- (13,980) 7,463 -- Contract charges (78,838) (11,318) (169,292) (2,615,851) (1,592) Contract terminations: Surrender benefits (1,321,066) (530,374) (12,132,008) (47,899,889) (59,634) Death benefits (129,468) (92,175) (1,578,107) (6,969,090) (7,131) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (3,193,588) 612,610 (67,602,812) 127,730,449 329,385 - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 31,644,113 14,458,264 309,273,710 1,443,987,709 3,013,626 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 15,360,075 $ 7,758,324 $ 131,669,325 $ 803,094,964 $ 1,943,454 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 36,519,897 10,650,384 229,215,560 690,850,161 2,446,797 Contract purchase payments 841,259 905,906 6,010,190 159,225,323 547,255 Net transfers(1) (2,960,335) 86,324 (56,267,541) 133,981,714 (275,247) Transfers for policy loans 6,091 (47,585) 17,724 (5,185) (2,016) Contract charges (110,293) (10,973) (159,474) (2,185,013) (1,696) Contract terminations: Surrender benefits (1,908,415) (525,339) (11,169,756) (27,968,039) (59,981) Death benefits (187,530) (88,840) (1,461,400) (4,599,637) (6,587) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 32,200,674 10,969,877 166,185,303 949,299,324 2,648,525 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 46 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, YEAR ENDED DEC. 31, 2008 (CONTINUED) CL I CL II CL II CL II CL I OPERATIONS Investment income (loss) -- net $ 9,500 $ (162,420) $ (2,099,838) $ (280,276) $ 4,402,886 Net realized gain (loss) on sales of investments (803,331) 4,259,270 (23,922,102) (2,069,440) (19,655,356) Distributions from capital gains 5,077,940 9,919,707 -- 5,337,337 39,435,505 Net change in unrealized appreciation or depreciation of investments (31,526,012) (67,694,556) (38,592,255) (19,189,161) (108,993,245) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (27,241,903) (53,677,999) (64,614,195) (16,201,540) (84,810,210) - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 688,524 1,985,383 69,520,247 1,958,346 4,811,659 Net transfers(1) (9,119,039) (18,402,998) (76,000,954) 465,320 (55,666,539) Transfers for policy loans (4,418) (8,603) (22,464) 5,855 284,360 Adjustments to net assets allocated to contracts in payment period (1,320) (6,573) 8,361 -- (244,561) Contract charges (16,933) (75,603) (1,057,234) (34,101) (165,697) Contract terminations: Surrender benefits (3,713,252) (5,981,768) (5,677,221) (1,378,939) (66,363,651) Death benefits (423,247) (609,844) (1,573,973) (162,676) (3,091,211) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (12,589,685) (23,100,006) (14,803,238) 853,805 (120,435,640) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 67,914,504 132,919,881 266,953,734 36,976,324 390,597,234 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 28,082,916 $ 56,141,876 $187,536,301 $ 21,628,589 $ 185,351,384 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 45,039,690 77,918,461 258,311,284 30,854,352 177,322,909 Contract purchase payments 573,439 1,461,590 68,865,332 1,964,728 2,493,430 Net transfers(1) (8,133,463) (14,425,990) (74,985,758) (54,106) (31,006,334) Transfers for policy loans (946) (7,657) (22,712) 6,427 138,018 Contract charges (14,297) (55,149) (1,144,325) (35,024) (82,098) Contract terminations: Surrender benefits (3,067,480) (4,220,298) (6,371,335) (1,426,639) (30,484,915) Death benefits (363,881) (450,013) (1,697,506) (161,474) (1,594,950) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 34,033,062 60,220,944 242,954,980 31,148,264 116,786,060 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 47 STATEMENTS OF CHANGES IN NET ASSETS
AC VP CALVERT COL COL COL MARSICO VAL, VS HI YIELD, MARSICO GRO, INTL OPP, YEAR ENDED DEC. 31, 2008 (CONTINUED) CL II SOCIAL BAL VS CL B VS CL A VS CL B OPERATIONS Investment income (loss) -- net $ 4,430,292 $ 542,401 $ 8,917,107 $ (5,818,040) $ 501,474 Net realized gain (loss) on sales of investments (25,552,297) (984,400) (3,980,722) (1,919,186) (8,601,724) Distributions from capital gains 39,005,503 491,524 -- -- 21,995,840 Net change in unrealized appreciation or depreciation of investments (102,934,758) (13,786,091) (29,451,187) (506,718,119) (81,729,339) - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (85,051,260) (13,736,566) (24,514,802) (514,455,345) (67,833,749) - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 9,523,995 1,156,189 5,662,112 260,391,304 10,530,742 Net transfers(1) (86,811,356) (7,787,264) (22,889,512) 309,997,349 26,026,818 Transfers for policy loans 16,411 28,307 (35,402) (137,786) (29,568) Adjustments to net assets allocated to contracts in payment period (34,686) (33,610) (8,341) 223,359 317,938 Contract charges (231,033) (35,175) (141,702) (3,881,197) (74,829) Contract terminations: Surrender benefits (17,069,726) (2,273,634) (5,418,345) (27,425,115) (4,310,804) Death benefits (2,494,381) (453,979) (919,652) (5,423,288) (704,923) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (97,100,776) (9,399,166) (23,750,842) 533,744,626 31,755,374 - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 377,642,537 49,434,815 114,849,846 944,663,920 105,483,445 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 195,490,501 $ 26,299,083 $ 66,584,202 $ 963,953,201 $ 69,405,070 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 262,020,331 43,038,361 106,093,036 766,012,676 80,923,123 Contract purchase payments 8,352,153 1,123,759 5,505,269 255,171,938 9,186,833 Net transfers(1) (66,086,051) (7,873,291) (22,620,940) 315,156,481 18,749,536 Transfers for policy loans 14,165 23,789 (36,104) (127,474) (21,219) Contract charges (182,727) (34,477) (139,277) (3,998,684) (74,317) Contract terminations: Surrender benefits (13,440,286) (2,194,577) (5,460,025) (28,532,571) (4,436,540) Death benefits (2,013,183) (442,497) (914,432) (5,551,579) (704,280) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 188,664,402 33,641,067 82,427,527 1,298,130,787 103,623,136 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 48 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
CS CS DREY VIF EV VT EG VA COMMODITY U.S. EQ INTL EQ, FLOATING-RATE FUNDAMENTAL YEAR ENDED DEC. 31, 2008 (CONTINUED) RETURN FLEX I SERV INC LG CAP, CL 2 OPERATIONS Investment income (loss) -- net $ 379,142 $ (1,017,608) $ 20,693 $ 24,259,237 $ 101,898 Net realized gain (loss) on sales of investments (2,846,358) (5,674,802) (348,802) (11,044,550) (385,367) Distributions from capital gains 5,566,078 -- 203,655 -- -- Net change in unrealized appreciation or depreciation of investments (40,786,586) (27,706,340) (4,170,529) (173,776,117) (10,595,606) - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (37,687,724) (34,398,750) (4,294,983) (160,561,430) (10,879,075) - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 7,232,903 1,954,575 1,796,642 132,226,226 1,771,960 Net transfers(1) 41,355,894 (7,306,965) 1,977,640 823,683 (1,440,389) Transfers for policy loans (20,229) 207,539 (3,245) (32,203) (165) Adjustments to net assets allocated to contracts in payment period 23,966 (57,194) -- 63,448 (4,592) Contract charges (56,503) (74,631) (5,639) (1,784,684) (19,760) Contract terminations: Surrender benefits (4,134,580) (26,228,544) (241,658) (18,245,360) (1,379,649) Death benefits (402,491) (874,469) (27,243) (3,959,308) (211,025) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 43,998,960 (32,379,689) 3,496,497 109,091,802 (1,283,620) - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 52,379,728 121,104,150 7,027,189 485,908,376 33,190,528 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 58,690,964 $ 54,325,711 $ 6,228,703 $ 434,438,748 $ 21,027,833 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 45,929,583 88,083,999 5,139,735 469,434,029 27,463,490 Contract purchase payments 5,834,205 1,686,620 1,543,299 138,263,594 1,732,790 Net transfers(1) 30,729,672 (6,345,315) 1,556,971 (861,457) (1,428,442) Transfers for policy loans (14,924) 181,481 (2,982) (30,096) (289) Contract charges (48,823) (64,700) (5,388) (1,884,184) (19,533) Contract terminations: Surrender benefits (3,691,025) (21,728,566) (224,614) (19,229,993) (1,304,198) Death benefits (378,899) (772,193) (20,959) (4,149,794) (202,833) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 78,359,789 61,041,326 7,986,062 581,542,099 26,240,985 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 49 STATEMENTS OF CHANGES IN NET ASSETS
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, GRO & INC, MID CAP, YEAR ENDED DEC. 31, 2008 (CONTINUED) CL 2 SERV CL 2 SERV CL SERV CL 2 SERV CL OPERATIONS Investment income (loss) -- net $ (519,981) $ 607,849 $ 172,348 $ (12,007) $ (1,482,202) Net realized gain (loss) on sales of investments (2,002,966) (47,155,331) (5,804,568) (2,168,182) 8,479,289 Distributions from capital gains 1,716,442 32,251,009 17,058,362 34,070,529 53,115,447 Net change in unrealized appreciation or depreciation of investments (29,248,242) (628,121,687) (82,614,017) (174,868,782) (198,053,635) - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (30,054,747) (642,418,160) (71,187,875) (142,978,442) (137,941,101) - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,394,257 265,507,861 2,309,595 6,298,771 4,445,132 Net transfers(1) (12,773,582) 188,298,202 (29,393,307) (63,336,220) (52,852,026) Transfers for policy loans (11,661) (122,156) 6,137 57,611 (53,445) Adjustments to net assets allocated to contracts in payment period (2,344) 366,427 46,869 (103,982) 37,895 Contract charges (60,023) (3,874,005) (58,387) (240,576) (114,513) Contract terminations: Surrender benefits (3,261,319) (35,884,264) (12,392,642) (17,336,524) (20,770,803) Death benefits (358,835) (6,720,287) (1,229,221) (3,193,891) (2,728,748) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (13,073,507) 407,571,778 (40,710,956) (77,854,811) (72,036,508) - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 79,458,167 1,258,736,312 196,235,488 390,430,570 395,275,416 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 36,329,913 $1,023,889,930 $ 84,336,657 $ 169,597,317 $ 185,297,807 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 46,006,324 1,018,249,324 154,279,836 278,465,380 109,849,441 Contract purchase payments 2,808,632 259,940,481 2,212,442 5,387,295 1,491,611 Net transfers(1) (9,149,047) 226,034,879 (28,841,446) (56,243,671) (17,773,907) Transfers for policy loans (12,730) (103,879) 14,887 52,917 (16,259) Contract charges (42,716) (3,996,249) (59,083) (209,976) (39,862) Contract terminations: Surrender benefits (2,366,479) (37,411,309) (11,640,155) (14,777,785) (6,870,031) Death benefits (278,093) (6,856,731) (1,207,014) (2,735,042) (885,768) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 36,965,891 1,455,856,516 114,759,467 209,939,118 85,755,225 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 50 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
FID VIP FID VIP FID VIP FTVIPT FRANK FTVIPT FRANK MID CAP, OVERSEAS, OVERSEAS, GLOBAL REAL SM CAP VAL, YEAR ENDED DEC. 31, 2008 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 EST, CL 2 CL 2 OPERATIONS Investment income (loss) -- net $ (7,914,068) $ 1,015,488 $ 2,692,571 $ 503,905 $ 702,844 Net realized gain (loss) on sales of investments (12,483,089) (1,339,472) 167,369 (38,394,743) 5,172,829 Distributions from capital gains 204,014,982 9,840,110 26,589,319 87,261,284 20,382,263 Net change in unrealized appreciation or depreciation of investments (775,162,198) (50,040,766) (141,543,366) (203,912,150) (119,712,412) - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (591,544,373) (40,524,640) (112,094,107) (154,541,704) (93,454,476) - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 153,902,188 1,074,683 8,342,292 11,204,368 8,679,849 Net transfers(1) 8,297,919 (13,668,349) (30,835,134) (112,195,341) (54,730,943) Transfers for policy loans (82,997) (4,248) (44,600) 65,901 (692) Adjustments to net assets allocated to contracts in payment period (53,659) (63,987) (31,844) (26,771) (6,007) Contract charges (2,644,397) (25,260) (163,625) (251,691) (172,640) Contract terminations: Surrender benefits (54,316,552) (5,901,165) (10,913,658) (20,751,224) (14,580,137) Death benefits (7,849,927) (505,598) (1,612,373) (2,423,857) (1,783,250) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 97,252,575 (19,093,924) (35,258,942) (124,378,615) (62,593,820) - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,459,930,264 103,079,398 272,379,000 456,336,406 329,243,517 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 965,638,466 $ 43,460,834 $ 125,025,951 $ 177,416,087 $ 173,195,221 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 738,938,581 66,055,426 146,997,035 204,659,663 157,428,566 Contract purchase payments 142,327,803 875,913 6,518,803 8,908,558 6,684,534 Net transfers(1) 70,668,718 (11,865,773) (21,842,266) (57,803,132) (27,020,048) Transfers for policy loans (51,605) (4,141) (23,729) 34,749 (8,049) Contract charges (2,059,311) (21,238) (111,326) (138,403) (95,620) Contract terminations: Surrender benefits (31,523,887) (4,618,940) (7,092,922) (11,284,241) (7,818,548) Death benefits (5,000,710) (407,852) (1,156,708) (1,356,182) (1,130,484) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 913,299,589 50,013,395 123,288,887 143,021,012 128,040,351 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 51 STATEMENTS OF CHANGES IN NET ASSETS
FTVIPT GS VIT GS VIT GS VIT JANUS ASPEN MUTUAL SHARES MID CAP VAL, STRUCTD SM CAP STRUCTD U.S. ENTERPRISE, YEAR ENDED DEC. 31, 2008 (CONTINUED) SEC, CL 2 INST EQ, INST EQ, INST SERV OPERATIONS Investment income (loss) -- net $ 5,246,263 $ 216,127 $ (45,106) $ 1,541,198 $ (200,137) Net realized gain (loss) on sales of investments (3,837,525) (32,773,125) (1,538,590) (11,622,093) (1,044,436) Distributions from capital gains 10,893,796 838,210 23,491 2,274,591 1,544,381 Net change in unrealized appreciation or depreciation of investments (130,810,880) (183,567,970) (4,721,061) (119,801,756) (13,710,078) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (118,508,346) (215,286,758) (6,281,266) (127,608,060) (13,410,270) - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 11,767,484 9,859,555 288,671 7,769,311 709,738 Net transfers(1) (73,904,335) (172,655,431) (4,690,568) (97,640,213) (2,743,512) Transfers for policy loans (6,959) 37,539 13,908 43,188 38,093 Adjustments to net assets allocated to contracts in payment period (127,947) (89,130) (2,957) (189,538) (54,051) Contract charges (200,749) (507,399) (7,617) (533,685) (18,372) Contract terminations: Surrender benefits (14,269,268) (31,858,658) (1,382,714) (17,398,983) (1,972,016) Death benefits (2,954,337) (3,799,640) (97,887) (2,452,181) (224,114) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (79,696,111) (199,013,164) (5,879,164) (110,402,101) (4,264,234) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 367,471,204 726,483,476 22,383,410 420,470,514 33,178,766 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 169,266,747 $ 312,183,554 $10,222,980 $ 182,460,353 $ 15,504,262 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 248,866,779 278,223,433 13,830,219 366,725,492 45,767,051 Contract purchase payments 10,505,500 4,530,966 210,858 8,022,571 1,193,239 Net transfers(1) (59,532,389) (74,656,686) (3,337,390) (98,924,500) (4,946,979) Transfers for policy loans (4,805) 19,029 11,046 47,659 64,714 Contract charges (163,866) (225,186) (5,818) (545,110) (32,151) Contract terminations: Surrender benefits (11,236,361) (14,800,002) (983,945) (17,639,717) (3,226,597) Death benefits (2,343,638) (1,745,468) (76,919) (2,504,860) (341,442) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 186,091,220 191,346,086 9,648,051 255,181,535 38,477,835 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 52 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
JANUS ASPEN JANUS ASPEN JANUS ASPEN LM CB VAR MFS GLOBAL JANUS, OVERSEAS, SM CAP GRO, INV GRO STOCK, YEAR ENDED DEC. 31, 2008 (CONTINUED) TECH, SERV SERV SERV CL I SERV CL OPERATIONS Investment income (loss) -- net $ (145,011) $ (2,305,213) $ 605,777 $ (40,633) $ (509,432) Net realized gain (loss) on sales of investments (1,991,925) (6,928,103) 2,506,051 (287,327) (924,029) Distributions from capital gains -- -- 32,877,390 146,613 4,623,408 Net change in unrealized appreciation or depreciation of investments (8,519,753) (395,159,205) (165,722,340) (2,285,723) (42,788,887) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (10,656,689) (404,392,521) (129,733,122) (2,467,070) (39,598,940) - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 535,332 247,687,503 2,934,517 877,948 2,613,345 Net transfers(1) (2,187,112) 164,673,706 (10,085,784) 1,944,674 (16,641,316) Transfers for policy loans 17,121 (90,112) (63,277) (4,454) (19,457) Adjustments to net assets allocated to contracts in payment period (713) 14,319 108,148 -- (12,682) Contract charges (15,018) (3,804,074) (100,208) (4,653) (68,003) Contract terminations: Surrender benefits (1,490,583) (18,315,354) (11,541,276) (254,146) (5,994,233) Death benefits (161,502) (4,193,535) (1,202,226) (15,093) (824,585) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (3,302,475) 385,972,453 (19,950,106) 2,544,276 (20,946,931) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 25,957,096 791,865,502 252,914,192 4,020,625 120,723,574 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 11,997,932 $ 773,445,434 $ 103,230,964 $ 4,097,831 $ 60,177,703 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 49,168,889 747,893,080 147,130,132 3,950,898 150,559,981 Contract purchase payments 1,295,628 286,576,052 2,190,099 999,926 3,399,530 Net transfers(1) (5,645,355) 223,192,943 (13,549,811) 2,215,935 (25,100,039) Transfers for policy loans 40,758 (95,888) (40,236) (4,641) (28,112) Contract charges (36,483) (4,525,898) (76,914) (5,659) (100,145) Contract terminations: Surrender benefits (3,432,864) (21,923,911) (8,371,752) (283,839) (8,401,975) Death benefits (368,859) (4,937,908) (926,689) (16,939) (1,226,535) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 41,021,714 1,226,178,470 126,354,829 6,855,681 119,102,705 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 53 STATEMENTS OF CHANGES IN NET ASSETS
MFS MFS NB AMT NB AMT OPPEN NEW DIS, UTILITIES, INTL, SOC RESPONSIVE, GLOBAL SEC YEAR ENDED DEC. 31, 2008 (CONTINUED) SERV CL SERV CL CL S CL S VA, SERV OPERATIONS Investment income (loss) -- net $ (513,955) $ 1,537,568 $ (2,570,124) $ 18,611 $ 624,983 Net realized gain (loss) on sales of investments (3,495,294) (6,976,443) (15,591,622) (85,763) (5,151,933) Distributions from capital gains 12,927,097 53,844,373 -- 158,727 9,673,420 Net change in unrealized appreciation or depreciation of investments (36,609,326) (197,627,493) (115,196,669) (1,081,348) (70,922,180) - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (27,691,478) (149,221,995) (133,358,415) (989,773) (65,775,710) - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,412,836 17,638,233 78,594,838 600,453 6,629,977 Net transfers(1) (14,951,575) (23,668,023) (30,869,209) (80,204) (30,406,024) Transfers for policy loans 8,281 (49,633) (17,325) 1,244 6,006 Adjustments to net assets allocated to contracts in payment period (51,358) 142,203 (2,847) -- 38,116 Contract charges (48,562) (229,836) (1,261,462) (2,030) (100,647) Contract terminations: Surrender benefits (3,929,933) (17,794,372) (6,174,801) (30,424) (6,829,217) Death benefits (533,872) (3,320,128) (1,537,805) (14,681) (906,569) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (18,094,183) (27,281,556) 38,731,389 474,358 (31,568,358) - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 82,088,385 389,227,693 313,048,610 2,109,252 181,570,893 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 36,302,724 $ 212,724,142 $ 218,421,584 $ 1,593,837 $ 84,226,825 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 80,673,123 181,258,692 273,245,434 1,744,217 117,626,819 Contract purchase payments 1,653,902 11,515,883 81,261,084 565,057 5,883,357 Net transfers(1) (17,691,840) (18,159,748) 13,726,397 (68,796) (24,025,887) Transfers for policy loans 12,477 (27,155) (16,152) 350 8,236 Contract charges (57,562) (130,042) (1,395,789) (2,028) (80,452) Contract terminations: Surrender benefits (4,415,692) (9,359,471) (6,991,618) (27,158) (5,455,157) Death benefits (643,508) (1,921,520) (1,713,548) (13,425) (750,936) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 59,530,900 163,176,639 358,115,808 2,198,217 93,205,980 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 54 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
OPPEN OPPEN GLOBAL OPPEN PIMCO PUT VT MAIN ST SM CAP STRATEGIC INC VAL VIT ALL ASSET, GLOBAL HLTH YEAR ENDED DEC. 31, 2008 (CONTINUED) VA, SERV VA, SERV VA, SERV ADVISOR CL CARE, CL IB OPERATIONS Investment income (loss) -- net $ (577,902) $ 82,435,012 $ (18,047) $ 55,016,354 $ (278,114) Net realized gain (loss) on sales of investments (3,892,701) (24,612,845) (669,640) (5,336,873) 625,751 Distributions from capital gains 5,608,068 24,866,375 -- 3,379,059 314,504 Net change in unrealized appreciation or depreciation of investments (42,994,917) (483,290,791) (1,561,941) (245,021,116) (6,592,938) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (41,857,452) (400,602,249) (2,249,628) (191,962,576) (5,930,797) - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 5,152,070 413,463,715 835,603 284,761,229 768,699 Net transfers(1) (17,997,334) 58,175,030 (1,455,174) 118,887,051 (7,108,096) Transfers for policy loans (9,664) (154,911) (2,106) (79,984) 8,973 Adjustments to net assets allocated to contracts in payment period 11,678 950,257 -- 529,412 (13,260) Contract charges (68,573) (5,695,688) (2,721) (4,199,813) (30,343) Contract terminations: Surrender benefits (4,649,184) (103,820,171) (96,922) (25,329,389) (1,851,961) Death benefits (629,276) (17,494,240) (14,970) (5,773,796) (215,109) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (18,190,283) 345,423,992 (736,290) 368,794,710 (8,441,097) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 121,815,788 2,131,138,444 5,723,096 855,249,980 39,463,521 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 61,768,053 $2,075,960,187 $ 2,737,178 $1,032,082,114 $25,091,627 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 91,910,733 1,745,767,764 5,116,281 754,096,049 35,962,246 Contract purchase payments 5,092,316 360,902,069 858,158 262,481,612 746,884 Net transfers(1) (15,674,671) 14,615,938 (1,596,425) 108,874,036 (6,879,621) Transfers for policy loans (5,797) (130,174) (3,077) (74,291) 9,234 Contract charges (61,601) (4,930,441) (3,045) (3,966,045) (29,546) Contract terminations: Surrender benefits (4,098,857) (87,846,472) (122,445) (24,194,353) (1,792,929) Death benefits (576,793) (14,883,710) (14,210) (5,431,942) (208,972) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 76,585,330 2,013,494,974 4,235,237 1,091,785,066 27,807,296 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 55 STATEMENTS OF CHANGES IN NET ASSETS
PUT VT PUT VT PUT VT ROYCE DISC INTL EQ, NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, PERIOD ENDED DEC. 31, 2008 (CONTINUED) CL IB CL IA CL IB INVEST CL AGGR(2) OPERATIONS Investment income (loss) -- net $ 930,192 $ (1,015,267) $ (407,036) $ 1,200,024 $ (27,495) Net realized gain (loss) on sales of investments (733,014) (9,050,504) (6,064,408) 4,373,996 (264,639) Distributions from capital gains 11,474,658 -- -- 8,000,920 -- Net change in unrealized appreciation or depreciation of investments (47,273,022) (40,699,319) (20,077,045) (55,491,641) (1,661,420) - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (35,601,186) (50,765,090) (26,548,489) (41,916,701) (1,953,554) - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,063,305 2,558,923 1,298,219 1,238,647 1,252,934 Net transfers(1) (18,594,269) (7,354,984) (10,320,649) (21,295,116) 9,400,148 Transfers for policy loans 12,852 294,021 40,753 24,443 2,193 Adjustments to net assets allocated to contracts in payment period (3,721) (90,024) (13,372) (1,236) (195) Contract charges (49,465) (135,034) (44,382) (28,175) (2,891) Contract terminations: Surrender benefits (3,927,793) (28,545,485) (3,781,279) (6,345,642) (357,830) Death benefits (436,835) (851,236) (453,300) (715,816) -- - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (21,935,926) (34,123,819) (13,274,010) (27,122,895) 10,294,359 - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 94,674,067 153,099,942 67,450,004 116,412,325 -- - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 37,136,955 $ 68,211,033 $ 27,627,505 $ 47,372,729 $ 8,340,805 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 53,770,331 97,679,315 61,544,884 33,733,553 -- Contract purchase payments 743,329 2,007,663 1,481,294 434,527 1,336,474 Net transfers(1) (13,492,860) (5,880,189) (11,663,264) (7,339,770) 10,801,305 Transfers for policy loans 11,911 235,024 56,359 8,918 2,954 Contract charges (35,052) (107,335) (51,948) (10,177) (3,612) Contract terminations: Surrender benefits (2,728,332) (21,580,929) (4,192,107) (2,192,589) (370,772) Death benefits (322,453) (648,308) (501,145) (246,343) -- - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 37,946,874 71,705,241 46,674,073 24,388,119 11,766,349 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 56 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
DISC DISC DISC DISC VP DAVIS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, NY VENTURE, PERIOD ENDED DEC. 31, 2008 (CONTINUED) CONSERV(2) MOD(2) MOD AGGR(2) MOD CONSERV(2) CL 3 OPERATIONS Investment income (loss) -- net $ (62,873) $ (134,199) $ (96,479) $ (74,331) $ (5,901,159) Net realized gain (loss) on sales of investments (490,485) (548,718) (366,025) (743,884) (1,129,011) Distributions from capital gains -- -- -- -- 5,167,283 Net change in unrealized appreciation or depreciation of investments (1,391,686) (6,386,398) (5,428,645) (2,702,239) (319,039,412) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (1,945,044) (7,069,315) (5,891,149) (3,520,454) (320,902,299) - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 993,675 3,105,294 2,027,043 1,633,496 196,909,373 Net transfers(1) 23,332,184 42,349,382 28,646,415 22,732,816 174,561,789 Transfers for policy loans (23,367) (4,392) (7,898) (12,876) (46,967) Adjustments to net assets allocated to contracts in payment period -- 266,298 81,523 12,742 (832) Contract charges (5,277) (10,847) (5,984) (5,046) (3,031,355) Contract terminations: Surrender benefits (837,560) (725,899) (315,166) (734,652) (15,193,010) Death benefits (156,810) (136,462) (74,251) (28,456) (3,636,964) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 23,302,845 44,843,374 30,351,682 23,598,024 349,562,034 - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- -- 606,200,877 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $21,357,801 $37,774,059 $24,460,533 $20,077,570 $ 634,860,612 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- -- -- -- 533,474,524 Contract purchase payments 991,290 3,378,562 2,222,979 1,662,306 206,839,189 Net transfers(1) 25,478,179 46,926,034 31,237,470 24,417,767 200,999,356 Transfers for policy loans (24,186) (3,756) (11,805) (13,126) (45,858) Contract charges (6,077) (12,844) (7,138) (5,894) (3,302,892) Contract terminations: Surrender benefits (851,454) (777,741) (271,630) (765,774) (16,692,769) Death benefits (161,406) (144,108) (106,586) (37,350) (3,898,074) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 25,426,346 49,366,147 33,063,290 25,257,929 917,373,476 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 57 STATEMENTS OF CHANGES IN NET ASSETS
VP GS VP PTNRS RVS VP RVS VP RVS VP MID CAP VAL, SM CAP BAL, CASH MGMT, DIV BOND, YEAR ENDED DEC. 31, 2008 (CONTINUED) CL 3 VAL, CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (154,242) $ (6,878,924) $ (2,275,199) $ 15,151,445 $ (18,626,804) Net realized gain (loss) on sales of investments (1,587,521) (11,207,354) (29,973,539) (54,691) (33,820,604) Distributions from capital gains 167,075 30,800,789 23,249,115 -- -- Net change in unrealized appreciation or depreciation of investments (5,745,465) (315,458,032) (91,725,822) (325,511) (216,095,371) - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (7,320,153) (302,743,521) (100,725,445) 14,771,243 (268,542,779) - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 571,960 193,361,128 5,613,860 219,269,511 778,967,812 Net transfers(1) (5,912,474) 49,520,605 (57,955,138) 280,290,723 (139,919,730) Transfers for policy loans 8,002 (953) 234,168 252,208 (1,881) Adjustments to net assets allocated to contracts in payment period (1,804) (94,261) (652,827) (1,169,218) (546,744) Contract charges (18,414) (3,389,664) (233,307) (650,066) (11,254,905) Contract terminations: Surrender benefits (1,373,482) (26,571,775) (46,856,334) (189,247,253) (166,895,226) Death benefits (119,262) (4,872,553) (5,068,011) (17,534,278) (30,597,103) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (6,845,474) 207,952,527 (104,917,589) 291,211,627 429,752,223 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 25,326,978 846,374,532 399,988,332 1,009,165,225 3,134,331,720 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $11,161,351 $ 751,583,538 $ 194,345,298 $1,315,148,095 $3,295,541,164 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 18,855,178 617,370,344 271,897,845 868,750,481 2,530,298,748 Contract purchase payments 512,163 205,084,186 4,458,110 202,236,494 726,110,338 Net transfers(1) (4,832,398) 61,585,396 (51,696,068) 225,008,434 (178,174,690) Transfers for policy loans 5,518 (12,550) 157,497 197,783 (31,604) Contract charges (16,211) (3,126,625) (181,071) (554,618) (9,852,338) Contract terminations: Surrender benefits (996,015) (20,679,903) (31,164,258) (159,414,965) (131,563,804) Death benefits (115,372) (4,107,151) (3,791,840) (15,158,849) (25,094,542) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 13,412,863 856,113,697 189,680,215 1,121,064,760 2,911,692,108 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 58 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
RVS VP RVS VP RVS VP RVS VP RVS VP DIV EQ DYN GLOBAL GLOBAL INFLATION HI YIELD YEAR ENDED DEC. 31, 2008 (CONTINUED) INC, CL 3 EQ, CL 3 BOND, CL 3 PROT SEC, CL 3 BOND, CL 3 OPERATIONS Investment income (loss) -- net $ (19,143,545) $ (5,601,293) $ 74,436,353 $ 11,170,218 $ (3,538,676) Net realized gain (loss) on sales of investments (24,614,473) (47,402,275) (5,347,418) (186,918) (30,801,819) Distributions from capital gains 214,500,453 85,907,518 590,926 -- -- Net change in unrealized appreciation or depreciation of investments (1,351,061,550) (413,649,619) (100,051,681) (25,359,743) (116,303,042) - -------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (1,180,319,115) (380,745,669) (30,371,820) (14,376,443) (150,643,537) - -------------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 346,744,420 18,553,001 259,985,783 162,447,055 12,961,165 Net transfers(1) 132,509,673 (123,015,836) (68,677,513) 8,181,357 (176,404,868) Transfers for policy loans (79,069) 932,267 (286) (49,993) 91,031 Adjustments to net assets allocated to contracts in payment period (310,509) (956,748) (131,929) (51,868) (321,491) Contract charges (5,605,751) (1,333,784) (3,829,196) (2,650,012) (361,398) Contract terminations: Surrender benefits (101,234,525) (100,738,536) (61,041,667) (26,495,759) (57,863,381) Death benefits (17,241,488) (8,858,053) (9,609,829) (5,375,017) (8,237,322) - -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 354,782,751 (215,417,689) 116,695,363 136,005,763 (230,136,264) - -------------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 2,710,344,684 1,044,144,177 1,133,348,233 605,794,082 763,178,955 - -------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 1,884,808,320 $ 447,980,819 $1,219,671,776 $727,423,402 $ 382,399,154 - -------------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,615,553,755 908,740,844 852,722,375 543,694,986 550,624,505 Contract purchase payments 343,759,136 20,110,295 229,091,526 145,260,311 11,063,632 Net transfers(1) 192,179,798 (142,300,032) (78,708,281) 110,288 (138,517,692) Transfers for policy loans (50,959) 881,036 (11,878) (43,839) 72,030 Contract charges (5,045,291) (1,485,808) (3,091,241) (2,356,943) (283,275) Contract terminations: Surrender benefits (70,779,936) (90,707,110) (42,561,206) (23,579,811) (43,180,171) Death benefits (12,831,036) (9,758,229) (7,186,299) (4,784,575) (6,502,309) - -------------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 2,062,785,467 685,480,996 950,254,996 658,300,417 373,276,720 - --------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 59 STATEMENTS OF CHANGES IN NET ASSETS
RVS VP RVS VP RVS VP RVS VP RVS VP INC OPP, MID CAP MID CAP S&P 500, SHORT DURATION, YEAR ENDED DEC. 31, 2008 (CONTINUED) CL 3 GRO, CL 3 VAL, CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (4,583,999) $ (1,307,193) $ (2,657,180) $ (1,574,030) $ (2,672,225) Net realized gain (loss) on sales of investments (12,653,602) (4,257,308) (8,941,924) 456,995 (1,293,058) Distributions from capital gains -- 1,041,144 65,630,697 8,639,876 -- Net change in unrealized appreciation or depreciation of investments (120,902,224) (70,171,114) (218,152,389) (96,065,586) (9,457,807) - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (138,139,825) (74,694,471) (164,120,796) (88,542,745) (13,423,090) - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 168,909,005 3,921,623 51,341,501 7,187,475 19,669,255 Net transfers(1) (8,794,640) (21,775,657) 23,883,843 (33,887,555) 50,214,527 Transfers for policy loans (33,252) 139,518 (37,345) 5,455 (48,830) Adjustments to net assets allocated to contracts in payment period (30,672) (88,195) (25,526) (42,372) (96,267) Contract charges (2,634,839) (136,650) (771,044) (147,578) (229,204) Contract terminations: Surrender benefits (16,734,807) (17,971,010) (10,642,279) (14,194,131) (25,823,578) Death benefits (4,024,236) (1,304,105) (1,810,593) (2,049,452) (4,439,841) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 136,656,559 (37,214,476) 61,938,557 (43,128,158) 39,246,062 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 577,420,763 190,564,075 329,463,858 265,351,346 346,116,295 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 575,937,497 $ 78,655,128 $ 227,281,619 $133,680,443 $371,939,267 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 516,836,128 151,417,748 243,623,712 248,359,813 272,625,569 Contract purchase payments 165,306,074 3,930,990 52,641,750 7,744,957 17,456,091 Net transfers(1) (16,672,350) (20,807,744) 31,631,997 (37,738,039) 41,444,935 Transfers for policy loans (31,183) 167,900 (30,476) 12,435 (41,801) Contract charges (2,552,940) (138,644) (770,796) (166,219) (183,827) Contract terminations: Surrender benefits (16,013,800) (18,835,898) (9,615,724) (15,541,389) (20,811,166) Death benefits (3,857,463) (1,361,150) (1,672,476) (2,360,094) (3,541,872) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 643,014,466 114,373,202 315,807,987 200,311,464 306,947,929 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 60 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEL SEL VP SEL VP THDL VP THDL VP VP GRO, LG CAP SM CAP EMER MKTS, INTL OPP, YEAR ENDED DEC. 31, 2008 (CONTINUED) CL 3 VAL, CL 3 VAL, CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (1,465,709) $ (110,321) $ (721,334) $ (1,285,583) $ 3,413,289 Net realized gain (loss) on sales of investments (27,559,245) (1,631,807) (11,352,210) (837,475) 6,452,882 Distributions from capital gains -- 363,086 11,015,847 103,706,010 -- Net change in unrealized appreciation or depreciation of investments (113,519,466) (5,376,917) (38,652,357) (505,111,892) (138,759,111) - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (142,544,420) (6,755,959) (39,710,054) (403,528,940) (128,892,940) - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 7,767,836 620,986 2,407,471 115,546,695 6,528,218 Net transfers(1) (109,420,420) (4,210,975) (26,253,204) 139,406,078 (43,126,658) Transfers for policy loans 92,813 (1,830) 22,219 (82,961) 153,870 Adjustments to net assets allocated to contracts in payment period (168,448) (1,202) (27,746) 4,516 (155,950) Contract charges (262,930) (12,148) (68,198) (1,941,691) (193,288) Contract terminations: Surrender benefits (16,669,635) (1,296,926) (6,354,400) (22,819,210) (45,856,351) Death benefits (1,720,240) (70,507) (1,027,183) (3,445,805) (2,586,422) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (120,381,024) (4,972,602) (31,301,041) 226,667,622 (85,236,581) - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 404,027,400 20,660,664 122,452,481 695,489,361 370,714,786 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 141,101,956 $ 8,932,103 $ 51,441,386 $ 518,628,043 $ 156,585,265 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 516,489,168 15,712,105 74,284,903 289,591,162 255,423,903 Contract purchase payments 11,297,360 598,569 1,958,478 82,837,438 5,562,026 Net transfers(1) (173,583,082) (3,711,048) (19,209,461) 148,555,834 (40,743,875) Transfers for policy loans 174,758 (58) 17,463 (37,966) 120,746 Contract charges (413,755) (11,236) (51,915) (1,279,766) (165,213) Contract terminations: Surrender benefits (24,795,058) (1,067,225) (4,683,104) (11,647,189) (33,784,319) Death benefits (2,659,181) (67,383) (763,275) (1,991,383) (2,267,055) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 326,510,210 11,453,724 51,553,089 506,028,130 184,146,213 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 61 STATEMENTS OF CHANGES IN NET ASSETS
THIRD VANK LIT VANK UIF VANK UIF AVE COMSTOCK, GLOBAL REAL MID CAP WANGER YEAR ENDED DEC. 31, 2008 (CONTINUED) VAL CL II EST, CL II GRO, CL II INTL OPERATIONS Investment income (loss) -- net $ (60,330) $ 9,934,129 $ 4,131,019 $ (61,992) $ 651,497 Net realized gain (loss) on sales of investments 3,063,792 (11,221,313) (2,941,501) (6,013,729) 12,249,365 Distributions from capital gains 15,950,216 42,465,434 14,718,198 13,822,746 112,265,598 Net change in unrealized appreciation or depreciation of investments (72,084,315) (395,413,857) (153,850,021) (35,740,924) (562,372,647) - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (53,130,637) (354,235,607) (137,942,305) (27,993,899) (437,206,187) - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,723,739 162,120,678 55,717,716 3,905,006 76,078,521 Net transfers(1) (32,159,394) 41,775,800 128,949,497 8,415,092 (18,512,205) Transfers for policy loans 31,505 (38,530) (12,997) (15,789) (86,271) Adjustments to net assets allocated to contracts in payment period (11,469) 12,669 (3,217) 12,157 120,303 Contract charges (34,908) (3,112,560) (854,197) (33,285) (1,399,138) Contract terminations: Surrender benefits (7,800,003) (30,359,657) (6,988,921) (2,348,267) (38,265,890) Death benefits (1,001,720) (4,920,727) (1,243,813) (314,304) (4,782,318) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (39,252,250) 165,477,673 175,564,068 9,620,610 13,153,002 - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 148,093,084 869,865,179 203,382,069 47,492,816 970,136,740 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 55,710,197 $ 681,107,245 $ 241,003,832 $ 29,119,527 $ 546,083,555 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 47,482,472 706,657,539 179,033,512 38,592,716 416,769,930 Contract purchase payments 676,583 174,658,508 61,098,888 3,580,633 63,518,362 Net transfers(1) (12,750,016) 45,994,255 152,920,756 5,565,769 28,905,438 Transfers for policy loans 14,146 (38,827) (15,995) (13,416) (35,954) Contract charges (14,167) (3,167,034) (990,995) (34,522) (977,645) Contract terminations: Surrender benefits (3,072,269) (28,910,108) (7,932,739) (2,455,285) (19,311,839) Death benefits (405,256) (4,882,721) (1,398,187) (316,231) (2,747,142) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 31,931,493 890,311,612 382,715,240 44,919,664 486,121,150 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 62 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
WF ADV WF ADV WF ADV WF ADV WANGER VT INDEX VT VT VT YEAR ENDED DEC. 31, 2008 (CONTINUED) USA ASSET ALLOC INTL CORE OPP SM CAP GRO OPERATIONS Investment income (loss) -- net $ (6,967,912) $ 1,135,226 $ 154,170 $ 666,791 $ (684,366) Net realized gain (loss) on sales of investments (135,244) (1,689,602) (480,814) (3,064,442) (5,649,931) Distributions from capital gains 98,763,493 5,981,215 2,835,003 14,416,944 21,965,577 Net change in unrealized appreciation or depreciation of investments (458,879,494) (30,721,309) (9,918,833) (41,233,853) (55,428,219) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (367,219,157) (25,294,470) (7,410,474) (29,214,560) (39,796,939) - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 81,011,616 1,206,884 205,812 2,112,338 4,174,718 Net transfers(1) (91,922,121) (19,898,897) (3,910,562) (15,745,317) (10,394,214) Transfers for policy loans 9,793 13,341 (3,248) (17,912) (3,560) Adjustments to net assets allocated to contracts in payment period (7,159) (20,924) (4,193) (6,003) (1,541) Contract charges (1,513,214) (54,687) (10,287) (52,763) (53,040) Contract terminations: Surrender benefits (38,964,384) (5,566,230) (796,937) (3,805,759) (3,734,895) Death benefits (4,951,058) (1,111,202) (142,054) (496,130) (506,117) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (56,336,527) (25,431,715) (4,661,469) (18,011,546) (10,518,649) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 973,831,286 98,668,714 19,885,705 85,505,254 100,983,953 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 550,275,602 $ 47,942,529 $ 7,813,762 $ 38,279,148 $ 50,668,365 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 565,036,815 72,214,012 13,828,315 60,059,822 75,618,973 Contract purchase payments 80,202,840 1,017,946 175,616 1,820,547 3,879,797 Net transfers(1) (41,755,516) (17,670,224) (3,537,792) (12,826,501) (10,058,185) Transfers for policy loans 2,514 13,619 (2,297) (14,360) (5,138) Contract charges (1,270,366) (46,514) (8,796) (43,434) (50,239) Contract terminations: Surrender benefits (26,081,981) (4,676,335) (661,997) (3,049,892) (3,481,146) Death benefits (3,552,079) (983,444) (113,422) (432,284) (501,463) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 572,582,227 49,869,060 9,679,627 45,513,898 65,402,599 - --------------------------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. (2) For the period May 1, 2008 (commencement of operations) to Dec. 31, 2008. See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 63 NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION RiverSource Variable Account 10 (the Account) was established under Minnesota law as a segregated asset account of RiverSource Life Insurance Company (RiverSource Life). The Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended (the 1940 Act) and exists in accordance with the rules and regulations of the Insurance Division, Department of Commerce of the State of Minnesota. The Account is used as a funding vehicle for individual variable annuity contracts issued by RiverSource Life. The following is a list of each variable annuity product funded through the Account. RiverSource Retirement Advisor Variable Annuity(R) (RAVA) RiverSource Retirement Advisor Variable Annuity(R) - Band 3 (RAVA Band 3)* RiverSource Retirement Advisor Advantage(R) Variable Annuity (RAVA Advantage) RiverSource Retirement Advisor Select(R) Variable Annuity (RAVA Select) RiverSource Retirement Advisor Advantage(R) Variable Annuity - Band 3 (RAVA Advantage Band 3)* RiverSource Retirement Advisor Advantage Plus(R) Variable Annuity (RAVA Advantage Plus) RiverSource Retirement Advisor Select Plus(R) Variable Annuity (RAVA Select Plus) RiverSource Retirement Advisor 4 Advantage(R) Variable Annuity (RAVA 4 Advantage) RiverSource Retirement Advisor 4 Select(R) Variable Annuity (RAVA 4 Select) RiverSource Retirement Advisor 4 Access(R) Variable Annuity (RAVA 4 Access) RiverSource(R) Flexible Portfolio Annuity (FPA) * New contracts are no longer being issued for this product. As a result, an annual contract prospectus and statement of additional information are no longer distributed. An annual report for this product is distributed to all current contract holders. The Account is comprised of various divisions. Each division invests exclusively in shares of the following funds or portfolios (collectively, the Funds), which are registered under the 1940 Act as open-end management investment companies. The name of each Fund and the corresponding division name are provided below. Each division is comprised of subaccounts. Individual variable annuity accounts invest in subaccounts.
DIVISION FUND - -------------------------------------------------------------------------------------------------------------- Invesco VI Cap Appr, Ser I Invesco V.I. Capital Appreciation Fund, Series I Shares (previously AIM V.I. Capital Appreciation Fund, Series I Shares) Invesco VI Cap Appr, Ser II Invesco V.I. Capital Appreciation Fund, Series II Shares (previously AIM V.I. Capital Appreciation Fund, Series II Shares) Invesco VI Cap Dev, Ser I Invesco V.I. Capital Development Fund, Series I Shares (previously AIM V.I. Capital Development Fund, Series I Shares) Invesco VI Cap Dev, Ser II Invesco V.I. Capital Development Fund, Series II Shares (previously AIM V.I. Capital Development Fund, Series II Shares) Invesco VI Core Eq, Ser I Invesco V.I. Core Equity Fund, Series I Shares (previously AIM V.I. Core Equity Fund, Series I Shares) Invesco VI Dyn, Ser I Invesco V.I. Dynamics Fund, Series I Shares (previously AIM V.I. Dynamics Fund, Series I Shares) Invesco VI Fin Serv, Ser I Invesco V.I. Financial Services Fund, Series I Shares (previously AIM V.I. Financial Services Fund, Series I Shares) Invesco VI Fin Serv, Ser II Invesco V.I. Financial Services Fund, Series II Shares (previously AIM V.I. Financial Services Fund, Series II Shares) Invesco VI Global Hlth, Ser II Invesco V.I. Global Health Care Fund, Series II Shares (previously AIM V.I. Global Health Care Fund, Series II Shares) Invesco VI Intl Gro, Ser II Invesco V.I. International Growth Fund, Series II Shares(1) (previously AIM V.I. International Growth Fund, Series II Shares) Invesco VI Tech, Ser I Invesco V.I. Technology Fund, Series I Shares (previously AIM V.I. Technology Fund, Series I Shares) AB VPS Global Thematic Gro, Cl B AllianceBernstein VPS Global Thematic Growth Portfolio (Class B) (previously AllianceBernstein VPS Global Technology Portfolio (Class B)) AB VPS Gro & Inc, Cl B AllianceBernstein VPS Growth and Income Portfolio (Class B) AB VPS Intl Val, Cl B AllianceBernstein VPS International Value Portfolio (Class B)(2),(3) AB VPS Lg Cap Gro, Cl B AllianceBernstein VPS Large Cap Growth Portfolio (Class B) AC VP Intl, Cl I American Century VP International, Class I AC VP Intl, Cl II American Century VP International, Class II AC VP Mid Cap Val, Cl II American Century VP Mid Cap Value, Class II AC VP Ultra, Cl II American Century VP Ultra(R), Class II AC VP Val, Cl I American Century VP Value, Class I(4) AC VP Val, Cl II American Century VP Value, Class II
- - 64 RIVERSOURCE VARIABLE ACCOUNT 10
DIVISION FUND - -------------------------------------------------------------------------------------------------------------- Calvert VS Social Bal Calvert Variable Series, Inc. VP SRI Social Balanced Portfolio Col Hi Yield, VS Cl B Columbia High Yield Fund, Variable Series, Class B Col Marsico Gro, VS Cl A Columbia Marsico Growth Fund, Variable Series, Class A Col Marsico Intl Opp, VS Cl B Columbia Marsico International Opportunities Fund, Variable Series, Class B CS Commodity Return Credit Suisse Trust - Commodity Return Strategy Portfolio CS U.S. Eq Flex I Credit Suisse Trust - U.S. Equity Flex I Portfolio(5) Drey VIF Intl Eq, Serv Dreyfus Variable Investment Fund International Equity Portfolio, Service Shares EV VT Floating-Rate Inc Eaton Vance VT Floating-Rate Income Fund EG VA Fundamental Lg Cap, Cl 2 Evergreen VA Fundamental Large Cap Fund - Class 2 EG VA Intl Eq, Cl 2 Evergreen VA International Equity Fund - Class 2(6) Fid VIP Contrafund, Serv Cl 2 Fidelity(R) VIP Contrafund(R) Portfolio Service Class 2 Fid VIP Gro & Inc, Serv Cl Fidelity(R) VIP Growth & Income Portfolio Service Class Fid VIP Gro & Inc, Serv Cl 2 Fidelity(R) VIP Growth & Income Portfolio Service Class 2 Fid VIP Mid Cap, Serv Cl Fidelity(R) VIP Mid Cap Portfolio Service Class Fid VIP Mid Cap, Serv Cl 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 Fid VIP Overseas, Serv Cl Fidelity(R) VIP Overseas Portfolio Service Class Fid VIP Overseas, Serv Cl 2 Fidelity(R) VIP Overseas Portfolio Service Class 2 FTVIPT Frank Global Real Est, Cl FTVIPT Franklin Global Real Estate Securities Fund - Class 2 2 FTVIPT Frank Sm Cap Val, Cl 2 FTVIPT Franklin Small Cap Value Securities Fund - Class 2 FTVIPT Mutual Shares Sec, Cl 2 FTVIPT Mutual Shares Securities Fund - Class 2 GS VIT Mid Cap Val, Inst Goldman Sachs VIT Mid Cap Value Fund - Institutional Shares GS VIT Structd Sm Cap Eq, Inst Goldman Sachs VIT Structured Small Cap Equity Fund - Institutional Shares GS VIT Structd U.S. Eq, Inst Goldman Sachs VIT Structured U.S. Equity Fund - Institutional Shares Janus Aspen Enterprise, Serv Janus Aspen Series Enterprise Portfolio: Service Shares Janus Aspen Global Tech, Serv Janus Aspen Series Global Technology Portfolio: Service Shares Janus Aspen Janus, Serv Janus Aspen Series Janus Portfolio: Service Shares Janus Aspen Overseas, Serv Janus Aspen Series Overseas Portfolio: Service Shares LM CB Var Sm Cap Gro, Cl I Legg Mason ClearBridge Variable Small Cap Growth Portfolio, Class I (previously Legg Mason Partners Variable Small Cap Growth Portfolio, Class I) MFS Inv Gro Stock, Serv Cl MFS(R) Investors Growth Stock Series - Service Class MFS New Dis, Serv Cl MFS(R) New Discovery Series - Service Class MFS Utilities, Serv Cl MFS(R) Utilities Series - Service Class NB AMT Intl, Cl S Neuberger Berman Advisers Management Trust International Portfolio (Class S) NB AMT Soc Responsive, Cl S Neuberger Berman Advisers Management Trust Socially Responsive Portfolio (Class S) Oppen Global Sec VA, Serv Oppenheimer Global Securities Fund/VA, Service Shares Oppen Main St Sm Cap VA, Serv Oppenheimer Main Street Small Cap Fund/VA, Service Shares Oppen Global Strategic Inc VA, Oppenheimer Global Strategic Income Fund/VA, Service Shares Serv (previously Oppenheimer Strategic Bond Fund/VA, Service Shares) Oppen Val VA, Serv Oppenheimer Value Fund/VA, Service Shares PIMCO VIT All Asset, Advisor Cl PIMCO VIT All Asset Portfolio, Advisor Share Class Put VT Global Hlth Care, Cl IB Putnam VT Global Health Care Fund - Class IB Shares Put VT Intl Eq, Cl IB Putnam VT International Equity Fund - Class IB Shares Put VT New Opp, Cl IA Putnam VT New Opportunities Fund - Class IA Shares Put VT Vista, Cl IB Putnam VT Vista Fund - Class IB Shares Royce Micro-Cap, Invest Cl Royce Capital Fund - Micro-Cap Portfolio, Investment Class Disc Asset Alloc, Aggr RVST Disciplined Asset Allocation Portfolios - Aggressive Disc Asset Alloc, Conserv RVST Disciplined Asset Allocation Portfolios - Conservative Disc Asset Alloc, Mod RVST Disciplined Asset Allocation Portfolios - Moderate Disc Asset Alloc, Mod Aggr RVST Disciplined Asset Allocation Portfolios - Moderately Aggressive Disc Asset Alloc, Mod Conserv RVST Disciplined Asset Allocation Portfolios - Moderately Conservative VP Davis NY Venture, Cl 3 RVST Variable Portfolio - Davis New York Venture Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund) VP GS Mid Cap Val, Cl 3 RVST Variable Portfolio - Goldman Sachs Mid Cap Value Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Select Value Fund) VP Ptnrs Sm Cap Val, Cl 3 RVST Variable Portfolio - Partners Small Cap Value Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund) RVS VP Bal, Cl 3 RVST RiverSource Variable Portfolio - Balanced Fund (Class 3)(7) RVS VP Cash Mgmt, Cl 3 RVST RiverSource Variable Portfolio - Cash Management Fund (Class 3) RVS VP Div Bond, Cl 3 RVST RiverSource Variable Portfolio - Diversified Bond Fund (Class 3) RVS VP Div Eq Inc, Cl 3 RVST RiverSource Variable Portfolio - Diversified Equity Income Fund (Class 3)(4),(8) RVS VP Dyn Eq, Cl 3 RVST RiverSource Variable Portfolio - Dynamic Equity Fund (Class 3) RVS VP Global Bond, Cl 3 RVST RiverSource Variable Portfolio - Global Bond Fund (Class 3) RVS VP Global Inflation Prot Sec, RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Cl 3 Fund (Class 3) RVS VP Hi Yield Bond, Cl 3 RVST RiverSource Variable Portfolio - High Yield Bond Fund (Class 3) RVS VP Inc Opp, Cl 3 RVST RiverSource Variable Portfolio - Income Opportunities Fund (Class 3) RVS VP Mid Cap Gro, Cl 3 RVST RiverSource Variable Portfolio - Mid Cap Growth Fund (Class 3)
- - RIVERSOURCE VARIABLE ACCOUNT 10 65
DIVISION FUND - -------------------------------------------------------------------------------------------------------------- RVS VP Mid Cap Val, Cl 3 RVST RiverSource Variable Portfolio - Mid Cap Value Fund (Class 3) RVS VP S&P 500, Cl 3 RVST RiverSource Variable Portfolio - S&P 500 Index Fund (Class 3) RVS VP Short Duration, Cl 3 RVST RiverSource Variable Portfolio - Short Duration U.S. Government Fund (Class 3) Sel VP Gro, Cl 3 RVST Seligman Variable Portfolio - Growth Fund (Class 3) Sel VP Lg Cap Val, Cl 3 RVST Seligman Variable Portfolio - Larger-Cap Value Fund (Class 3) Sel VP Sm Cap Val, Cl 3 RVST Seligman Variable Portfolio - Smaller-Cap Value Fund (Class 3) THDL VP Emer Mkts, Cl 3 RVST Threadneedle Variable Portfolio - Emerging Markets Fund (Class 3)(9) THDL VP Intl Opp, Cl 3 RVST Threadneedle Variable Portfolio - International Opportunity Fund (Class 3) Third Ave Val Third Avenue Value Portfolio VanK LIT Comstock, Cl II Van Kampen Life Investment Trust Comstock Portfolio, Class II Shares VanK UIF Global Real Est, Cl II Van Kampen's UIF Global Real Estate Portfolio, Class II Shares VanK UIF Mid Cap Gro, Cl II Van Kampen's UIF Mid Cap Growth Portfolio, Class II Shares Wanger Intl Wanger International Wanger USA Wanger USA WF Adv VT Index Asset Alloc Wells Fargo Advantage VT Index Asset Allocation Fund (previously Wells Fargo Advantage VT Asset Allocation Fund) WF Adv VT Intl Core Wells Fargo Advantage VT International Core Fund WF Adv VT Opp Wells Fargo Advantage VT Opportunity Fund WF Adv VT Sm Cap Gro Wells Fargo Advantage VT Small Cap Growth Fund - --------------------------------------------------------------------------------------------------------------
(1) Effective Feb. 13, 2009, Putman VT International New Opportunities Fund - Class IB Shares was substituted with AIM V.I. International Growth Fund, Series II Shares. (2) Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). (3) Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). (4) Effective Feb. 13, 2009, for FPA only, American Century VP Value, Class I was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund (Class 3). (5) Credit Suisse Trust - U.S. Equity Flex III Portfolio reorganized into Credit Suisse Trust - U.S. Equity Flex I Portfolio on Oct. 2, 2009. (6) Effective Feb. 13, 2009, FTVIPT Templeton Foreign Securities Fund - Class 2 was substituted with Evergreen VA International Equity Fund - Class 2. (7) Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund (Class 3). (8) Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund (Class 3). (9) Effective Feb. 13, 2009, FTVIPT Templeton Developing Markets Securities Fund - Class 1 was substituted with RVST Threadneedle Variable Portfolio - Emerging Markets Fund (Class 3). The assets of each division of the Account are not chargeable with liabilities arising out of the business conducted by any other segregated asset account or by RiverSource Life. RiverSource Life serves as issuer of the contract. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS IN THE FUNDS Investment transactions are accounted for on the date the shares are purchased and sold. Realized gains and losses on the sales of investments are computed using the average cost method. Income from dividends and gains from realized capital gain distributions are reinvested in additional shares of the Funds and are recorded as income by the divisions on the ex-dividend date. Unrealized appreciation or depreciation of investments in the accompanying financial statements represents the division's share of the Funds' undistributed net investment income, undistributed realized gain or loss and the unrealized appreciation or depreciation on their investment securities. The Account categorizes its fair value measurements according to a three-level hierarchy. This hierarchy prioritizes the inputs used by the Account to value investment securities. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 - Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 - Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The Funds in the Accounts have been assigned a Level 2 hierarchy, which indicates that the Funds are not considered to be active as there are few daily net asset values released publicly. Investments in shares of the Funds are stated at fair value which is the net asset value per share as determined by the respective Funds. 66 RIVERSOURCE VARIABLE ACCOUNT 10 VARIABLE PAYOUT Net assets allocated to contracts in the payout period are periodically compared to a computation which uses the Annuity 2000 Basic Mortality Table and which assumes future mortality improvement. The assumed investment return is 5% unless the annuitant elects otherwise, in which case the rate would be 3.5%, as regulated by the laws of the respective states. The mortality risk is fully borne by RiverSource Life and may result in additional amounts being transferred into the variable annuity account by RiverSource Life to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the insurance company. FEDERAL INCOME TAXES RiverSource Life is taxed as a life insurance company. The Account is treated as part of RiverSource Life for federal income tax purposes. Under existing federal income tax law, no income taxes are payable with respect to any investment income of the Account to the extent the earnings are credited under the contracts. Based on this, no charge is being made currently to the Account for federal income taxes. RiverSource Life will review periodically the status of this policy. In the event of changes in the tax law, a charge may be made in future years for any federal income taxes that would be attributable to the contracts. SUBSEQUENT EVENTS Management has evaluated Account related events and transactions that occurred during the period from the date of the Statements of Assets and Liabilities through the date of issuance of the Account's financial statements. There were no events or transactions that occurred during the period that materially impacted the amounts or disclosures in the Account's financial statements. USE OF ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. 3. VARIABLE ACCOUNT EXPENSES RiverSource Life deducts a daily mortality and expense risk fee equal, on an annual basis, to the following percent of the average daily net assets of each subaccount.
PRODUCT MORTALITY AND EXPENSE RISK FEE - -------------------------------------------------------------------------------------------------------------- RAVA 0.75% to 0.95% (depending on the contract selected) - -------------------------------------------------------------------------------------------------------------- RAVA Band 3 0.55% - -------------------------------------------------------------------------------------------------------------- RAVA Advantage 0.75% to 0.95% (depending on the contract selected) - -------------------------------------------------------------------------------------------------------------- RAVA Select 1.00% to 1.20% (depending on the contract selected) - -------------------------------------------------------------------------------------------------------------- RAVA Advantage Band 3 0.55% - -------------------------------------------------------------------------------------------------------------- RAVA Advantage Plus 0.55% to 0.95% (depending on the contract selected) - -------------------------------------------------------------------------------------------------------------- RAVA Select Plus 0.75% to 1.20% (depending on the contract selected) - -------------------------------------------------------------------------------------------------------------- RAVA 4 Advantage 0.85% to 1.05% (depending on the contract selected) - -------------------------------------------------------------------------------------------------------------- RAVA 4 Select 1.10% to 1.30% (depending on the contract selected) - -------------------------------------------------------------------------------------------------------------- RAVA 4 Access 1.25% to 1.45% (depending on the contract selected) - -------------------------------------------------------------------------------------------------------------- FPA 1.25% - --------------------------------------------------------------------------------------------------------------
4. CONTRACT CHARGES RiverSource Life deducts a contract administrative charge of $30 per year on the contract anniversary. This charge reimburses RiverSource Life for expenses incurred in establishing and maintaining the annuity records. Certain products may waive this charge based upon the underlying contract value. Optional riders are available on certain products and if selected, the related fees are deducted annually from the contract value on the contract anniversary. Additional information can be found in the applicable product's prospectus. RIVERSOURCE VARIABLE ACCOUNT 10 67 5. SURRENDER CHARGES RiverSource Life may use a surrender charge to help it recover certain expenses related to the sale of the annuity. When applicable, a surrender charge will apply for a maximum number of years, as depicted in the surrender charge schedule included in the applicable product's prospectus. Such charges are not treated as a separate expense of the divisions as they are ultimately deducted from contract surrender benefits paid by RiverSource Life. Charges by RiverSource Life for surrenders are not identified on an individual division basis. 6. RELATED PARTY TRANSACTIONS Management fees are paid indirectly to RiverSource Investments, LLC, an affiliate of RiverSource Life, in its capacity as investment manager for the RiverSource Variable Series Trust (RVST) funds. The Fund's Investment Management Services Agreement provides for a fee at a percentage of each Fund's average daily net assets on a tiered schedule that ranges from 1.100% to 0.120%. For certain RVST funds, the management fee may be adjusted upward or downward by a performance incentive adjustment (PIA). The adjustment is based on a comparison of the performance of each Fund to an index of similar funds up to a maximum percentage of each Fund's average daily net assets after deducting 0.50% from the performance difference. If the performance difference is less than 0.50%, the adjustment will be zero. For RVST funds with PIA, the maximum adjustment is 0.08% or 0.12%. The Funds have a Transfer Agency and Servicing Agreement with RiverSource Service Corporation, an affiliate of RiverSource Life. The fee under this agreement is uniform for all RVST funds at an annual rate of 0.06% of each Fund's average daily net assets. The Funds have an agreement with RiverSource Distributors, Inc. (the Distributor) for distribution services. Under a Plan and Agreement of Distribution pursuant to Rule 12b-1, each Fund pays the Distributor a fee at an annual rate of up to 0.125% of each Fund's average daily net assets. RVST funds have an Administrative Services Agreement with Ameriprise Financial, Inc., the parent of RiverSource Life, (Ameriprise Financial). Under this agreement, each Fund pays Ameriprise Financial a fee on a tiered schedule that ranges from 0.080% to 0.030% of each Fund's average daily net assets for administration and accounting services. On Sept. 29, 2009, Ameriprise Financial entered into an agreement with Bank of America Corporation to buy a portion of the asset management business of Columbia Management Group, LLC, including Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC (the "Transaction"). The Transaction is subject to certain approvals and other conditions to closing, and is currently expected to close in the spring of 2010. Certain divisions invest in Funds sponsored by Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC. In addition to the fees and expenses which each RVST fund bears directly, each Fund indirectly bears a pro rata share of the fees and expenses of the funds in which it invests (also referred to as "acquired funds"), including affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange traded funds). Because the acquired funds have varied expense and fee levels and each Fund may own different proportions of acquired funds at different times, the amount of fees and expenses incurred indirectly by each Fund will vary. 7. INVESTMENT TRANSACTIONS The divisions' purchases of Funds' shares, including reinvestment of dividend distributions, for the year ended Dec. 31, 2009 were as follows:
DIVISION PURCHASES - -------------------------------------------------------------------------------------------- Invesco VI Cap Appr, Ser I $ 466,488 Invesco VI Cap Appr, Ser II 6,029,873 Invesco VI Cap Dev, Ser I 387,765 Invesco VI Cap Dev, Ser II 1,366,009 Invesco VI Core Eq, Ser I 3,685,372 Invesco VI Dyn, Ser I 255,270 Invesco VI Fin Serv, Ser I 4,907,063 Invesco VI Fin Serv, Ser II 2,921,226 Invesco VI Global Hlth, Ser II 5,639,396 Invesco VI Intl Gro, Ser II 167,753,423 Invesco VI Tech, Ser I 6,661,910 AB VPS Global Thematic Gro, Cl B 7,929,681 AB VPS Gro & Inc, Cl B 7,305,647 AB VPS Intl Val, Cl B 131,317,263 AB VPS Lg Cap Gro, Cl B 1,039,725 AC VP Intl, Cl I 929,067 AC VP Intl, Cl II 2,344,976
68 RIVERSOURCE VARIABLE ACCOUNT 10
DIVISION PURCHASES - -------------------------------------------------------------------------------------------- AC VP Mid Cap Val, Cl II $ 49,731,644 AC VP Ultra, Cl II 3,953,971 AC VP Val, Cl I 5,753,555 AC VP Val, Cl II 21,464,734 Calvert VS Social Bal 1,373,181 Col Hi Yield, VS Cl B 21,006,575 Col Marsico Gro, VS Cl A 489,483,305 Col Marsico Intl Opp, VS Cl B 7,730,017 CS Commodity Return 32,924,336 CS U.S. Eq Flex I 11,793,780 Drey VIF Intl Eq, Serv 2,061,837 EV VT Floating-Rate Inc 302,905,420 EG VA Fundamental Lg Cap, Cl 2 11,942,768 EG VA Intl Eq, Cl 2 634,281,059 Fid VIP Contrafund, Serv Cl 2 129,498,590 Fid VIP Gro & Inc, Serv Cl 1,196,790 Fid VIP Gro & Inc, Serv Cl 2 1,869,750 Fid VIP Mid Cap, Serv Cl 2,135,778 Fid VIP Mid Cap, Serv Cl 2 77,337,839 Fid VIP Overseas, Serv Cl 1,548,018 Fid VIP Overseas, Serv Cl 2 7,453,168 FTVIPT Frank Global Real Est, Cl 2 23,558,843 FTVIPT Frank Sm Cap Val, Cl 2 15,772,700 FTVIPT Mutual Shares Sec, Cl 2 9,450,185 GS VIT Mid Cap Val, Inst 5,842,554 GS VIT Structd Sm Cap Eq, Inst 512,661 GS VIT Structd U.S. Eq, Inst 7,436,421 Janus Aspen Enterprise, Serv 394,351 Janus Aspen Global Tech, Serv 4,758,562 Janus Aspen Janus, Serv 397,607,852 Janus Aspen Overseas, Serv 9,764,841 LM CB Var Sm Cap Gro, Cl I 2,665,622 MFS Inv Gro Stock, Serv Cl 13,373,493 MFS New Dis, Serv Cl 2,838,304 MFS Utilities, Serv Cl 18,127,920 NB AMT Intl, Cl S 63,791,434 NB AMT Soc Responsive, Cl S 562,713 Oppen Global Sec VA, Serv 9,552,148 Oppen Main St Sm Cap VA, Serv 5,531,215 Oppen Global Strategic Inc VA, Serv 348,225,222 Oppen Val VA, Serv 1,646,577 PIMCO VIT All Asset, Advisor Cl 365,873,386 Put VT Global Hlth Care, Cl IB 4,452,525 Put VT Intl Eq, Cl IB 540,613 Put VT New Opp, Cl IA 822,652 Put VT Vista, Cl IB 447,851 Royce Micro-Cap, Invest Cl 788,444 Disc Asset Alloc, Aggr 11,351,901 Disc Asset Alloc, Conserv 29,939,004 Disc Asset Alloc, Mod 49,389,095 Disc Asset Alloc, Mod Aggr 28,371,239 Disc Asset Alloc, Mod Conserv 32,288,934 VP Davis NY Venture, Cl 3 650,372,108 VP GS Mid Cap Val, Cl 3 1,371,304 VP Ptnrs Sm Cap Val, Cl 3 147,478,475 RVS VP Bal, Cl 3 74,206,630 RVS VP Cash Mgmt, Cl 3 111,536,048 RVS VP Div Bond, Cl 3 1,103,736,925 RVS VP Div Eq Inc, Cl 3 508,167,982 RVS VP Dyn Eq, Cl 3 7,126,665 RVS VP Global Bond, Cl 3 323,837,522 RVS VP Global Inflation Prot Sec, Cl 3 1,118,041,896 RVS VP Hi Yield Bond, Cl 3 87,881,658 RVS VP Inc Opp, Cl 3 753,094,987 RVS VP Mid Cap Gro, Cl 3 17,543,250 RVS VP Mid Cap Val, Cl 3 22,242,156
RIVERSOURCE VARIABLE ACCOUNT 10 69
DIVISION PURCHASES - -------------------------------------------------------------------------------------------- RVS VP S&P 500, Cl 3 $ 13,604,975 RVS VP Short Duration, Cl 3 72,171,496 Sel VP Gro, Cl 3 3,663,300 Sel VP Lg Cap Val, Cl 3 4,302,757 Sel VP Sm Cap Val, Cl 3 2,418,906 THDL VP Emer Mkts, Cl 3 157,089,601 THDL VP Intl Opp, Cl 3 10,488,640 Third Ave Val 13,942,047 VanK LIT Comstock, Cl II 143,723,671 VanK UIF Global Real Est, Cl II 51,573,454 VanK UIF Mid Cap Gro, Cl II 9,610,533 Wanger Intl 195,967,798 Wanger USA 66,580,979 WF Adv VT Index Asset Alloc 1,608,148 WF Adv VT Intl Core 686,849 WF Adv VT Opp 2,627,989 WF Adv VT Sm Cap Gro 15,774,551 - --------------------------------------------------------------------------------------------
70 RIVERSOURCE VARIABLE ACCOUNT 10 8. ACCUMULATION UNIT VALUES, UNITS OUTSTANDING AND NET ASSETS The following is a summary of accumulation unit values at Dec. 31, 2009:
INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, SUBACCOUNT SER I SER II SER I SER II SER I ---------------------------------------------------------------------------------------- 0.55% $0.80 $0.86 $1.58 $1.21 $ -- 0.75% 0.79 0.85 1.55 1.19 -- 0.85% -- 0.82 -- 0.89 -- 0.95% 0.77 0.84 1.52 1.17 -- 1.00% -- 0.89 -- 1.23 -- 1.05% -- 0.81 -- 0.89 -- 1.10% -- 0.81 -- 0.88 -- 1.20% -- 0.88 -- 1.21 -- 1.25% -- -- -- -- -- 1.25% -- 0.81 -- 0.88 1.85 1.30% -- 0.81 -- 0.88 -- 1.45% -- 0.80 -- 0.87 -- - ---------------------------------------------------------------------------------------------------------------------------------- INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH, INTL GRO, SUBACCOUNT SER I SER I SER II SER II SER II ---------------------------------------------------------------------------------------- 0.55% $1.04 $0.55 $ -- $1.02 $1.25 0.75% 1.03 0.54 -- 1.01 1.24 0.85% -- -- 0.46 1.07 1.11 0.95% 1.01 0.53 -- 1.01 1.23 1.00% 1.11 0.56 -- 1.00 1.23 1.05% -- -- 0.45 1.06 1.10 1.10% -- -- 0.45 1.06 1.10 1.20% 1.09 0.56 -- 1.00 1.22 1.25% -- -- -- -- -- 1.25% -- -- 0.45 1.06 1.09 1.30% -- -- 0.45 1.05 1.09 1.45% -- -- 0.45 1.05 1.08 - ---------------------------------------------------------------------------------------------------------------------------------- AB VPS AB VPS AB VPS AB VPS INVESCO VI TECH, GLOBAL THEMATIC GRO & INC, INTL VAL, LG CAP GRO, SUBACCOUNT SER I GRO, CL B CL B CL B CL B ---------------------------------------------------------------------------------------- 0.55% $0.75 $1.08 $0.97 $1.66 $ -- 0.75% 0.73 1.07 0.95 1.63 -- 0.85% -- 1.09 0.86 0.80 1.00 0.95% 0.72 1.07 0.93 1.61 -- 1.00% 0.84 1.06 1.01 1.67 -- 1.05% -- 1.08 0.85 0.80 0.99 1.10% -- 1.08 0.85 0.80 0.99 1.20% 0.83 1.05 1.00 1.64 -- 1.25% -- -- -- -- -- 1.25% -- 1.07 0.84 0.79 0.99 1.30% -- 1.07 0.84 0.79 0.99 1.45% -- 1.06 0.84 0.79 0.98 - ----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 71
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, SUBACCOUNT CL I CL II CL II CL II CL I ---------------------------------------------------------------------------------------- 0.55% $1.13 $1.24 $0.88 $0.93 $1.55 0.75% 1.10 1.22 0.87 0.92 1.52 0.85% -- -- 1.08 0.96 -- 0.95% 1.08 1.20 0.87 0.91 1.49 1.00% -- 1.38 0.87 0.91 -- 1.05% -- -- 1.07 0.96 -- 1.10% -- -- 1.07 0.95 -- 1.20% -- 1.36 0.86 0.90 -- 1.25% -- -- -- -- -- 1.25% -- -- 1.07 0.95 -- 1.30% -- -- 1.06 0.95 -- 1.45% -- -- 1.06 0.94 -- - ----------------------------------------------------------------------------------------------------------------------------------- AC VP CALVERT COL COL COL MARSICO VAL, VS HI YIELD, MARSICO GRO, INTL OPP, SUBACCOUNT CL II SOCIAL BAL VS CL B VS CL A VS CL B ---------------------------------------------------------------------------------------- 0.55% $1.31 $0.99 $1.16 $0.91 $0.89 0.75% 1.29 0.97 1.15 0.90 0.89 0.85% 0.94 -- 1.16 0.96 1.00 0.95% 1.27 0.95 1.15 0.89 0.88 1.00% 1.26 1.08 1.14 0.89 0.88 1.05% 0.93 -- 1.16 0.95 0.99 1.10% 0.93 -- 1.15 0.95 0.99 1.20% 1.24 1.06 1.14 0.89 0.87 1.25% -- -- -- -- -- 1.25% 0.93 -- 1.15 0.95 0.98 1.30% 0.93 -- 1.14 0.95 0.98 1.45% 0.92 -- 1.14 0.94 0.98 - ----------------------------------------------------------------------------------------------------------------------------------- CS CS DREY VIF EV VT EG VA COMMODITY U.S. EQ INTL EQ, FLOATING-RATE FUNDAMENTAL SUBACCOUNT RETURN FLEX I SERV INC LG CAP, CL 2 ---------------------------------------------------------------------------------------- 0.55% $0.89 $1.09 $ -- $1.08 $1.09 0.75% 0.88 1.09 -- 1.08 1.08 0.85% 0.92 -- 0.97 1.07 1.07 0.95% 0.88 1.08 -- 1.07 1.06 1.00% 0.87 -- -- 1.07 1.17 1.05% 0.91 -- 0.96 1.06 1.07 1.10% 0.91 -- 0.96 1.06 1.06 1.20% 0.87 -- -- 1.06 1.16 1.25% -- -- -- -- -- 1.25% 0.91 1.09 0.96 1.05 1.06 1.30% 0.91 -- 0.95 1.05 1.06 1.45% 0.90 -- 0.95 1.05 1.05 - -----------------------------------------------------------------------------------------------------------------------------------
72 RIVERSOURCE VARIABLE ACCOUNT 10
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, GRO & INC, MID CAP, SUBACCOUNT CL 2 SERV CL 2 SERV CL SERV CL 2 SERV CL ---------------------------------------------------------------------------------------- 0.55% $1.23 $0.93 $0.95 $1.04 $3.08 0.75% 1.22 0.92 0.93 1.02 3.02 0.85% 0.89 0.97 -- -- -- 0.95% 1.20 0.91 0.91 1.00 2.95 1.00% 1.20 0.91 -- 1.04 -- 1.05% 0.88 0.97 -- -- -- 1.10% 0.88 0.97 -- -- -- 1.20% 1.18 0.90 -- 1.02 -- 1.25% -- -- -- -- -- 1.25% 0.87 0.96 -- -- -- 1.30% 0.87 0.96 -- -- -- 1.45% 0.87 0.95 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FTVIPT FRANK FTVIPT FRANK MID CAP, OVERSEAS, OVERSEAS, GLOBAL REAL SM CAP VAL, SUBACCOUNT SERV CL 2 SERV CL SERV CL 2 EST, CL 2 CL 2 ---------------------------------------------------------------------------------------- 0.55% $1.99 $1.12 $1.35 $1.75 $2.07 0.75% 1.96 1.10 1.33 1.71 2.02 0.85% 1.04 -- 0.94 0.64 0.90 0.95% 1.93 1.07 1.31 1.68 1.98 1.00% 1.86 -- 1.45 1.25 1.51 1.05% 1.03 -- 0.93 0.64 0.89 1.10% 1.03 -- 0.93 0.64 0.89 1.20% 1.84 -- 1.43 1.23 1.48 1.25% -- -- -- -- -- 1.25% 1.02 -- 0.92 0.63 0.89 1.30% 1.02 -- 0.92 0.63 0.89 1.45% 1.01 -- 0.92 0.62 0.88 - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT GS VIT GS VIT GS VIT JANUS ASPEN MUTUAL SHARES MID CAP VAL, STRUCTD SM STRUCTD U.S. ENTERPRISE, SUBACCOUNT SEC, CL 2 INST CAP EQ, INST EQ, INST SERV ---------------------------------------------------------------------------------------- 0.55% $1.23 $2.30 $1.38 $0.87 $0.59 0.75% 1.21 2.26 1.35 0.85 0.58 0.85% 0.91 -- -- 0.83 -- 0.95% 1.19 2.21 1.32 0.84 0.57 1.00% 1.26 1.63 -- 1.01 -- 1.05% 0.91 -- -- 0.82 -- 1.10% 0.90 -- -- 0.82 -- 1.20% 1.24 1.60 -- 0.99 -- 1.25% -- -- -- -- -- 1.25% 0.91 -- -- 0.81 -- 1.30% 0.90 -- -- 0.81 -- 1.45% 0.90 -- -- 0.81 -- - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 73
JANUS ASPEN JANUS ASPEN JANUS ASPEN MFS GLOBAL JANUS, OVERSEAS, LM CB VAR SM CAP INV GRO STOCK, SUBACCOUNT TECH, SERV SERV SERV GRO, CL I SERV CL ---------------------------------------------------------------------------------------- 0.55% $0.46 $0.86 $1.47 $0.85 $0.68 0.75% 0.45 0.85 1.44 0.85 0.67 0.85% -- 0.85 -- 0.85 1.04 0.95% 0.44 0.85 1.41 0.85 0.66 1.00% 1.12 0.85 2.49 0.84 1.03 1.05% -- 0.85 -- 0.84 1.04 1.10% -- 0.85 -- 0.84 1.03 1.20% 1.11 0.84 2.45 0.84 1.01 1.25% -- -- -- -- -- 1.25% -- 0.84 -- 0.84 1.03 1.30% -- 0.84 -- 0.84 1.03 1.45% -- 0.84 -- 0.83 1.02 - ----------------------------------------------------------------------------------------------------------------------------------- MFS MFS NB AMT NB AMT OPPEN NEW DIS, UTILITIES, INTL, SOC RESPONSIVE, GLOBAL SEC SUBACCOUNT SERV CL SERV CL CL S CL S VA, SERV ---------------------------------------------------------------------------------------- 0.55% $1.00 $1.86 $0.76 $ -- $1.33 0.75% 0.98 1.83 0.76 -- 1.31 0.85% -- 1.28 0.85 0.95 1.00 0.95% 0.96 1.80 0.75 -- 1.30 1.00% 1.14 2.25 0.75 -- 1.29 1.05% -- 1.27 0.85 0.94 1.00 1.10% -- 1.26 0.84 0.94 0.99 1.20% 1.12 2.21 0.75 -- 1.28 1.25% -- -- -- -- -- 1.25% -- 1.26 0.84 0.93 0.99 1.30% -- 1.26 0.84 0.93 0.99 1.45% -- 1.25 0.83 0.93 0.98 - ----------------------------------------------------------------------------------------------------------------------------------- OPPEN MAIN ST OPPEN GLOBAL OPPEN PIMCO PUT VT SM CAP VA, STRATEGIC INC VAL VA, VIT ALL ASSET, GLOBAL HLTH SUBACCOUNT SERV VA, SERV SERV ADVISOR CL CARE, CL IB ---------------------------------------------------------------------------------------- 0.55% $1.18 $1.27 $ -- $1.13 $1.15 0.75% 1.17 1.25 -- 1.13 1.13 0.85% 0.90 1.17 0.85 1.15 -- 0.95% 1.16 1.24 -- 1.12 1.11 1.00% 1.15 1.24 -- 1.12 1.15 1.05% 0.89 1.16 0.85 1.14 -- 1.10% 0.89 1.16 0.85 1.14 -- 1.20% 1.14 1.22 -- 1.11 1.13 1.25% -- -- -- -- -- 1.25% 0.89 1.15 0.84 1.14 -- 1.30% 0.88 1.15 0.84 1.13 -- 1.45% 0.88 1.14 0.84 1.13 -- - -----------------------------------------------------------------------------------------------------------------------------------
74 RIVERSOURCE VARIABLE ACCOUNT 10
PUT VT PUT VT PUT VT ROYCE DISC INTL EQ, NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, SUBACCOUNT CL IB CL IA CL IB INVEST CL AGGR ---------------------------------------------------------------------------------------- 0.55% $1.23 $ -- $0.83 $3.13 $0.87 0.75% 1.21 -- 0.82 3.07 0.87 0.85% -- -- -- -- 0.87 0.95% 1.19 -- 0.80 3.00 0.87 1.00% 1.30 -- 1.00 -- 0.87 1.05% -- -- -- -- 0.87 1.10% -- -- -- -- 0.87 1.20% 1.28 -- 0.98 -- 0.86 1.25% -- -- -- -- -- 1.25% -- 1.24 -- -- 0.86 1.30% -- -- -- -- 0.86 1.45% -- -- -- -- 0.86 - ----------------------------------------------------------------------------------------------------------------------------------- DISC DISC DISC DISC VP ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, DAVIS NY SUBACCOUNT CONSERV MOD MOD AGGR MOD CONSERV VENTURE, CL 3 ---------------------------------------------------------------------------------------- 0.55% $0.98 $0.91 $0.89 $0.94 $0.90 0.75% 0.98 0.91 0.89 0.94 0.89 0.85% 0.97 0.91 0.89 0.94 0.91 0.95% 0.97 0.91 0.89 0.94 0.88 1.00% 0.97 0.91 0.89 0.93 0.88 1.05% 0.97 0.91 0.89 0.93 0.91 1.10% 0.97 0.90 0.89 0.93 0.90 1.20% 0.97 0.90 0.89 0.93 0.87 1.25% -- -- -- -- -- 1.25% 0.97 0.90 0.88 0.93 0.90 1.30% 0.97 0.90 0.88 0.93 0.90 1.45% 0.96 0.90 0.88 0.93 0.89 - ----------------------------------------------------------------------------------------------------------------------------------- VP GS VP PTNRS RVS VP RVS VP MID CAP VAL, SM CAP RVS VP CASH MGMT, DIV BOND, SUBACCOUNT CL 3 VAL, CL 3 BAL, CL 3 CL 3 CL 3 ---------------------------------------------------------------------------------------- 0.55% $1.17 $1.68 $1.09 $1.24 $1.51 0.75% 1.16 1.66 1.07 1.22 1.48 0.85% 0.99 0.97 0.97 1.07 1.16 0.95% 1.14 1.63 1.04 1.19 1.45 1.00% 1.14 1.54 1.16 1.09 1.27 1.05% 0.98 0.97 0.97 1.06 1.15 1.10% 0.98 0.97 0.97 1.06 1.14 1.20% 1.12 1.52 1.14 1.07 1.25 1.25% -- -- 0.96(1) 1.05(1) 1.14(1) 1.25% 0.97 0.96 1.60(2) 1.31(2) 1.58(2) 1.30% 0.97 0.96 0.96 1.05 1.14 1.45% 0.97 0.95 0.95 1.04 1.13 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 75
RVS VP RVS VP RVS VP RVS VP RVS VP DIV EQ DYN GLOBAL BOND, GLOBAL INFLATION HI YIELD SUBACCOUNT INC, CL 3 EQ, CL 3 CL 3 PROT SEC, CL 3 BOND, CL 3 ---------------------------------------------------------------------------------------- 0.55% $1.47 $0.70 $1.72 $1.20 $1.61 0.75% 1.45 0.69 1.68 1.19 1.57 0.85% 0.90 0.83 1.23 1.16 1.23 0.95% 1.42 0.68 1.65 1.18 1.54 1.00% 1.44 0.86 1.60 1.17 1.64 1.05% 0.90 0.83 1.22 1.15 1.22 1.10% 0.89 0.82 1.21 1.15 1.22 1.20% 1.41 0.92 1.58 1.16 1.62 1.25% 0.89(1) 0.82(1) 1.21(1) -- 1.21(1) 1.25% 1.38(2) 1.09(2) 1.77(2) 1.15 1.72(2) 1.30% 0.89 0.82 1.21 1.14 1.21 1.45% 0.88 0.81 1.20 1.14 1.21 - -------------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP INC MID CAP MID CAP S&P 500, SHORT SUBACCOUNT OPP, CL 3 GRO, CL 3 VAL, CL 3 CL 3 DURATION, CL 3 ---------------------------------------------------------------------------------------- 0.55% $1.34 $1.26 $1.15 $0.83 $1.36 0.75% 1.33 1.22 1.14 0.81 1.33 0.85% 1.24 1.05 0.91 0.93 1.09 0.95% 1.31 1.20 1.13 0.80 1.30 1.00% 1.31 1.24 1.12 1.05 1.13 1.05% 1.23 1.04 0.90 0.92 1.08 1.10% 1.23 1.04 0.90 0.92 1.08 1.20% 1.29 1.22 1.11 1.03 1.12 1.25% -- 1.04(1) -- -- -- 1.25% 1.22 0.95(2) 0.90 0.91 1.07 1.30% 1.22 1.04 0.90 0.91 1.07 1.45% 1.21 1.03 0.89 0.91 1.07 - -------------------------------------------------------------------------------------------------------------------------------- SEL VP SEL VP THDL VP THDL VP SEL VP LG CAP VAL, SM CAP VAL, EMER MKTS, INTL OPP, SUBACCOUNT GRO, CL 3 CL 3 CL 3 CL 3 CL 3 ---------------------------------------------------------------------------------------- 0.55% $0.57 $1.01 $1.44 $2.31 $0.96 0.75% 0.56 1.00 1.42 2.23 0.94 0.85% 0.87 0.86 0.88 1.46 0.98 0.95% 0.55 0.99 1.39 2.19 0.92 1.00% 0.89 0.98 1.34 2.92 1.45 1.05% 0.86 0.86 0.87 1.45 0.98 1.10% 0.86 0.85 0.87 1.45 0.97 1.20% 0.88 0.97 1.32 2.87 1.42 1.25% -- -- -- 1.44(1) 0.97(1) 1.25% 0.86 0.85 0.87 1.81(2) 1.24(2) 1.30% 0.86 0.85 0.87 1.44 0.97 1.45% 0.85 0.84 0.86 1.43 0.96 - --------------------------------------------------------------------------------------------------------------------------------
76 RIVERSOURCE VARIABLE ACCOUNT 10
THIRD VANK LIT VANK UIF VANK UIF AVE COMSTOCK, GLOBAL MID CAP GRO, WANGER SUBACCOUNT VAL CL II REAL EST, CL II CL II INTL ---------------------------------------------------------------------------------------- 0.55% $2.58 $1.09 $0.87 $1.00 $2.15 0.75% 2.53 1.08 0.86 0.99 2.11 0.85% -- 0.89 0.90 1.08 1.15 0.95% 2.48 1.07 0.86 0.98 2.06 1.00% -- 1.06 0.86 0.98 2.49 1.05% -- 0.88 0.90 1.07 1.14 1.10% -- 0.88 0.89 1.07 1.14 1.20% -- 1.05 0.85 0.98 2.45 1.25% -- -- -- -- -- 1.25% -- 0.88 0.89 1.07 1.13 1.30% -- 0.88 0.89 1.06 1.13 1.45% -- 0.87 0.88 1.06 1.12 - ----------------------------------------------------------------------------------------------------------------------------------- WF ADV WF ADV WF ADV WF ADV WANGER VT INDEX VT VT VT SUBACCOUNT USA ASSET ALLOC INTL CORE OPP SM CAP GRO ---------------------------------------------------------------------------------------- 0.55% $1.71 $1.12 $0.91 $1.28 $1.20 0.75% 1.67 1.10 0.90 1.26 1.18 0.85% 0.95 -- -- 1.03 1.14 0.95% 1.64 1.08 0.88 1.24 1.16 1.00% 1.46 1.14 1.03 1.29 1.34 1.05% 0.95 -- -- 1.02 1.13 1.10% 0.94 -- -- 1.02 1.13 1.20% 1.43 1.12 1.02 1.27 1.31 1.25% -- -- -- -- -- 1.25% 0.94 -- -- 1.01 1.12 1.30% 0.94 -- -- 1.01 1.12 1.45% 0.93 -- -- 1.00 1.11 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 77 The following is a summary of units outstanding at Dec. 31, 2009:
INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, SUBACCOUNT SER I SER II SER I SER II SER I ---------------------------------------------------------------------------------------- 0.55% 280,405 450,787 74,387 53,904 -- 0.75% 17,246,606 67,781,528 6,556,027 13,228,687 -- 0.85% -- 3,102,723 -- 2,424,490 -- 0.95% 14,513,564 33,205,396 6,328,356 7,715,160 -- 1.00% -- 10,743,788 -- 1,576,101 -- 1.05% -- 1,760,833 -- 1,623,130 -- 1.10% -- 504,022 -- 1,176,652 -- 1.20% -- 4,611,526 -- 991,510 -- 1.25% -- -- -- -- -- 1.25% -- 68,592 -- 107,553 72,540,562 1.30% -- 334,323 -- 668,264 -- 1.45% -- 142,654 -- 78,505 -- - ------------------------------------------------------------------------------------------------------------------------------- Total 32,040,575 122,706,172 12,958,770 29,643,956 72,540,562 - ------------------------------------------------------------------------------------------------------------------------------- INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH, INTL GRO, SUBACCOUNT SER I SER I SER II SER II SER II ---------------------------------------------------------------------------------------- 0.55% 3,100 606,420 -- 402,838 2,657,672 0.75% 3,764,404 14,876,580 -- 8,088,864 128,526,448 0.85% -- -- 5,982,576 3,257,736 238,183,083 0.95% 2,073,342 8,566,933 -- 5,414,198 76,800,843 1.00% 249,608 2,151,365 -- 955,633 14,695,332 1.05% -- -- 3,518,396 2,339,318 94,818,493 1.10% -- -- 1,988,783 922,948 69,225,184 1.20% 145,127 1,003,266 -- 587,192 7,082,568 1.25% -- -- -- -- -- 1.25% -- -- 199,364 42,329 3,232,261 1.30% -- -- 727,465 583,261 29,798,560 1.45% -- -- 541,644 166,086 3,323,375 - ------------------------------------------------------------------------------------------------------------------------------- Total 6,235,581 27,204,564 12,958,228 22,760,403 668,343,819 - ------------------------------------------------------------------------------------------------------------------------------- INVESCO VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL THEMATIC GRO & INC, INTL VAL, LG CAP GRO, SUBACCOUNT SER I GRO, CL B CL B CL B CL B ---------------------------------------------------------------------------------------- 0.55% 411,105 68,982 387,636 1,925,380 -- 0.75% 21,730,280 5,298,716 68,594,818 150,691,972 -- 0.85% -- 3,313,327 6,136,235 130,093,782 1,602,748 0.95% 11,446,205 3,654,410 41,870,634 93,057,740 -- 1.00% 2,935,486 609,148 7,705,342 19,906,436 -- 1.05% -- 1,422,004 3,605,980 55,081,670 1,097,133 1.10% -- 1,056,666 2,039,227 40,250,026 239,142 1.20% 1,450,330 547,891 4,257,791 9,980,918 -- 1.25% -- -- -- -- -- 1.25% -- 84,004 219,640 2,587,907 8,638 1.30% -- 418,604 732,805 17,832,939 242,291 1.45% -- 214,833 212,144 2,690,899 25,390 - ------------------------------------------------------------------------------------------------------------------------------- Total 37,973,406 16,688,585 135,762,252 524,099,669 3,215,342 - -------------------------------------------------------------------------------------------------------------------------------
78 RIVERSOURCE VARIABLE ACCOUNT 10
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, SUBACCOUNT CL I CL II CL II CL II CL I ---------------------------------------------------------------------------------------- 0.55% 9,584 263,067 1,288,571 90,647 259,059 0.75% 12,854,741 26,574,813 48,043,557 11,804,534 24,377,449 0.85% -- -- 71,543,906 3,364,888 -- 0.95% 13,469,126 15,628,455 25,355,325 6,956,560 22,547,282 1.00% -- 3,809,936 5,341,105 1,814,972 -- 1.05% -- -- 25,533,936 1,872,382 -- 1.10% -- -- 17,412,828 820,976 -- 1.20% -- 2,014,614 2,523,241 1,098,136 -- 1.25% -- -- -- -- -- 1.25% -- -- 844,457 96,041 -- 1.30% -- -- 6,246,642 481,628 -- 1.45% -- -- 729,613 46,912 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 26,333,451 48,290,885 204,863,181 28,447,676 47,183,790 - ----------------------------------------------------------------------------------------------------------------------------------- AC VP CALVERT COL COL COL MARSICO VAL, VS HI YIELD, MARSICO GRO, INTL OPP, SUBACCOUNT CL II SOCIAL BAL VS CL B VS CL A VS CL B ---------------------------------------------------------------------------------------- 0.55% 468,926 10,071 461,383 7,497,033 809,791 0.75% 72,598,239 15,940,465 27,889,013 378,240,457 32,787,988 0.85% 12,296,330 -- 10,914,939 626,487,325 10,384,881 0.95% 48,731,049 9,851,597 16,889,922 214,161,166 20,723,206 1.00% 11,067,605 1,705,558 5,922,988 47,207,643 4,015,806 1.05% 9,000,181 -- 6,859,919 250,317,283 6,843,699 1.10% 4,264,215 -- 2,847,191 185,351,302 4,453,884 1.20% 6,158,140 858,160 4,261,801 22,026,161 2,195,238 1.25% -- -- -- -- -- 1.25% 752,643 -- 503,802 8,902,990 522,552 1.30% 3,160,023 -- 2,058,767 81,378,160 2,414,384 1.45% 880,834 -- 1,226,857 9,757,245 668,061 - ----------------------------------------------------------------------------------------------------------------------------------- Total 169,378,185 28,365,851 79,836,582 1,831,326,765 85,819,490 - ----------------------------------------------------------------------------------------------------------------------------------- CS CS DREY VIF EV VT EG VA COMMODITY U.S. EQ INTL EQ, FLOATING-RATE FUNDAMENTAL SUBACCOUNT RETURN FLEX I SERV INC LG CAP, CL 2 ---------------------------------------------------------------------------------------- 0.55% 604,780 16,318 -- 2,786,769 -- 0.75% 39,766,541 5,199,633 -- 162,181,272 13,118,142 0.85% 8,767,761 -- 3,106,322 261,015,104 3,772,126 0.95% 26,662,095 4,477,910 -- 105,964,285 9,198,502 1.00% 6,588,950 -- -- 20,977,037 807,927 1.05% 6,272,053 -- 1,868,609 118,217,798 3,082,123 1.10% 4,737,410 -- 1,405,047 85,892,081 1,476,070 1.20% 2,966,047 -- -- 12,791,727 797,161 1.25% -- -- -- -- -- 1.25% 768,981 47,764,656 311,613 5,344,492 167,651 1.30% 2,321,008 -- 764,255 44,354,515 1,233,059 1.45% 1,097,232 -- 454,360 8,752,678 409,602 - ----------------------------------------------------------------------------------------------------------------------------------- Total 100,552,858 57,458,517 7,910,206 828,277,758 34,062,363 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 79
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, GRO & INC, MID CAP, SUBACCOUNT CL 2 SERV CL 2 SERV CL SERV CL 2 SERV CL ---------------------------------------------------------------------------------------- 0.55% 2,398,468 4,367,736 147,810 805,442 298,466 0.75% 113,413,933 269,589,421 48,394,905 92,558,505 35,956,400 0.85% 298,705,548 180,001,193 -- -- -- 0.95% 69,836,196 167,695,577 43,167,063 57,593,231 32,282,315 1.00% 15,465,627 32,815,410 -- 10,988,420 -- 1.05% 122,714,391 80,198,472 -- -- -- 1.10% 91,808,622 55,492,015 -- -- -- 1.20% 8,151,606 15,948,640 -- 6,235,649 -- 1.25% -- -- -- -- -- 1.25% 4,686,214 4,468,304 -- -- -- 1.30% 42,774,831 26,261,758 -- -- -- 1.45% 5,716,983 4,857,218 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 775,672,419 841,695,744 91,709,778 168,181,247 68,537,181 - ----------------------------------------------------------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FTVIPT FRANK FTVIPT FRANK MID CAP, OVERSEAS, OVERSEAS, GLOBAL REAL SM CAP VAL, SUBACCOUNT SERV CL 2 SERV CL SERV CL 2 EST, CL 2 CL 2 ---------------------------------------------------------------------------------------- 0.55% 2,734,041 28,375 557,893 231,623 351,798 0.75% 187,651,569 20,415,109 43,314,079 50,766,814 42,024,566 0.85% 199,837,221 -- 10,921,356 13,464,982 13,708,764 0.95% 106,478,938 19,097,460 29,953,559 31,073,179 28,729,885 1.00% 28,494,202 -- 5,075,319 7,137,178 7,198,189 1.05% 79,887,728 -- 5,547,874 5,633,440 6,618,808 1.10% 55,297,591 -- 1,987,832 3,723,840 3,930,053 1.20% 14,163,947 -- 3,135,024 4,145,079 3,457,127 1.25% -- -- -- -- -- 1.25% 3,635,550 -- 448,934 599,794 327,760 1.30% 23,688,338 -- 1,555,656 2,585,806 1,834,306 1.45% 3,813,209 -- 682,678 592,706 717,310 - ----------------------------------------------------------------------------------------------------------------------------------- Total 705,682,334 39,540,944 103,180,204 119,954,441 108,898,566 - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT GS VIT GS VIT GS VIT JANUS ASPEN MUTUAL SHARES MID CAP VAL, STRUCTD SM CAP STRUCTD U.S. ENTERPRISE, SUBACCOUNT SEC, CL 2 INST EQ, INST EQ, INST SERV ---------------------------------------------------------------------------------------- 0.55% 525,279 921,946 8,789 826,263 30,375 0.75% 57,678,446 78,043,046 3,756,919 108,297,543 19,522,441 0.85% 17,364,665 -- -- 7,238,294 -- 0.95% 39,361,476 51,883,396 3,987,819 70,758,487 12,181,135 1.00% 10,912,993 12,872,315 -- 11,037,487 -- 1.05% 12,441,378 -- -- 3,784,172 -- 1.10% 7,365,722 -- -- 1,363,981 -- 1.20% 5,705,197 7,668,693 -- 5,507,710 -- 1.25% -- -- -- -- -- 1.25% 935,570 -- -- 278,328 -- 1.30% 5,084,062 -- -- 697,909 -- 1.45% 1,338,203 -- -- 224,412 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 158,712,991 151,389,396 7,753,527 210,014,586 31,733,951 - -----------------------------------------------------------------------------------------------------------------------------------
80 RIVERSOURCE VARIABLE ACCOUNT 10
JANUS ASPEN JANUS ASPEN JANUS ASPEN MFS GLOBAL TECH, JANUS, OVERSEAS, LM CB VAR SM CAP INV GRO STOCK, SUBACCOUNT SERV SERV SERV GRO, CL I SERV CL ---------------------------------------------------------------------------------------- 0.55% 40,871 6,879,618 395,270 135,935 405,718 0.75% 27,957,107 305,122,729 61,695,723 1,551,466 67,421,474 0.85% -- 639,871,670 -- 2,225,944 2,648,076 0.95% 19,312,496 168,562,456 46,611,823 1,436,041 44,234,678 1.00% 384,484 38,560,024 1,272,151 497,438 4,222,428 1.05% -- 250,167,298 -- 1,238,276 1,651,301 1.10% -- 186,397,214 -- 836,438 1,309,432 1.20% 178,474 18,450,381 805,898 204,389 2,149,011 1.25% -- -- -- -- -- 1.25% -- 8,361,358 -- 51,311 341,213 1.30% -- 80,098,884 -- 292,011 698,408 1.45% -- 9,009,102 -- 204,966 223,191 - -------------------------------------------------------------------------------------------------------------------------------- Total 47,873,432 1,711,480,734 110,780,865 8,674,215 125,304,930 - -------------------------------------------------------------------------------------------------------------------------------- MFS MFS NB AMT NB AMT OPPEN NEW DIS, UTILITIES, INTL, SOC RESPONSIVE, GLOBAL SEC VA, SUBACCOUNT SERV CL SERV CL CL S CL S SERV ---------------------------------------------------------------------------------------- 0.55% 189,804 561,509 1,717,680 -- 604,203 0.75% 28,886,592 56,323,709 75,726,208 -- 31,542,886 0.85% -- 17,912,203 137,643,729 1,127,036 7,911,465 0.95% 20,432,432 35,891,204 40,525,416 -- 21,262,666 1.00% 2,165,884 5,018,907 9,497,761 -- 6,423,023 1.05% -- 10,419,540 52,313,514 607,133 5,429,983 1.10% -- 4,766,095 38,615,299 473,012 2,661,503 1.20% 1,541,909 3,343,195 4,087,838 -- 3,413,518 1.25% -- -- -- -- -- 1.25% -- 498,956 1,621,874 71,224 630,784 1.30% -- 4,001,423 15,761,122 164,964 1,749,931 1.45% -- 891,624 1,599,915 59,322 678,551 - -------------------------------------------------------------------------------------------------------------------------------- Total 53,216,621 139,628,365 379,110,356 2,502,691 82,308,513 - -------------------------------------------------------------------------------------------------------------------------------- OPPEN MAIN OPPEN GLOBAL OPPEN PIMCO PUT VT ST SM CAP STRATEGIC INC VAL VA, VIT ALL ASSET, GLOBAL HLTH SUBACCOUNT VA, SERV VA, SERV SERV ADVISOR CL CARE, CL IB ---------------------------------------------------------------------------------------- 0.55% 716,942 8,633,957 -- 3,430,862 27,160 0.75% 23,658,120 519,119,029 -- 218,702,462 12,725,043 0.85% 8,025,618 577,447,586 2,170,650 351,435,446 -- 0.95% 15,633,605 350,909,503 -- 127,628,671 7,348,580 1.00% 5,662,672 70,681,014 -- 26,403,273 2,116,204 1.05% 5,411,079 270,231,106 1,308,363 143,533,838 -- 1.10% 3,622,550 187,935,690 613,610 106,124,572 -- 1.20% 2,509,973 45,739,354 -- 15,666,544 935,867 1.25% -- -- -- -- -- 1.25% 378,447 13,257,700 120,284 5,694,867 -- 1.30% 1,891,492 104,395,229 623,427 48,833,871 -- 1.45% 266,388 20,034,277 403,162 7,053,948 -- - -------------------------------------------------------------------------------------------------------------------------------- Total 67,776,886 2,168,384,445 5,239,496 1,054,508,354 23,152,854 - --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 81
PUT VT PUT VT PUT VT ROYCE DISC INTL EQ, NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, SUBACCOUNT CL IB CL IA CL IB INVEST CL AGGR ------------------------------------------------------------------------------ 0.55% 56,872 -- 149,159 65,842 913,600 0.75% 16,371,735 -- 21,580,541 10,284,283 11,668,894 0.85% -- -- -- -- 1,743,216 0.95% 10,503,718 -- 15,528,933 9,774,952 5,500,230 1.00% 1,819,362 -- 518,238 -- 897,425 1.05% -- -- -- -- 904,010 1.10% -- -- -- -- 524,634 1.20% 1,045,957 -- 185,808 -- 333,970 1.25% -- -- -- -- -- 1.25% -- 57,178,024 -- -- 89,772 1.30% -- -- -- -- 324,667 1.45% -- -- -- -- 13,473 - ------------------------------------------------------------------------------------------------------------------------- Total 29,797,644 57,178,024 37,962,679 20,125,077 22,913,891 - ------------------------------------------------------------------------------------------------------------------------- DISC DISC DISC DISC ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, VP DAVIS NY SUBACCOUNT CONSERV MOD MOD AGGR MOD CONSERV VENTURE, CL 3 ------------------------------------------------------------------------------ 0.55% 50,063 40,582 83,243 3,328 7,044,679 0.75% 16,032,399 45,179,799 27,719,684 22,560,011 303,536,981 0.85% 2,302,204 6,969,934 3,707,487 3,756,367 634,378,642 0.95% 12,467,389 26,564,870 15,190,561 16,601,544 163,841,190 1.00% 1,848,929 2,698,038 2,942,253 2,684,721 38,319,515 1.05% 2,574,564 4,378,368 1,983,455 2,673,055 244,848,534 1.10% 1,687,544 2,246,275 1,800,390 1,814,957 182,361,708 1.20% 2,129,947 2,219,458 872,898 1,964,153 17,878,796 1.25% -- -- -- -- -- 1.25% 672,692 1,148,736 134,044 602,876 7,801,551 1.30% 1,345,716 867,565 393,924 1,041,342 76,995,423 1.45% 374,960 581,383 169,465 637,419 7,955,605 - ------------------------------------------------------------------------------------------------------------------------- Total 41,486,407 92,895,008 54,997,404 54,339,773 1,684,962,624 - ------------------------------------------------------------------------------------------------------------------------- VP GS VP PTNRS RVS VP RVS VP MID CAP SM CAP RVS VP CASH MGMT, DIV BOND, SUBACCOUNT VAL, CL 3 VAL, CL 3 BAL, CL 3 CL 3 CL 3 ------------------------------------------------------------------------------ 0.55% 176,010 3,209,746 733,374 2,492,444 10,140,195 0.75% 5,203,143 149,190,690 74,528,943 197,288,405 638,983,649 0.85% 738,394 373,857,065 9,917,973 56,313,065 972,288,759 0.95% 3,164,803 81,110,821 55,352,997 140,418,547 447,493,206 1.00% 521,944 20,098,543 8,437,840 23,076,205 89,692,464 1.05% 791,548 145,259,580 7,468,003 40,033,534 442,738,147 1.10% 179,448 107,086,699 4,083,680 19,629,534 328,316,147 1.20% 388,998 9,298,435 6,111,275 14,860,609 58,421,023 1.25% -- -- 873,766(1) 7,804,680(1) 21,366,439(1) 1.25% 31,910 4,673,647 50,261,057(2) 26,428,983(2) 62,550,710(2) 1.30% 158,134 44,669,153 2,916,631 14,791,522 167,503,248 1.45% 151,418 4,518,420 906,773 11,290,614 31,929,277 - ------------------------------------------------------------------------------------------------------------------------- Total 11,505,750 942,972,799 221,592,312 554,428,142 3,271,423,264 - -------------------------------------------------------------------------------------------------------------------------
82 RIVERSOURCE VARIABLE ACCOUNT 10
RVS VP RVS VP RVS VP RVS VP RVS VP DIV EQ DYN GLOBAL BOND, GLOBAL INFLATION HI YIELD SUBACCOUNT INC, CL 3 EQ, CL 3 CL 3 PROT SEC, CL 3 BOND, CL 3 ---------------------------------------------------------------------------------------- 0.55% 7,610,353 876,966 3,215,336 5,705,371 639,402 0.75% 508,060,830 257,536,571 195,536,059 302,523,880 137,349,865 0.85% 784,643,876 1,264,377 313,653,207 489,118,471 18,657,688 0.95% 307,580,757 147,939,139 137,253,221 192,220,015 111,733,551 1.00% 59,080,334 16,369,565 24,423,423 40,367,030 10,599,949 1.05% 313,086,051 1,184,507 143,161,006 214,008,464 12,920,596 1.10% 227,241,683 375,137 103,932,819 157,674,662 5,553,117 1.20% 30,183,128 6,294,550 16,121,044 25,535,690 9,679,710 1.25% 11,781,050(1) 159,580(1) 7,312,015(1) -- 731,593(1) 1.25% 77,782,461(2) 134,225,028(2) 18,435,781(2) 9,807,546 34,092,438(2) 1.30% 98,889,720 304,012 53,805,149 79,689,516 4,226,895 1.45% 12,785,428 89,030 9,992,991 13,552,818 1,815,528 - -------------------------------------------------------------------------------------------------------------------------------- Total 2,438,725,671 566,618,462 1,026,842,051 1,530,203,463 348,000,332 - -------------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP INC MID CAP MID CAP S&P 500, SHORT SUBACCOUNT OPP, CL 3 GRO, CL 3 VAL, CL 3 CL 3 DURATION, CL 3 ---------------------------------------------------------------------------------------- 0.55% 5,110,792 363,189 1,292,363 741,071 825,170 0.75% 229,076,212 40,215,440 57,404,556 91,207,834 109,059,311 0.85% 425,766,932 3,391,981 66,735,435 5,694,265 19,314,203 0.95% 141,698,327 26,342,689 32,037,288 65,625,683 88,306,265 1.00% 29,265,989 2,136,864 6,369,722 6,574,786 11,597,478 1.05% 180,300,681 2,465,988 26,537,526 3,970,908 14,488,042 1.10% 132,844,413 898,777 16,209,308 1,603,426 6,712,259 1.20% 17,729,807 1,372,379 2,952,352 4,567,728 11,134,751 1.25% -- 95,098(1) -- -- -- 1.25% 7,104,127 36,757,118(2) 950,829 294,017 2,470,330 1.30% 62,855,507 529,254 6,757,715 911,239 6,518,697 1.45% 8,735,002 178,235 929,326 727,508 4,922,222 - -------------------------------------------------------------------------------------------------------------------------------- Total 1,240,487,789 114,747,012 218,176,420 181,918,465 275,348,728 - -------------------------------------------------------------------------------------------------------------------------------- SEL VP SEL VP SEL VP THDL VP THDL VP GRO, LG CAP VAL, SM CAP EMER MKTS, INTL OPP, SUBACCOUNT CL 3 CL 3 VAL, CL 3 CL 3 CL 3 ---------------------------------------------------------------------------------------- 0.55% 2,259,591 195,124 57,331 1,522,018 909,968 0.75% 147,034,146 6,269,124 21,859,415 80,593,030 48,442,441 0.85% 4,122,606 914,597 1,459,321 96,670,337 4,460,139 0.95% 90,929,603 3,736,386 15,188,831 47,288,642 35,420,684 1.00% 9,724,799 519,515 1,760,296 7,244,922 3,118,212 1.05% 2,841,421 752,795 1,106,529 37,952,034 3,620,390 1.10% 1,096,394 285,530 361,864 25,932,105 1,873,230 1.20% 4,530,028 428,796 970,791 3,600,384 1,829,423 1.25% -- -- -- 1,478,151(1) 271,477(1) 1.25% 254,921 53,464 82,776 47,141,875(2) 51,868,790(2) 1.30% 473,479 274,222 284,978 10,719,291 1,357,861 1.45% 245,080 17,352 90,071 1,329,505 250,022 - -------------------------------------------------------------------------------------------------------------------------------- Total 263,512,068 13,446,905 43,222,203 361,472,294 153,422,637 - --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 83
THIRD VANK LIT VANK UIF VANK UIF AVE COMSTOCK, GLOBAL MID CAP GRO, WANGER SUBACCOUNT VAL CL II REAL EST, CL II CL II INTL ---------------------------------------------------------------------------------------- 0.55% 62,436 2,639,435 1,793,502 355,622 2,333,608 0.75% 12,740,321 178,985,564 67,174,337 18,479,137 131,325,831 0.85% -- 201,934,070 96,053,795 5,604,152 187,502,424 0.95% 12,094,271 95,224,235 38,793,695 12,049,237 80,521,997 1.00% -- 32,587,037 10,213,505 2,147,786 14,207,751 1.05% -- 81,027,486 38,110,230 3,042,647 75,441,108 1.10% -- 59,456,888 28,363,256 1,864,932 52,683,920 1.20% -- 15,447,216 4,848,426 1,239,773 7,019,811 1.25% -- -- -- -- -- 1.25% -- 3,239,846 1,305,869 205,525 2,663,815 1.30% -- 26,276,632 11,746,094 1,329,453 22,621,857 1.45% -- 3,609,974 1,187,505 214,806 2,621,769 - ----------------------------------------------------------------------------------------------------------------------------------- Total 24,897,028 700,428,383 299,590,214 46,533,070 578,943,891 - ----------------------------------------------------------------------------------------------------------------------------------- WF WF WF WF WANGER ADV VT INDEX ADV VT ADV VT ADV VT SUBACCOUNT USA ASSET ALLOC INTL CORE OPP SM CAP GRO ---------------------------------------------------------------------------------------- 0.55% 2,350,092 3,935 1,175 298,232 224,778 0.75% 155,213,493 19,120,427 4,273,350 19,019,417 31,042,192 0.85% 153,936,359 -- -- 2,178,051 7,415,592 0.95% 100,879,200 15,302,767 3,262,727 11,212,013 20,853,250 1.00% 23,568,215 2,083,438 374,821 2,701,396 2,879,427 1.05% 60,871,462 -- -- 1,197,008 4,668,946 1.10% 42,794,767 -- -- 701,190 1,953,089 1.20% 11,266,337 1,011,782 147,084 1,067,407 1,387,640 1.25% -- -- -- -- -- 1.25% 2,462,662 -- -- 60,767 259,851 1.30% 18,457,683 -- -- 325,213 1,279,164 1.45% 2,189,329 -- -- 55,007 376,664 - ----------------------------------------------------------------------------------------------------------------------------------- Total 573,989,599 37,522,349 8,059,157 38,815,701 72,340,593 - -----------------------------------------------------------------------------------------------------------------------------------
84 RIVERSOURCE VARIABLE ACCOUNT 10 The following is a summary of net assets at Dec. 31, 2009:
INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, SUBACCOUNT SER I SER II SER I SER II SER I ---------------------------------------------------------------------------------------- 0.55% $ 224,831 $ 389,513 $ 117,434 $ 65,258 $ -- 0.75% 13,609,599 57,594,432 10,176,723 15,741,951 -- 0.85% -- 2,545,579 -- 2,167,934 -- 0.95% 11,213,478 27,756,947 9,599,564 9,040,828 -- 1.00% -- 9,553,711 -- 1,938,884 -- 1.05% -- 1,434,384 -- 1,437,916 -- 1.10% -- 409,866 -- 1,040,592 -- 1.20% -- 4,036,402 -- 1,200,600 -- 1.25% -- -- -- -- -- 1.25% -- 55,476 -- 94,613 135,401,629 1.30% -- 269,941 -- 586,668 -- 1.45% -- 114,605 -- 68,578 -- - ------------------------------------------------------------------------------------------------------------------------------- Total $25,047,908 $104,160,856 $ 19,893,721 $ 33,383,822 $135,401,629 - ------------------------------------------------------------------------------------------------------------------------------- INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH, INTL GRO, SUBACCOUNT SER I SER I SER II SER II SER II ---------------------------------------------------------------------------------------- 0.55% $ 3,230 $ 334,390 $ -- $ 411,052 $ 3,332,872 0.75% 3,871,259 8,062,476 -- 8,195,118 159,899,993 0.85% -- -- 2,760,592 3,487,195 263,562,876 0.95% 2,098,671 4,567,055 -- 5,445,285 94,745,138 1.00% 276,080 1,215,458 -- 959,385 18,086,659 1.05% -- -- 1,592,968 2,485,486 104,188,186 1.10% -- -- 898,956 978,930 75,928,802 1.20% 158,007 557,879 -- 585,213 8,644,490 1.25% -- -- -- -- -- 1.25% -- -- 89,641 44,664 3,526,654 1.30% -- -- 326,499 614,214 32,454,819 1.45% -- -- 241,838 174,003 3,600,441 - ------------------------------------------------------------------------------------------------------------------------------- Total $ 6,407,247 $ 14,737,258 $ 5,910,494 $ 23,380,545 $767,970,930 - ------------------------------------------------------------------------------------------------------------------------------- INVESCO VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL THEMATIC GRO & INC, INTL VAL, LG CAP GRO, SUBACCOUNT SER I GRO, CL B CL B CL B CL B ---------------------------------------------------------------------------------------- 0.55% $ 307,087 $ 74,640 $ 374,810 $ 3,266,303 $ -- 0.75% 15,962,289 5,705,216 65,247,636 246,344,713 -- 0.85% -- 3,596,314 5,269,947 104,393,325 1,604,123 0.95% 8,268,359 3,926,582 39,193,617 149,850,214 -- 1.00% 2,479,808 647,684 7,818,819 33,187,081 -- 1.05% -- 1,541,323 3,114,694 43,961,899 1,090,328 1.10% -- 1,136,841 1,731,134 32,013,980 237,234 1.20% 1,205,798 577,700 4,252,843 16,401,401 -- 1.25% -- -- -- -- -- 1.25% -- 89,901 185,410 2,047,452 8,522 1.30% -- 447,119 617,696 14,084,195 238,677 1.45% -- 228,299 177,880 2,118,638 24,880 - ------------------------------------------------------------------------------------------------------------------------------- Total $28,223,341 $ 17,971,619 $127,984,486 $647,669,201 $ 3,203,764 - -------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 85
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, SUBACCOUNT CL I CL II CL II CL II CL I ---------------------------------------------------------------------------------------- 0.55% $ 10,805 $ 326,144 $ 1,128,907 $ 84,218 $ 402,012 0.75% 14,234,858 32,426,048 41,873,949 10,883,182 37,137,468 0.85% -- -- 77,276,804 3,237,151 -- 0.95% 14,581,580 18,835,337 22,021,817 6,355,406 33,781,234 1.00% -- 5,272,991 4,623,309 1,654,631 -- 1.05% -- -- 27,407,851 1,788,468 -- 1.10% -- -- 18,643,326 782,893 -- 1.20% -- 2,749,232 2,172,442 992,778 -- 1.25% -- -- -- -- -- 1.25% -- -- 899,312 90,948 -- 1.30% -- -- 6,640,799 456,026 -- 1.45% -- -- 771,538 44,204 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total $ 28,827,243 $59,609,752 $203,460,054 $ 26,369,905 $71,320,714 - ----------------------------------------------------------------------------------------------------------------------------------- AC VP CALVERT COL COL COL MARSICO VAL, VS HI YIELD, MARSICO GRO, INTL OPP, SUBACCOUNT CL II SOCIAL BAL VS CL B VS CL A VS CL B ---------------------------------------------------------------------------------------- 0.55% $ 614,476 $ 9,919 $ 536,573 $ 6,917,782 $ 724,360 0.75% 93,632,542 15,435,767 32,194,480 340,709,837 29,141,155 0.85% 11,572,827 -- 12,703,203 602,448,850 10,406,971 0.95% 61,947,906 9,378,308 19,436,013 191,660,252 18,427,039 1.00% 13,901,257 1,837,530 6,775,696 42,131,713 3,533,048 1.05% 8,411,064 -- 7,923,739 239,020,777 6,782,264 1.10% 3,978,063 -- 3,283,072 176,671,833 4,406,150 1.20% 7,613,345 910,022 4,839,129 19,513,366 1,921,885 1.25% -- -- -- -- -- 1.25% 698,423 -- 577,898 8,441,275 514,195 1.30% 2,927,008 -- 2,357,096 77,028,138 2,371,744 1.45% 811,632 -- 1,397,321 9,185,909 652,741 - ----------------------------------------------------------------------------------------------------------------------------------- Total $206,108,543 $27,571,546 $ 92,024,220 $1,713,729,732 $78,881,552 - ----------------------------------------------------------------------------------------------------------------------------------- CS CS DREY VIF EV VT EG VA COMMODITY U.S. EQ INTL EQ, FLOATING-RATE FUNDAMENTAL SUBACCOUNT RETURN FLEX I SERV INC LG CAP, CL 2 ---------------------------------------------------------------------------------------- 0.55% $ 537,751 $ 17,717 $ -- $ 3,022,354 $ 80 0.75% 35,082,213 5,652,013 -- 174,690,097 14,121,699 0.85% 8,078,561 -- 3,013,637 279,252,035 4,067,901 0.95% 23,356,845 4,869,487 -- 113,366,916 9,774,672 1.00% 5,756,636 -- -- 22,386,548 948,269 1.05% 5,744,620 -- 1,800,114 125,596,443 3,286,063 1.10% 4,325,728 -- 1,351,107 91,085,739 1,570,944 1.20% 2,572,285 -- -- 13,547,893 936,667 1.25% -- -- -- -- -- 1.25% 698,613 52,295,395 298,057 5,637,492 177,521 1.30% 2,104,314 -- 729,770 46,705,571 1,303,148 1.45% 989,650 -- 431,553 9,167,906 499,500 - ----------------------------------------------------------------------------------------------------------------------------------- Total $ 89,247,216 $62,834,612 $ 7,624,238 $ 884,458,994 $36,686,464 - -----------------------------------------------------------------------------------------------------------------------------------
86 RIVERSOURCE VARIABLE ACCOUNT 10
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, GRO & INC, MID CAP, SUBACCOUNT CL 2 SERV CL 2 SERV CL SERV CL 2 SERV CL ------------------------------------------------------------------------------ 0.55% $ 2,950,441 $ 4,046,495 $ 140,927 $ 834,885 $ 933,080 0.75% 137,945,116 248,408,181 45,316,220 94,516,106 108,788,818 0.85% 264,515,781 175,505,474 -- -- -- 0.95% 83,919,475 153,424,903 39,584,490 57,857,278 95,899,460 1.00% 18,519,196 29,925,564 -- 11,417,563 -- 1.05% 107,897,916 77,695,215 -- -- -- 1.10% 80,581,691 53,616,592 -- -- -- 1.20% 9,644,479 14,433,588 -- 6,377,267 -- 1.25% -- -- -- -- -- 1.25% 4,091,457 4,294,457 -- -- -- 1.30% 37,279,570 25,195,594 -- -- -- 1.45% 4,956,413 4,635,442 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Total $ 752,301,535 $791,181,505 $ 85,041,637 $171,003,099 $205,621,358 - ------------------------------------------------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FTVIPT FTVIPT MID CAP, OVERSEAS, OVERSEAS, FRANK GLOBAL FRANK SM CAP SUBACCOUNT SERV CL 2 SERV CL SERV CL 2 REAL EST, CL 2 VAL, CL 2 ------------------------------------------------------------------------------ 0.55% $ 5,451,411 $ 31,733 $ 754,049 $ 408,855 $ 727,130 0.75% 368,277,592 22,526,255 57,714,987 87,075,858 85,213,359 0.85% 206,997,051 -- 10,257,223 8,667,350 12,332,715 0.95% 205,756,629 20,627,099 39,281,094 52,295,409 57,069,467 1.00% 53,138,294 -- 7,354,508 8,928,985 10,834,163 1.05% 82,195,623 -- 5,168,879 3,599,982 5,912,233 1.10% 56,773,192 -- 1,846,857 2,375,672 3,504,347 1.20% 26,007,507 -- 4,471,801 5,109,745 5,121,870 1.25% -- -- -- -- -- 1.25% 3,712,726 -- 414,945 377,031 291,290 1.30% 24,148,891 -- 1,435,185 1,637,988 1,624,126 1.45% 3,871,676 -- 626,497 369,976 633,151 - ------------------------------------------------------------------------------------------------------------------------- Total $1,036,330,592 $ 43,185,087 $129,326,025 $170,846,851 $183,263,851 - ------------------------------------------------------------------------------------------------------------------------- FTVIPT GS VIT GS VIT GS VIT JANUS ASPEN MUTUAL SHARES MID CAP VAL, STRUCTD SM CAP STRUCTD U.S. ENTERPRISE, SUBACCOUNT SEC, CL 2 INST EQ, INST EQ, INST SERV ------------------------------------------------------------------------------ 0.55% $ 648,131 $ 2,124,567 $ 12,130 $ 734,805 $ 17,999 0.75% 70,120,312 176,438,422 5,083,216 92,499,495 11,348,522 0.85% 15,844,483 -- -- 5,981,269 -- 0.95% 47,029,044 114,888,347 5,310,774 59,192,145 6,945,088 1.00% 13,724,983 20,981,173 -- 11,110,548 -- 1.05% 11,272,225 -- -- 3,138,508 -- 1.10% 6,661,782 -- -- 1,117,062 -- 1.20% 7,080,544 12,303,764 -- 5,457,363 -- 1.25% -- -- -- -- -- 1.25% 847,748 -- -- 226,725 -- 1.30% 4,565,903 -- -- 567,636 -- 1.45% 1,204,117 -- -- 181,606 -- - ------------------------------------------------------------------------------------------------------------------------- Total $ 178,999,272 $326,736,273 $ 10,406,120 $180,207,162 $ 18,311,609 - -------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 87
JANUS ASPEN JANUS ASPEN JANUS ASPEN LM CB VAR MFS GLOBAL TECH, JANUS, OVERSEAS, SM CAP GRO, INV GRO STOCK, SUBACCOUNT SERV SERV SERV CL I SERV CL ------------------------------------------------------------------------------ 0.55% $ 18,685 $ 5,907,254 $ 579,465 $ 116,126 $ 276,526 0.75% 12,536,869 260,605,734 88,782,858 1,318,109 45,112,835 0.85% -- 545,041,457 -- 1,886,020 2,760,542 0.95% 8,639,762 143,207,677 65,962,950 1,213,509 29,082,579 1.00% 431,701 32,713,446 3,163,273 419,778 4,345,275 1.05% -- 211,953,957 -- 1,043,580 1,709,330 1.10% -- 157,718,686 -- 703,885 1,353,050 1.20% 197,247 15,569,517 1,972,479 171,550 2,176,797 1.25% -- -- -- -- -- 1.25% -- 7,046,325 -- 43,022 350,700 1.30% -- 67,412,564 -- 244,341 716,641 1.45% -- 7,551,544 -- 170,890 227,792 - ------------------------------------------------------------------------------------------------------------------------- Total $21,824,264 $1,454,728,161 $160,461,025 $ 7,330,810 $ 88,112,067 - ------------------------------------------------------------------------------------------------------------------------- MFS MFS NB AMT NB AMT SOC OPPEN NEW DIS, UTILITIES, INTL, RESPONSIVE, GLOBAL SEC SUBACCOUNT SERV CL SERV CL CL S CL S VA, SERV ------------------------------------------------------------------------------ 0.55% $ 189,514 $ 1,047,067 $ 1,313,592 $ -- $ 806,427 0.75% 28,318,396 103,535,495 57,488,504 -- 41,512,486 0.85% -- 22,843,436 117,217,800 1,068,536 7,936,356 0.95% 19,651,184 64,845,537 30,551,465 -- 27,709,839 1.00% 2,472,690 11,287,743 7,144,435 -- 8,315,605 1.05% -- 13,194,713 44,235,555 571,694 5,450,091 1.10% -- 6,024,808 32,595,315 444,481 2,646,220 1.20% 1,732,925 7,401,361 3,052,254 -- 4,366,836 1.25% -- -- -- -- -- 1.25% -- 627,356 1,361,984 66,580 623,898 1.30% -- 5,022,594 13,210,354 153,934 1,727,652 1.45% -- 1,113,292 1,333,850 55,065 720,258 - ------------------------------------------------------------------------------------------------------------------------- Total $52,364,709 $ 236,943,402 $309,505,108 $ 2,360,290 $101,815,668 - ------------------------------------------------------------------------------------------------------------------------- OPPEN MAIN ST OPPEN GLOBAL OPPEN PIMCO PUT VT SM CAP VA, STRATEGIC INC VAL VA, VIT ALL ASSET, GLOBAL HLTH SUBACCOUNT SERV VA, SERV SERV ADVISOR CL CARE, CL IB ------------------------------------------------------------------------------ 0.55% $ 848,166 $ 11,234,129 $ -- $ 3,893,556 $ 31,071 0.75% 27,660,135 651,508,634 -- 246,484,304 14,389,715 0.85% 7,213,221 674,863,174 1,852,228 404,638,169 -- 0.95% 18,125,139 435,661,083 -- 142,922,147 8,173,629 1.00% 6,521,273 87,391,904 -- 29,453,750 2,435,968 1.05% 4,829,069 313,713,330 1,108,981 164,099,356 -- 1.10% 3,227,244 217,685,490 519,305 121,107,838 -- 1.20% 2,856,123 55,844,395 -- 17,357,801 1,060,322 1.25% -- -- -- -- -- 1.25% 335,403 15,274,605 101,295 6,464,743 -- 1.30% 1,673,173 120,053,324 524,125 55,333,140 -- 1.45% 234,294 22,918,474 337,267 8,021,245 -- - ------------------------------------------------------------------------------------------------------------------------- Total $73,523,240 $2,606,148,542 $ 4,443,201 $1,199,776,049 $ 26,090,705 - -------------------------------------------------------------------------------------------------------------------------
88 RIVERSOURCE VARIABLE ACCOUNT 10
PUT VT PUT VT PUT VT ROYCE DISC INTL EQ, NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, SUBACCOUNT CL IB CL IA CL IB INVEST CL AGGR ------------------------------------------------------------------------------ 0.55% $ 69,776 $ -- $ 124,199 $ 206,070 $ 796,941 0.75% 19,762,926 -- 17,687,172 31,537,573 10,169,088 0.85% -- -- -- -- 1,523,758 0.95% 12,486,089 -- 12,437,387 29,544,045 4,898,939 1.00% 2,363,230 -- 516,543 -- 778,816 1.05% -- -- -- -- 783,874 1.10% -- -- -- -- 454,542 1.20% 1,337,298 -- 182,310 -- 288,881 1.25% -- -- -- -- -- 1.25% -- 71,207,360 -- -- 77,588 1.30% -- -- -- -- 280,354 1.45% -- -- -- -- 11,670 - ------------------------------------------------------------------------------------------------------------------------- Total $36,019,319 $ 71,207,360 $ 30,947,611 $ 61,287,688 $ 20,064,451 - ------------------------------------------------------------------------------------------------------------------------- DISC DISC DISC DISC VP DAVIS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, NY VENTURE, SUBACCOUNT CONSERV MOD MOD AGGR MOD CONSERV CL 3 ------------------------------------------------------------------------------ 0.55% $ 48,842 $ 36,828 $ 73,979 $ 3,207 $ 6,352,792 0.75% 15,634,819 41,217,835 24,771,950 21,172,489 269,751,280 0.85% 2,241,377 6,353,933 3,338,476 3,519,461 578,794,694 0.95% 12,229,798 24,127,739 13,936,209 15,542,911 144,610,868 1.00% 1,795,564 2,444,784 2,613,428 2,509,085 33,741,751 1.05% 2,565,996 4,146,853 1,844,114 2,496,160 221,836,161 1.10% 1,636,114 2,032,010 1,596,566 1,693,428 164,930,039 1.20% 2,061,599 2,004,473 772,755 1,829,568 15,627,995 1.25% -- -- -- -- -- 1.25% 650,579 1,036,602 118,572 561,089 7,018,593 1.30% 1,300,370 782,303 348,186 968,368 69,147,290 1.45% 361,418 522,843 215,347 591,256 7,107,191 - ------------------------------------------------------------------------------------------------------------------------- Total $40,526,476 $ 84,706,203 $ 49,629,582 $ 50,887,022 $1,518,918,654 - ------------------------------------------------------------------------------------------------------------------------- VP GS VP PTNRS RVS RVS VP RVS VP MID CAP VAL, SM CAP VP BAL, CASH DIV SUBACCOUNT CL 3 VAL, CL 3 CL 3 MGMT, CL 3 BOND, CL 3 ------------------------------------------------------------------------------ 0.55% $ 205,767 $ 5,397,169 $ 1,046,102 $ 3,090,794 $ 15,321,115 0.75% 6,010,946 247,611,124 79,853,545 239,875,759 947,184,950 0.85% 728,610 364,102,846 9,663,985 60,078,305 1,123,097,945 0.95% 3,620,210 132,471,495 58,468,726 167,240,787 650,058,363 1.00% 594,001 30,940,308 9,872,095 25,092,723 114,009,524 1.05% 775,612 140,485,943 7,315,582 42,414,122 507,910,704 1.10% 175,529 103,376,165 3,944,224 20,761,648 375,941,327 1.20% 437,441 14,105,870 6,989,825 15,904,916 73,150,883 1.25% -- -- 839,571(1) 8,211,572(1) 24,335,321(1) 1.25% 31,046 4,488,037 82,384,836(2) 34,737,555(2) 100,722,220(2) 1.30% 153,590 42,818,228 2,797,167 15,533,927 190,444,555 1.45% 146,303 4,308,508 865,208 11,796,137 36,123,301 - ------------------------------------------------------------------------------------------------------------------------- Total $12,879,055 $1,090,105,693 $264,040,866 $644,738,245 $4,158,300,208 - -------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 89
RVS VP RVS VP RVS VP RVS VP GLOBAL RVS VP DIV EQ INC, DYN GLOBAL INFLATION HI YIELD SUBACCOUNT CL 3 EQ, CL 3 BOND, CL 3 PROT SEC, CL 3 BOND, CL 3 ------------------------------------------------------------------------------ 0.55% $ 11,349,379 $ 618,249 $ 5,516,363 $ 6,843,687 $ 1,027,609 0.75% 738,847,322 178,573,317 328,904,191 359,939,924 216,864,629 0.85% 707,466,868 1,050,827 384,483,622 568,729,455 22,988,743 0.95% 438,796,210 100,842,574 226,307,807 226,216,418 172,921,887 1.00% 85,363,917 14,093,661 39,133,013 47,380,637 17,438,364 1.05% 280,369,015 977,558 174,302,607 247,094,842 15,807,970 1.10% 203,099,762 309,044 126,275,365 181,730,209 6,795,125 1.20% 42,679,949 5,798,932 25,432,627 29,657,028 15,887,071 1.25% 10,473,668(1) 130,774(1) 8,837,338(1) -- 888,763(1) 1.25% 108,756,793(2) 149,510,722(2) 32,892,170(2) 11,244,325 59,754,976(2) 1.30% 87,760,145 248,691 64,915,597 91,203,767 5,126,102 1.45% 11,286,784 72,445 11,992,782 15,429,005 2,190,151 - ------------------------------------------------------------------------------------------------------------------------- Total $2,726,249,812 $452,226,794 $1,428,993,482 $1,785,469,297 $537,691,390 - ------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP SHORT INC MID CAP MID CAP VAL, S&P 500, DURATION, SUBACCOUNT OPP, CL 3 GRO, CL 3 CL 3 CL 3 CL 3 ------------------------------------------------------------------------------ 0.55% $ 6,846,588 $ 457,688 $ 1,488,057 $ 611,644 $ 1,123,160 0.75% 303,783,963 49,177,139 65,257,942 74,599,271 145,214,173 0.85% 526,507,191 3,566,947 60,712,040 5,282,215 21,019,585 0.95% 185,893,699 31,636,881 36,090,199 52,709,719 115,099,433 1.00% 38,283,738 2,641,139 7,167,567 6,902,254 13,155,820 1.05% 221,437,744 2,575,011 23,986,179 3,694,607 15,721,663 1.10% 162,845,265 949,267 14,616,838 1,474,384 7,241,001 1.20% 22,953,696 1,685,421 3,285,499 4,720,330 12,444,973 1.25% -- 98,605(1) -- -- -- 1.25% 8,662,713 35,199,469(2) 852,789 268,939 2,650,936 1.30% 76,513,864 547,829 6,050,857 832,027 6,982,972 1.45% 10,633,899 183,516 827,735 660,760 5,244,920 - ------------------------------------------------------------------------------------------------------------------------- Total $1,564,362,360 $128,718,912 $ 220,335,702 $ 151,756,150 $345,898,636 - ------------------------------------------------------------------------------------------------------------------------- SEL SEL VP SEL VP THDL VP THDL VP VP LG CAP SM CAP EMER MKTS, INTL SUBACCOUNT GRO, CL 3 VAL, CL 3 VAL, CL 3 CL 3 OPP, CL 3 ------------------------------------------------------------------------------ 0.55% $ 1,283,435 $ 197,249 $ 82,834 $ 3,514,036 $ 874,134 0.75% 83,149,307 6,262,406 31,185,360 179,952,004 45,634,644 0.85% 3,588,915 788,841 1,284,638 140,957,070 4,382,774 0.95% 50,247,365 3,697,732 21,170,685 103,682,617 32,830,285 1.00% 8,668,468 511,256 2,359,227 21,172,177 4,512,154 1.05% 2,456,277 646,671 967,250 54,958,804 3,531,705 1.10% 958,229 244,111 315,762 37,481,557 1,824,195 1.20% 3,982,222 416,963 1,280,720 10,349,764 2,605,687 1.25% -- -- -- 2,125,142(1) 262,974(1) 1.25% 218,824 45,469 71,849 85,684,688(2) 65,366,097(2) 1.30% 405,716 232,809 246,926 15,384,704 1,313,018 1.45% 208,896 14,652 77,636 1,897,990 240,484 - ------------------------------------------------------------------------------------------------------------------------- Total $ 155,167,654 $ 13,058,159 $ 59,042,887 $ 657,160,553 $163,378,151 - -------------------------------------------------------------------------------------------------------------------------
90 RIVERSOURCE VARIABLE ACCOUNT 10
VANK UIF THIRD VANK LIT GLOBAL VANK UIF AVE COMSTOCK, REAL EST, CL MID CAP GRO, WANGER SUBACCOUNT VAL CL II II CL II INTL ------------------------------------------------------------------------------ 0.55% $ 174,769 $ 2,880,584 $ 1,559,094 $ 355,459 $ 5,018,658 0.75% 32,406,270 193,052,965 57,974,979 18,345,374 276,863,910 0.85% -- 179,825,273 86,685,119 6,061,261 214,972,306 0.95% 30,038,697 101,552,258 33,259,033 11,868,028 166,437,513 1.00% -- 34,620,386 8,733,116 2,111,549 35,357,419 1.05% -- 71,642,155 34,180,303 3,267,704 85,894,020 1.10% -- 52,477,931 25,371,054 1,999,307 59,870,756 1.20% -- 16,228,125 4,115,207 1,209,911 17,206,208 1.25% -- -- -- -- -- 1.25% -- 2,844,442 1,161,764 219,186 3,011,182 1.30% -- 23,029,532 10,433,059 1,415,403 25,526,749 1.45% -- 3,147,129 1,049,186 263,899 2,942,815 - ------------------------------------------------------------------------------------------------------------------------- Total $ 62,619,736 $681,300,780 $264,521,914 $47,117,081 $893,101,536 - ------------------------------------------------------------------------------------------------------------------------- WF ADV WF ADV WF ADV WF ADV WANGER VT INDEX VT VT VT SUBACCOUNT USA ASSET ALLOC INTL CORE OPP SM CAP GRO ------------------------------------------------------------------------------ 0.55% $ 4,008,371 $ 4,406 $ 1,071 $ 381,077 $ 269,007 0.75% 259,503,914 21,162,700 3,830,608 23,906,360 36,509,350 0.85% 146,594,570 -- -- 2,234,843 8,424,618 0.95% 165,330,921 16,647,017 2,883,081 13,861,774 24,161,488 1.00% 34,353,091 2,374,686 386,916 3,475,279 3,845,405 1.05% 57,584,688 -- -- 1,219,495 5,266,563 1.10% 40,395,092 -- -- 713,156 2,199,391 1.20% 16,170,643 1,135,167 149,437 1,351,554 1,824,075 1.25% -- -- -- -- -- 1.25% 2,312,340 -- -- 61,476 291,072 1.30% 17,300,748 -- -- 328,439 1,430,088 1.45% 2,041,256 -- -- 55,259 418,947 - ------------------------------------------------------------------------------------------------------------------------- Total $745,595,634 $ 41,323,976 $ 7,251,113 $47,588,712 $ 84,640,004 - -------------------------------------------------------------------------------------------------------------------------
(1) Applicable to RAVA 4 Advantage, RAVA 4 Select and RAVA 4 Access products only. (2) Applicable to FPA product only. 9. FINANCIAL HIGHLIGHTS The following is a summary for each period in the five year period ended Dec. 31, 2009 of units, net assets and investment income ratios in addition to the accumulation unit values, total returns and expense ratios for variable annuity contracts with the highest and lowest expense.
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- INVESCO VI CAP APPR, SER I 2009 32,041 $0.80 to $0.77 $25,048 0.60% 0.55% to 0.95% 20.41% to 19.93% 2008 41,116 $0.67 to $0.64 $26,745 -- 0.55% to 0.95% (42.81%) to (43.04%) 2007 57,018 $1.16 to $1.13 $64,980 -- 0.55% to 0.95% 11.40% to 10.95% 2006 72,809 $1.05 to $1.02 $74,671 0.05% 0.55% to 0.95% 5.72% to 5.30% 2005 80,703 $0.99 to $0.96 $78,514 0.06% 0.55% to 0.95% 8.24% to 7.81% - --------------------------------------------------------------------------------------------------------------------------- INVESCO VI CAP APPR, SER II 2009 122,706 $0.86 to $0.80 $104,161 0.28% 0.55% to 1.45% 20.06% to 18.98% 2008 139,781 $0.72 to $0.68 $99,172 -- 0.55% to 1.45% (42.94%) to (43.45%) 2007 165,546 $1.26 to $1.19 $206,589 -- 0.55% to 1.45% 11.12% to 10.12% 2006 198,366 $1.14 to $1.08 $223,712 -- 0.55% to 1.45% 5.48% to 8.06%(8) 2005 236,683 $1.08 to $1.12 $254,026 -- 0.55% to 1.20% 7.98% to 7.29% - ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 91
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- INVESCO VI CAP DEV, SER I 2009 12,959 $1.58 to $1.52 $19,894 -- 0.55% to 0.95% 41.59% to 41.02% 2008 16,730 $1.12 to $1.07 $18,148 -- 0.55% to 0.95% (47.32%) to (47.53%) 2007 23,478 $2.12 to $2.05 $48,483 -- 0.55% to 0.95% 10.23% to 9.79% 2006 28,272 $1.92 to $1.86 $53,160 -- 0.55% to 0.95% 15.88% to 15.42% 2005 32,971 $1.66 to $1.62 $53,665 -- 0.55% to 0.95% 9.01% to 8.57% - --------------------------------------------------------------------------------------------------------------------------- INVESCO VI CAP DEV, SER II 2009 29,644 $1.21 to $0.87 $33,384 -- 0.55% to 1.45% 41.21% to 39.95% 2008 36,124 $0.86 to $0.62 $29,143 -- 0.55% to 1.45% (47.42%) to (47.89%) 2007 49,607 $1.63 to $1.20 $76,866 -- 0.55% to 1.45% 9.94% to 8.95% 2006 48,026 $1.48 to $1.10 $69,832 -- 0.55% to 1.45% 15.62% to 9.49%(8) 2005 42,661 $1.28 to $1.32 $54,342 -- 0.55% to 1.20% 8.67% to 7.97% - --------------------------------------------------------------------------------------------------------------------------- INVESCO VI CORE EQ, SER I 2009 72,541 $1.85 to $1.85 $135,402 1.74% 1.25% to 1.25% 26.71% to 26.71% 2008 92,625 $1.46 to $1.46 $136,522 1.92% 1.25% to 1.25% (31.01%) to (31.01%) 2007 128,470 $2.11 to $2.11 $273,531 0.92% 1.25% to 1.25% 6.77% to 6.77% 2006 199,591 $1.98 to $1.98 $396,958 0.49% 1.25% to 1.25% 15.26% to 15.26% 2005 281,112 $1.72 to $1.72 $484,439 1.38% 1.25% to 1.25% 4.01% to 4.01% - --------------------------------------------------------------------------------------------------------------------------- INVESCO VI DYN, SER I 2009 6,236 $1.04 to $1.09 $6,407 -- 0.55% to 1.20% 41.66% to 40.74% 2008 7,742 $0.74 to $0.77 $5,632 -- 0.55% to 1.20% (48.36%) to (48.70%) 2007 10,864 $1.43 to $1.51 $15,341 -- 0.55% to 1.20% 11.57% to 10.84% 2006 12,477 $1.28 to $1.36 $15,850 -- 0.55% to 1.20% 15.48% to 14.73% 2005 14,869 $1.11 to $1.19 $16,410 -- 0.55% to 1.20% 10.12% to 9.40% - --------------------------------------------------------------------------------------------------------------------------- INVESCO VI FIN SERV, SER I 2009 27,205 $0.55 to $0.56 $14,737 3.47% 0.55% to 1.20% 26.73% to 25.91% 2008 25,119 $0.44 to $0.44 $10,755 3.06% 0.55% to 1.20% (59.67%) to (59.93%) 2007 16,657 $1.08 to $1.10 $17,731 1.48% 0.55% to 1.20% (22.65%) to (23.15%) 2006 21,798 $1.39 to $1.43 $30,102 1.72% 0.55% to 1.20% 15.81% to 15.06% 2005 19,311 $1.20 to $1.25 $23,108 1.42% 0.55% to 1.20% 5.33% to 4.65% - --------------------------------------------------------------------------------------------------------------------------- INVESCO VI FIN SERV, SER II 2009 12,958 $0.46 to $0.45 $5,910 3.78% 0.85% to 1.45% 26.22% to 25.46% 2008 8,626 $0.36 to $0.36 $3,131 3.69% 0.85% to 1.45% (59.90%) to (60.15%) 2007 3,427 $0.90 to $0.89 $3,081 2.20% 0.85% to 1.45% (23.06%) to (23.52%) 2006 1,364 $1.17 to $1.17 $1,596 6.35% 0.85% to 1.45% 16.10%(8) to 15.74%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- INVESCO VI GLOBAL HLTH, SER II 2009 22,760 $1.02 to $1.05 $23,381 0.13% 0.55% to 1.45% 26.69% to 25.56% 2008 21,604 $0.81 to $0.83 $17,564 -- 0.55% to 1.45% (29.17%) to (29.81%) 2007 16,065 $1.14 to $1.19 $18,500 -- 0.55% to 1.45% 10.90% to 9.90% 2006 87,789 $1.03 to $1.08 $91,682 -- 0.55% to 1.45% 3.11%(7) to 8.12%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- INVESCO VI INTL GRO, SER II 2009 668,344 $1.25 to $1.08 $767,971 1.54% 0.55% to 1.45% 34.17% to 32.97% 2008 537,767 $0.93 to $0.81 $461,509 0.72% 0.55% to 1.45% (40.87%) to (41.40%) 2007 234,064 $1.58 to $1.39 $342,381 0.86% 0.55% to 1.45% 13.82% to 12.79% 2006 5,226 $1.39 to $1.23 $7,023 1.97% 0.55% to 1.45% 27.18% to 22.52%(8) 2005 247 $1.09 to $1.09 $269 4.53% 0.55% to 1.20% 8.28%(5) to 8.17%(5) - ---------------------------------------------------------------------------------------------------------------------------
92 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- INVESCO VI TECH, SER I 2009 37,973 $0.75 to $0.83 $28,223 -- 0.55% to 1.20% 56.53% to 55.52% 2008 32,201 $0.48 to $0.53 $15,360 -- 0.55% to 1.20% (44.81%) to (45.17%) 2007 36,520 $0.86 to $0.98 $31,644 -- 0.55% to 1.20% 7.11% to 6.41% 2006 43,391 $0.81 to $0.92 $35,223 -- 0.55% to 1.20% 9.88% to 9.17% 2005 54,315 $0.73 to $0.84 $40,261 -- 0.55% to 1.20% 1.61% to 0.96% - --------------------------------------------------------------------------------------------------------------------------- AB VPS GLOBAL THEMATIC GRO, CL B 2009 16,689 $1.08 to $1.06 $17,972 -- 0.55% to 1.45% 52.30% to 50.94% 2008 10,970 $0.71 to $0.70 $7,758 -- 0.55% to 1.45% (47.75%) to (48.22%) 2007 10,650 $1.36 to $1.36 $14,458 -- 0.55% to 1.45% 19.23% to 18.16% 2006 33,897 $1.14 to $1.15 $38,748 -- 0.55% to 1.45% 7.79% to 14.78%(8) 2005 3,446 $1.06 to $1.06 $3,648 -- 0.55% to 1.20% 5.87%(5) to 5.76%(5) - --------------------------------------------------------------------------------------------------------------------------- AB VPS GRO & INC, CL B 2009 135,762 $0.97 to $0.84 $127,984 3.51% 0.55% to 1.45% 19.69% to 18.62% 2008 166,185 $0.81 to $0.71 $131,669 1.86% 0.55% to 1.45% (41.02%) to (41.55%) 2007 229,216 $1.37 to $1.21 $309,274 1.21% 0.55% to 1.45% 4.28% to 3.34% 2006 255,691 $1.31 to $1.17 $333,791 1.18% 0.55% to 1.45% 16.34% to 16.48%(8) 2005 277,477 $1.13 to $1.20 $312,799 1.25% 0.55% to 1.20% 4.02% to 3.35% - --------------------------------------------------------------------------------------------------------------------------- AB VPS INTL VAL, CL B 2009 524,100 $1.66 to $0.79 $647,669 0.86% 0.55% to 1.45% 33.62% to 32.42% 2008 949,299 $1.24 to $0.59 $803,095 0.88% 0.55% to 1.45% (53.54%) to (53.96%) 2007 690,850 $2.68 to $1.29 $1,443,988 0.99% 0.55% to 1.45% 5.00% to 4.05% 2006 453,282 $2.55 to $1.24 $1,057,187 1.25% 0.55% to 1.45% 34.38% to 23.04%(8) 2005 292,660 $1.90 to $1.92 $551,186 0.47% 0.55% to 1.20% 15.88% to 15.13% - --------------------------------------------------------------------------------------------------------------------------- AB VPS LG CAP GRO, CL B 2009 3,215 $1.00 to $0.98 $3,204 -- 0.85% to 1.45% 35.94% to 35.13% 2008 2,649 $0.74 to $0.73 $1,943 -- 0.85% to 1.45% (40.33%) to (40.69%) 2007 2,447 $1.23 to $1.22 $3,014 -- 0.85% to 1.45% 12.65% to 11.97% 2006 667 $1.10 to $1.09 $730 -- 0.85% to 1.45% 8.99%(8) to 8.66%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- AC VP INTL, CL I 2009 26,333 $1.13 to $1.08 $28,827 2.17% 0.55% to 0.95% 33.03% to 32.50% 2008 34,033 $0.85 to $0.82 $28,083 0.87% 0.55% to 0.95% (45.13%) to (45.35%) 2007 45,040 $1.54 to $1.49 $67,915 0.69% 0.55% to 0.95% 17.41% to 16.93% 2006 51,286 $1.32 to $1.28 $66,174 1.64% 0.55% to 0.95% 24.34% to 23.85% 2005 58,674 $1.06 to $1.03 $61,060 1.15% 0.55% to 0.95% 12.63% to 12.19% - --------------------------------------------------------------------------------------------------------------------------- AC VP INTL, CL II 2009 48,291 $1.24 to $1.36 $59,610 2.03% 0.55% to 1.20% 32.90% to 32.04% 2008 60,221 $0.93 to $1.03 $56,142 0.69% 0.55% to 1.20% (45.20%) to (45.56%) 2007 77,918 $1.70 to $1.90 $132,920 0.54% 0.55% to 1.20% 17.27% to 16.51% 2006 84,429 $1.45 to $1.63 $123,392 1.41% 0.55% to 1.20% 24.06% to 23.26% 2005 82,367 $1.17 to $1.32 $97,265 0.91% 0.55% to 1.20% 12.49% to 11.76% - --------------------------------------------------------------------------------------------------------------------------- AC VP MID CAP VAL, CL II 2009 204,863 $0.88 to $1.06 $203,460 3.96% 0.55% to 1.45% 29.09% to 27.93% 2008 242,955 $0.68 to $0.83 $187,536 0.08% 0.55% to 1.45% (24.92%) to (25.60%) 2007 258,311 $0.90 to $1.11 $266,954 1.22% 0.55% to 1.45% (10.10%)(11)to (3.84%) 2006 2,743 $1.16 to $1.16 $3,176 2.31% 0.85% to 1.45% 15.32%(8) to 14.97%(8) 2005 -- -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 93
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- AC VP ULTRA, CL II 2009 28,448 $0.93 to $0.94 $26,370 0.17% 0.55% to 1.45% 33.78% to 32.59% 2008 31,148 $0.69 to $0.71 $21,629 -- 0.55% to 1.45% (41.97%) to (42.49%) 2007 30,854 $1.20 to $1.24 $36,976 -- 0.55% to 1.45% 20.18% to 19.09% 2006 202,331 $1.00 to $1.04 $203,885 -- 0.55% to 1.45% (3.92%) to 3.52%(8) 2005 18,578 $1.04 to $1.04 $19,240 -- 0.55% to 1.20% 3.73%(5) to 3.62%(5) - --------------------------------------------------------------------------------------------------------------------------- AC VP VAL, CL I 2009 47,184 $1.55 to $1.49 $71,321 5.85% 0.55% to 0.95% 19.21% to 18.73% 2008 116,786 $1.30 to $1.87 $185,351 2.70% 0.55% to 1.25% (27.18%) to (27.69%) 2007 177,323 $1.79 to $2.58 $390,597 1.76% 0.55% to 1.25% (5.66%) to (6.32%) 2006 258,018 $1.89 to $2.75 $627,151 1.48% 0.55% to 1.25% 18.00% to 17.18% 2005 341,956 $1.61 to $2.35 $722,148 0.87% 0.55% to 1.25% 4.46% to 3.73% - --------------------------------------------------------------------------------------------------------------------------- AC VP VAL, CL II 2009 169,378 $1.31 to $0.92 $206,109 5.47% 0.55% to 1.45% 19.07% to 18.00% 2008 188,664 $1.10 to $0.78 $195,491 2.48% 0.55% to 1.45% (27.20%) to (27.86%) 2007 262,020 $1.51 to $1.08 $377,643 1.42% 0.55% to 1.45% (5.83%) to (6.68%) 2006 279,304 $1.61 to $1.16 $437,608 1.20% 0.55% to 1.45% 17.82% to 15.39%(8) 2005 281,618 $1.36 to $1.32 $378,826 0.64% 0.55% to 1.20% 4.28% to 3.61% - --------------------------------------------------------------------------------------------------------------------------- CALVERT VS SOCIAL BAL 2009 28,366 $0.99 to $1.06 $27,572 2.08% 0.55% to 1.20% 24.60% to 23.80% 2008 33,641 $0.79 to $0.86 $26,299 2.23% 0.55% to 1.20% (31.70%) to (32.14%) 2007 43,038 $1.16 to $1.26 $49,435 2.28% 0.55% to 1.20% 2.19% to 1.53% 2006 49,741 $1.13 to $1.24 $56,142 2.32% 0.55% to 1.20% 8.18% to 7.48% 2005 48,625 $1.05 to $1.16 $50,853 1.93% 0.55% to 1.20% 5.07% to 4.39% - --------------------------------------------------------------------------------------------------------------------------- COL HI YIELD, VS CL B 2009 79,837 $1.16 to $1.14 $92,024 10.37% 0.55% to 1.45% 43.13% to 41.84% 2008 82,428 $0.81 to $0.80 $66,584 10.36% 0.55% to 1.45% (25.17%) to (25.84%) 2007 106,093 $1.09 to $1.08 $114,850 5.23% 0.55% to 1.45% 1.14% to 0.23% 2006 106,859 $1.07 to $1.08 $114,552 3.44% 0.55% to 1.45% 7.36%(6) to 8.13%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- COL MARSICO GRO, VS CL A 2009 1,831,327 $0.91 to $0.94 $1,713,730 0.88% 0.55% to 1.45% 25.97% to 24.84% 2008 1,298,131 $0.72 to $0.75 $963,953 0.35% 0.55% to 1.45% (39.78%) to (40.32%) 2007 766,013 $1.20 to $1.26 $944,664 0.07% 0.55% to 1.45% 16.83% to 15.78% 2006 317,946 $1.02 to $1.09 $331,754 -- 0.55% to 1.45% 2.95%(7) to 8.65%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- COL MARSICO INTL OPP, VS CL B 2009 85,819 $0.89 to $0.98 $78,882 1.87% 0.55% to 1.45% 37.19% to 35.96% 2008 103,623 $0.65 to $0.72 $69,405 1.37% 0.55% to 1.45% (48.77%) to (49.23%) 2007 80,923 $1.27 to $1.42 $105,483 0.17% 0.55% to 1.45% 19.02% to 17.94% 2006 153,627 $1.07 to $1.20 $169,998 0.53% 0.55% to 1.45% 6.74%(7) to 19.72%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- CS COMMODITY RETURN 2009 100,553 $0.89 to $0.90 $89,247 12.32% 0.55% to 1.45% 18.82% to 17.75% 2008 78,360 $0.75 to $0.77 $58,691 1.33% 0.55% to 1.45% (34.09%) to (34.69%) 2007 45,930 $1.13 to $1.17 $52,380 4.11% 0.55% to 1.45% 16.68% to 15.63% 2006 139,243 $0.97 to $1.01 $137,218 4.43% 0.55% to 1.45% (4.10%)(7) to 0.65%(8) 2005 -- -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
94 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- CS U.S. EQ FLEX I 2009 57,459 $1.09 to $1.09 $62,835 1.08% 0.55% to 1.25% 8.57%(13) to 23.12% 2008 61,041 $0.88 to $0.88 $54,326 -- 1.25% to 1.25% (35.41%) to (35.41%) 2007 88,084 $1.37 to $1.37 $121,104 -- 1.25% to 1.25% (2.07%) to (2.07%) 2006 148,638 $1.40 to $1.40 $208,262 -- 1.25% to 1.25% 3.47% to 3.47% 2005 226,170 $1.35 to $1.35 $305,959 -- 1.25% to 1.25% (3.88%) to (3.88%) - --------------------------------------------------------------------------------------------------------------------------- DREY VIF INTL EQ, SERV 2009 7,910 $0.97 to $0.95 $7,624 3.77% 0.85% to 1.45% 23.83% to 23.09% 2008 7,986 $0.78 to $0.77 $6,229 1.30% 0.85% to 1.45% (42.85%) to (43.19%) 2007 5,140 $1.37 to $1.36 $7,027 1.08% 0.85% to 1.45% 15.85% to 15.15% 2006 1,560 $1.18 to $1.18 $1,845 -- 0.85% to 1.45% 18.06%(8) to 17.70%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EV VT FLOATING-RATE INC 2009 828,278 $1.08 to $1.05 $884,459 4.79% 0.55% to 1.45% 43.52% to 42.23% 2008 581,542 $0.76 to $0.74 $434,439 5.74% 0.55% to 1.45% (27.54%) to (28.19%) 2007 469,434 $1.04 to $1.03 $485,908 6.25% 0.55% to 1.45% 1.08% to 0.16% 2006 298,230 $1.03 to $1.02 $306,684 6.14% 0.55% to 1.45% 3.18%(7) to 2.50%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EG VA FUNDAMENTAL LG CAP, CL 2 2009 34,062 $1.09 to $1.05 $36,686 1.18% 0.55% to 1.45% 35.00% to 33.79% 2008 26,241 $0.81 to $0.79 $21,028 1.24% 0.55% to 1.45% (33.37%) to (33.97%) 2007 27,463 $1.22 to $1.19 $33,191 0.87% 0.55% to 1.45% 7.42% to 6.45% 2006 28,846 $1.13 to $1.12 $32,620 0.98% 0.55% to 1.45% 11.78% to 11.31%(8) 2005 30,155 $1.01 to $1.10 $30,645 0.82% 0.55% to 1.20% 8.15% to 7.45% - --------------------------------------------------------------------------------------------------------------------------- EG VA INTL EQ, CL 2 2009 775,672 $1.23 to $0.87 $752,302 0.46% 0.55% to 1.45% 14.84% to 13.81% 2008 36,966 $1.07 to $0.76 $36,330 -- 0.55% to 1.45% (41.92%) to (42.44%) 2007 46,006 $1.84 to $1.32 $79,458 2.23% 0.55% to 1.45% 14.09% to 13.07% 2006 45,619 $1.62 to $1.17 $71,677 3.71% 0.55% to 1.45% 22.21% to 16.75%(8) 2005 33,531 $1.32 to $1.31 $44,080 3.25% 0.55% to 1.20% 15.04% to 14.30% - --------------------------------------------------------------------------------------------------------------------------- FID VIP CONTRAFUND, SERV CL 2 2009 841,696 $0.93 to $0.95 $791,182 0.94% 0.55% to 1.45% 34.73% to 33.52% 2008 1,455,857 $0.69 to $0.71 $1,023,890 0.96% 0.55% to 1.45% (43.01%) to (43.52%) 2007 1,018,249 $1.21 to $1.27 $1,258,736 0.89% 0.55% to 1.45% 16.66% to 15.61% 2006 622,501 $1.03 to $1.09 $654,611 1.75% 0.55% to 1.45% 3.50%(7) to 8.94%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- FID VIP GRO & INC, SERV CL 2009 91,710 $0.95 to $0.91 $85,042 0.95% 0.55% to 0.95% 26.46% to 25.96% 2008 114,759 $0.75 to $0.73 $84,337 0.96% 0.55% to 0.95% (42.09%) to (42.33%) 2007 154,280 $1.30 to $1.26 $196,235 1.66% 0.55% to 0.95% 11.38% to 10.94% 2006 182,343 $1.17 to $1.14 $209,031 0.85% 0.55% to 0.95% 12.39% to 11.95% 2005 216,583 $1.04 to $1.01 $221,496 1.50% 0.55% to 0.95% 6.94% to 6.51% - --------------------------------------------------------------------------------------------------------------------------- FID VIP GRO & INC, SERV CL 2 2009 168,181 $1.04 to $1.02 $171,003 0.83% 0.55% to 1.20% 26.32% to 25.50% 2008 209,939 $0.82 to $0.81 $169,597 0.85% 0.55% to 1.20% (42.22%) to (42.59%) 2007 278,465 $1.42 to $1.42 $390,431 1.39% 0.55% to 1.20% 11.24% to 10.52% 2006 329,942 $1.28 to $1.28 $417,155 0.71% 0.55% to 1.20% 12.24% to 11.51% 2005 358,054 $1.14 to $1.15 $404,610 1.30% 0.55% to 1.20% 6.81% to 6.12% - ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 95
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- FID VIP MID CAP, SERV CL 2009 68,537 $3.08 to $2.95 $205,621 0.57% 0.55% to 0.95% 39.25% to 38.69% 2008 85,755 $2.21 to $2.13 $185,298 0.35% 0.55% to 0.95% (39.84%) to (40.08%) 2007 109,849 $3.68 to $3.56 $395,275 0.72% 0.55% to 0.95% 14.85% to 14.39% 2006 131,594 $3.20 to $3.11 $413,296 0.26% 0.55% to 0.95% 11.97% to 11.53% 2005 144,212 $2.86 to $2.79 $405,434 1.62% 0.55% to 0.95% 17.56% to 17.09% - --------------------------------------------------------------------------------------------------------------------------- FID VIP MID CAP, SERV CL 2 2009 705,682 $1.99 to $1.01 $1,036,331 0.43% 0.55% to 1.45% 38.98% to 37.74% 2008 913,300 $1.43 to $0.74 $965,638 0.25% 0.55% to 1.45% (39.94%) to (40.48%) 2007 738,939 $2.39 to $1.24 $1,459,930 0.49% 0.55% to 1.45% 14.70% to 13.67% 2006 624,914 $2.08 to $1.09 $1,208,847 0.16% 0.55% to 1.45% 11.79% to 8.10%(8) 2005 496,239 $1.86 to $1.76 $908,519 1.41% 0.55% to 1.20% 17.37% to 16.61% - --------------------------------------------------------------------------------------------------------------------------- FID VIP OVERSEAS, SERV CL 2009 39,541 $1.12 to $1.07 $43,185 1.97% 0.55% to 0.95% 25.74% to 25.24% 2008 50,013 $0.89 to $0.86 $43,461 2.20% 0.55% to 0.95% (44.17%) to (44.40%) 2007 66,055 $1.59 to $1.54 $103,079 3.12% 0.55% to 0.95% 16.56% to 16.09% 2007 76,349 $1.37 to $1.33 $102,498 0.78% 0.55% to 0.95% 17.30% to 16.84% 2005 81,957 $1.16 to $1.14 $93,982 0.57% 0.55% to 0.95% 18.32% to 17.85% - --------------------------------------------------------------------------------------------------------------------------- FID VIP OVERSEAS, SERV CL 2 2009 103,180 $1.35 to $0.92 $129,326 1.88% 0.55% to 1.45% 25.53% to 24.40% 2008 123,289 $1.08 to $0.74 $125,026 2.18% 0.55% to 1.45% (44.27%) to (44.77%) 2007 146,997 $1.93 to $1.34 $272,379 2.91% 0.55% to 1.45% 16.41% to 15.36% 2006 151,362 $1.66 to $1.16 $248,078 0.65% 0.55% to 1.45% 17.13% to 15.34%(8) 2005 136,453 $1.42 to $1.53 $193,596 0.49% 0.55% to 1.20% 18.13% to 17.37% - --------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK GLOBAL REAL EST, CL 2 2009 119,954 $1.75 to $0.62 $170,847 12.90% 0.55% to 1.45% 18.43% to 17.37% 2008 143,021 $1.48 to $0.53 $177,416 1.02% 0.55% to 1.45% (42.71%) to (43.22%) 2007 204,660 $2.58 to $0.94 $456,336 2.45% 0.55% to 1.45% (21.30%) to (22.01%) 2006 257,421 $3.27 to $1.20 $773,536 2.06% 0.55% to 1.45% 19.92% to 19.66%(8) 2005 266,642 $2.73 to $1.97 $690,004 1.39% 0.55% to 1.20% 12.85% to 12.12% - --------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK SM CAP VAL, CL 2 2009 108,899 $2.07 to $0.88 $183,264 1.66% 0.55% to 1.45% 28.45% to 27.30% 2008 128,040 $1.61 to $0.69 $173,195 1.15% 0.55% to 1.45% (33.38%) to (33.98%) 2007 157,429 $2.42 to $1.05 $329,244 0.65% 0.55% to 1.45% (2.92%) to (3.79%) 2006 166,830 $2.49 to $1.09 $380,878 0.64% 0.55% to 1.45% 16.34% to 7.75%(8) 2005 156,167 $2.14 to $1.57 $316,893 0.75% 0.55% to 1.20% 8.17% to 7.47% - --------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SEC, CL 2 2009 158,713 $1.23 to $0.90 $178,999 1.91% 0.55% to 1.45% 25.36% to 24.23% 2008 186,091 $0.98 to $0.72 $169,267 2.85% 0.55% to 1.45% (37.45%) to (38.01%) 2007 248,867 $1.57 to $1.17 $367,471 1.44% 0.55% to 1.45% 2.91% to 1.98% 2006 207,209 $1.53 to $1.15 $309,114 1.28% 0.55% to 1.45% 17.73% to 13.33%(8) 2005 151,140 $1.30 to $1.34 $196,107 0.87% 0.55% to 1.20% 9.95% to 9.24% - --------------------------------------------------------------------------------------------------------------------------- GS VIT MID CAP VAL, INST 2009 151,389 $2.30 to $1.60 $326,736 1.73% 0.55% to 1.20% 32.42% to 31.56% 2008 191,346 $1.74 to $1.22 $312,184 0.90% 0.55% to 1.20% (37.40%) to (37.80%) 2007 278,223 $2.78 to $1.96 $726,483 0.70% 0.55% to 1.20% 2.63% to 1.97% 2006 327,755 $2.71 to $1.92 $835,018 0.90% 0.55% to 1.20% 15.53% to 14.78% 2005 345,787 $2.34 to $1.68 $765,494 0.70% 0.55% to 1.20% 12.21% to 11.48% - ---------------------------------------------------------------------------------------------------------------------------
96 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- GS VIT STRUCTD SM CAP EQ, INST 2009 7,754 $1.38 to $1.32 $10,406 1.14% 0.55% to 0.95% 26.97% to 26.47% 2008 9,648 $1.09 to $1.05 $10,223 0.58% 0.55% to 0.95% (34.38%) to (34.65%) 2007 13,830 $1.66 to $1.60 $22,383 0.31% 0.55% to 0.95% (16.94%) to (17.28%) 2006 19,072 $2.00 to $1.94 $37,272 0.61% 0.55% to 0.95% 11.66% to 11.21% 2005 23,432 $1.79 to $1.74 $41,091 0.23% 0.55% to 0.95% 5.49% to 5.07% - --------------------------------------------------------------------------------------------------------------------------- GS VIT STRUCTD U.S. EQ, INST 2009 210,015 $0.87 to $0.81 $180,207 1.98% 0.55% to 1.45% 20.48% to 19.40% 2008 255,182 $0.72 to $0.68 $182,460 1.39% 0.55% to 1.45% (37.35%) to (37.91%) 2007 366,725 $1.15 to $1.09 $420,471 0.94% 0.55% to 1.45% (2.17%) to (3.05%) 2006 445,093 $1.18 to $1.13 $524,191 1.05% 0.55% to 1.45% 12.27% to 11.89%(8) 2005 467,555 $1.05 to $1.23 $492,636 1.00% 0.55% to 1.20% 5.93% to 5.24% - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN ENTERPRISE, SERV 2009 31,734 $0.59 to $0.57 $18,312 -- 0.55% to 0.95% 43.65% to 43.08% 2008 38,478 $0.41 to $0.40 $15,504 0.06% 0.55% to 0.95% (44.17%) to (44.39%) 2007 45,767 $0.74 to $0.72 $33,179 0.07% 0.55% to 0.95% 21.07% to 20.59% 2006 50,493 $0.61 to $0.59 $30,258 -- 0.55% to 0.95% 12.69% to 12.24% 2005 59,483 $0.54 to $0.53 $31,715 -- 0.55% to 0.95% 11.41% to 10.97% - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN GLOBAL TECH, SERV 2009 47,873 $0.46 to $1.11 $21,824 -- 0.55% to 1.20% 56.04% to 55.03% 2008 41,022 $0.29 to $0.71 $11,998 0.09% 0.55% to 1.20% (44.28%) to (44.64%) 2007 49,169 $0.53 to $1.29 $25,957 0.34% 0.55% to 1.20% 21.03% to 20.24% 2006 54,174 $0.43 to $1.07 $23,644 -- 0.55% to 1.20% 7.24% to 6.54% 2005 57,634 $0.41 to $1.01 $23,479 -- 0.55% to 1.20% 10.94% to 10.22% - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS, SERV 2009 1,711,481 $0.86 to $0.84 $1,454,728 0.38% 0.55% to 1.45% 35.27% to 34.06% 2008 1,226,178 $0.63 to $0.63 $773,445 0.64% 0.55% to 1.45% (40.20%) to (40.74%) 2007 747,893 $1.06 to $1.06 $791,866 0.66% 0.55% to 1.45% 6.28%(11) to 5.64%(11) 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN OVERSEAS, SERV 2009 110,781 $1.47 to $2.45 $160,461 0.41% 0.55% to 1.20% 78.09% to 76.94% 2008 126,355 $0.82 to $1.38 $103,231 1.14% 0.55% to 1.20% (52.49%) to (52.80%) 2007 147,130 $1.73 to $2.93 $252,914 0.45% 0.55% to 1.20% 27.31% to 26.48% 2006 142,098 $1.36 to $2.32 $192,642 1.88% 0.55% to 1.20% 45.83% to 44.88% 2005 134,816 $0.93 to $1.60 $125,579 1.08% 0.55% to 1.20% 31.22% to 30.37% - --------------------------------------------------------------------------------------------------------------------------- LM CB VAR SM CAP GRO, CL I 2009 8,674 $0.85 to $0.83 $7,331 -- 0.55% to 1.45% 41.99% to 40.72% 2008 6,856 $0.60 to $0.59 $4,098 -- 0.55% to 1.45% (41.03%) to (41.56%) 2007 3,951 $1.02 to $1.01 $4,021 -- 0.55% to 1.45% 2.02%(10) to 1.39%(10) 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- MFS INV GRO STOCK, SERV CL 2009 125,305 $0.68 to $1.02 $88,112 0.42% 0.55% to 1.45% 38.33% to 37.09% 2008 119,103 $0.49 to $0.74 $60,178 0.30% 0.55% to 1.45% (37.33%) to (37.89%) 2007 150,560 $0.79 to $1.20 $120,724 0.09% 0.55% to 1.45% 10.41% to 9.42% 2006 187,890 $0.71 to $1.10 $136,819 -- 0.55% to 1.45% 6.72% to 9.33%(8) 2005 216,007 $0.67 to $1.02 $146,971 0.14% 0.55% to 1.20% 3.66% to 2.99% - ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 97
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- MFS NEW DIS, SERV CL 2009 53,217 $1.00 to $1.12 $52,365 -- 0.55% to 1.20% 62.03% to 60.98% 2008 59,531 $0.62 to $0.70 $36,303 -- 0.55% to 1.20% (39.85%) to (40.24%) 2007 80,673 $1.02 to $1.17 $82,088 -- 0.55% to 1.20% 1.69% to 1.02% 2006 98,386 $1.01 to $1.16 $98,902 -- 0.55% to 1.20% 12.31% to 11.59% 2005 122,560 $0.90 to $1.04 $109,920 -- 0.55% to 1.20% 4.46% to 3.78% - --------------------------------------------------------------------------------------------------------------------------- MFS UTILITIES, SERV CL 2009 139,628 $1.86 to $1.25 $236,943 4.76% 0.55% to 1.45% 32.14% to 30.96% 2008 163,177 $1.41 to $0.95 $212,724 1.35% 0.55% to 1.45% (38.15%) to (38.71%) 2007 181,259 $2.28 to $1.56 $389,228 0.75% 0.55% to 1.45% 26.85% to 25.71% 2006 142,816 $1.80 to $1.24 $254,044 1.88% 0.55% to 1.45% 30.25% to 23.49%(8) 2005 103,681 $1.38 to $1.68 $145,619 0.42% 0.55% to 1.20% 15.93% to 15.18% - --------------------------------------------------------------------------------------------------------------------------- NB AMT INTL, CL S 2009 379,110 $0.76 to $0.83 $309,505 3.73% 0.55% to 1.45% 33.77% to 32.57% 2008 358,116 $0.57 to $0.63 $218,422 -- 0.55% to 1.45% (46.73%) to (47.21%) 2007 273,245 $1.07 to $1.19 $313,049 2.12% 0.55% to 1.45% 2.64% to 1.72% 2006 147,411 $1.05 to $1.17 $160,106 2.30% 0.55% to 1.45% 4.11%(7) to 16.75%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- NB AMT SOC RESPONSIVE, CL S 2009 2,503 $0.95 to $0.93 $2,360 2.09% 0.85% to 1.45% 30.20% to 29.42% 2008 2,198 $0.73 to $0.72 $1,594 1.94% 0.85% to 1.45% (39.94%) to (40.30%) 2007 1,744 $1.21 to $1.20 $2,109 0.03% 0.85% to 1.45% 6.46% to 5.82% 2006 466 $1.14 to $1.14 $530 -- 0.85% to 1.45% 13.43%(8) to 13.09%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- OPPEN GLOBAL SEC VA, SERV 2009 82,309 $1.33 to $0.98 $101,816 1.98% 0.55% to 1.45% 38.59% to 37.35% 2008 93,206 $0.96 to $0.72 $84,227 1.36% 0.55% to 1.45% (40.66%) to (41.19%) 2007 117,627 $1.62 to $1.22 $181,571 1.15% 0.55% to 1.45% 5.50% to 4.55% 2006 117,612 $1.53 to $1.16 $176,344 0.72% 0.55% to 1.45% 16.72% to 15.87%(8) 2005 72,423 $1.31 to $1.30 $94,587 0.57% 0.55% to 1.20% 13.44% to 12.70% - --------------------------------------------------------------------------------------------------------------------------- OPPEN MAIN ST SM CAP VA, SERV 2009 67,777 $1.18 to $0.88 $73,523 0.65% 0.55% to 1.45% 36.13% to 34.91% 2008 76,585 $0.87 to $0.65 $61,768 0.29% 0.55% to 1.45% (38.34%) to (38.90%) 2007 91,911 $1.41 to $1.07 $121,816 0.15% 0.55% to 1.45% (1.94%) to (2.82%) 2006 81,385 $1.44 to $1.10 $113,492 0.02% 0.55% to 1.45% 14.03% to 8.72%(8) 2005 41,895 $1.26 to $1.24 $52,482 -- 0.55% to 1.20% 9.11% to 8.41% - --------------------------------------------------------------------------------------------------------------------------- OPPEN GLOBAL STRATEGIC INC VA, SERV 2009 2,168,384 $1.27 to $1.14 $2,606,149 0.23% 0.55% to 1.45% 17.76% to 16.70% 2008 2,013,495 $1.08 to $0.98 $2,075,960 4.44% 0.55% to 1.45% (14.95%) to (15.72%) 2007 1,745,768 $1.27 to $1.16 $2,131,138 2.47% 0.55% to 1.45% 8.95% to 7.97% 2006 820,585 $1.16 to $1.08 $936,136 2.90% 0.55% to 1.45% 6.65% to 7.74%(8) 2005 306,977 $1.09 to $1.08 $332,896 1.97% 0.55% to 1.20% 1.92% to 1.26% - --------------------------------------------------------------------------------------------------------------------------- OPPEN VAL VA, SERV 2009 5,240 $0.85 to $0.84 $4,443 0.18% 0.85% to 1.45% 31.45% to 30.66% 2008 4,235 $0.65 to $0.64 $2,737 0.63% 0.85% to 1.45% (42.11%) to (42.46%) 2007 5,116 $1.12 to $1.11 $5,723 0.65% 0.85% to 1.45% 4.80% to 4.17% 2006 370 $1.07 to $1.07 $396 -- 0.85% to 1.45% 6.99%(9) to 6.81%(9) 2005 -- -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
98 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET, ADVISOR CL 2009 1,054,508 $1.13 to $1.13 $1,199,776 6.97% 0.55% to 1.45% 20.76% to 19.68% 2008 1,091,785 $0.94 to $0.94 $1,032,082 6.54% 0.55% to 1.45% (16.37%) to (17.12%) 2007 754,096 $1.12 to $1.14 $855,250 8.20% 0.55% to 1.45% 7.59% to 6.62% 2006 437,682 $1.04 to $1.07 $460,233 9.03% 0.55% to 1.45% 4.65%(7) to 6.59%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- PUT VT GLOBAL HLTH CARE, CL IB 2009 23,153 $1.15 to $1.13 $26,091 11.63% 0.55% to 1.20% 25.31% to 24.50% 2008 27,807 $0.92 to $0.91 $25,092 -- 0.55% to 1.20% (17.52%) to (18.06%) 2007 35,962 $1.11 to $1.11 $39,464 0.83% 0.55% to 1.20% (1.15%) to (1.79%) 2006 46,519 $1.12 to $1.13 $51,796 0.33% 0.55% to 1.20% 2.23% to 1.57% 2005 48,773 $1.10 to $1.11 $53,264 0.05% 0.55% to 1.20% 12.58% to 11.85% - --------------------------------------------------------------------------------------------------------------------------- PUT VT INTL EQ, CL IB 2009 29,798 $1.23 to $1.28 $36,019 -- 0.55% to 1.20% 23.95% to 23.15% 2008 37,947 $0.99 to $1.04 $37,137 2.26% 0.55% to 1.20% (44.26%) to (44.62%) 2007 53,770 $1.78 to $1.87 $94,674 2.89% 0.55% to 1.20% 7.77% to 7.07% 2006 62,626 $1.65 to $1.75 $102,620 0.62% 0.55% to 1.20% 27.02% to 26.20% 2005 68,854 $1.30 to $1.39 $89,094 1.45% 0.55% to 1.20% 11.58% to 10.86% - --------------------------------------------------------------------------------------------------------------------------- PUT VT NEW OPP, CL IA 2009 57,178 $1.24 to $1.24 $71,207 0.70% 1.25% to 1.25% 30.84% to 30.84% 2008 71,705 $0.94 to $0.94 $68,211 0.32% 1.25% to 1.25% (39.38%) to (39.38%) 2007 97,679 $1.56 to $1.56 $153,100 0.18% 1.25% to 1.25% 4.70% to 4.70% 2006 149,236 $1.49 to $1.49 $223,047 0.19% 1.25% to 1.25% 7.48% to 7.48% 2005 206,197 $1.38 to $1.38 $286,496 0.38% 1.25% to 1.25% 8.96% to 8.96% - --------------------------------------------------------------------------------------------------------------------------- PUT VT VISTA, CL IB 2009 37,963 $0.83 to $0.98 $30,948 -- 0.55% to 1.20% 37.99% to 37.09% 2008 46,674 $0.60 to $0.72 $27,628 -- 0.55% to 1.20% (45.84%) to (46.20%) 2007 61,545 $1.11 to $1.33 $67,450 -- 0.55% to 1.20% 3.24% to 2.56% 2006 79,537 $1.08 to $1.30 $84,668 -- 0.55% to 1.20% 4.88% to 4.20% 2005 94,134 $1.03 to $1.24 $95,729 -- 0.55% to 1.20% 11.53% to 10.81% - --------------------------------------------------------------------------------------------------------------------------- ROYCE MICRO-CAP, INVEST CL 2009 20,125 $3.13 to $3.00 $61,288 -- 0.55% to 0.95% 57.18% to 56.55% 2008 24,388 $1.99 to $1.92 $47,373 2.28% 0.55% to 0.95% (43.58%) to (43.81%) 2007 33,734 $3.53 to $3.41 $116,412 1.33% 0.55% to 0.95% 3.41% to 2.99% 2006 40,617 $3.41 to $3.32 $135,983 0.17% 0.55% to 0.95% 20.41% to 19.93% 2005 46,205 $2.83 to $2.76 $128,705 0.53% 0.55% to 0.95% 11.00% to 10.56% - --------------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, AGGR 2009 22,914 $0.87 to $0.86 $20,064 -- 0.55% to 1.45% 23.13% to 22.02% 2008 11,766 $0.70 to $0.71 $8,341 -- 0.55% to 1.45% (29.70%)(12)to (30.12%)(12) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, CONSERV 2009 41,486 $0.98 to $0.96 $40,526 -- 0.55% to 1.45% 16.22% to 15.18% 2008 25,426 $0.84 to $0.84 $21,358 -- 0.55% to 1.45% (16.24%)(12)to (16.74%)(12) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 99
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD 2009 92,895 $0.91 to $0.90 $84,706 -- 0.55% to 1.45% 20.06% to 18.98% 2008 49,366 $0.76 to $0.76 $37,774 -- 0.55% to 1.45% (24.58%)(12)to (25.03%)(12) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD AGGR 2009 54,997 $0.89 to $0.88 $49,630 -- 0.55% to 1.45% 21.52% to 20.44% 2008 33,063 $0.73 to $0.73 $24,461 -- 0.55% to 1.45% (27.03%)(12)to (27.47%)(12) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD CONSERV 2009 54,340 $0.94 to $0.93 $50,887 -- 0.55% to 1.45% 18.27% to 17.21% 2008 25,258 $0.79 to $0.79 $20,078 -- 0.55% to 1.45% (20.96%)(12)to (21.43%)(12) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- VP DAVIS NY VENTURE, CL 3 2009 1,684,963 $0.90 to $0.89 $1,518,919 -- 0.55% to 1.45% 30.61% to 29.44% 2008 917,373 $0.69 to $0.69 $634,861 0.03% 0.55% to 1.45% (38.92%) to (39.47%) 2007 533,475 $1.13 to $1.14 $606,201 1.01% 0.55% to 1.45% 3.27% to 2.34% 2006 338,654 $1.09 to $1.11 $371,272 0.98% 0.55% to 1.45% 8.85%(7) to 10.70%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- VP GS MID CAP VAL, CL 3 2009 11,506 $1.17 to $0.97 $12,879 -- 0.55% to 1.45% 35.88% to 34.66% 2008 13,413 $0.86 to $0.72 $11,161 -- 0.55% to 1.45% (37.03%) to (37.60%) 2007 18,855 $1.37 to $1.15 $25,327 1.03% 0.55% to 1.45% 5.45% to 4.50% 2006 18,510 $1.30 to $1.10 $27,617 2.14% 0.55% to 1.45% 15.18% to 9.42%(8) 2005 18,946 $1.13 to $1.11 $24,577 0.49% 0.55% to 1.20% (0.05%) to (0.69%) - --------------------------------------------------------------------------------------------------------------------------- VP PTNRS SM CAP VAL, CL 3 2009 942,973 $1.68 to $0.95 $1,090,106 -- 0.55% to 1.45% 35.80% to 34.59% 2008 856,114 $1.24 to $0.71 $751,584 0.10% 0.55% to 1.45% (31.95%) to (32.56%) 2007 617,370 $1.82 to $1.05 $846,375 0.89% 0.55% to 1.45% (5.42%) to (6.27%) 2006 271,781 $1.92 to $1.12 $480,085 0.41% 0.55% to 1.45% 19.59% to 10.88%(8) 2005 234,333 $1.61 to $1.49 $370,927 0.21% 0.55% to 1.20% 5.19% to 4.51% - --------------------------------------------------------------------------------------------------------------------------- RVS VP BAL, CL 3 2009 221,592 $1.09 to $0.95 $264,041 -- 0.55% to 1.45% 23.55% to 22.44% 2008 189,680 $0.88 to $0.78 $194,345 0.26% 0.55% to 1.45% (30.30%) to (30.92%) 2007 271,898 $1.26 to $1.13 $399,988 2.84% 0.55% to 1.45% 1.18% to 0.27% 2006 308,699 $1.25 to $1.13 $470,890 2.46% 0.55% to 1.45% 13.76% to 12.16%(8) 2005 360,863 $1.10 to $1.66 $501,036 2.59% 0.55% to 1.25% 3.35% to 2.63% - --------------------------------------------------------------------------------------------------------------------------- RVS VP CASH MGMT, CL 3 2009 554,428 $1.24 to $1.04 $644,738 0.07% 0.55% to 1.45% (0.41%) to (1.28%) 2008 1,121,065 $1.25 to $1.06 $1,315,148 2.24% 0.55% to 1.45% 1.71% to 0.81% 2007 868,750 $1.22 to $1.05 $1,009,165 4.72% 0.55% to 1.45% 4.25% to 3.32% 2006 701,788 $1.17 to $1.02 $794,074 4.44% 0.55% to 1.45% 3.92% to 1.65%(8) 2005 429,069 $1.13 to $1.23 $477,358 2.58% 0.55% to 1.25% 2.05% to 1.34% - ---------------------------------------------------------------------------------------------------------------------------
100 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- RVS VP DIV BOND, CL 3 2009 3,271,423 $1.51 to $1.13 $4,158,300 4.22% 0.55% to 1.45% 13.79% to 12.78% 2008 2,911,692 $1.33 to $1.00 $3,295,541 0.39% 0.55% to 1.45% (6.83%) to (7.66%) 2007 2,530,299 $1.43 to $1.09 $3,134,332 4.75% 0.55% to 1.45% 4.62% to 3.68% 2006 1,441,352 $1.36 to $1.05 $1,832,904 4.39% 0.55% to 1.45% 3.84% to 4.86%(8) 2005 842,520 $1.31 to $1.41 $1,094,933 3.71% 0.55% to 1.25% 1.56% to 0.85% - --------------------------------------------------------------------------------------------------------------------------- RVS VP DIV EQ INC, CL 3 2009 2,438,726 $1.47 to $0.88 $2,726,250 -- 0.55% to 1.45% 26.76% to 25.62% 2008 2,062,785 $1.16 to $0.70 $1,884,808 0.08% 0.55% to 1.45% (40.79%) to (41.32%) 2007 1,615,554 $1.96 to $1.20 $2,710,345 1.57% 0.55% to 1.45% 7.43% to 6.46% 2006 1,286,388 $1.83 to $1.12 $2,199,172 1.41% 0.55% to 1.45% 19.09% to 11.90%(8) 2005 772,974 $1.53 to $1.51 $1,175,707 1.61% 0.55% to 1.20% 12.88% to 12.15% - --------------------------------------------------------------------------------------------------------------------------- RVS VP DYN EQ, CL 3 2009 566,618 $0.70 to $0.81 $452,227 -- 0.55% to 1.45% 23.47% to 22.36% 2008 685,481 $0.57 to $0.67 $447,981 0.24% 0.55% to 1.45% (42.48%) to (43.00%) 2007 908,741 $0.99 to $1.17 $1,044,144 1.30% 0.55% to 1.45% 2.37% to 1.44% 2006 1,149,920 $0.97 to $1.15 $1,327,213 1.16% 0.55% to 1.45% 14.65% to 14.68%(8) 2005 587,040 $0.85 to $1.35 $570,540 1.15% 0.55% to 1.25% 5.59% to 4.86% - --------------------------------------------------------------------------------------------------------------------------- RVS VP GLOBAL BOND, CL 3 2009 1,026,842 $1.72 to $1.20 $1,428,993 1.82% 0.55% to 1.45% 10.77% to 9.78% 2008 950,255 $1.55 to $1.09 $1,219,672 6.92% 0.55% to 1.45% (0.98%) to (1.87%) 2007 852,722 $1.56 to $1.11 $1,133,348 3.68% 0.55% to 1.45% 7.05% to 6.09% 2006 472,738 $1.46 to $1.05 $646,999 3.28% 0.55% to 1.45% 6.15% to 4.85%(8) 2005 331,823 $1.38 to $1.46 $454,346 3.91% 0.55% to 1.25% (5.52%) to (6.17%) - --------------------------------------------------------------------------------------------------------------------------- RVS VP GLOBAL INFLATION PROT SEC, CL 3 2009 1,530,203 $1.20 to $1.14 $1,785,469 8.68% 0.55% to 1.45% 6.25% to 5.30% 2008 658,300 $1.13 to $1.08 $727,423 2.47% 0.55% to 1.45% (0.41%) to (1.30%) 2007 543,695 $1.13 to $1.10 $605,794 2.38% 0.55% to 1.45% 7.34% to 6.37% 2006 420,004 $1.06 to $1.03 $439,332 3.36% 0.55% to 1.45% 0.64% to 3.04%(8) 2005 177,692 $1.05 to $1.04 $186,090 7.05% 0.55% to 1.20% 2.24% to 1.59% - --------------------------------------------------------------------------------------------------------------------------- RVS VP HI YIELD BOND, CL 3 2009 348,000 $1.61 to $1.21 $537,691 10.21% 0.55% to 1.45% 53.01% to 51.64% 2008 373,277 $1.05 to $0.80 $382,399 0.32% 0.55% to 1.45% (25.58%) to (26.25%) 2007 550,625 $1.41 to $1.08 $763,179 7.40% 0.55% to 1.45% 1.29% to 0.38% 2006 649,204 $1.39 to $1.07 $905,546 7.40% 0.55% to 1.45% 10.21% to 7.67%(8) 2005 715,854 $1.26 to $1.39 $919,121 6.46% 0.55% to 1.25% 3.45% to 2.73% - --------------------------------------------------------------------------------------------------------------------------- RVS VP INC OPP, CL 3 2009 1,240,488 $1.34 to $1.21 $1,564,362 4.60% 0.55% to 1.45% 41.61% to 40.35% 2008 643,014 $0.95 to $0.86 $575,938 0.18% 0.55% to 1.45% (19.25%) to (19.98%) 2007 516,836 $1.17 to $1.08 $577,421 6.88% 0.55% to 1.45% 2.08% to 1.16% 2006 309,653 $1.15 to $1.07 $345,710 6.45% 0.55% to 1.45% 7.39% to 6.77%(8) 2005 59,285 $1.07 to $1.06 $63,157 5.94% 0.55% to 1.20% 2.76% to 2.10% - --------------------------------------------------------------------------------------------------------------------------- RVS VP MID CAP GRO, CL 3 2009 114,747 $1.26 to $1.03 $128,719 -- 0.55% to 1.45% 62.51% to 61.06% 2008 114,373 $0.78 to $0.64 $78,655 0.02% 0.55% to 1.45% (45.15%) to (45.64%) 2007 151,418 $1.41 to $1.18 $190,564 0.06% 0.55% to 1.45% 13.11% to 12.09% 2006 200,202 $1.25 to $1.05 $222,008 0.24% 0.55% to 1.45% (0.62%) to 4.74%(8) 2005 87,824 $1.26 to $1.25 $107,722 -- 0.55% to 1.20% 9.52% to 8.81% - ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 101
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- RVS VP MID CAP VAL, CL 3 2009 218,176 $1.15 to $0.89 $220,336 -- 0.55% to 1.45% 40.17% to 38.91% 2008 315,808 $0.82 to $0.64 $227,282 -- 0.55% to 1.45% (45.41%) to (45.90%) 2007 243,624 $1.50 to $1.19 $329,464 0.74% 0.55% to 1.45% 9.75% to 8.76% 2006 273,710 $1.37 to $1.09 $347,533 1.09% 0.55% to 1.45% 14.69% to 8.46%(8) 2005 12,717 $1.20 to $1.19 $17,507 1.13% 0.55% to 1.20% 17.78%(4) to 17.28%(4) - --------------------------------------------------------------------------------------------------------------------------- RVS VP S&P 500, CL 3 2009 181,918 $0.83 to $0.91 $151,756 -- 0.55% to 1.45% 25.31% to 24.18% 2008 200,311 $0.66 to $0.73 $133,680 0.08% 0.55% to 1.45% (37.44%) to (38.00%) 2007 248,360 $1.05 to $1.18 $265,351 1.62% 0.55% to 1.45% 4.44% to 3.50% 2006 269,990 $1.01 to $1.14 $276,643 1.45% 0.55% to 1.45% 14.63% to 13.44%(8) 2005 304,082 $0.88 to $1.13 $272,014 1.40% 0.55% to 1.20% 3.83% to 3.16% - --------------------------------------------------------------------------------------------------------------------------- RVS VP SHORT DURATION, CL 3 2009 275,349 $1.36 to $1.07 $345,899 3.12% 0.55% to 1.45% 4.95% to 4.01% 2008 306,948 $1.30 to $1.02 $371,939 0.13% 0.55% to 1.45% (3.17%) to (4.04%) 2007 272,626 $1.34 to $1.07 $346,116 4.18% 0.55% to 1.45% 4.74% to 3.80% 2006 270,831 $1.28 to $1.03 $331,991 3.80% 0.55% to 1.45% 3.27% to 2.92%(8) 2005 302,534 $1.24 to $1.04 $361,417 2.89% 0.55% to 1.20% 1.02% to 0.37% - --------------------------------------------------------------------------------------------------------------------------- SEL VP GRO, CL 3 2009 263,512 $0.57 to $0.85 $155,168 -- 0.55% to 1.45% 36.24% to 35.02% 2008 326,510 $0.42 to $0.63 $141,102 0.30% 0.55% to 1.45% (44.65%) to (45.15%) 2007 516,489 $0.75 to $1.15 $404,027 1.01% 0.55% to 1.45% 2.50% to 1.58% 2006 590,278 $0.73 to $1.13 $449,154 0.93% 0.55% to 1.45% 10.47% to 13.46%(8) 2005 579,086 $0.67 to $1.05 $398,436 0.39% 0.55% to 1.20% 8.02% to 7.32% - --------------------------------------------------------------------------------------------------------------------------- SEL VP LG CAP VAL, CL 3 2009 13,447 $1.01 to $0.84 $13,058 -- 0.55% to 1.45% 25.43% to 24.31% 2008 11,454 $0.81 to $0.68 $8,932 0.08% 0.55% to 1.45% (39.79%) to (40.33%) 2007 15,712 $1.34 to $1.14 $20,661 1.37% 0.55% to 1.45% (1.01%) to (1.90%) 2006 15,289 $1.35 to $1.16 $24,456 1.26% 0.55% to 1.45% 18.41% to 15.50%(8) 2005 11,470 $1.14 to $1.13 $16,462 1.60% 0.55% to 1.20% 3.96% to 3.29% - --------------------------------------------------------------------------------------------------------------------------- SEL VP SM CAP VAL, CL 3 2009 43,222 $1.44 to $0.86 $59,043 -- 0.55% to 1.45% 39.05% to 37.81% 2008 51,553 $1.04 to $0.63 $51,441 -- 0.55% to 1.45% (38.93%) to (39.48%) 2007 74,285 $1.70 to $1.03 $122,452 0.16% 0.55% to 1.45% (4.71%) to (5.57%) 2006 97,486 $1.79 to $1.09 $170,404 0.04% 0.55% to 1.45% 11.08% to 8.04%(8) 2005 116,136 $1.61 to $1.51 $183,927 -- 0.55% to 1.20% 4.25% to 3.58% - --------------------------------------------------------------------------------------------------------------------------- THDL VP EMER MKTS, CL 3 2009 361,472 $2.31 to $1.43 $657,161 0.37% 0.55% to 1.45% 73.13% to 71.58% 2008 506,028 $1.33 to $0.83 $518,628 0.68% 0.55% to 1.45% (53.96%) to (54.37%) 2007 289,591 $2.90 to $1.82 $695,489 0.59% 0.55% to 1.45% 37.35% to 36.11% 2006 191,857 $2.11 to $1.34 $379,204 0.35% 0.55% to 1.45% 33.17% to 33.82%(8) 2005 134,343 $1.58 to $2.02 $213,076 0.20% 0.55% to 1.20% 33.07% to 32.21% - --------------------------------------------------------------------------------------------------------------------------- THDL VP INTL OPP, CL 3 2009 153,423 $0.96 to $0.96 $163,378 1.56% 0.55% to 1.45% 26.84% to 25.70% 2008 184,146 $0.76 to $0.77 $156,585 2.35% 0.55% to 1.45% (40.76%) to (41.29%) 2007 255,424 $1.28 to $1.30 $370,715 0.99% 0.55% to 1.45% 12.06% to 11.05% 2006 314,505 $1.14 to $1.17 $419,625 1.93% 0.55% to 1.45% 23.49% to 16.79%(8) 2005 335,839 $0.92 to $1.23 $370,645 1.43% 0.55% to 1.25% 13.24% to 12.45% - ---------------------------------------------------------------------------------------------------------------------------
102 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- THIRD AVE VAL 2009 24,897 $2.58 to $2.48 $62,620 -- 0.55% to 0.95% 44.55% to 43.98% 2008 31,931 $1.79 to $1.72 $55,710 0.79% 0.55% to 0.95% (43.97%) to (44.19%) 2007 47,482 $3.19 to $3.08 $148,093 2.12% 0.55% to 0.95% (5.33%) to (5.71%) 2006 57,365 $3.37 to $3.27 $189,566 1.29% 0.55% to 0.95% 15.15% to 14.69% 2005 64,866 $2.92 to $2.85 $186,631 1.31% 0.55% to 0.95% 14.00% to 13.55% - --------------------------------------------------------------------------------------------------------------------------- VANK LIT COMSTOCK, CL II 2009 700,428 $1.09 to $0.87 $681,301 4.57% 0.55% to 1.45% 27.70% to 26.56% 2008 890,312 $0.85 to $0.69 $681,107 2.13% 0.55% to 1.45% (36.15%) to (36.73%) 2007 706,658 $1.34 to $1.09 $869,865 1.54% 0.55% to 1.45% (2.87%) to (3.74%) 2006 615,160 $1.38 to $1.13 $810,354 1.11% 0.55% to 1.45% 15.41% to 12.68%(8) 2005 384,396 $1.19 to $1.18 $456,175 0.49% 0.55% to 1.20% 3.54% to 2.87% - --------------------------------------------------------------------------------------------------------------------------- VANK UIF GLOBAL REAL EST, CL II 2009 299,590 $0.87 to $0.88 $264,522 0.02% 0.55% to 1.45% 40.64% to 39.38% 2008 382,715 $0.62 to $0.63 $241,004 2.66% 0.55% to 1.45% (44.65%) to (45.15%) 2007 179,034 $1.12 to $1.16 $203,382 1.28% 0.55% to 1.45% (8.98%) to (9.80%) 2006 136,442 $1.23 to $1.28 $169,621 4.39% 0.55% to 1.45% 23.57%(7) to 26.94%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- VANK UIF MID CAP GRO, CL II 2009 46,533 $1.00 to $1.06 $47,117 -- 0.55% to 1.45% 56.51% to 55.10% 2008 44,920 $0.64 to $0.68 $29,120 0.77% 0.55% to 1.45% (47.11%) to (47.58%) 2007 38,593 $1.21 to $1.30 $47,493 -- 0.55% to 1.45% 21.94% to 20.84% 2006 98,448 $0.99 to $1.08 $100,352 -- 0.55% to 1.45% (0.22%)(7) to 7.27%(8) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- WANGER INTL 2009 578,944 $2.15 to $1.12 $893,102 3.70% 0.55% to 1.45% 48.96% to 47.63% 2008 486,121 $1.44 to $0.76 $546,084 0.96% 0.55% to 1.45% (45.90%) to (46.39%) 2007 416,770 $2.67 to $1.42 $970,137 0.84% 0.55% to 1.45% 15.67% to 14.63% 2006 392,888 $2.31 to $1.24 $857,316 0.51% 0.55% to 1.45% 36.41% to 22.89%(8) 2005 318,154 $1.69 to $1.98 $539,107 0.86% 0.55% to 1.20% 20.86% to 20.08% - --------------------------------------------------------------------------------------------------------------------------- WANGER USA 2009 573,990 $1.71 to $0.93 $745,596 -- 0.55% to 1.45% 41.45% to 40.18% 2008 572,582 $1.21 to $0.67 $550,276 -- 0.55% to 1.45% (40.02%) to (40.56%) 2007 565,037 $2.01 to $1.12 $973,831 -- 0.55% to 1.45% 4.81% to 3.86% 2006 489,659 $1.92 to $1.08 $890,484 0.23% 0.55% to 1.45% 7.28% to 7.16%(8) 2005 478,752 $1.79 to $1.54 $828,367 -- 0.55% to 1.20% 10.64% to 9.93% - --------------------------------------------------------------------------------------------------------------------------- WF ADV VT INDEX ASSET ALLOC 2009 37,522 $1.12 to $1.12 $41,324 2.02% 0.55% to 1.20% 14.82% to 14.08% 2008 49,869 $0.98 to $0.98 $47,943 2.38% 0.55% to 1.20% (29.50%) to (29.96%) 2007 72,214 $1.38 to $1.40 $98,669 2.24% 0.55% to 1.20% 7.00% to 6.31% 2006 76,000 $1.29 to $1.32 $97,390 2.31% 0.55% to 1.20% 11.53% to 10.81% 2005 84,219 $1.16 to $1.19 $96,853 2.09% 0.55% to 1.20% 4.41% to 3.74% - --------------------------------------------------------------------------------------------------------------------------- WF ADV VT INTL CORE 2009 8,059 $0.91 to $1.02 $7,251 3.04% 0.55% to 1.20% 12.04% to 11.31% 2008 9,680 $0.81 to $0.91 $7,814 1.96% 0.55% to 1.20% (43.72%) to (44.09%) 2007 13,828 $1.45 to $1.63 $19,886 0.01% 0.55% to 1.20% 12.05% to 11.32% 2006 15,404 $1.29 to $1.47 $19,827 1.61% 0.55% to 1.20% 20.15% to 19.37% 2005 17,549 $1.07 to $1.23 $18,913 1.88% 0.55% to 1.20% 9.07% to 8.37% - ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 103
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- WF ADV VT OPP 2009 38,816 $1.28 to $1.00 $47,589 -- 0.55% to 1.45% 46.93% to 45.61% 2008 45,514 $0.87 to $0.69 $38,279 1.90% 0.55% to 1.45% (40.43%) to (40.96%) 2007 60,060 $1.46 to $1.17 $85,505 0.59% 0.55% to 1.45% 6.05% to 5.09% 2006 68,746 $1.38 to $1.11 $93,493 -- 0.55% to 1.45% 11.61% to 10.85%(8) 2005 78,280 $1.23 to $1.25 $95,962 -- 0.55% to 1.20% 7.22% to 6.52% - --------------------------------------------------------------------------------------------------------------------------- WF ADV VT SM CAP GRO 2009 72,341 $1.20 to $1.11 $84,640 -- 0.55% to 1.45% 51.81% to 50.45% 2008 65,403 $0.79 to $0.74 $50,668 -- 0.55% to 1.45% (41.74%) to (42.27%) 2007 75,619 $1.35 to $1.28 $100,984 -- 0.55% to 1.45% 13.18% to 12.16% 2006 50,566 $1.20 to $1.14 $60,201 -- 0.55% to 1.45% 22.08% to 12.91%(8) 2005 38,139 $0.98 to $1.10 $37,471 -- 0.55% to 1.20% 5.66% to 4.98% - ---------------------------------------------------------------------------------------------------------------------------
(1) These amounts represent the dividends, excluding distributions of capital gains, received by the division from the underlying fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude variable account expenses that result in direct reductions in the unit values. The recognition of investment income by the division is affected by the timing of the declaration of dividends by the underlying fund in which the division invests. These ratios are annualized for periods less than one year. (2) These ratios represent the annualized contract expenses of the separate account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund are excluded. (3) These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. Although the total return is presented as a range of minimum to maximum values, based on the subaccounts representing the minimum and maximum expense ratio amounts, some individual subaccount total returns are not within the ranges presented due to the introduction of new subaccounts during the year and other market factors. (4) New subaccount operations commenced on May 2, 2005. (5) New subaccount operations commenced on Nov. 1, 2005. (6) New subaccount operations commenced on April 28, 2006. (7) New subaccount operations commenced on May 1, 2006. (8) New subaccount operations commenced on June 26, 2006. (9) New subaccount operations commenced on Sept. 15, 2006. (10) New subaccount operations commenced on April 27, 2007. (11) New subaccount operations commenced on May 1, 2007. (12) New subaccount operations commenced on May 1, 2008. (13) New subaccount operations commenced on Oct. 2, 2009. 104 RIVERSOURCE VARIABLE ACCOUNT 10 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS RIVERSOURCE LIFE INSURANCE COMPANY We have audited the accompanying consolidated balance sheets of RiverSource Life Insurance Company, (a wholly owned subsidiary of Ameriprise Financial, Inc.) (the Company) as of December 31, 2009 and 2008, and the related consolidated statements of income, shareholder's equity, and cash flows for each of the three years in the period ended December 31, 2009. These financial statements are the responsibility of RiverSource Life Insurance 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 the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and 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 consolidated financial position of RiverSource Life Insurance Company at December 31, 2009 and 2008, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles. As discussed in Note 3 to the consolidated financial statements, in 2009 the Company adopted new accounting guidance related to the recognition and presentation of other-than-temporary impairments. Also, in 2008, the Company adopted new accounting guidance related to the measurement of fair value and in 2007, the Company adopted new guidance related to the accounting for uncertainty in income taxes as well as new guidance related to accounting for deferred acquisition costs in connection with modifications or exchanges of insurance and annuity contracts. /s/ Ernst & Young LLP Minneapolis, Minnesota February 23, 2010 F-1 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS (IN MILLIONS, EXCEPT SHARE AMOUNTS)
DECEMBER 31, 2009 2008 ASSETS Investments: Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2009, $25,142; 2008, $19,452) $25,999 $18,070 Common and preferred stocks, at fair value (cost: 2009 and 2008, $30) 23 16 Commercial mortgage loans, at cost (less allowance for loan losses: 2009, $30; 2008, $17) 2,532 2,737 Policy loans 715 722 Trading securities and other investments 310 452 - ------------------------------------------------------------------------------------------------- Total investments 29,579 21,997 Cash and cash equivalents 811 3,307 Restricted cash 184 -- Reinsurance recoverables 1,688 1,592 Deferred income taxes, net 63 599 Other receivables 332 102 Accrued investment income 303 239 Deferred acquisition costs 4,285 4,324 Deferred sales inducement costs 524 518 Other assets 936 2,658 Separate account assets 54,267 41,787 - ------------------------------------------------------------------------------------------------- Total assets $92,972 $77,123 ================================================================================================= LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities: Future policy benefits $30,383 $28,753 Policy claims and other policyholders' funds 123 172 Line of credit with Ameriprise Financial, Inc. 300 -- Other liabilities 1,955 2,672 Separate account liabilities 54,267 41,787 - ------------------------------------------------------------------------------------------------- Total liabilities 87,028 73,384 - ------------------------------------------------------------------------------------------------- Shareholder's equity: Common stock, $30 par value; 100,000 shares authorized, issued and outstanding 3 3 Additional paid-in capital 2,445 2,116 Retained earnings 3,114 2,336 Accumulated other comprehensive income (loss), net of tax 382 (716) - ------------------------------------------------------------------------------------------------- Total shareholder's equity 5,944 3,739 - ------------------------------------------------------------------------------------------------- Total liabilities and shareholder's equity $92,972 $77,123 =================================================================================================
See Notes to Consolidated Financial Statements. F-2 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2009 2008 2007 REVENUES Premiums $ 450 $ 438 $ 439 Net investment income 1,526 1,252 1,424 Policy and contract charges 1,156 1,352 1,217 Other revenues 233 255 255 Net realized investment gains (losses) 59 (442) 61 - ------------------------------------------------------------------------------------------------------- Total revenues 3,424 2,855 3,396 - ------------------------------------------------------------------------------------------------------- BENEFITS AND EXPENSES Benefits, claims, losses and settlement expenses 841 673 760 Interest credited to fixed accounts 903 790 847 Amortization of deferred acquisition costs 145 861 470 Separation costs -- -- 97 Other insurance and operating expenses 550 649 735 - ------------------------------------------------------------------------------------------------------- Total benefits and expenses 2,439 2,973 2,909 - ------------------------------------------------------------------------------------------------------- Pretax income (loss) 985 (118) 487 Income tax provision (benefit) 245 (189) 53 - ------------------------------------------------------------------------------------------------------- Net income $ 740 $ 71 $ 434 ======================================================================================================= Supplemental Disclosures: Net realized investment gains (losses): Net realized investment gains before impairment losses on securities $ 121 - ------------------------------------------------------------------------------------------------------- Total other-than-temporary impairment losses on securities (53) Portion of loss recognized in other comprehensive income (9) - ------------------------------------------------------------------------------------------------------- Net impairment losses recognized in net realized investment gains (losses) (62) - ------------------------------------------------------------------------------------------------------- Net realized investment gains (losses) $ 59 =======================================================================================================
See Notes to Consolidated Financial Statements. F-3 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2009 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 740 $ 71 $ 434 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Capitalization of deferred acquisition and deferred sales inducement costs (640) (674) (823) Amortization of deferred acquisition and deferred sales inducement costs 155 982 523 Depreciation, amortization and accretion, net (68) 61 71 Deferred income tax (benefit) expense (81) (234) 83 Contractholder and policyholder charges, non-cash (259) (248) (206) Net realized investment gains (135) (7) (44) Other-than-temporary impairments and provision for loan losses recognized in net realized investment (gains) losses 76 449 (17) Change in operating assets and liabilities: Trading securities and equity method investments, net 136 (110) 166 Future policy benefits for traditional life, disability income and long term care insurance 282 308 275 Policy claims and other policyholders' funds (49) 81 2 Reinsurance recoverables (96) (302) (153) Other receivables (5) 20 (28) Accrued investment income (64) 14 49 Derivatives collateral, net (1,928) 1,591 242 Other assets and liabilities, net 670 23 (226) - ------------------------------------------------------------------------------------------------------- Net cash provided by (used in) operating activities (1,266) 2,025 348 - ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Available-for-Sale securities: Proceeds from sales 5,215 246 3,020 Maturities, sinking fund payments and calls 3,486 2,510 1,908 Purchases (13,696) (1,684) (677) Proceeds from sales and maturities of commercial mortgage loans 279 263 424 Funding of commercial mortgage loans (104) (110) (504) Proceeds from sales of other investments 43 19 49 Purchases of other investments (11) (140) -- Change in policy loans, net 7 (25) (47) - ------------------------------------------------------------------------------------------------------- Net cash provided by (used in) investing activities (4,781) 1,079 4,173 - ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Policyholder and contractholder account values: Considerations received 4,863 2,913 1,093 Net transfers from (to) separate accounts 195 91 (50) Surrenders and other benefits (1,923) (2,931) (3,838) Proceeds from line of credit with Ameriprise Financial, Inc. 500 -- -- Deferred premium options, net (82) (77) (8) Tax adjustment on share-based incentive compensation plan (2) 2 2 Cash dividend to Ameriprise Financial, Inc. -- (775) (900) - ------------------------------------------------------------------------------------------------------- Net cash provided by (used in) financing activities 3,551 (777) (3,701) - ------------------------------------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents (2,496) 2,327 820 Cash and cash equivalents at beginning of year 3,307 980 160 - ------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of year $ 811 $ 3,307 $ 980 ======================================================================================================= Supplemental Disclosures: Income taxes paid (received), net $ 72 $ 168 $ (4) Interest paid on borrowings 1 -- -- Non-cash transactions: Capital contributions from Ameriprise Financial, Inc. $ 331 $ 322 $ 8
See Notes to Consolidated Financial Statements. F-4 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY THREE YEARS ENDED DECEMBER 31, 2009 (IN MILLIONS)
ACCUMULATED ADDITIONAL OTHER COMMON PAID-IN RETAINED COMPREHENSIVE STOCK CAPITAL EARNINGS INCOME (LOSS) TOTAL - ------------------------------------------------------------------------------------------------------------------- BALANCES AT JANUARY 1, 2007 $ 3 $2,021 $3,788 $ (209) $5,603 Change in accounting principles, net of tax -- -- (134) -- (134) Comprehensive income: Net income -- -- 434 -- 434 Other comprehensive income, net of tax: Change in net unrealized securities losses -- -- -- 52 52 Change in net unrealized derivative losses -- -- -- 1 1 ------------ Total comprehensive income 487 Tax adjustment on share-based incentive compensation plan -- 2 -- -- 2 Cash dividends to Ameriprise Financial, Inc. -- -- (900) -- (900) Non-cash capital contribution from Ameriprise Financial, Inc. -- 8 -- -- 8 - ------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2007 $ 3 $2,031 $3,188 $ (156) $5,066 Change in accounting principles, net of tax -- -- (30) -- (30) Comprehensive income: Net income -- -- 71 -- 71 Other comprehensive income (loss), net of tax: Change in net unrealized securities losses -- -- -- (562) (562) Change in net unrealized derivative losses -- -- -- 2 2 ------------ Total comprehensive loss (489) Tax adjustment on share-based incentive compensation plan -- 2 -- -- 2 Cash dividends to Ameriprise Financial, Inc. -- -- (775) -- (775) Non-cash capital contribution from Ameriprise Financial, Inc. -- 83 -- -- 83 Non-cash dividend to Ameriprise Financial, Inc. -- -- (118) -- (118) - ------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2008 $ 3 $2,116 $2,336 $ (716) $3,739 Change in accounting principles, net of tax -- -- 38 (38) -- Comprehensive income: Net income -- -- 740 -- 740 Other comprehensive income, net of tax: Change in net unrealized securities losses -- -- -- 1,109 1,109 Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities -- -- -- 23 23 Change in net unrealized derivative losses -- -- -- 4 4 ------------ Total comprehensive income 1,876 Tax adjustment on share-based incentive compensation plan -- (2) -- -- (2) Non-cash capital contribution from Ameriprise Financial, Inc. -- 331 -- -- 331 - ------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2009 $ 3 $2,445 $3,114 $ 382 $5,944 ===================================================================================================================
See Notes to Consolidated Financial Statements. F-5 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION Nature of Business RiverSource Life Insurance Company is a stock life insurance company with one wholly owned operating subsidiary, RiverSource Life Insurance Co. of New York ("RiverSource Life of NY"). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. ("Ameriprise Financial"). - - RiverSource Life Insurance Company is domiciled in Minnesota and holds Certificates of Authority in American Samoa, the District of Columbia and all states except New York. RiverSource Life Insurance Company issues insurance and annuity products. - - RiverSource Life of NY is a stock life insurance company domiciled in New York, which holds Certificates of Authority in New York, North Dakota and Delaware. RiverSource Life of NY issues insurance and annuity products. On December 31, 2008, Ameriprise Financial contributed all of the issued and outstanding shares of RiverSource Tax Advantaged Investments, Inc. ("RTA") to RiverSource Life Insurance Company. RTA is domiciled in Delaware and is a limited partner in affordable housing partnership investments. RiverSource Life Insurance Company and its subsidiaries are referred to collectively in these notes as "RiverSource Life". Ameriprise Financial was formerly a wholly owned subsidiary of American Express Company ("American Express"). On February 1, 2005, the American Express Board of Directors announced its intention to pursue the disposition of 100% of its shareholdings in Ameriprise Financial (the "Separation") through a tax-free distribution to American Express shareholders. Effective as of the close of business on September 30, 2005, American Express completed the Separation and the distribution of Ameriprise Financial common shares to American Express shareholders (the "Distribution"). In connection with the Distribution, Ameriprise Financial entered into certain agreements with American Express to effect the Separation and to define the responsibility for obligations arising before and after the date of the Distribution, including, among others, obligations relating to transition services, taxes, and employees. Through 2007, RiverSource Life was allocated certain expenses incurred as a result of Ameriprise Financial becoming an independent company. The separation from American Express was completed in 2007. RiverSource Life's principal products are variable deferred annuities and variable universal life insurance which are issued primarily to individuals. It also offers fixed annuities where assets accumulate until the contract is surrendered, the contractholder (or in some contracts, the annuitant) dies, or the contractholder or annuitant begins receiving benefits under an annuity payout option. It also offers immediate annuities in which payments begin within one year of issue and continue for life or for a fixed period of time. RiverSource Life's fixed deferred annuities guarantee a relatively low annual interest rate during the accumulation period (the time before annuity payments begin). However, RiverSource Life has the option of paying a higher rate set at its discretion. In addition, persons owning an equity indexed annuity may have their interest calculated based on an increase in a broad-based stock market index. RiverSource Life issues both variable and fixed universal life insurance, traditional life insurance and disability income ("DI") insurance. Universal life insurance is a form of permanent life insurance characterized by flexible premiums, flexible death benefit amounts and unbundled pricing factors (i.e., mortality, interest and expenses). Traditional life insurance refers to whole and term life insurance policies that pay a specified sum to a beneficiary upon death of the insured for a fixed premium. Variable universal life insurance combines the premium and death benefit flexibility of universal life with underlying fund investment flexibility and the risks associated therewith. Waiver of premium and accidental death benefit riders are generally available with these life insurance products. RiverSource Life issues only non- participating life insurance policies which do not pay dividends to policyholders from realized policy margins. Under RiverSource Life's variable life insurance and variable annuity products described above, the purchaser may choose among investment options that include RiverSource Life's "general account" as well as from a variety of portfolios including common stocks, bonds, managed assets and/or short-term securities. Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and its wholly owned subsidiaries, RiverSource Life of NY and RTA. RiverSource Life evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through February 23, 2010, the date the financial statements were issued. RECLASSIFICATIONS The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP") which vary in certain respects from reporting practices prescribed or permitted by state insurance F-6 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- regulatory authorities as described in Note 13. Certain reclassifications of prior year amounts have been made to conform to the current presentation. In the first quarter of 2009, RiverSource Life reclassified reinsurance allowances for coinsurance contracts for traditional life and long term care insurance from premiums to other insurance and operating expenses to net with the associated expenses. The following table shows the impact of the reclassification of the reinsurance allowances made to RiverSource Life's previously reported Consolidated Statements of Income.
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, 2008 2007 ------------------------------------------------------ PREVIOUSLY PREVIOUSLY (IN MILLIONS) REPORTED RECLASSIFIED REPORTED RECLASSIFIED - ------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 481 $ 438 $ 485 $ 439 Net investment income 1,252 1,252 1,424 1,424 Policy and contract charges 1,352 1,352 1,217 1,217 Other revenue 255 255 255 255 Net realized investment gain (442) (442) 61 61 - ------------------------------------------------------------------------------------------------------------- Total revenues 2,898 2,855 3,442 3,396 - ------------------------------------------------------------------------------------------------------------- BENEFITS AND EXPENSES Benefits, claims, losses and settlement expenses 673 673 760 760 Interest credited to fixed accounts 790 790 847 847 Amortization of deferred acquisition costs 861 861 470 470 Separation costs -- -- 97 97 Other insurance and operating expenses 692 649 781 735 - ------------------------------------------------------------------------------------------------------------- Total benefits and expenses 3,016 2,973 2,955 2,909 - ------------------------------------------------------------------------------------------------------------- Pretax income (118) (118) 487 487 Income tax provision (189) (189) 53 53 - ------------------------------------------------------------------------------------------------------------- NET INCOME $ 71 $ 71 $ 434 $ 434 =============================================================================================================
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION RiverSource Life consolidates all entities in which it holds a greater than 50% voting interest or when certain conditions are met for variable interest entities ("VIEs") and limited partnerships, except for immaterial seed money investments in separate accounts, which are accounted for as trading securities. Entities in which RiverSource Life holds a greater than 20% but less than 50% voting interest are accounted for under the equity method. Additionally, other investments in which RiverSource Life holds an interest that is less than 50% are accounted for under the equity method. All other investments that are not reported at fair value as Available-for-Sale or trading securities are accounted for under the cost method where RiverSource Life owns less than a 20% voting interest and does not exercise significant influence. Generally, a VIE is a corporation, partnership, trust or any other legal structure that either does not have equity investors with substantive voting rights or has equity investors that do not provide sufficient financial resources for the entity to support its activities. To determine whether RiverSource Life must consolidate a VIE, it analyzes the design of the VIE to identify the variable interests it holds. Then RiverSource Life quantitatively determines whether its variable interests will absorb a majority of the VIE's variability. If RiverSource Life determines it will absorb a majority of the VIE's expected variability, RiverSource Life consolidates the VIE and is referred to as the primary beneficiary. The calculation of variability is based on an analysis of projected probability-weighted cash flows based on the design of the particular VIE. All material intercompany transactions and balances between and among RiverSource Life and its subsidiaries have been eliminated in consolidation. AMOUNTS BASED ON ESTIMATES AND ASSUMPTIONS Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, valuation of deferred acquisition costs ("DAC") and the corresponding recognition of DAC amortization, derivative instruments and hedging activities, claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. F-7 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- INVESTMENTS Investments consist of the following: Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (loss), net of income tax provision (benefit) and net of adjustments in other asset and liability balances, such as DAC, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet date. Gains and losses are recognized in the Consolidated Statements of Income upon disposition of the securities. Effective January 1, 2009, RiverSource Life early adopted an accounting standard that significantly changed RiverSource Life's accounting policy regarding the timing and amount of other-than-temporary impairments for Available-for-Sale securities. When the fair value of an investment is less than its amortized cost, RiverSource Life assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not RiverSource Life will be required to sell the security before its anticipated recovery. If either of these conditions is met, an other-than-temporary impairment is considered to have occurred and RiverSource Life must recognize an other-than-temporary impairment for the difference between the investment's amortized cost basis and its fair value through earnings. For securities that do not meet the above criteria and RiverSource Life does not expect to recover a security's amortized cost basis, the security is also considered other-than- temporarily impaired. For these securities, RiverSource Life separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairments related to credit loss is recognized in earnings. The amount of the total other-than- temporary impairments related to other factors is recognized in other comprehensive income (loss), net of impacts to DAC, deferred sales inducement costs ("DSIC"), certain benefit reserves and income taxes. For Available-for- Sale securities that have recognized an other-than-temporary impairment through earnings, if through subsequent evaluation there is a significant increase in the cash flow expected, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in other comprehensive income (loss). RiverSource Life's Consolidated Statements of Shareholder's Equity present all changes in other comprehensive income (loss) associated with Available-for-Sale debt securities that have been other-than-temporarily impaired on a separate line from fair value changes recorded in other comprehensive income (loss) from all other securities. RiverSource Life provides a supplemental disclosure on the face of its Consolidated Statements of Income that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other- than-temporary impairment losses recognized in other comprehensive income (loss). The sum of these amounts represents the credit-related portion of other- than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in other comprehensive income (loss) includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Income as the portion of other-than-temporary losses recognized in other comprehensive income (loss) excludes subsequent increases and decreases in the fair value of these securities. For all securities that are considered temporarily impaired, RiverSource Life does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that RiverSource Life will be required to sell the security before recovery of its amortized cost basis. RiverSource Life believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired. Factors RiverSource Life considers in determining whether declines in the fair value of fixed-maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security's effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and RiverSource Life's position in the debtor's overall capital structure. For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities, asset backed securities and other structured investments), RiverSource Life also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. F-8 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Based upon these factors, securities that have indicators of potential other- than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be carefully monitored by management. For the year ended December 31, 2009, certain non- agency residential mortgage backed securities were deemed other-than-temporarily impaired. Generally, the credit loss component for the non-agency residential mortgage backed securities is determined as the amount the amortized cost basis exceeds the present value of the projected cash flows expected to be collected. Significant inputs considered in these projections are consistent with the factors considered in assessing potential other-than-temporary impairment for these investments. Current contractual interest rates considered in these cash flow projections are used to calculate the discount rate used to determine the present value of the expected cash flows. Commercial Mortgage Loans, Net Commercial mortgage loans, net, reflect principal amounts outstanding less the allowance for loan losses. The allowance for loan losses is primarily based on RiverSource Life's past loan loss experience, known and inherent risks in the portfolio, composition of the loan portfolio, current economic conditions, and other relevant factors. Loans in this portfolio are generally smaller balance and homogeneous in nature and accordingly RiverSource Life follows accounting guidance on contingencies when establishing necessary reserves for losses inherent in the portfolio. For larger balance or restructured loans that are collateral dependent, the allowance is based on the fair value of collateral. Management regularly evaluates the adequacy of the allowance for loan losses and believes it is adequate to absorb estimated losses in the portfolio. RiverSource Life generally stops accruing interest on commercial mortgage loans for which interest payments are delinquent more than three months. Based on management's judgment as to the ultimate collectability of principal, interest payments received are either recognized as income or applied to the recorded investment in the loan. Policy Loans Policy loans include life insurance policy and annuity loans. These loans are carried at the aggregate of the unpaid loan balances, which do not exceed the cash surrender values of underlying products, plus accrued interest. Trading Securities and Other Investments Included in trading securities and other investments are separate account and mutual fund seed money, equity method investments, trading bonds, interests in affordable housing partnerships and below investment grade syndicated bank loans. Separate account and mutual fund seed money is carried at fair value with changes in value recognized within net investment income. Affordable housing partnerships are accounted for under the equity method. Below investment grade syndicated bank loans reflect amortized cost less allowance for losses. CASH AND CASH EQUIVALENTS Cash equivalents include highly liquid investments with original maturities of 90 days or less. RESTRICTED CASH Total restricted cash at December 31, 2009 and 2008 was $184 million and nil, respectively, consisting of cash that is pledged to counterparties. REINSURANCE RiverSource Life cedes significant amounts of insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Traditional life, long term care ("LTC") and DI reinsurance premium, net of the change in any prepaid reinsurance asset, is reported as a reduction of premiums. Fixed and variable universal life reinsurance premium is reported as a reduction of policy and contract charges. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses. Insurance liabilities are reported before the effects of reinsurance. Future policy benefits and policy claims and other policyholders' funds recoverable under reinsurance contracts are recorded as reinsurance recoverables. RiverSource Life also assumes life insurance and fixed annuity business from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within future policy benefits. See Note 7 for additional information on reinsurance. LAND, BUILDINGS, EQUIPMENT AND SOFTWARE Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. RiverSource Life generally uses the straight-line method of depreciation and F-9 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- amortization over periods ranging from three to 30 years. During 2009, RiverSource Life received a non-cash capital contribution of $131 million comprised of two buildings and the related land from Ameriprise Financial. At December 31, 2009 and 2008, land, buildings, equipment and software were $190 million and $43 million, respectively, net of accumulated depreciation of $52 million and $9 million, respectively. Depreciation and amortization expense for the years ended December 31, 2009, 2008 and 2007 was $8 million, $5 million and $1 million, respectively. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. See Note 11 for information regarding RiverSource Life's fair value measurement of derivative instruments. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. RiverSource Life primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. RiverSource Life occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments ("fair value hedges") or (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedges"). RiverSource Life's policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. For derivative instruments that do not qualify for hedge accounting or are not designated as hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Income based on the nature and use of the instrument. Changes in derivatives used as economic hedges are presented in the Consolidated Statements of Income with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as of the hedged risk within the corresponding hedged assets, liabilities or firm commitments, are recognized in current earnings. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative instruments that qualify as cash flow hedges, the effective portions of the gain or loss on the derivative instruments are reported in accumulated other comprehensive income (loss) and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported currently in earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income (loss) is recognized into earnings over the period that the hedged item impacts earnings. For any hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income (loss) are recognized in earnings immediately. See Note 15 for information regarding the impact of derivatives on the Consolidated Statements of Income. Derivative instruments that are entered into for hedging purposes are designated as such at the time RiverSource Life enters into the contract. For all derivative instruments that are designated for hedging activities, RiverSource Life formally documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also formally documents its risk management objectives and strategies for entering into the hedge transactions. RiverSource Life formally assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, RiverSource Life will discontinue the application of hedge accounting. The equity component of equity indexed annuity obligations is considered an embedded derivative. Additionally, certain annuities contain guaranteed minimum accumulation benefit ("GMAB") and guaranteed minimum withdrawal benefit ("GMWB") provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. The fair value of embedded derivatives associated with annuities is included in future policy benefits. The change in the fair value of the equity indexed annuity embedded derivatives is reflected in the interest credited to fixed accounts. The changes in the fair value of the GMWB and GMAB embedded derivatives are reflected in benefits, claims, losses and settlement expenses. DEFERRED ACQUISITION COSTS DAC represents the cost of acquiring new business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity and insurance products. These costs are deferred to the extent they are recoverable from future profits or premiums. The DAC associated with insurance or annuity contracts that are F-10 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. Direct sales commissions and other costs deferred as DAC is amortized over time. For annuity and universal life ("UL") contracts, DAC is amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC is generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For annuity and UL insurance products, the assumptions made in projecting future results and calculating the DAC balance and DAC amortization expense are management's best estimates. Management is required to update these assumptions whenever it appears that, based on actual experience or other evidence, earlier estimates should be revised. When assumptions are changed, the percentage of estimated gross profits used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. For other life, DI and LTC insurance products, the assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and therefore are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC is not recoverable. If management concludes that DAC is not recoverable, DAC is reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in RiverSource Life's Consolidated Statements of Income. For annuity, life, DI and LTC insurance products, key assumptions underlying these long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality and morbidity rates and the rates at which policyholders are expected to surrender their contracts, make withdrawals from their contracts and make additional deposits to their contracts. Assumptions about earned and credited interest rates are the primary factors used to project interest margins, while assumptions about equity and bond market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make assumptions to project maintenance expenses associated with servicing its annuity and insurance businesses during the DAC amortization period. The client asset value growth rates are the rates at which variable annuity and variable universal life ("VUL") insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. RiverSource Life typically uses a five-year mean reversion process as a guideline in setting near-term equity asset growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term growth rate is reviewed to ensure consistency with management's assessment of anticipated equity market performance. In 2009, management continued to follow the mean reversion process, decreasing near-term equity asset growth rates to reflect the positive market. DAC amortization expense recorded in a period when client asset value growth rates exceed management's near-term estimate will typically be less than in a period when growth rates fall short of management's near-term estimate. RiverSource Life monitors other principal DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin and maintenance expense levels each quarter and, when assessed independently, each could impact RiverSource Life's DAC balances. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless management identifies a significant deviation over the course of its quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. DEFERRED SALES INDUCEMENT COSTS DSIC consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. The amortization of DSIC is recorded in benefits, claims, losses and settlement expenses. F-11 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- SEPARATE ACCOUNT ASSETS AND LIABILITIES Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable annuity contractholders and variable life insurance policyholders. RiverSource Life receives mortality and expense risk and other fees, guarantee fees and cost of insurance charges from the related accounts. FUTURE POLICY BENEFITS AND POLICY CLAIMS AND OTHER POLICYHOLDERS' FUNDS Fixed Annuities and Variable Annuity Guarantees Future policy benefits and policy claims and other policyholders' funds related to fixed annuities and variable annuity guarantees include liabilities for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout status. Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. The majority of the variable annuity contracts offered by RiverSource Life contain guaranteed minimum death benefit ("GMDB") provisions. When market values of the customer's accounts decline, the death benefit payable on a contract with a GMDB may exceed the contract accumulation value. RiverSource Life also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up ("GGU") benefits. In addition, RiverSource Life offers contracts containing GMWB and GMAB provisions and, until May 2007, RiverSource Life offered contracts containing guaranteed minimum income benefit ("GMIB") provisions. In determining the liabilities for GMDB, GMIB and the life contingent benefits associated with GMWB, RiverSource Life projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated meaningful life based on expected assessments. The embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions are recorded at fair value. See Note 11 for information regarding the fair value measurement of embedded derivatives. The liability for the life contingent benefits associated with GMWB provisions is determined in the same way as the GMDB liability. The changes in both the fair values of the GMWB and GMAB embedded derivatives and the liability for life contingent benefits are reflected in benefits, claims, losses and settlement expenses. Liabilities for equity indexed annuities are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates, ranging from 4.6% to 9.5% at December 31, 2009, depending on year of issue, with an average rate of approximately 5.7%. Life, Disability Income and Long Term Care Insurance Future policy benefits and policy claims and other policyholders' funds related to life, DI and LTC insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI and LTC policies as claims are incurred in the future. Liabilities for fixed account values on fixed and variable universal life insurance are equal to accumulation values. Accumulation values are the cumulative gross deposits and credited interest less various contractual expense and mortality charges and less amounts withdrawn by policyholders. F-12 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported DI and LTC claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These amounts are calculated based on claim continuance tables which estimate the likelihood an individual will continue to be eligible for benefits. Present values are calculated at interest rates established when claims are incurred. Anticipated claim continuance rates are based on established industry tables, adjusted as appropriate for RiverSource Life's experience. Interest rates used with DI claims ranged from 3.0% to 8.0% at December 31, 2009, with an average rate of 4.7%. Interest rates used with LTC claims ranged from 4.0% to 7.0% at December 31, 2009, with an average rate of 4.1%. Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported. Liabilities for estimates of benefits that will become payable on future claims on term life, whole life, DI and LTC policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on RiverSource Life's experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. Anticipated interest rates for term and whole life ranged from 4.0% to 10.0% at December 31, 2009, depending on policy form, issue year and policy duration. Anticipated interest rates for DI vary by plan and were 7.5% and 6.0% at policy issue grading to 5.0% over five years and 4.5% over 20 years, respectively. Anticipated interest rates for LTC policy reserves can vary by plan and year and ranged from 5.8% to 9.4% at December 31, 2009. Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverables. SOURCES OF REVENUE RiverSource Life's principal sources of revenue include premium revenues, net investment income and policy and contract charges. Premium Revenues Premium revenues include premiums on traditional life, DI and LTC insurance products and immediate annuities with a life contingent feature. Premiums on traditional life, DI and LTC insurance are net of reinsurance ceded and are recognized as revenue when due. Net Investment Income Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, commercial mortgage loans and policy loans, other investments and cash and cash equivalents; the changes in fair value of trading securities and certain derivatives; and the pro-rata share of net income or loss on equity method investments. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale and commercial mortgage loans so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. Policy and Contract Charges Policy and contract charges include mortality and expense risk fees and certain charges assessed on annuities and fixed and variable universal life insurance, such as cost of insurance, net of reinsurance premiums for universal life insurance products, and administrative and surrender charges. Mortality and expense risk fees include risk, management and administration fees, which are generated directly and indirectly from RiverSource Life's separate account assets. Cost of insurance charges on fixed and variable universal life insurance and contract charges and surrender charges on annuities and universal and variable universal life insurance are recognized as revenue when collected. Net Realized Investment Gains (Losses) Realized gains and losses on the sale of securities are recognized using the specific identification method, on a trade date basis, and charges for investments determined to be other-than-temporarily impaired and related to credit losses. OTHER INSURANCE AND OPERATING EXPENSES Other insurance and operating expenses primarily include expenses allocated to RiverSource Life from its parent, Ameriprise Financial, for RiverSource Life's share of compensation, professional and consultant fees and expenses associated with information technology and communications, facilities and equipment, advertising and promotion and legal and regulatory costs. F-13 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- INCOME TAXES As a result of the Separation of Ameriprise Financial from American Express, RiverSource Life will not be able to file a consolidated U.S. federal income tax return with other members of Ameriprise Financial's affiliated group until 2010. RiverSource Life's provision for income taxes represents the net amount of income taxes that it expects to pay or to receive from various taxing jurisdictions in connection with its operations. RiverSource Life provides for income taxes based on amounts that it believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items. In connection with the provision for income taxes, the consolidated financial statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. Among RiverSource Life's deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. RiverSource Life is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. 3. RECENT ACCOUNTING PRONOUNCEMENTS ADOPTION OF NEW ACCOUNTING STANDARDS Accounting and Reporting for Decreases in Ownership of a Subsidiary In January 2010, the Financial Accounting Standards Board ("FASB") updated the accounting standards to clarify the accounting and disclosure requirements for changes in the ownership percentage of a subsidiary. The additional disclosures primarily relate to instances when a subsidiary is deconsolidated or a group of assets is derecognized. The additional disclosures primarily relate to fair value considerations, the parent's involvement with the deconsolidated entity and related party considerations. The standard is effective for the first interim or annual reporting period ending after December 15, 2009. RiverSource Life adopted the standard in the fourth quarter of 2009. The adoption did not have any effect on RiverSource Life's consolidated financial condition and results of operations. Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) In September 2009, the FASB updated the accounting standards to allow for net asset value ("NAV") to be used as a practical expedient in estimating the fair value of alternative investments without readily determinable fair values. The standard also requires additional disclosure by major category of investment related to restrictions on the investor's ability to redeem the investment as of the measurement date, unfunded commitments and the investment strategies of the investees. The disclosures are required for all investments within the scope of the standard regardless of whether the fair value of the investment is measured using the NAV or another method. The standard is effective for interim and annual periods ending after December 15, 2009, with early adoption permitted. RiverSource Life adopted the standard in the fourth quarter of 2009. The adoption did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. Measuring Liabilities at Fair Value In August 2009, the FASB updated the accounting standards to provide additional guidance on estimating the fair value of a liability. The standard is effective for the first reporting period, including interim periods, beginning after issuance. RiverSource Life adopted the standard in the fourth quarter of 2009. The adoption did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. The Hierarchy of GAAP In June 2009, the FASB established the FASB Accounting Standards Codification(TM) ("Codification") as the single source of authoritative accounting principles recognized by the FASB in the preparation of financial statements in conformity with GAAP. The Codification supersedes existing nongrandfathered, non-SEC accounting and reporting standards. The Codification did not change GAAP but rather organized it into a hierarchy where all guidance within the Codification carries an equal level of authority. The Codification became effective on July 1, 2009. The Codification did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. F-14 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Subsequent Events In May 2009, the FASB updated the accounting standards on the recognition and disclosure of subsequent events. The standard also requires the disclosure of the date through which subsequent events were evaluated. The standard is effective for interim and annual reporting periods ending after June 15, 2009, and shall be applied prospectively. RiverSource Life adopted the standard in the second quarter of 2009. The adoption did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. Fair Value In April 2009, the FASB updated the accounting standards to provide guidance on estimating the fair value of a financial asset or liability when the trade volume and level of activity for the asset or liability have significantly decreased relative to historical levels. The standard requires entities to disclose the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, debt and equity securities as defined by GAAP shall be disclosed by major category. This standard is effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009, and is to be applied prospectively. RiverSource Life early adopted the standard in the first quarter of 2009. The adoption did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. In September 2006, the FASB updated the accounting standards to define fair value, establish a framework for measuring fair value and expand disclosures about fair value measurements. RiverSource Life adopted the standard effective January 1, 2008 and recorded a cumulative effect reduction to the opening balance of retained earnings of $30 million, net of DAC and DSIC amortization and income taxes. This reduction to retained earnings was related to adjusting the fair value of certain derivatives RiverSource Life uses to hedge its exposure to market risk related to certain variable annuity riders. Prior to January 1, 2008, RiverSource Life recorded these derivatives in accordance with accounting guidance for derivative contracts held for trading purposes and contracts involved in energy trading and risk management activities. The new standard nullifies the previous guidance and requires these derivatives to be marked to the price RiverSource Life would receive to sell the derivatives to a market participant (an exit price). The adoption of the standard also resulted in adjustments to the fair value of RiverSource Life's embedded derivative liabilities associated with certain variable annuity riders. Since there is no market for these liabilities, RiverSource Life considered the assumptions participants in a hypothetical market would make to determine an exit price. As a result, RiverSource Life adjusted the valuation of these liabilities by updating certain policyholder assumptions, adding explicit margins to provide for profit, risk, and expenses, and adjusting the rate used to discount expected cash flows to reflect a current market estimate of RiverSource Life's risk of nonperformance specific to these liabilities. These adjustments resulted in an adoption impact of a $4 million increase in earnings, net of DAC and DSIC amortization and income taxes, at January 1, 2008. The nonperformance risk component of the adjustment is specific to the risk of RiverSource Life not fulfilling these liabilities. As RiverSource Life's estimate of this credit spread widens or tightens, the liability will decrease or increase. Recognition and Presentation of Other-Than-Temporary Impairments In April 2009, the FASB updated the accounting standards for the recognition and presentation of other-than-temporary impairments. The standard amends existing guidance on other-than-temporary impairments for debt securities and requires that the credit portion of other-than-temporary impairments be recorded in earnings and the noncredit portion of losses be recorded in other comprehensive income (loss) when the entity does not intend to sell the security and it is more likely than not that the entity will not be required to sell the security prior to recovery of its cost basis. The standard requires separate presentation of both the credit and noncredit portions of other-than-temporary impairments on the financial statements and additional disclosures. This standard is effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. At the date of adoption, the portion of previously recognized other-than-temporary impairments that represent the noncredit related loss component shall be recognized as a cumulative effect of adoption with an adjustment to the opening balance of retained earnings with a corresponding adjustment to accumulated other comprehensive income (loss). RiverSource Life adopted the standard in the first quarter of 2009 and recorded a cumulative effect increase to the opening balance of retained earnings of $38 million, net of DAC and DSIC amortization, certain benefit reserves and income taxes, and a corresponding increase to accumulated other comprehensive loss, net of impacts to DAC and DSIC amortization, certain benefit reserves and income taxes. See Note 4 for RiverSource Life's required disclosures. Disclosures about Derivative Instruments and Hedging Activities In March 2008, the FASB updated the accounting standards for disclosures about derivative instruments and hedging activities. The standard intends to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures about their impact on an entity's financial position, financial performance, and cash flows. The standard requires disclosures regarding the objectives for using derivative instruments, the fair value of derivative instruments and their related gains and losses, and the accounting for derivatives and related hedged items. The standard is effective for fiscal years and F-15 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- interim periods beginning after November 15, 2008, with early adoption permitted. RiverSource Life applied the new disclosure requirements in the first quarter of 2009. See Note 15 for the required disclosures. Noncontrolling Interests in Consolidated Financial Statements In December 2007, the FASB updated the accounting standards for noncontrolling interests in consolidated financial statements to establish the accounting and reporting for ownership interest in subsidiaries not attributable, directly or indirectly, to a parent. The standard requires noncontrolling (minority) interests to be classified as equity (instead of as a liability) within the Consolidated Balance Sheets, and net income (loss) attributable to both the parent and the noncontrolling interests to be disclosed on the face of the Consolidated Statements of Income. The standard is effective for fiscal years beginning after December 15, 2008, and interim periods within those years with early adoption prohibited. The provisions of the standard are to be applied prospectively, except for the presentation and disclosure requirements which are to be applied retrospectively to all periods presented. RiverSource Life adopted the new standard as of January 1, 2009 and there was no impact on its consolidated financial condition and results of operations. Uncertainty in Income Taxes In June 2006, the FASB updated the accounting standards related to uncertainty in income taxes. The standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The standard also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. RiverSource Life adopted the standard as of January 1, 2007. The effect of adopting the standard on RiverSource Life's consolidated financial condition and results of operations was not material. DAC Costs in Connection With Modifications or Exchanges of Insurance Contracts In September 2005, the accounting standards related to DAC in connection with modifications or exchanges of insurance contracts were updated. The standard provides clarifying guidance on accounting for DAC associated with an insurance or annuity contract that is significantly modified or is internally replaced with another contract. Prior to adoption, RiverSource Life accounted for many of these transactions as contract continuations and continued amortizing existing DAC against revenue for the new or modified contract. Effective January 1, 2007, RiverSource Life adopted the standard resulting in these transactions being prospectively accounted for as contract terminations. Consistent with this, RiverSource Life now anticipates these transactions in establishing amortization periods and other valuation assumptions. As a result of adopting the standard, RiverSource Life recorded as a cumulative change in accounting principle $206 million, reducing DAC by $204 million, DSIC by $11 million and liabilities for future policy benefits by $9 million. The after-tax decrease to retained earnings for these changes was $134 million. FUTURE ADOPTION OF NEW ACCOUNTING STANDARDS Fair Value In January 2010, the FASB updated the accounting standards related to disclosure about fair value measurements. The standard expands the current disclosure requirements to include additional detail about significant transfers between Levels 1 and 2 within the fair value hierarchy and presenting activity in the rollforward of Level 3 activity on a gross basis. The standard also clarifies existing disclosure requirements related to the level of disaggregation to be used for assets and liabilities as well as disclosures about the inputs and valuation techniques used to measure fair value. The standard is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosure requirements related to the Level 3 rollforward, which are effective for interim and annual periods beginning after December 15, 2010. RiverSource Life will adopt the standard in the first quarter of 2010 except for the additional disclosures related to the Level 3 rollforward, which RiverSource Life will adopt in the first quarter of 2011. The adoption of the standard will not impact RiverSource Life's consolidated financial condition and results of operations. Consolidation of Variable Interest Entities In June 2009, the FASB updated the accounting standards related to the consolidation of variable interest entities. The standard amends current consolidation guidance and requires additional disclosures about an enterprise's involvement in VIEs. The standard is effective for interim and annual reporting periods beginning after November 15, 2009, with early adoption prohibited. RiverSource Life does not expect the adoption to have a material effect on its consolidated financial condition and results of operations. F-16 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 4. INVESTMENTS Available-for-Sale securities distributed by type were as follows:
DECEMBER 31, 2009 -------------------------------------------------------------------- GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR NON-CREDIT DESCRIPTION OF SECURITIES (IN MILLIONS) COST GAINS LOSSES VALUE OTTI(1) - -------------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $14,245 $ 855 $(106) $14,994 $ 1 Residential mortgage backed securities 5,249 185 (238) 5,196 (41) Commercial mortgage backed securities 3,874 182 (16) 4,040 -- Asset backed securities 877 32 (29) 880 -- State and municipal obligations 647 12 (46) 613 -- U.S. government and agencies obligations 152 7 (1) 158 -- Foreign government bonds and obligations 94 14 (1) 107 -- Other structured investments 4 7 -- 11 7 - -------------------------------------------------------------------------------------------------------------------- Total fixed maturities 25,142 1,294 (437) 25,999 (33) Common and preferred stocks 30 -- (7) 23 -- - -------------------------------------------------------------------------------------------------------------------- Total $25,172 $1,294 $(444) $26,022 $(33) ====================================================================================================================
(1) Represents the amount of other-than-temporary impairment losses in Accumulated Other Comprehensive Income, which starting January 1, 2009, were not included in earnings. Amount includes unrealized gains and losses on impaired securities subsequent to the impairment date. These amounts are included in gross unrealized gains and losses at December 31, 2009.
DECEMBER 31, 2008 ------------------------------------------------------ GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR DESCRIPTION OF SECURITIES (IN MILLIONS) COST GAINS LOSSES VALUE - ------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $12,030 $ 86 $(1,123) $10,993 Residential mortgage backed securities 3,697 59 (220) 3,536 Commercial mortgage backed securities 2,582 35 (174) 2,443 Asset backed securities 682 4 (60) 626 State and municipal obligations 164 1 (20) 145 U.S. government and agencies obligations 200 11 -- 211 Foreign government bonds and obligations 95 16 (4) 107 Other structured investments 2 7 -- 9 - ------------------------------------------------------------------------------------------------------------- Total fixed maturities 19,452 219 (1,601) 18,070 Common and preferred stocks 30 -- (14) 16 - ------------------------------------------------------------------------------------------------------------- Total $19,482 $219 $(1,615) $18,086 =============================================================================================================
At December 31, 2009 and 2008, fixed maturity securities comprised approximately 88% and 82%, respectively, of RiverSource Life's total investments. These securities were rated by Moody's Investors Service ("Moody's"), Standard & Poor's Ratings Services ("S&P") and Fitch Ratings Ltd. ("Fitch"), except for approximately $1.1 billion of securities at both December 31, 2009 and 2008, which were rated by RiverSource Investments, LLC's internal analysts using criteria similar to Moody's, S&P and Fitch. Ratings on fixed maturity securities are presented using the median of ratings from Moody's, S&P and Fitch. If only two of the ratings are available, the lower rating is used. A summary of fixed maturity securities by rating was as follows:
DECEMBER 31, 2009 DECEMBER 31, 2008 ---------------------------------------------------------------------------------- PERCENT OF PERCENT OF RATINGS (IN MILLIONS, EXCEPT AMORTIZED FAIR TOTAL FAIR AMORTIZED FAIR TOTAL FAIR PERCENTAGES) COST VALUE VALUE COST VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- AAA $ 9,194 $ 9,520 37% $ 7,038 $ 6,779 38% AA 1,081 1,084 4 1,071 1,017 6 A 4,182 4,326 17 4,132 3,883 21 BBB 9,276 9,826 38 5,901 5,388 30 Below investment grade 1,409 1,243 4 1,310 1,003 5 - -------------------------------------------------------------------------------------------------------------------------- Total fixed maturities $25,142 $25,999 100% $19,452 $18,070 100% ==========================================================================================================================
At December 31, 2009 and 2008, approximately 19% and 44%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of shareholder's equity. F-17 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position:
DECEMBER 31, 2009 (IN MILLIONS, EXCEPT ------------------------------------------------------------------------------------------------ NUMBER OF SECURITIES) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL - ------------------------------------------------------------------------------------------------------------------------ DESCRIPTION OF NUMBER OF FAIR UNREALIZED NUMBER OF FAIR UNREALIZED NUMBER OF SECURITIES SECURITIES VALUE LOSSES SECURITIES VALUE LOSSES SECURITIES - ------------------------------------------------------------------------------------------------------------------------ Corporate debt securities 133 $1,088 $(18) 165 $1,313 $ (88) 298 Residential mortgage backed securities 43 1,184 (34) 68 363 (204) 111 Commercial mortgage backed securities 33 353 (4) 26 297 (12) 59 Asset backed securities 7 70 (1) 18 87 (28) 25 State and municipal obligations 32 232 (9) 2 99 (37) 34 U.S. government and agencies obligations 2 89 (1) -- -- -- 2 Foreign government bonds and obligations -- -- -- 2 4 (1) 2 Other structured investments -- -- -- 2 -- -- 2 Common and preferred stock -- -- -- 2 23 (7) 2 - ------------------------------------------------------------------------------------------------------------------------ Total 250 $3,016 $(67) 285 $2,186 $(377) 535 ======================================================================================================================== DECEMBER 31, 2009 (IN MILLIONS, EXCEPT -------------------------- NUMBER OF SECURITIES) TOTAL - -------------------------------------------------- DESCRIPTION OF FAIR UNREALIZED SECURITIES VALUE LOSSES - -------------------------------------------------- Corporate debt securities $2,401 $(106) Residential mortgage backed securities 1,547 (238) Commercial mortgage backed securities 650 (16) Asset backed securities 157 (29) State and municipal obligations 331 (46) U.S. government and agencies obligations 89 (1) Foreign government bonds and obligations 4 (1) Other structured investments -- -- Common and preferred stock 23 (7) - -------------------------------------------------- Total $5,202 $(444) ==================================================
DECEMBER 31, 2008 (IN MILLIONS, EXCEPT ------------------------------------------------------------------------------------------------ NUMBER OF SECURITIES) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL - ------------------------------------------------------------------------------------------------------------------------ DESCRIPTION OF NUMBER OF FAIR UNREALIZED NUMBER OF FAIR UNREALIZED NUMBER OF SECURITIES SECURITIES VALUE LOSSES SECURITIES VALUE LOSSES SECURITIES - ------------------------------------------------------------------------------------------------------------------------ Corporate debt securities 312 $5,086 $(372) 221 $3,309 $ (751) 533 Residential mortgage backed securities 34 305 (85) 52 466 (135) 86 Commercial mortgage backed securities 26 387 (23) 54 867 (151) 80 Asset backed securities 17 187 (31) 15 124 (29) 32 State and municipal obligations 2 17 (1) 2 78 (19) 4 U.S. government and agencies obligations -- -- -- 1 11 -- 1 Foreign government bonds and obligations 7 20 (4) -- -- -- 7 Other structured investments -- -- -- 2 -- -- 2 Common and preferred stock -- -- -- 2 16 (14) 2 - ------------------------------------------------------------------------------------------------------------------------ Total 398 $6,002 $(516) 349 $4,871 $(1,099) 747 ======================================================================================================================== DECEMBER 31, 2008 (IN MILLIONS, EXCEPT -------------------------- NUMBER OF SECURITIES) TOTAL - -------------------------------------------------- DESCRIPTION OF FAIR UNREALIZED SECURITIES VALUE LOSSES - -------------------------------------------------- Corporate debt securities $ 8,395 $(1,123) Residential mortgage backed securities 771 (220) Commercial mortgage backed securities 1,254 (174) Asset backed securities 311 (60) State and municipal obligations 95 (20) U.S. government and agencies obligations 11 -- Foreign government bonds and obligations 20 (4) Other structured investments -- -- Common and preferred stock 16 (14) - -------------------------------------------------- Total $10,873 $(1,615) ==================================================
As part of RiverSource Life's ongoing monitoring process, management determined that a majority of the gross unrealized losses on its Available-for-Sale securities are attributable to changes in credit spreads across sectors. The primary driver of lower unrealized losses in 2009 compared to 2008 was the tightening of credit spreads across sectors, partially offset by higher interest rates. In addition, a portion of the decrease in unrealized losses was offset by an increase due to the adoption of a new accounting standard effective January 1, 2009. RiverSource Life recorded a cumulative effect increase to the amortized cost of previously other-than-temporarily impaired investments that increased the gross unrealized losses on Available-for-Sale securities by $64 million. This impact is due to the impairment of Available-for-Sale securities recognized in other comprehensive income (loss) previously recognized through earnings for factors other than credit. The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on securities for which a portion of the securities' total other-than-temporary impairments was recognized in other comprehensive income (loss):
(IN MILLIONS) - ------------------------------------------------------------------------------------------- Beginning balance of credit losses on securities held for which a portion of other-than-temporary impairment was recognized in other comprehensive income $102 Additional amount related to credit losses for which an other-than-temporary impairment was not previously recognized 7 Reductions for securities sold during the period (realized) (58) Additional increases to the amount related to credit losses for which an other-than-temporary impairment was previously recognized 31 - ------------------------------------------------------------------------------------------- Ending balance of credit losses on securities held as of December 31, 2009 for which a portion of other-than-temporary impairment was recognized in other comprehensive income $ 82 ===========================================================================================
F-18 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The change in net unrealized securities gains (losses) in other comprehensive income (loss) includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for- Sale securities; and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. As a result of the adoption of a new accounting standard effective January 1, 2009, net unrealized investment gains (losses) arising during the period also includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. Additionally, reclassification of (gains) losses included in net income contains noncredit other-than-temporary impairment losses that were previously unrealized, but have been recognized in current period net income due to their reclassification as credit losses. The following table presents a rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income (loss):
ACCUMULATED OTHER COMPREHEN- SIVE INCOME (LOSS) RELATED TO NET NET UNREALIZED UNREALIZED INVESTMENT INVESTMENT GAINS DEFERRED GAINS (IN MILLIONS) (LOSSES) INCOME TAX (LOSSES) - ---------------------------------------------------------------------------------------------------- Balance at January 1, 2007 $ (258) $ 90 $ (168) Net unrealized investment gains arising during the period 103 (36) 67 Reclassification of gains included in net income (39) 14 (25) Impact on DAC, DSIC and benefit reserves 15 (5) 10 - ---------------------------------------------------------------------------------------------------- Balance at December 31, 2007 $ (179) $ 63 $ (116) Net unrealized investment losses arising during the period (1,598) 559 (1,039) Reclassification of losses included in net income 431 (151) 280 Impact on DAC, DSIC and benefit reserves 303 (106) 197 - ---------------------------------------------------------------------------------------------------- Balance at December 31, 2008 $(1,043) $ 365 $ (678) Cumulative effect of accounting change (58)(1) 20 (38) Net unrealized investment gains arising during the period 2,378 (832) 1,546 Reclassification of gains included in net income (73) 26 (47) Impact on DAC, DSIC, benefit reserves and reinsurance recoverables (566) 199 (367) - ---------------------------------------------------------------------------------------------------- Balance at December 31, 2009 $ 638 $(222) $ 416(2) ====================================================================================================
(1) Amount represents the cumulative effect of adopting a new accounting standard on January 1, 2009, net of DAC and DSIC amortization and certain benefit reserves. See Note 3 for additional information on the adoption impact. (2) At December 31, 2009, Accumulated Other Comprehensive Income Related to Net Unrealized Investment Gains included $(16) million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities. Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains (losses) were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Gross realized investment gains from sales $185 $ 13 $ 64 Gross realized investment losses from sales (50) (6) (20) Other-than-temporary impairments related to credit (62) (440) (4)
The $62 million of other-than-temporary impairments recognized in net realized investment gains (losses) in 2009 were related to credit losses on non-agency residential mortgage backed securities and corporate debt securities in the gaming industry and banking and finance industries. The $440 million of other- than-temporary impairments recognized in net realized investment gains (losses) in 2008 primarily to credit losses on non-agency residential mortgage backed securities, corporate debt securities primarily in the financial services industry and asset backed and other securities. The $4 million of other-than- temporary impairments recognized in net realized investment gains (losses) in 2007 related to corporate debt securities in the publishing and home building industries. F-19 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Available-for-Sale securities by contractual maturity at December 31, 2009 were as follows:
AMORTIZED (IN MILLIONS) COST FAIR VALUE - ------------------------------------------------------------------------------------------------- Due within one year $ 738 $ 751 Due after one year through five years 6,638 6,862 Due after five years through 10 years 4,786 5,062 Due after 10 years 2,976 3,197 - ------------------------------------------------------------------------------------------------- 15,138 15,872 - ------------------------------------------------------------------------------------------------- Residential mortgage backed securities 5,249 5,196 Commercial mortgage backed securities 3,874 4,040 Asset backed securities 877 880 Other structured investments 4 11 Common and preferred stocks 30 23 - ------------------------------------------------------------------------------------------------- Total $25,172 $26,022 =================================================================================================
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities, asset backed securities and other structured investments are not due at a single maturity date. As such, these securities, as well as common and preferred stocks, were not included in the maturities distribution. At December 31, 2009 and 2008, bonds carried at $7 million and $6 million, respectively, were on deposit with various states as required by law. Commercial Mortgage Loans, Net The following is a summary of commercial mortgage loans:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Commercial mortgage loans $2,562 $2,754 Less: allowance for loan losses (30) (17) - ------------------------------------------------------------------------------------------------- Commercial mortgage loans, net $2,532 $2,737 =================================================================================================
Commercial mortgage loans are first mortgages on real estate. RiverSource Life holds the mortgage documents, which gives it the right to take possession of the property if the borrower fails to perform according to the terms of the agreements. Commercial mortgage loan fundings are restricted by state insurance regulatory authorities to 80% or less of the market value of the real estate at the time of origination of the loan. The balances of and changes in the allowance for loan losses were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Balance at January 1 $17 $16 $ 37 Provision for loan losses 14 1 (21) Foreclosures, write-offs and loan sales (1) -- -- - ------------------------------------------------------------------------------------------------------- Balance at December 31 $30 $17 $ 16 =======================================================================================================
Concentrations of credit risk of commercial mortgage loans by region were as follows:
DECEMBER 31, ------------------------------------------------------ (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------------------- ON-BALANCE FUNDING ON-BALANCE FUNDING SHEET COMMITMENTS SHEET COMMITMENTS - ------------------------------------------------------------------------------------------------------------- Commercial mortgage loans by U.S. region: Atlantic $ 835 $13 $ 880 $ 3 North Central 538 16 629 10 Pacific 487 13 463 20 Mountain 296 -- 319 10 South Central 248 8 287 -- New England 158 -- 176 -- - ------------------------------------------------------------------------------------------------------------- 2,562 50 2,754 43 Less: allowance for loan losses (30) -- (17) -- - ------------------------------------------------------------------------------------------------------------- Total $2,532 $50 $2,737 $43 =============================================================================================================
F-20 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Concentrations of credit risk of commercial mortgage loans by property type were as follows:
DECEMBER 31, ------------------------------------------------------ (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------------------- ON-BALANCE FUNDING ON-BALANCE FUNDING SHEET COMMITMENTS SHEET COMMITMENTS - ------------------------------------------------------------------------------------------------------------- Commercial mortgage loans by U.S. property type: Shopping centers and retail $ 842 $16 $ 869 $23 Office buildings 702 6 777 18 Industrial buildings 468 12 485 2 Apartments 340 -- 383 -- Hotels and motels 61 -- 76 -- Mixed use 46 -- 50 -- Medical buildings 28 16 32 -- Other 75 -- 82 -- - ------------------------------------------------------------------------------------------------------------- 2,562 50 2,754 43 Less: allowance for loan losses (30) -- (17) -- - ------------------------------------------------------------------------------------------------------------- Total $2,532 $50 $2,737 $43 =============================================================================================================
Commitments to fund commercial mortgages were made in the ordinary course of business. The funding commitments at December 31, 2009 and 2008 approximate fair value. Below Investment Grade Syndicated Bank Loans, Net The following is a summary of below investment grade syndicated bank loans:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Below investment grade syndicated bank loans $228 $260 Less: allowance for loan losses (12) (12) - ------------------------------------------------------------------------------------------------- Net below investment grade syndicated bank loans $216 $248 =================================================================================================
Below investment grade syndicated bank loans, which are included as a component of other investments, represent loans in which a group of lenders provide funds to borrowers. There is usually one originating lender which retains a small percentage and syndicates the remainder. Trading Securities Net recognized gains (losses) related to trading securities held at December 31, 2009, 2008 and 2007 were nil, $9 million and $(2) million, respectively. Sources of Investment Income and Net Realized Investment Gains (Losses) Net investment income is summarized as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Income on fixed maturities $1,371 $1,043 $1,187 Income on commercial mortgage loans 160 173 173 Trading securities and other investments 35 55 82 - ------------------------------------------------------------------------------------------------------- 1,566 1,271 1,442 Less: investment expenses (40) (19) (18) - ------------------------------------------------------------------------------------------------------- Total $1,526 $1,252 $1,424 =======================================================================================================
Net realized investment gains (losses) are summarized as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Fixed maturities $ 73 $(433) $40 Commercial mortgage loans (13) (1) -- Trading securities and other investments (1) (8) -- Reduction in the allowance for loan losses -- -- 21 - ------------------------------------------------------------------------------------------------------- Total $ 59 $(442) $61 =======================================================================================================
F-21 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 5. VARIABLE INTEREST ENTITIES RTA, a subsidiary of RiverSource Life Insurance Company, has variable interests in affordable housing partnerships for which it is not the primary beneficiary and, therefore, does not consolidate. RTA's maximum exposure to loss as a result of its investment in the affordable housing partnerships is limited to the carrying values. The carrying values are reflected in trading securities and other investments and were $28 million and $54 million as of December 31, 2009 and 2008, respectively. RTA has no obligation to provide further financial or other support to the affordable housing partnerships nor has it provided any additional support to the affordable housing partnerships. RiverSource Life had no liabilities recorded as of December 31, 2009 and 2008 related to the affordable housing partnerships. 6. DEFERRED ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS During the third quarter of 2009, 2008 and 2007, RiverSource Life completed the annual detailed review of valuation assumptions of its products. In addition, during the third quarter of 2008, RiverSource Life converted to a new industry standard valuation system that provides enhanced modeling capabilities. The total pretax impacts on RiverSource Life's assets and liabilities attributable to the review of valuation assumptions during the third quarter of 2009, 2008 and 2007 and the valuation system conversion during the third quarter of 2008 were as follows:
FUTURE BALANCE SHEET IMPACT REINSURANCE OTHER POLICY OTHER DEBIT (CREDIT) (IN MILLIONS) RECOVERABLES DAC DSIC ASSETS BENEFITS LIABILITIES TOTAL - -------------------------------------------------------------------------------------------------------------------------------- 2009 period $(65) $119 $ 9 $-- $ 71 $-- $134 2008 period 92 (81) (6) 1 95 5 106 2007 period (2) (16) 3 -- (15) -- (30)
The total pretax impacts on RiverSource Life's revenues and expenses attributable to the review of the valuation assumptions for the years ended December 31, 2009, 2008 and 2007 and the valuation system conversion for the year ended December 31, 2008 were as follows:
BENEFITS, OTHER CLAIMS, INSURANCE POLICY AND LOSSES AND AND PRETAX CONTRACT SETTLEMENT AMORTIZATION OPERATING BENEFIT (CHARGE) (IN MILLIONS) PREMIUMS CHARGES EXPENSES OF DAC EXPENSES TOTAL - -------------------------------------------------------------------------------------------------------------------------- 2009 period $-- $(65) $ 80 $119 $-- $134 2008 period 2 95 89 (81) 1 106 2007 period -- (2) (12) (16) -- (30)
The balances of and changes in DAC were as follows:
(IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Balance at January 1 $4,324 $4,334 $4,321 Cumulative effect of accounting change -- 36 (204) Capitalization of acquisition costs 558 587 699 Amortization, excluding impacts of valuation assumptions review and valuation system conversion (264) (780) (454) Amortization, impact of valuation assumptions review and valuation system conversion 119 (81) (16) Impact of change in net unrealized securities losses (gains) (452) 228 (12) - ------------------------------------------------------------------------------------------------------- Balance at December 31 $4,285 $4,324 $4,334 =======================================================================================================
The balances of and changes in DSIC were as follows:
(IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Balance at January 1 $518 $ 511 $452 Cumulative effect of accounting change -- 9 (11) Capitalization of sales inducements costs 82 87 124 Amortization, excluding impacts of valuation assumptions review and valuation system conversion (19) (115) (56) Amortization, impact of valuation assumptions review and valuation system conversion 9 (6) 3 Impact of change in net unrealized securities losses (gains) (66) 32 (1) - ------------------------------------------------------------------------------------------------------- Balance at December 31 $524 $ 518 $511 =======================================================================================================
RiverSource Life adopted a new accounting standard on the recognition and presentation of other-than-temporary impairments in the first quarter of 2009. The adoption had no net impact to DAC and DSIC. Effective January 1, 2008, RiverSource Life adopted a new accounting standard on fair value measurements and recorded as a cumulative change in accounting principle a pretax increase of $36 million and $9 million to DAC and DSIC, respectively. See Note 3 for additional information regarding RiverSource Life's adoption of fair value accounting standards. F-22 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Effective January 1, 2007, RiverSource Life adopted a new accounting standard related to DAC in connection with modifications or exchanges of insurance contracts and recorded as a cumulative change in accounting principle a pretax reduction of $204 million and $11 million to DAC and DSIC, respectively. 7. REINSURANCE Generally, RiverSource Life reinsures 90% of the death benefit liability related to individual fixed and variable universal life and term life insurance products. As a result, RiverSource Life typically retains and is at risk for, at most, 10% of each policy's death benefit from the first dollar of coverage for new sales of these policies, subject to the reinsurers fulfilling their obligations. RiverSource Life began reinsuring risks at this level during 2001 (2002 for RiverSource Life of NY) for term life insurance and 2002 (2003 for RiverSource Life of NY) for individual fixed and variable universal life insurance. Policies issued prior to these dates are not subject to these same reinsurance levels. Generally, the maximum amount of life insurance risk retained by RiverSource Life is $1.5 million (increased from $750,000 during 2008) on a single life and $1.5 million on any flexible premium survivorship life policy. Risk on fixed and variable universal life policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy. For existing LTC policies, RiverSource Life (and RiverSource Life of NY for 1996 and later issues) retained 50% of the risk and ceded the remaining 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. ("Genworth"). Generally, RiverSource Life retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states in October 2007 and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. RiverSource Life retains all risk for new claims on DI contracts sold on other policy forms. RiverSource Life also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions. In addition, RiverSource Life assumes life insurance and fixed annuity risk under reinsurance arrangements with unaffiliated insurance companies. At December 31, 2009 and 2008, traditional life and universal life insurance in force aggregated $192.8 billion and $192.3 billion, respectively, of which $131.2 billion and $127.6 billion were reinsured at the respective year ends. Life insurance in force is reported on a statutory basis. RiverSource Life also reinsures a portion of the risks assumed under its DI and LTC policies. The effect of reinsurance on premiums was as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Direct premiums $ 721 $ 641 $ 628 Reinsurance ceded (271) (203) (189) - ------------------------------------------------------------------------------------------------------- Net premiums $ 450 $ 438 $ 439 =======================================================================================================
Policy and contract charges are presented on the Consolidated Statements of Income net of $62 million, $61 million and $57 million of reinsurance ceded for the years ended December 31, 2009, 2008 and 2007, respectively. Reinsurance recovered from reinsurers was $167 million, $142 million and $126 million for the years ended December 31, 2009, 2008 and 2007, respectively. Reinsurance contracts do not relieve RiverSource Life from its primary obligation to policyholders. Included in reinsurance recoverables is approximately $1.3 billion and $1.2 billion related to LTC risk ceded to Genworth as of December 31, 2009 and 2008, respectively. Included in future policy benefits is $667 million and $689 million related to assumed reinsurance arrangements as of December 31, 2009 and 2008, respectively. F-23 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 8. FUTURE POLICY BENEFITS, POLICY CLAIMS AND OTHER POLICYHOLDERS' FUNDS AND SEPARATE ACCOUNT LIABILITIES Future policy benefits and policy claims and other policyholders' funds consisted of the following:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Fixed annuities $16,558 $14,058 Equity indexed annuities accumulated host values 159 228 Equity indexed annuities embedded derivatives 9 16 Variable annuities fixed sub-accounts 6,127 5,623 Variable annuity GMWB 204 1,471 Variable annuity GMAB 100 367 Other variable annuity guarantees 12 67 - ------------------------------------------------------------------------------------------------- Total annuities 23,169 21,830 VUL/ UL insurance 2,595 2,526 Other life, DI and LTC insurance 4,619 4,397 - ------------------------------------------------------------------------------------------------- Total future policy benefits 30,383 28,753 Policy claims and other policyholders' funds 123 172 - ------------------------------------------------------------------------------------------------- Total future policy benefits and policy claims and other policyholders' funds $30,506 $28,925 =================================================================================================
Separate account liabilities consisted of the following:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Variable annuity variable sub-accounts $48,982 $37,657 VUL insurance variable sub-accounts 5,239 4,091 Other insurance variable sub-accounts 46 39 - ------------------------------------------------------------------------------------------------- Total separate account liabilities $54,267 $41,787 =================================================================================================
Fixed Annuities Fixed annuities include both deferred and payout contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. RiverSource Life generally invests the proceeds from the annuity payments in fixed rate securities. RiverSource Life may hedge the interest rate risks related to fixed annuities with derivative instruments. As of December 31, 2009 and 2008, there were no outstanding derivatives to hedge these risks. Equity Indexed Annuities The Index 500 Annuity, RiverSource Life's equity indexed annuity product, is a single premium deferred fixed annuity. The contract is issued with an initial term of seven years and interest earnings are linked to the S&P 500 Index. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. RiverSource Life generally invests the proceeds from the annuity deposits in fixed rate securities and hedges the equity risk with derivative instruments. See Note 15 for additional information regarding RiverSource Life's derivative instruments. In 2007, RiverSource Life discontinued new sales of equity indexed annuities. Variable Annuities Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. Most of the variable annuity contracts issued by RiverSource Life contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. RiverSource Life previously offered contracts with GMIB provisions. See Note 2 and Note 9 for additional information regarding RiverSource Life's variable annuity guarantees. RiverSource Life does not currently hedge its risk under the GGU and GMIB provisions. During the third quarter of 2009, RiverSource Life entered into a limited number of derivative contracts to economically hedge equity exposure related to GMDB provisions on variable annuity contracts written previously in 2009. The total value of variable annuity contracts with GMWB riders increased from $12.7 billion at December 31, 2008 to $19.2 billion at December 31, 2009. The total value of variable annuity contracts with GMAB riders increased from $2.0 billion at December 31, 2008 to $2.9 billion at December 31, 2009. The total value of variable annuity contracts with GMDB riders increased from $42.2 billion at December 31, 2008 to $53.7 billion at December 31, 2009, of which $5.2 billion have corresponding hedges. See Note 15 for additional information regarding derivative instruments used to hedge risks related to GMWB, GMAB and GMDB provisions. F-24 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Insurance Liabilities VUL/UL is the largest group of insurance policies written by RiverSource Life. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for VUL contracts are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. RiverSource Life also offers term and whole life insurance as well as disability products. RiverSource Life no longer offers LTC products but has in force policies from prior years. Insurance liabilities include accumulation values, unpaid reported claims, incurred but not reported claims, and obligations for anticipated future claims. 9. VARIABLE ANNUITY AND INSURANCE GUARANTEES The majority of the variable annuity contracts offered by RiverSource Life contain GMDB provisions. RiverSource Life also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as GGU benefits. In addition, RiverSource Life offers contracts with GMWB and GMAB provisions. RiverSource Life previously offered contracts containing GMIB provisions. See Note 2 and Note 8 for additional information regarding the liabilities related to variable annuity guarantees. The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. RiverSource Life has three primary GMDB provisions: - - Return of premium -- provides purchase payments minus adjusted partial surrenders. - - Reset -- provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision is often provided in combination with the return of premium provision. This provision is no longer offered. - - Ratchet -- provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on equity market performance. At issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a "step-up") in the case of favorable market performance. RiverSource Life has GMWB riders in force with the following provisions: - - withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount. - - withdrawals at a specified rate per year for the life of the contractholder ("GMWB for life"). - - withdrawals at a specified rate per year for joint contractholders while either is alive. Once withdrawals begin, the contractholder's funds are moved to one of three less aggressive asset allocation models (of the five that are available prior to withdrawal). - - withdrawals based on performance of the contract or issue age. On some contracts, credits are applied annually for the first ten years to increase the guaranteed amount as long as withdrawals have not been taken. Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or 80% of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10 year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value. Certain UL contracts offered by RiverSource Life provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. F-25 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following table provides information related to variable annuity guarantees for which RiverSource Life has established additional liabilities:
DECEMBER 31, 2009 DECEMBER 31, 2008 --------------------------------------------------------------------------------------- CONTRACT WEIGHTED CONTRACT VARIABLE ANNUITY GUARANTEES BY TOTAL VALUE IN NET AVERAGE TOTAL VALUE IN BENEFIT TYPE(1) CONTRACT SEPARATE AMOUNT ATTAINED CONTRACT SEPARATE (IN MILLIONS, EXCEPT AGE) VALUE ACCOUNTS AT RISK(2) AGE VALUE ACCOUNTS - --------------------------------------------------------------------------------------------------------------------------- GMDB: Return of Premium $30,938 $28,415 $ 974 61 $22,249 $20,153 Six-Year Reset 13,886 11,197 926 61 12,719 10,063 One-Year Ratchet 7,081 6,400 873 63 5,770 5,061 Five-Year Ratchet 1,256 1,171 38 59 951 888 Other 582 542 98 67 471 429 - --------------------------------------------------------------------------------------------------------------------------- Total -- GMDB $53,743 $47,725 $2,909 61 $42,160 $36,594 =========================================================================================================================== GGU DEATH BENEFIT $ 853 $ 775 $ 70 63 $ 699 $ 619 GMIB $ 628 $ 582 $ 126 63 $ 567 $ 511 GMWB: GMWB $ 4,196 $ 4,067 $ 454 64 $ 3,513 $ 3,409 GMWB for life 14,988 14,333 795 63 9,194 8,764 - --------------------------------------------------------------------------------------------------------------------------- Total -- GMWB $19,184 $18,400 $1,249 63 $12,707 $12,173 =========================================================================================================================== GMAB $ 2,926 $ 2,853 $ 153 56 $ 2,006 $ 1,937 DECEMBER 31, 2008 --------------------------- WEIGHTED VARIABLE ANNUITY GUARANTEES BY NET AVERAGE BENEFIT TYPE(1) AMOUNT ATTAINED (IN MILLIONS, EXCEPT AGE) AT RISK(2) AGE - --------------------------------------------------------------- GMDB: Return of Premium $ 4,873 61 Six-Year Reset 2,802 61 One-Year Ratchet 2,163 62 Five-Year Ratchet 199 59 Other 192 66 - --------------------------------------------------------------- Total -- GMDB $10,229 61 =============================================================== GGU DEATH BENEFIT $ 65 63 GMIB $ 245 63 GMWB: GMWB $ 1,312 63 GMWB for life 2,704 63 - --------------------------------------------------------------- Total -- GMWB $ 4,016 63 =============================================================== GMAB $ 608 56
(1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. (2) Represents the current guaranteed benefit amount in excess of the current contract value. GMIB, GMWB and GMAB benefits are subject to waiting periods and payment periods specified in the contract. Changes in additional liabilities were as follows:
(IN MILLIONS) GMDB & GGU GMIB GMWB GMAB UL - -------------------------------------------------------------------------------------------------------------------- Liability balance at January 1, 2008 $ 24 $ 3 $ 136 $ 33 $ 4 Incurred claims 58 10 1,335 334 6 Paid claims (27) (1) -- -- (3) - -------------------------------------------------------------------------------------------------------------------- Liability balance at December 31, 2008 55 12 1,471 367 7 Incurred claims 12 (5) (1,267) (267) 8 Paid claims (61) (1) -- -- -- - -------------------------------------------------------------------------------------------------------------------- Liability balance at December 31, 2009 $ 6 $ 6 $ 204 $ 100 $15 ====================================================================================================================
The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Mutual funds: Equity $29,379 $21,899 Bond 16,537 12,135 Other 2,889 3,463 - ------------------------------------------------------------------------------------------------- Total mutual funds $48,805 $37,497 =================================================================================================
No gains or losses were recognized on assets transferred to separate accounts for the periods presented. 10. LINES OF CREDIT In July 2009, RiverSource Life Insurance Company, as the borrower, entered into a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under the line of credit may not exceed $800 million at any time. The interest rate for any borrowing under the new agreement is established by reference to LIBOR plus 28 basis points. Amounts borrowed may be repaid at any time with no prepayment penalty. As of December 31, 2009, the outstanding balance under this credit line was $300 million which was repaid in full with payments in January and February 2010. RiverSource Life has available a committed line of credit with Ameriprise Financial aggregating $200 million. The interest rate for any borrowings is established by reference to LIBOR. There were no amounts outstanding on this line of credit at December 31, 2009 and 2008. F-26 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- In September 2008, RiverSource Life, as the lender, entered into a revolving credit agreement with Ameriprise Financial as the borrower. This line of credit is not to exceed 3% of RiverSource Life's statutory admitted assets as of the prior year end. The interest rate for any borrowing is established by reference to LIBOR plus 28 basis points. In the event of default, an additional 1% interest will accrue during such period of default. There were no amounts outstanding on this revolving credit agreement as of December 31, 2009 and 2008. RiverSource Life had a collateral loan agreement with Ameriprise Financial aggregating up to $75 million which expired on October 31, 2008. 11. FAIR VALUES OF ASSETS AND LIABILITIES GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. VALUATION HIERARCHY RiverSource Life categorizes its fair value measurements according to a three- level hierarchy. The hierarchy prioritizes the inputs used by RiverSource Life's valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. DETERMINATION OF FAIR VALUE RiverSource Life uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. RiverSource Life's market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. RiverSource Life's income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, RiverSource Life maximizes the use of observable inputs and minimizes the use of unobservable inputs. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. ASSETS Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. RiverSource Life's remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization. Available-for-Sale Securities When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from nationally-recognized pricing services, broker quotes, or other model-based valuation techniques such as the present value of cash flows. Level 1 securities include U.S. Treasuries. Level 2 securities include corporate and municipal bonds, agency mortgage backed securities, commercial mortgage backed securities, asset backed securities and U.S. and foreign government and agency securities. Level 3 securities include corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. Through RiverSource Life's own experience transacting in the marketplace and through discussions with its pricing vendors, RiverSource Life believes that the market for non-agency residential mortgage backed securities is inactive. Indicators of inactive markets include: pricing services' reliance on brokers or discounted cash flow analyses to provide prices, an increase in the disparity between prices provided by different pricing services for the same security, unreasonably large bid-offer spreads and a significant decrease in the volume of trades relative to historical levels. In certain cases, this market inactivity has resulted in RiverSource Life applying valuation techniques that rely more on an income approach (discounted cash flows using market rates) than on a market approach (prices from pricing services). RiverSource Life considers market observable yields for other asset classes it considers to be of similar risk which includes nonperformance and liquidity for individual F-27 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- securities to set the discount rate for applying the income approach to certain non-agency residential mortgage backed securities. Separate Account Assets The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV represents the exit price for the separate account. Separate account assets are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information. Derivatives The fair value of derivatives that are traded in certain over-the-counter markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include interest rate swaps and options. Derivatives that are valued using pricing models that have significant unobservable inputs are classified as Level 3 measurements. Structured derivatives that are used by RiverSource Life to hedge its exposure to market risk related to certain variable annuity riders are classified as Level 3. RiverSource Life settled these derivatives in the second quarter of 2009 and has not entered into any additional structured derivatives since then. LIABILITIES Embedded Derivatives VARIABLE ANNUITY RIDERS -- GMAB AND GMWB RiverSource Life values the embedded derivative liability attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk, and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions and margins for risk, profit and expenses that RiverSource Life believes an exit market participant would expect. The fair value of these embedded derivatives also reflects a current estimate of RiverSource Life's nonperformance risk specific to these liabilities. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivative liability attributable to these provisions is recorded in future policy benefits. EQUITY INDEXED ANNUITIES RiverSource Life uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its equity indexed annuities. The inputs to these calculations are primarily market observable. As a result, these measurements are classified as Level 2. The embedded derivative liability attributable to the provisions of RiverSource Life's equity indexed annuities is recorded in future policy benefits. F-28 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following tables present the balances of assets and liabilities measured at fair value on a recurring basis:
DECEMBER 31, 2009 ------------------------------------------------------ (IN MILLIONS) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------------------- Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $-- $13,755 $1,239 $14,994 Residential mortgage backed securities -- 2,424 2,772 5,196 Commercial mortgage backed securities -- 3,968 72 4,040 Asset backed securities -- 665 215 880 State and municipal obligations -- 613 -- 613 U.S. government and agencies obligations 11 147 -- 158 Foreign government bonds and obligations -- 107 -- 107 Other structured investments -- -- 11 11 - ------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 11 21,679 4,309 25,999 Common and preferred stocks -- 23 -- 23 Trading securities -- 36 -- 36 Cash equivalents 2 801 -- 803 Other assets -- 615 -- 615 Separate account assets -- 54,267 -- 54,267 - ------------------------------------------------------------------------------------------------------------- Total assets at fair value $13 $77,421 $4,309 $81,743 ============================================================================================================= Liabilities Future policy benefits $-- $ 9 $ 299 $ 308 Other liabilities -- 757 -- 757 - ------------------------------------------------------------------------------------------------------------- Total liabilities at fair value $-- $ 766 $ 299 $ 1,065 =============================================================================================================
DECEMBER 31, 2008 ------------------------------------------------------ (IN MILLIONS) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------------------- Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ -- $ 9,907 $1,086 $10,993 Residential mortgage backed securities -- 3,016 520 3,536 Commercial mortgage backed securities -- 2,440 3 2,443 Asset backed securities -- 531 95 626 State and municipal obligations -- 145 -- 145 U.S. government and agencies obligations 21 190 -- 211 Foreign government bonds and obligations -- 107 -- 107 Other structured investments -- -- 9 9 - ------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 21 16,336 1,713 18,070 Common and preferred stocks -- 16 -- 16 Trading securities 70 77 -- 147 Cash equivalents 432 2,861 -- 3,293 Other assets -- 2,238 200 2,438 Separate account assets -- 41,787 -- 41,787 - ------------------------------------------------------------------------------------------------------------- Total assets at fair value $523 $63,315 $1,913 $65,751 ============================================================================================================= Liabilities Future policy benefits $ -- $ 16 $1,832 $ 1,848 Other liabilities -- 645 -- 645 - ------------------------------------------------------------------------------------------------------------- Total liabilities at fair value $ -- $ 661 $1,832 $ 2,493 =============================================================================================================
F-29 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis:
TOTAL GAINS PURCHASES, (LOSSES) INCLUDED IN SALES, -------------------------- ISSUANCES BALANCE, OTHER AND TRANSFERS BALANCE, JANUARY 1, NET COMPREHEN- SETTLEMENTS, IN/(OUT) OF DECEMBER 31, (IN MILLIONS) 2009 INCOME SIVE INCOME NET LEVEL 3 2009 - -------------------------------------------------------------------------------------------------------------------------- Available-for-Sale securities: Fixed maturities Corporate debt securities $ 1,086 $ -- $194 $ 20 $(61) $1,239 Residential mortgage backed securities 520 65 156 2,031 -- 2,772 Commercial mortgage backed securities 3 -- 8 61 -- 72 Asset backed securities 95 7 10 112 (9) 215 Other structured investments 9 2 -- -- -- 11 - -------------------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 1,713 74(1) 368 2,224 (70)(3) 4,309 Other assets 200 (37)(2) -- (163) -- -- Future policy benefits (1,832) 1,611(2) -- (78) -- (299)
(1) Represents a $7 million loss included in net realized investment gains (losses) and a $81 million gain included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. (3) Represents securities with a fair value of $79 million that were transferred to Level 2 as the fair value of the securities is now obtained from a nationally-recognized pricing service net of a security with a fair value of $9 million that was transferred to Level 3 as the fair value of the security is now based on broker quotes.
TOTAL GAINS PURCHASES, (LOSSES) INCLUDED IN SALES, -------------------------- ISSUANCES BALANCE, OTHER AND TRANSFERS BALANCE, JANUARY 1, NET COMPREHEN- SETTLEMENTS, IN/(OUT) OF DECEMBER 31, (IN MILLIONS) 2008 INCOME SIVE LOSS NET LEVEL 3 2008 - -------------------------------------------------------------------------------------------------------------------------- Available-for-Sale securities: Fixed maturities Corporate debt securities $1,271 $ (30) $(152) $ (3) $ -- $ 1,086 Residential mortgage backed securities 417 (144) (134) 162 219 520 Commercial mortgage backed securities 5 -- -- (2) -- 3 Asset backed securities 115 1 (24) 3 -- 95 Other structured investments 2 4 6 (3) -- 9 - -------------------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 1,810 (169)(1) (304) 157 219(3) 1,713 Other assets 280 149(2) -- (229) -- 200 Future policy benefits (158) (1,611)(2) -- (63) -- (1,832) Other liabilities -- (9)(2) -- 9 -- --
(1) Represents a $176 million loss included in net realized investment gains (losses) and a $7 million gain included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. (3) Represents prime non-agency residential mortgage backed securities previously classified as Level 2 for which management believes the market for these prime quality assets is now inactive. F-30 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following table presents the changes in unrealized gains (losses) included in net income related to Level 3 assets and liabilities held at December 31 for the year then ended:
2009 2008 ---------------------------------------------------------------------------------- NET BENEFITS, NET BENEFITS, REALIZED CLAIMS, REALIZED CLAIMS, NET INVESTMENT LOSSES AND NET INVESTMENT LOSSES AND INVESTMENT GAINS SETTLEMENT INVESTMENT GAINS SETTLEMENT (IN MILLIONS) INCOME (LOSSES) EXPENSES INCOME (LOSSES) EXPENSES - -------------------------------------------------------------------------------------------------------------------------- Available-for-Sale securities: Fixed maturities Corporate debt securities $-- $ -- $ -- $-- $ (29) $ -- Residential mortgage backed securities 80 (31) -- 2 (146) -- Asset backed securities 1 -- -- 1 -- -- - -------------------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 81 (31) -- 3 (175) -- Other assets -- -- -- -- -- 126 Future policy benefits -- -- 1,582 -- -- (1,608)
During the reporting period, there were no material assets or liabilities measured at fair value on a nonrecurring basis. The following table provides the carrying value and the estimated fair value of financial instruments that are not reported at fair value. All other financial instruments that are reported at fair value have been included above in the table with balances of assets and liabilities measured at fair value on a recurring basis.
DECEMBER 31, ------------------------------------------------------ 2009 2008 - ------------------------------------------------------------------------------------------------------------- CARRYING FAIR CARRYING FAIR (IN MILLIONS) VALUE VALUE VALUE VALUE - ------------------------------------------------------------------------------------------------------------- FINANCIAL ASSETS Commercial mortgage loans, net $ 2,532 $ 2,519 $ 2,737 $ 2,506 Policy loans 715 790 722 779 Other investments 226 245 248 202 Restricted cash 184 184 -- -- FINANCIAL LIABILITIES Future policy benefits $15,540 $15,657 $13,116 $12,418 Separate account liabilities 406 406 386 386 Line of credit with Ameriprise Financial 300 300 -- --
Commercial mortgage loans, net The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities and characteristics including loan-to-value ratio, occupancy rate, refinance risk, debt-service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for RiverSource Life's estimate of the amount recoverable on the loan. Policy loans The fair value of policy loans is determined using discounted cash flows. Other investments Other investments primarily consist of syndicated loans. The fair value of syndicated loans is obtained from a nationally-recognized pricing service. Restricted Cash Restricted cash is generally set aside for specific business transactions and restrictions are specific to RiverSource Life and does not transfer to third party market participants, therefore, the carrying value amount is a reasonable estimate of fair value. Future policy benefits The fair value of fixed annuities, in deferral status, is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a provision for adverse deviation from estimated early policy surrender behavior and RiverSource Life's nonperformance risk specific to these liabilities. The fair value of other liabilities including non-life contingent fixed annuities in payout status, equity indexed annuity host contracts F-31 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Separate account liabilities Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. Carrying value is a reasonable estimate of the fair value as it represents the exit value as evidenced by withdrawal transactions between contractholders and RiverSource Life. A nonperformance adjustment is not included as the related separate account assets act as collateral for these liabilities and minimize nonperformance risk. Line of credit with Ameriprise Financial The fair value of the line of credit is determined by discounting cash flows with an adjustment for RiverSource Life's nonperformance risk specific to this liability. Due to the short-term nature of the line of credit, the carrying value is an approximation of the fair value. 12. RELATED PARTY TRANSACTIONS RiverSource Investments, LLC is the investment manager for the proprietary mutual funds used as investment options by RiverSource Life's variable annuity contractholders and variable life insurance policyholders. RiverSource Life provides all fund management services, other than investment management, and is compensated for the administrative services it provides. For the years ended December 31, 2009, 2008 and 2007, RiverSource Life received $87 million, $101 million and $97 million, respectively, from RiverSource Investments, LLC for these services. RiverSource Life participates in the Ameriprise Financial Retirement Plan which covers all permanent employees age 21 and over who have met certain employment requirements. RiverSource Life 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 the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). RiverSource Life's share of the total net periodic pension cost was $2 million in 2009, and $1 million in both 2008 and 2007. RiverSource Life participates in the Ameriprise Financial 2005 Incentive Compensation Plan. Employees, directors and independent contractors are eligible to receive incentive awards including stock options, restricted stock awards, restricted stock units, performance shares and similar awards designed to comply with the applicable federal regulations and laws of jurisdiction. The expense for incentive awards was $3 million in 2009, 2008 and 2007. RiverSource Life also participates in the defined contribution pension plans of Ameriprise Financial which cover all employees who have met certain employment requirements. RiverSource Life contributions to the plans are a percent of either each employee's eligible compensation or basic contributions. Costs of these plans charged to operations were $2 million, nil and $3 million in 2009, 2008 and 2007, respectively. RiverSource Life participates in the defined benefit health care plans of Ameriprise Financial 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 Ameriprise Financial. Ameriprise Financial expenses these benefits and allocates the expenses to its subsidiaries. The cost of these plans charged to operations in 2009, 2008 and 2007 was nil, $1 million and $2 million, respectively. Charges by Ameriprise Financial and affiliated companies to RiverSource Life for use of joint facilities, technology support, marketing services and other services aggregated $580 million, $673 million and $909 million for 2009, 2008 and 2007, respectively. Certain of these costs are included in DAC. Expenses allocated to RiverSource Life may not be reflective of expenses that would have been incurred by RiverSource Life on a stand-alone basis. Dividends paid and received were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Cash dividends paid to Ameriprise Financial $-- $775 $900 Cash dividends paid to RiverSource Life Insurance Company from RiverSource Life of NY -- 77 83 Cash dividend paid to RiverSource Life Insurance Company from RTA 22 -- -- Non-cash dividend paid to Ameriprise Financial from RTA -- 118 --
Notifications to state insurance regulators were made in advance of payments of dividends for amounts in excess of statutorily defined thresholds. See Note 13 for additional information. F-32 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- During 2008, RiverSource Life received a non-cash capital contribution of $83 million comprised of below investment grade syndicated bank loans from Ameriprise Financial. In addition, RiverSource Life Insurance Company received a $239 million contribution from Ameriprise Financial, consisting of all the issued and outstanding shares of RTA. During 2009, RiverSource Life Insurance Company received a non-cash capital contribution of $131 million comprised of two buildings and the related land from Ameriprise Financial. As part of the transaction, RiverSource Life Insurance Company entered into an agreement to lease the buildings to Ameriprise Financial. In addition, RiverSource Life Insurance Company received a non-cash capital contribution of $200 million consisting of a reduction of the outstanding balance due to Ameriprise Financial under a line of credit. See Note 10 for more information on RiverSource Life's lines of credit. There were no amounts included in other liabilities at December 31, 2009 and 2008 payable to Ameriprise Financial for federal income taxes. During 2009, RiverSource Life sold corporate bonds of $27 million to Ameriprise Financial and recognized a gain of $9 million. 13. STATUTORY CAPITAL AND SURPLUS State insurance statutes contain limitations as to the amount of dividends or distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life Insurance Company, dividends or distributions in excess of unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life Insurance Company's primary regulator, and are subject to potential disapproval. RiverSource Life Insurance Company's statutory unassigned surplus aggregated $433 million and $173 million as of December 31, 2009 and 2008, respectively. In addition, dividends or distributions, whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceed the greater of the previous year's statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as "extraordinary dividends." Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Statutory net gain from operations and net income for the years ended December 31 and capital and surplus as of December 31 are summarized as follows:
(IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- (unaudited) Statutory net gain (loss) from operations(1) $1,793 $(1,184) $ 523 Statutory net income (loss)(1) 1,887 (1,407) 555 Statutory capital and surplus 3,371 2,529 2,820
(1) An increase in statutory reserves for variable annuity guaranteed benefits contributed significantly to the loss in 2008, but was substantially offset by unrealized gains on derivatives which are not included in the statutory income statement, but recorded directly to surplus. These impacts were substantially reversed in 2009. 14. INCOME TAXES RiverSource Life qualifies as a life insurance company for federal income tax purposes. As such, RiverSource Life is subject to the Internal Revenue Code provisions applicable to life insurance companies. The components of income tax provision (benefit) were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Current income tax: Federal $325 $ 42 $(30) State 1 3 -- - ------------------------------------------------------------------------------------------------------- Total current income tax 326 45 (30) Deferred income tax Federal (80) (236) 83 State (1) 2 -- - ------------------------------------------------------------------------------------------------------- Total deferred income tax (81) (234) 83 - ------------------------------------------------------------------------------------------------------- Total income tax provision (benefit) $245 $(189) $ 53 =======================================================================================================
F-33 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The principal reasons that the aggregate income tax provision is different from that computed by using the U.S. statutory rate of 35% are as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Tax at U.S. statutory rate 35.0% 35.0% 35.0% Changes in taxes resulting from: Tax-exempt interest and dividend income (7.2) 56.6 (10.9) State taxes, net of federal benefit -- (3.7) -- Low income housing credit (2.0) 27.9 (7.0) Foreign tax credit, net of addback (1.0) 15.3 (2.3) Taxes applicable to prior years 0.1 29.2 (4.0) Other, net -- (0.2) -- - ------------------------------------------------------------------------------------------------------- Income tax provision 24.9% 160.1% 10.8% =======================================================================================================
RiverSource Life's effective tax rate was 24.9% and 160.1% for the years ended December 31, 2009 and 2008, respectively. The decrease in the effective tax rate is primarily due to pretax income for 2009 compared to a pretax loss in relation to a net tax benefit for 2008. RiverSource Life's effective tax rate for 2008 included a $39 million tax benefit related to changes in the status of current audits. Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. The significant components of RiverSource Life's deferred income tax assets and liabilities are reflected in the following table:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Deferred income tax assets: Liabilities for future policy benefits $1,390 $1,744 Investment related 163 -- Net unrealized losses on Available-for-Sale securities and derivatives -- 399 Net operating loss and tax credit carryforwards 185 159 Other -- 44 - ------------------------------------------------------------------------------------------------- Gross deferred income tax assets 1,738 2,346 Deferred income tax liabilities: DAC 1,264 1,168 Investment related -- 398 Net unrealized gains on Available-for-Sale securities 203 -- DSIC 193 181 Other 15 -- - ------------------------------------------------------------------------------------------------- Gross deferred income tax liabilities 1,675 1,747 - ------------------------------------------------------------------------------------------------- Net deferred income tax assets $ 63 $ 599 =================================================================================================
RiverSource Life is required to establish a valuation allowance for any portion of the deferred income tax assets that management believes will not be realized. Included in RiverSource Life's deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of RiverSource Life's tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will generate sufficient taxable income to enable RiverSource Life to utilize all of its deferred tax assets. Accordingly, no valuation allowance for deferred tax assets has been established as of December 31, 2009 and 2008. Additionally, RiverSource Life has tax benefits related to net operating loss carryforwards of $16 million which expire beginning December 31, 2025 as well as tax credit carryforwards of $149 million which expire beginning December 31, 2025. F-34 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
(IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Balance at January 1 $(89) $ 97 $ 73 Additions (reductions) based on tax positions related to the current year 1 (165) 34 Additions for tax positions of prior years 18 38 16 Reductions for tax positions of prior years (7) (59) (26) - ------------------------------------------------------------------------------------------------------- Balance at December 31 $(77) $ (89) $ 97 =======================================================================================================
If recognized, approximately $49 million, $30 million and $49 million, net of federal tax benefits, of the unrecognized tax benefits as of December 31, 2009, 2008 and 2007, respectively, would affect the effective tax rate. RiverSource Life recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. RiverSource Life recognized a net reduction of $1 million, $14 million and $11 million in interest and penalties for the year ended December 31, 2009, 2008 and 2007, respectively. At December 31, 2009 and 2008, RiverSource Life had a receivable of $16 million and $15 million, respectively, related to accrued interest and penalties. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. However, there are a number of open audits and quantification of a range cannot be made at this time. RiverSource Life or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, RiverSource Life is no longer subject to U.S. federal or state and local income tax examinations by tax authorities for years before 1997. The Internal Revenue Service ("IRS"), as part of the overall examination of the American Express Company consolidated return completed its field examination of the RiverSource Life's income tax returns for 1997 through 2002 during 2008 and completed its field examination of 2003 through 2004 in the third quarter of 2009. However, for federal income tax purposes, these years continue to remain open as a consequence of certain issues under appeal. In the fourth quarter of 2008, the IRS commenced an examination of RiverSource Life's U.S. income tax returns for 2005 through 2007, which is expected to be completed in 2010. RiverSource Life or certain of its subsidiaries' state income tax returns are currently under examination by various jurisdictions for years ranging from 1998 through 2006. On September 25, 2007, the IRS issued Revenue Ruling 2007-61 in which it announced that it intends to issue regulations with respect to certain computational aspects of the Dividends Received Deduction ("DRD") related to separate account assets held in connection with variable contracts of life insurance companies. Revenue Ruling 2007-61 suspended a revenue ruling issued in August 2007 that purported to change accepted industry and IRS interpretations of the statutes governing these computational questions. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other members of the public will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown at this time, but they may result in the elimination of some or all of the separate account DRD tax benefit that RiverSource Life receives. Management believes that it is likely that any such regulations would apply prospectively only. Additionally, included in the Administration's 2011 Revenue Proposals is a provision to modify the DRD for life insurance companies' separate accounts, which if enacted could significantly reduce the DRD tax benefits RiverSource Life receives, prospectively, beginning in 2011. For the year ended December 31, 2009, RiverSource Life recorded a benefit of approximately $62 million related to the current year's separate account DRD. As a result of the separation of Ameriprise Financial from American Express, RiverSource Life and subsidiaries will not be able to file a consolidated U.S. federal income tax return with other members of Ameriprise Financial's affiliated group until 2010. The items comprising other comprehensive income (loss) are presented net of the following income tax provision (benefit) amounts:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Net unrealized securities gains (losses) $166 $(302) $28 Net unrealized derivative gains 2 2 -- - ------------------------------------------------------------------------------------------------------- Net income tax provision (benefit) $168 $(300) $28 =======================================================================================================
15. DERIVATIVES AND HEDGING ACTIVITIES Derivative instruments enable RiverSource Life to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. RiverSource Life primarily enters into derivative agreements for risk management purposes related to RiverSource Life's products and operations. F-35 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- RiverSource Life uses derivatives as economic hedges and occasionally holds derivatives designated for hedge accounting. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product at December 31, 2009:
BALANCE BALANCE DERIVATIVES NOT DESIGNATED AS HEDGING SHEET SHEET INSTRUMENTS LOCATION ASSET LOCATION LIABILITY - ------------------------------------------------------------------------------------------------------------ (IN (IN MILLIONS) MILLIONS) INTEREST RATE CONTRACTS Other GMWB and GMAB Other assets $176 liabilities $ 280 EQUITY CONTRACTS Other GMWB and GMAB Other assets 437 liabilities 474 Other GMDB -- liabilities 2 Equity indexed annuities Other assets 2 -- Future Equity indexed annuities embedded policy derivatives -- benefits 9 OTHER Future policy GMWB and GMAB embedded derivatives(1) -- benefits 299 - ------------------------------------------------------------------------------------------------------------ Total $615 $1,064 ============================================================================================================
(1) The fair values of GMWB and GMAB embedded derivatives fluctuate primarily based on changes in equity, interest rate and credit markets. See Note 11 for additional information regarding RiverSource Life's fair value measurement of derivative instruments. Derivatives Not Designated as Hedges The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income for the year ended December 31, 2009:
LOCATION OF AMOUNT OF GAIN (LOSS) GAIN (LOSS) ON ON DERIVATIVES DERIVATIVES DERIVATIVES NOT DESIGNATED AS HEDGING RECOGNIZED RECOGNIZED INSTRUMENTS IN INCOME IN INCOME - --------------------------------------------------------------------------------- (IN MILLIONS) INTEREST RATE CONTRACTS Benefits, claims, losses and settlement GMWB and GMAB expenses $ (435) EQUITY CONTRACTS Benefits, claims, losses and settlement GMWB and GMAB expenses (1,310) Benefits, claims, losses and settlement GMDB expenses (10) Interest credited to fixed Equity indexed annuities accounts 4 Interest credited to fixed Equity indexed annuities embedded derivatives accounts 7 OTHER Benefits, claims, losses and settlement GMWB and GMAB embedded derivatives expenses 1,533 - --------------------------------------------------------------------------------- Total $ (211) =================================================================================
RiverSource Life holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity and interest rate risk related to various RiverSource Life products and transactions. The majority of RiverSource Life's annuity contracts contain GMDB provisions, which may result in a death benefit payable that exceeds the contract accumulation value when market values of customers' accounts decline. Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of considerations received at the beginning of the contract period, after a specified holding period, respectively. RiverSource Life economically hedges the exposure related to non-life contingent GMWB and GMAB provisions using various equity futures, equity options, total return swaps, interest rate swaptions and interest rate swaps. In the third quarter of 2009, RiverSource Life entered into a limited number of derivative contracts to economically hedge equity exposure related to GMDB provisions on variable annuity contracts written previously in 2009. At December 31, 2009, the gross notional amount of these contracts was $38.7 billion and $77 million for RiverSource Life's GMWB and GMAB provisions and GMDB provisions, respectively. The premium associated with certain of the above options is paid or received semi-annually over the life of the option contract. F-36 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following is a summary of the payments RiverSource Life is scheduled to make and receive for these options:
PREMIUMS PREMIUMS (IN MILLIONS) PAYABLE RECEIVABLE - ------------------------------------------------------------------------------------------------- 2010 $189 $5 2011 181 4 2012 160 3 2013 143 2 2014 118 1 2015-2024 410 4
Actual timing and payment amounts may differ due to future contract settlements, modifications or exercises of options prior to the full premium being paid or received. Equity indexed annuities have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by RiverSource Life related to equity indexed annuities products will positively or negatively impact earnings over the life of these products. As a means of economically hedging its obligations under the provisions of these products, RiverSource Life enters into index options and occasionally enters into futures contracts. The gross notional amount of these derivative contracts was $129 million at December 31, 2009. EMBEDDED DERIVATIVES Certain annuities contain GMAB and non-life contingent GMWB provisions, which are considered embedded derivatives. In addition, the equity component of the equity indexed annuity product obligations is also considered an embedded derivative. As captured in the tables above, embedded derivatives are bifurcated from their host contracts and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As noted above, RiverSource Life uses derivatives to mitigate the financial statement impact of these embedded derivatives. CASH FLOW HEDGES RiverSource Life has amounts classified in accumulated other comprehensive income (loss) related to gains and losses associated with the effective portion of previously designated cash flow hedges. RiverSource Life reclassifies these amounts into income as the forecasted transactions impact earnings. During the year ended December 31, 2009, RiverSource Life held no derivatives that were designated as cash flow hedges. The following is a summary of unrealized derivatives gains (losses) included in accumulated other comprehensive income (loss) related to cash flow hedges:
(IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Net unrealized derivatives losses at January 1 $(38) $(40) $(41) Unrealized derivative losses arising during the period -- (1) (1) Reclassification of realized gains(1) 6 5 2 Income tax provision (benefit) (2) (2) -- - ------------------------------------------------------------------------------------------------------- Net unrealized derivatives losses at December 31 $(34) $(38) $(40) =======================================================================================================
(1) Gain reclassified from Accumulated Other Comprehensive to Net Investment Income on Consolidated Statements of Income. At December 31, 2009, RiverSource Life expects to reclassify $6 million of deferred loss on derivative instruments from accumulated other comprehensive income (loss) to earnings during the next 12 months that will be recorded in net investment income. These were originally losses on derivative instruments related to interest rate swaptions. For any hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income (loss) are recognized in earnings immediately. No hedge relationships were discontinued during the years ended December 31, 2009, 2008 and 2007 due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the years ended December 31, 2009 and 2008, there were no amounts recognized in earnings on derivative transactions that were ineffective. For the year ended December 31, 2007, RiverSource Life recognized $2 million in net investment income related to ineffectiveness on its swaptions. Currently, the longest period of time over which RiverSource Life is hedging exposure to the variability in future cash flows is 9 years and relates to interest credited on forecasted fixed premium product sales. CREDIT RISK Credit risk associated with RiverSource Life's derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, RiverSource Life has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master F-37 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- netting arrangements and collateral arrangements wherever practical. As of December 31, 2009, RiverSource Life held $88 million in cash and cash equivalents and recorded a corresponding liability in other liabilities for collateral RiverSource Life is obligated to return to counterparties. As of December 31, 2009, RiverSource Life had accepted additional collateral consisting of various securities with a fair market value of $22 million, which are not reflected on the Consolidated Balance Sheets. As of December 31, 2009, RiverSource Life's maximum credit exposure related to derivative assets after considering netting arrangements with counterparties and collateral arrangements was approximately $53 million. Certain of RiverSource Life's derivative instruments contain provisions that adjust the level of collateral RiverSource Life is required to post based on RiverSource Life's financial strength rating (or based on the debt rating of RiverSource Life's parent, Ameriprise Financial). Additionally, certain of RiverSource Life's derivative contracts contain provisions that allow the counterparty to terminate the contract if RiverSource Life does not maintain a specific financial strength rating or Ameriprise Financial's debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, RiverSource Life's counterparty could require immediate settlement of any net liability position. At December 31, 2009, the aggregate fair value of all derivative instruments containing such credit risk features was $296 million. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2009 was $269 million. If the credit risk features of derivative contracts that were in a net liability position at December 31, 2009 were triggered, the additional fair value of assets needed to settle these derivative liabilities would have been $27 million. 16. COMMITMENTS AND CONTINGENCIES At December 31, 2009 and 2008, RiverSource Life had no material commitments to purchase investments other than mortgage loan fundings. See Note 4 for additional information. RiverSource Life's annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2009, these guarantees range up to 5.0%. To the extent the yield on RiverSource Life's invested assets portfolio declines below its target spread plus the minimum guarantee, RiverSource Life's profitability would be negatively affected. The Securities and Exchange Commission, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities have brought proceedings challenging several mutual fund and variable product financial practices, generally including suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements. RiverSource Life has received requests for information and has been contacted by regulatory authorities concerning its practices and is cooperating fully with these inquiries. RiverSource Life is involved in the normal course of business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material impact on results of operations in any particular reporting period as the proceedings are resolved. F-38 S-6325 H (4/10) PART C. Item 24. Financial Statements and Exhibits (a) Financial statements included in Part B of this Registration Statement: The audited financial statements of the RiverSource Variable Account 10 including: Report of Independent Registered Public Accounting Firm dated April 23, 2010. Statements of Assets and Liabilities for the year ended Dec. 31, 2009. Statements of Operations for the year ended Dec. 31, 2009. Statements of Changes and Net Assets for the years ended Dec. 31, 2009 and 2008. Notes to Financial Statements. The audited financial statements of the RiverSource Life Insurance Company including: Report of Independent Registered Public Accounting Firm dated February 23, 2010. Consolidated Balance Sheets as of Dec. 31, 2009 and 2008. Consolidated Statements of Income for the years ended Dec. 31, 2009, 2008 and 2007. Consolidated Statements of Cash Flows for the years ended Dec. 31, 2009, 2008 and 2007. Consolidated Statements of Stockholder's Equity for the three years ended Dec. 31, 2009, 2008 and 2007. Notes to Consolidated Financial Statements. (b) Exhibits: 1.1 Resolution of the Board of Directors of IDS Life Insurance Company establishing the IDS Life Variable Account 10 dated August 23, 1995, filed electronically as Exhibit 1 to Registrant's Initial Registration Statement No. 33-62407 is incorporated herein by reference. 1.2 Resolution of the Board of Directors of IDS Life Insurance Company establishing 105 additional subaccounts within the separate account, filed electronically as Exhibit 1.2 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999, is incorporated herein by reference. 1.3 Resolution of the Board of Directors of IDS life Insurance Company establishing 25 additional subaccounts within the separate account, filed electronically as Exhibit 1.3 to Registrant's Post-Effective Amendment No. 2 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.4 Resolution of the Board of Directors of IDS Life Insurance Company establishing 12 additional subaccounts within the separate account, filed electronically as Exhibit 1.3 to Registrant's Post-Effective Amendment No. 3 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.5 Resolution of the Board of Directors of IDS Life Insurance Company establishing 69 additional subaccounts within the separate account, filed electronically as Exhibit 1.5 to Registrant's Post-Effective Amendment No. 6 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.6 Resolution of the Board of Directors of IDS Life Insurance Company establishing 112 additional subaccounts within the separate account, dated Feb. 11, 2002, filed electronically as Exhibit 1.6 to Registrant's Post-Effective Amendment No. 8 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.7 Resolution of the Board of Directors of IDS Life Insurance Company establishing 3 additional subaccounts within the separate account, dated Feb. 28, 2002, filed electronically as Exhibit 1.7 to Registrant's Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.8 Resolution of the Board of Directors of IDS Life Insurance Company establishing 8 additional subaccounts within the separate account, dated January 6, 2004, filed electronically as Exhibit 1.8 to Registrant's Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 1.9 Resolution of the Board of Directors of IDS Life Insurance Company establishing 6 additional subaccounts within the separate account, dated August 12, 2004 filed electronically as Exhibit 1.9 to Post-Effective Amendment No. 32 to Registration Statement No. 333-79311 is incorporated by reference. 1.10 Resolution of the Board of Directors of IDS Life Insurance Company establishing an additional subaccount within the separate account, dated April 27, 2005 filed electronically as Exhibit 1.10 to Post-Effective Amendment No. 32 to Registration Statement No. 333-79311 is incorporated by reference. 1.11 Resolution of the Board of Directors establishing 18 additional subaccounts within the separate accounts dated April 12, 2006 filed electronically as Exhibit 1.11 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 1.12 Unanimous Written Consent of the Board of Directors In Lieu of a Meeting for IDS Life Insurance Company, adopted December 8, 2006 for the Re-designation of the Separate Accounts to Reflect Entity Consolidation and Rebranding filed electronically as Exhibit 27(a)(6) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated by reference. 2. Not applicable. 3. Form of Principal Underwriter Agreement for RiverSource Life Insurance Company Variable Annuities and Variable Life Insurance filed electronically as Exhibit 3.1 to the Initial Registration Statement on Form N-4 for RiverSource Variable Annuity Account (previously American Enterprise Variable Annuity Account), RiverSource Signature(SM) Select Variable Annuity and RiverSource Signature(SM) Variable Annuity, on or about Jan. 2, 2007, is incorporated by reference. 4.1 Form of Deferred Annuity Contract for non-qualified contracts (form 31043) filed electronically as Exhibit 4.1 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.2 Form of Deferred Annuity Contract for tax qualified contracts (form 31044) filed electronically as Exhibit 4.2 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.3 Form of Deferred Annuity Contract for IRA contracts (form 31045-IRA) filed electronically as Exhibit 4.3 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.4 Form of Deferred Annuity Contract for non-qualified contracts (form 31046) filed electronically as Exhibit 4.4 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.5 Form of Deferred Annuity Contract for tax qualified contracts (form 31047) filed electronically as Exhibit 4.5 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.6 Form of Deferred Annuity Contract for IRA contracts (form 31048-IRA) filed electronically as Exhibit 4.6 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.7 Form of TSA Endorsement (form 31049), filed electronically as Exhibit 4.7 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999 is incorporated herein by reference. 4.8 Form of Maximum Anniversary Value Death Benefit Rider, filed electronically as Exhibit 4.8 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.9 Form of Enhanced Earnings Death Benefit Rider, filed electronically as Exhibit 4.9 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.10 Form of Enhanced Earnings Plus Death Benefit Rider, filed electronically as Exhibit 4.10 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.11 Form of Traditional IRA or SEP-IRA Annuity Endorsement (form 131061) filed electronically as Exhibit 4.11 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.12 Form of Roth IRA Annuity Endorsement (form 131062) filed electronically as Exhibit 4.12 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.13 Form of SIMPLE IRA Annuity Endorsement (form 131063) filed electronically as Exhibit 4.13 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.14 Form of Deferred Annuity Contract for non-qualified contracts (form 131041) filed electronically as Exhibit 4.14 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.15 Form of Deferred Annuity Contract for Retirement Advisor Advantage Plus (form 1043 A) filed electronically as Exhibit 4.15 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.16 Form of Deferred Annuity Contract for Retirement Advisor Select Plus (form 131041 A) filed electronically as Exhibit 4.16 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.17 Form of Deferred Annuity Contract for RiverSource Retirement Advisor 4 Advantage Variable Annuity (form 131101), filed electronically as Exhibit 4.17 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.18 Form of Deferred Annuity Contract for RiverSource Retirement Advisor 4 Select Variable Annuity (form 131102), filed electronically as Exhibit 4.18 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.19 Form of Deferred Annuity Contract for RiverSource Retirement Advisor 4 Access Variable Annuity (form 131103), filed electronically as Exhibit 4.19 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.20 Form of TSA Endorsement (form 131068), filed electronically as Exhibit 4.17 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.21 Form of Return of Purchase Payments Rider (form 131072), filed electronically as Exhibit 4.18 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.22 Form of Maximum Anniversary Value Death Benefit Rider (form 131031), filed electronically as Exhibit 4.19 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.23 Form of 5-Year Maximum Anniversary Value Death Benefit Rider (form 131071), filed electronically as Exhibit 4.20 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.24 Form of Enhanced Earnings Death Benefit Rider (form 131032 A), filed electronically as Exhibit 4.21 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.25 Form of Enhanced Earnings Plus Death Benefit Rider (form 131033 A), filed electronically as Exhibit 4.22 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.26 Form of 401 (a) Annuity Endorsement (form 131069), filed electronically as Exhibit 4.23 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.27 Form of Guarantee Period Accounts Rider filed electronically as Exhibit 4.24 to Post-Effective Amendment No. 25 to Registration Statement No. 333-79311, filed on or about June 2, 2004, is incorporated by reference. 4.28 Form of Guaranteed Minimum Withdrawal Benefit Rider (form 131034) filed electronically as Exhibit 4.25 to Post-Effective Amendment No. 29 to Registration Statement No. 333-79311, filed on or about Oct. 21, 2004, is incorporated by reference. 4.29 Form of Guaranteed Minimum Accumulation Benefit Rider (GMAB) (form 131035) filed electronically as Exhibit 4.29 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 4.30 Form of Portfolio Navigator Model Portfolio Rider (form 131070C) filed electronically as Exhibit 4.30 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 4.31 Form of Guaranteed Minimum Lifetime Withdrawal Benefit Rider (Withdrawal Benefit for Life), filed electronically as Exhibit 4.31 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.32 Copy of Company name change endorsement (form 131115) for RiverSource Life Insurance Company, filed electronically as Exhibit 4.32 to Registrant's Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 filed on or about Jan. 2, 2007, is incorporated by reference. 4.33 Form of SecureSource Joint Life rider filed electronically as Exhibit 4.33 to Registrant's Post-Effective Amendment No. 44 to Registration Statement No. 333-79311 is incorporated herein by reference. 4.34 Form of SecureSource Single Life rider filed electronically as Exhibit 4.34 to Registrant's Post-Effective Amendment No. 44 to Registration Statement No. 333-79311 is incorporated herein by reference. 4.35 Form of Guaranteed Minimum Withdrawal Benefit Rider (form 131034-E) filed electronically as Exhibit 4.35 to Registrant's Post-Effective Amendment No. 47 to Registration Statement No. 333-79311 is incorporated herein by reference. 5. Form of Variable Annuity Application (form 31063), filed electronically as Exhibit 5 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999 is incorporated herein by reference. 6.1 Certificate of Incorporation of IDS Life dated July 24, 1957, filed electronically as Exhibit 6.1 to Registrant's Initial Registration Statement No. 33-62407 is incorporated herein by reference. 6.2 Copy of Certificate of Amendment of Certificate of Incorporation of IDS Life Insurance Company dated June 22, 2006, filed electronically as Exhibit 27(f)(1) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated by reference. 6.3 Copy of Amended and Restated By-Laws of RiverSource Life Insurance Company filed electronically as Exhibit 27(f)(2) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated by reference. 7. Not applicable. 8.1 Copy of Amended and Restated Participation Agreement dated April 17, 2006, by and among AIM Variable Insurance Funds, AIM Distributors, Inc. American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company, and Ameriprise Financial Services, Inc. filed electronically as Exhibit 27(h) (1) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.2 Copy of Amended and Restated Participation Agreement dated August 1, 2006, among American Enterprise Life Insurance Company, IDS Life Insurance Company, Ameriprise Financial Services, Inc., AllianceBernstein L.P. and AllianceBernstein Investments, Inc. filed electronically as Exhibit 27(h) (20) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777is incorporated herein by reference. 8.3 Copy of Amended and Restated Fund Participation Agreement dated June 1, 2006, by and among American Centurion Life Assurance Company, American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company, IDS Life Insurance Company of New York, Ameriprise Financial Services, Inc. and American Century Investment Services, Inc. filed electronically as Exhibit 27(h)(3) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated herein by reference. 8.4 Copy of Amended and Restated Participation Agreement dated June 19, 2006, by and among Calvert Variable Series, Inc., Calvert Asset Management Company, Inc., Calvert Distributors, Inc. and IDS Life Insurance Company filed electronically as Exhibit 27(h)(4) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.5 Copy of Fund Participation Agreement dated May 1, 2006 among American Enterprise Life Insurance Company, IDS Life Insurance Company, Columbia Funds Variable Insurance Trust I, Columbia Management Advisors, LLC and Columbia Management Distributors, Inc. filed electronically as Exhibit 27(h) (22) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.6 Copy of Amended and Restated Participation Agreement dated May 1, 2006, by and among American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company, Credit Suisse Trust, Credit Suisse Asset Management, LLC. and Credit Suisse Asset Management Securities, Inc. filed electronically as Exhibit 8.6 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.7 Copy of Fund Participation Agreement dated May 1, 2006, by and among American Enterprise Life Insurance Company, IDS Life Insurance Company, The Dreyfus Corporation, Dreyfus Variable Investment Fund, and Dreyfus Investment Portfolios filed electronically as Exhibit 8.7 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.8 Copy of Participation Agreement dated May 1, 2006, among Eaton Vance Variable Trust, Eaton Vance Distributors, Inc. and IDS Life Insurance Company filed electronically as Exhibit 8.8 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.9 Copy of Evergreen Variable Annuity Trust Amended and Restated Participation Agreement dated June 1, 2006, by and among American Enterprise Life Insurance Company, IDS Life Insurance Company and Evergreen Variable Annuity Trust filed electronically as Exhibit 27(h) (6) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.10 Copy of Amended and Restated Fund Participation Agreement dated January 1, 2007,among Variable Insurance Products Funds, Fidelity Distributors Corporation and RiverSource Life Insurance Co. of New York filed electronically as Exhibit 8.16 to RiverSource of New York Variable Annuity Account 2's Post-Effective Amendment No. 3 to Registration Statement No. 333-139764 on or about April 24, 2008 is incorporated by reference herein. 8.11 Copy of Amended and Restated Participation Agreement by and between Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc., American Centurion Life Assurance Company, American Enterprise Life Insurance Company, IDS Life Insurance Company, IDS Life Insurance Company of New York, Ameriprise Financial Services, Inc. (formerly American Express Financial Advisors Inc.), dated August 1, 2005 filed electronically as Exhibit 8.7 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 8.12 Copy of Amended and Restated Participation Agreement dated June 9, 2006, by and among American Enterprise Life Insurance Company, IDS Life Insurance Company, Goldman Sachs Variable Insurance Trust and Goldman, Sachs & Co. filed electronically as Exhibit 27(h)(24) to Post Effective Amendment No.28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.13 Copy of Janus Aspen Series Amended and Restated Fund Participation Agreement dated September 1, 2006, by and among American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company and Janus Aspen Series filed electronically as Exhibit 27(h)(12) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.14 Copy of Amended and Restated Participation Agreement by and among IDS Life Insurance Company, American Enterprise Life Insurance Company, Ameriprise Financial Services, Inc., Lazard Asset Management Securities LLC, and Lazard Retirement Series, Inc., dated Oct. 16, 2006, filed electronically as Exhibit 8.14 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.15 Copy of Fund Participation Agreement dated Jan. 1, 2007, by and among RiverSource Life Insurance Company, RiverSource Distributors, Inc. and Lazard Asset Management Securities LLC and Lazard Retirement Series, Inc. filed electronically as Exhibit 8.15 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.16 Copy of Amended and Restated Participation Agreement dated September 1, 2006, by and among IDS Life Insurance Company, Legg Mason Partners Variable Portfolios I, Inc. (formerly Salomon Brothers Variable Series Fund, Inc.), Legg Mason Partners Variable Portfolios II, Inc. (formerly Greenwich Street Series Fund, formerly Smith Barney Series Fund, formerly Smith Barney Shearson Series Fund, formerly Shearson Series Fund), Legg Mason Partners Variable Portfolios III, Inc. (formerly Travelers Series Fund Inc., formerly Smith Barney Travelers Series Fund Inc.) and Legg Mason Investor Services, LLC filed electronically as Exhibit 8.15 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.17 Copy of Participation Agreement Among MFS Variable Insurance Trust, American Enterprise Life Insurance Company, IDS Life Insurance Company and Massachusetts Financial Services Company, dated June 9, 2006, filed electronically as Exhibit 8.17 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.18 Copy of Fund Participation Agreement dated March 2, 2006, by and between Neuberger Berman Advisers Management Trust, Neuberger Berman Management, Inc. and IDS Life Insurance Company filed electronically as Exhibit 8.17 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.19 Copy of Amended and Restated Fund Participation Agreement dated March 30, 2007, among Oppenheimer Variable Account funds, Oppenheimer Funds, Inc. and RiverSource Life Insurance Company filed electronically as Exhibit 8.4 to RiverSource Variable Annuity Account Post-Effective Amendment No. 2 to Registration Statement No. 333-139760 on or about April 24, 2008 is incorporated by reference herein. 8.20 Copy of Participation Agreement dated March 1, 2006, among IDS Life Insurance Company, PIMCO Variable Insurance Trust and Allianz Global Investors Distributors LLC filed electronically as Exhibit 8.19 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.21 Copy of Amended and Restated Fund Participation Agreement dated September 1, 2006, among Pioneer Variable Contracts Trust, IDS Life Insurance Company, Pioneer Investment Management, Inc., and Pioneer Funds Distributor, Inc. filed electronically as Exhibit 27(h)(15) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.22 Copy of Amended and Restated Fund Participation Agreement dated Jan. 1, 2007, among Riversource Life Insurance Company, Putnam Variable Trust and Putnam Retail Management Limited Partnership filed electronically as Exhibit 8.2 to RiverSource Variable Annuity Account's Post-Effective Amendment No. 2 to Registration Statement No. 333-139760 on or about April 24, 2008 is incorporated by reference herein. 8.23 Copy of Participation Agreement dated January 1, 2007, by and among RiverSource Life Insurance Company, RiverSource Life Insurance Co. of New York and RiverSource Distributors, Inc. filed electronically as Exhibit 8.23 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.24 Copy of Participation Agreement by and among Royce Capital Fund and Royce & Associates, Inc. and RiverSource Life Insurance Company, dated Jan. 1, 2007, filed electronically as Exhibit 8.24 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.25 Copy of Amended and Restated Participation Agreement dated May 1, 2006, among The Universal Institutional Funds, Inc., Morgan Stanley Investment Management Inc., Morgan Stanley Distribution, Inc., American Enterprise Life Insurance Company and IDS Life Insurance Company filed electronically as Exhibit 8.24 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.26 Copy of Amended and Restated Participation Agreement dated October 12, 2006, by and among Third Avenue Variable Series Trust, Third Avenue Management LLC, American Enterprise Life Insurance Company and IDS Life Insurance Company filed electronically as Exhibit 27(h)(18) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.27 Copy of Amended and Restated Participation Agreement dated May 1, 2006, among Van Kampen Life Investment Trust, Van Kampen Funds Inc., Van Kampen Asset Management, American Enterprise Life Insurance Company and IDS Life Insurance Company filed electronically as Exhibit 8.26 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.28 Copy of Fund Participation Agreement dated April 2, 2007, RiverSource Life Insurance Company, Wanger Advisors Trust, Columbia Wanger Asset Management, L.P. and Columbia Management Distributors, Inc. filed electronically as Exhibit 8.11 to RiverSource Variable Annuity Account Post-Effective Amendment No. 2 to Registration Statement No. 333-139760 on or about April 24, 2008 is incorporated by reference herein. 8.29 Copy of Participation Agreement by and among Wells Fargo Variable Trust and RiverSource Life Insurance Company and Wells Fargo Funds Distributors, LLC dated Jan. 1, 2007, filed electronically as Exhibit 8.29 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 9. Opinion of counsel and consent to its use as the legality of the securities being registered is filed electronically herewith. 10.1 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor Variable Annuity is filed electronically herewith. 10.2 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor Advantage Variable Annuity/ Retirement Advisor Select Variable Annuity is filed electronically herewith. 10.3 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor Advantage Plus Variable Annuity/ RiverSource Retirement Advisor Select Plus Variable Annuity is filed electronically herewith. 10.4 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor 4 Advantage Variable Annuity/ RiverSource Retirement Advisor 4 Select Variable Annuity/RiverSource Retirement Advisor 4 Access Variable Annuity is filed electronically herewith. 11. None 12. Not applicable. 13. Power of Attorney dated Oct.22, 2008 filed electronically as Exhibit 13 to Post-Effective Amendment No.53 to Registration Statement No. 333-79311 on or about April 24, 2009, is incorporated by reference herein. 14. Not applicable. Item 25. Directors and Officers of the Depositor RiverSource Life Insurance Company
Position and Offices Name Principal Business Address* With Depositor - ---- --------------------------- -------------------- Gumer Cruz Alvero Director and Executive Vice President - Annuities Richard Norman Bush Senior Vice President - Corporate Tax Bimal Gandhi Senior Vice President - Strategic Transformation Brian Joseph McGrane Director, Executive Vice President and Chief Financial Officer Richard Thomas Moore Secretary Kevin Eugene Palmer Director, Vice President and Chief Actuary Bridget Mary Sperl Director, Executive Vice President - Client Services David Kent Stewart Vice President and Controller William Frederick "Ted" Truscott Director John Robert Woerner Chairman of the Board and President
* The business address is 70100 Amerprise Financial Center, Minneapolis, MN 55474. Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant The following list includes the names of major subsidiaries and affiliates of Ameriprise Financial, Inc. Name of Subsidiary and Jurisdiction of Incorporation American Express Property Casualty Insurance Agency of Pennsylvania Inc. PA Ameriprise Advisor Capital, LLC DE Ameriprise Bank, FSB NY Ameriprise Capital Trust I DE Ameriprise Capital Trust II DE Ameriprise Capital Trust III DE Ameriprise Capital Trust IV DE Ameriprise Captive Insurance Company VT Ameriprise Certificate Company DE Investors Syndicate Development Corporation NV Ameriprise Holdings, Inc. DE Ameriprise India Private Limited India Ameriprise Trust Company MN AMPF Holding Corporation MI Ameriprise Advisor Services, Inc. MI Ameriprise Insurance Agency of Massachusetts, Inc. MA American Enterprise Investment Services Inc. MN Ameriprise Financial Services DE AMPF Property Corporation MI AMPF Realty Corporation MI IDS Management Corporation MN IDS Futures Corporation MN IDS Property Casualty Insurance Company WI Ameriprise Auto & Home Insurance Agency, Inc. WI Ameriprise Insurance Company WI RiverSource Distributors, Inc. DE RiverSource Investments LLC MN Advisory Capital Strategies Group Inc. MN Boston Equity General Partner LLC DE Kenwood Capital Management LLC DE IDS Capital Holdings Inc MN Inc. RiverSource CDO Seed Investment, LLC MN J.& W. Seligman & Co., Inc. NY RiverSource Fund Distributors, Inc. NY RiverSource Services, Inc. NY Seligman Asia Inc. NY Seligman Focus Partners LLC NY Seligman Health Partners LLC NY Seligman Health Plus Partners LLC NY Seligman Partners LLC NY RiverSource Life Insurance Company MN RiverSource Life Insurance Co. of New York NY RiverSource NY REO, LLC NY RiverSource REO 1, LLC MN RiverSource Tax Advantaged Investments, Inc. DE AEXP Affordable Housing LLC DE RiverSource Service Corporation MN Securities America Financial Corporation NE Brecek & Young Advisors, Inc. CA Brecek & Young Financial Services Group of Montana, Inc. MT Brecek & Young Financial Group Insurance Agency of Texas, Inc. TX Securities America, Inc. DE Securities America Advisors, Inc. NE Threadneedle Asset Management Holdings SARL Luxembourg TAM Investment Ltd DE TAM UK Holdings Limited UK Threadneedle Asset Management (Australia) Pty Ltd Aus Threadneedle International Investments GmbH Germany Threadneedle Management Luxembourg S.A. Luxembourg Threadneedle Portfolio Services Hong Kong Ltd HK Threadneedle Asset Management Holdings Ltd.* UK Cofund Holdings Ltd. (16.89%) UK Threadneedle Asset Management Finance Ltd. UK TMS Investment Ltd. (Jersey) (Minority) Channel Islands, Jersey Threadneedle Asset Management Ltd. UK Threadneedle Asset Management (Nominees) Ltd. UK ADT Nominees Ltd UK Convivo Asset Management Ltd. UK Threadneedle Investment Advisors Ltd. UK Threadneedle Portfolio Managers Ltd. UK Sackville TIPP (GP) Ltd. UK Threadneedle International Fund Management Ltd. UK Threadneedle International Ltd. UK Threadneedle Investment Services GMbH Germany Threadneedle Investment Services Ltd. UK Threadneedle Investments (Channel Islands) Ltd. Channel Islands, Jersey Threadneedle Investments North America LLC DE Threadneedle Management Services Ltd. UK Threadneedle Pension Trustees Ltd. UK Threadneedle Property Services Ltd. UK Threadneedle Rural Property Services Ltd. UK Threadneedle Navigator ISA Manager Ltd. UK Threadneedle Pensions Ltd. UK Crockhamwell Road Management Ltd (75%) UK Crossways Management Company Ltd (0.7%) UK Redhouse Property Services Ltd. (6%) UK Sackville (TPEN) [75%] UK Severnside Distribution Park (Bristol) Management Ltd. (2.6%) UK Threadneedle Portfolio Services Ltd. UK Threadneedle Property Investments Ltd. UK Axix 4/5 Management Ltd. (22.2%) UK Cornbrash Park Management Company Ltd UK Highcross (Slough) Management Ltd UK Sackville Property (GP) Ltd. UK Sackville Property (GP) Nominee 1 Ltd. UK Sackville Property (GP) Nominee 2 Ltd. UK Sackville SPF IV (GP) No. 1 Ltd UK Sackville SPF IV Property (GP) No. 1 Ltd UK Sackville SPF IV Property Nominee (1) Ltd. UK Sackville SPF IV Property Nominee (2) Ltd. UK Sackville Tandem Property (GP) Ltd. UK Sackville Tandem Property Nominee Ltd. UK Sackville TPEN Property (GP) Ltd. UK Sackville TPEN Property Nominee Ltd. Sackville TPEN Property Nominee (2) Ltd. UK Sackville TPEN Property Nominee (2) Ltd. UK Sackville TSP Property (GP) Ltd. UK Sackville TSP Property Nominee Ltd. UK Threadneedle Unit Trust Manager Ltd. UK Item 27. Number of Contract owners As of March 31, 2010 there were 204,980 non-qualified contract owners and 440,164 qualified contract owners. Item 28. Indemnification The amended and restated By-Laws of the depositor provide that the depositor will indemnify, to the fullest extent now or hereafter provided for or permitted by law, each person involved in, or made or threatened to be made a party to, any action, suit, claim or proceeding, whether civil or criminal, including any investigative, administrative, legislative, or other proceeding, and including any action by or in the right of the depositor or any other corporation, or any partnership, joint venture, trust, employee benefit plan, or other enterprise (any such entity, other than the depositor, being hereinafter referred to as an "Enterprise"), and including appeals therein (any such action or process being hereinafter referred to as a "Proceeding"), by reason of the fact that such person, such person's testator or intestate (i) is or was a director or officer of the depositor, or (ii) is or was serving, at the request of the depositor, as a director, officer, or in any other capacity, or any other Enterprise, against any and all judgments, amounts paid in settlement, and expenses, including attorney's fees, actually and reasonably incurred as a result of or in connection with any Proceeding, except as provided below. No indemnification will be made to or on behalf of any such person if a judgment or other final adjudication adverse to such person establishes that such person's acts were committed in bad faith or were the result of active and deliberate dishonesty and were material to the cause of action so adjudicated, or that such person personally gained in fact a financial profit or other advantage to which such person was not legally entitled. In addition, no indemnification will be made with respect to any Proceeding initiated by any such person against the depositor, or a director or officer of the depositor, other than to enforce the terms of this indemnification provision, unless such Proceeding was authorized by the Board of Directors of the depositor. Further, no indemnification will be made with respect to any settlement or compromise of any Proceeding unless and until the depositor has consented to such settlement or compromise. The depositor may, from time to time, with the approval of the Board of Directors, and to the extent authorized, grant rights to indemnification, and to the advancement of expenses, to any employee or agent of the depositor or to any person serving at the request of the depositor as a director or officer, or in any other capacity, of any other Enterprise, to the fullest extent of the provisions with respect to the indemnification and advancement of expenses of directors and officers of the depositor. Insofar as indemnification for liability arising under the Securities Act of 1933 (the "Act") may be permitted to directors, officers and controlling persons of the depositor or 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. ITEM 29. PRINCIPAL UNDERWRITERS. (a) RiverSource Distributors Inc. acts as principal underwriter, depositor or sponsor for: RiverSource Variable Series Trust funds include the RiverSource Partners Variable Portfolio funds, RiverSource Variable Portfolio funds, Threadneedle Variable Portfolio funds, Seligman Variable Portfolio funds, Disciplined Asset Allocation Portfolio funds and Variable Portfolio fund of funds. (b) As to each director, officer or partner of the principal underwriter:
Name and Principal Business Address* Positions and Offices with Underwriter - ------------------------------------ -------------------------------------- Gumer C. Alvero Director and Vice President Patrick Thomas Bannigan Director and Vice President Timothy V. Bechtold Director and Vice President Paul J. Dolan Chief Operating Officer and Chief Administrative Officer Jeffrey P. Fox Chief Financial Officer Bimal Gandhi Senior Vice President - Strategic Transformation Jeffrey McGregor President Thomas R. Moore Secretary Scott Roane Plummer Chief Counsel Julie A. Ruether Chief Compliance Officer William Frederick "Ted" Truscott Chairman of the Board and Chief Executive Officer
* Business address is: 50611 Ameriprise Financial Center, Minneapolis, MN 55474 (c) RiverSource Distributors Inc., the principal underwriter during Registrant's last fiscal year, was paid the following commissions:
NAME OF NET UNDERWRITING PRINCIPAL DISCOUNTS AND COMPENSATION ON BROKERAGE UNDERWRITER COMMISSIONS REDEMPTION COMMISSIONS COMPENSATION - ----------- ---------------- --------------- ----------- ------------ RiverSource Distributors,Inc. $307,628,681 None None None
Item 30. Location of Accounts and Records RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 Item 31. Management Services Not applicable. Item 32. Undertakings (a) Registrant undertakes to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted. (b) Registrant undertakes to include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information. (c) Registrant undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request. (d) Registrant represents that it is relying upon the no-action assurance given to the American Council of Life Insurance (pub. avail. Nov. 28, 1988). Further, Registrant represents that it has complied with the provisions of paragraphs (1)-(4) of that no-action letter. (e) 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. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, RiverSource Life Insurance Company, on behalf of the Registrant, certifies that it meets all of the requirements of Securities Act Rule 485(b) for effectiveness of this Amendment to its Registration Statement and has caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Minneapolis, and State of Minnesota, on the 23rd day of April 2010. RIVERSOURCE VARIABLE ACCOUNT 10 (Registrant) By RiverSource Life Insurance Company (Sponsor) By /s/ John R. Woerner* ------------------------------------- John R. Woerner Chairman of the Board and President As required by the Securities Act of 1933, Amendment to this Registration Statement has been signed by the following persons in the capacities indicated on the 23rd day of April, 2010.
Signature Title - --------- ----- /s/ Gumer C. Alvero* Director and Executive Vice - ------------------------------------- President - Annuities Gumer C. Alvero /s/ Richard N. Bush* Senior Vice President - Corporate Tax - ------------------------------------- Richard N. Bush /s/ Brian J. McGrane* Director, Executive Vice President and - ------------------------------------- Chief Financial Officer Brian J. McGrane /s/ Kevin E. Palmer* Director, Vice President and Chief - ------------------------------------- Actuary Kevin E. Palmer
/s/ Bridget M. Sperl* Director and Executive Vice President - - ------------------------------------- Client Services Bridget M. Sperl /s/ David K. Stewart* Vice President and Controller - ------------------------------------- (Principal Accounting Officer) David K. Stewart /s/ William F. "Ted" Truscott* Director - ------------------------------------- William F. "Ted" Truscott /s/ John R. Woerner* Chairman of the Board and President - ------------------------------------- John R. Woerner
* Signed pursuant to Power of Attorney dated Oct.22, 2008 filed electronically as Exhibit 13 to Post-Effective Amendment No.53 to Registration Statement No. 333-79311 on or about April 24, 2009, is incorporated by reference herein, by: /s/ Rodney J. Vessels - ------------------------------------- Rodney J. Vessels Assistant General Counsel and Assistant Secretary CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 57 TO REGISTRATION STATEMENT This Post-Effective Amendment is comprised of the following papers and documents: The Cover Page. Part A. The Prospectuses for: RiverSource Retirement Advisor Variable Annuity RiverSource Retirement Advisor Advantage Variable Annuity RiverSource Retirement Advisor Select Variable Annuity RiverSource Retirement Advisor Advantage Plus Variable Annuity RiverSource Retirement Advisor Select Plus Variable Annuity RiverSource Retirement Advisor 4 Advantage Variable Annuity RiverSource Retirement Advisor 4 Select Variable Annuity RiverSource Retirement Advisor 4 Access Variable Annuity Part B. Combined Statement of Additional Information and Financial Information. Part C. Other Information. The signatures. Exhibits. Exhibit Index 9. Opinion of counsel and consent to its use as to the legality of the securities being registered. 10.1 - 10.4 Consents of Independent Registered Public Accounting Firm. EX-99.9 2 c56120bexv99w9.txt EX-99.9 April 23, 2010 RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 Re: RiverSource Variable Account 10 RiverSource Retirement Advisor Variable Annuity RiverSource Retirement Advisor Advantage Variable Annuity RiverSource Retirement Advisor Select Variable Annuity RiverSource Retirement Advisor Advantage Plus Variable Annuity RiverSource Retirement Advisor Select Plus Variable Annuity RiverSource Retirement Advisor 4 Advantage Variable Annuity RiverSource Retirement Advisor 4 Select Variable Annuity RiverSource Retirement Advisor 4 Access Variable Annuity File Nos. 333-79311/811-07355 Ladies and Gentlemen: I am familiar with the establishment of the RiverSource Variable Account 10 ("Account"), which is a separate account of RiverSource Life Insurance Company ("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 prospectuses contained in the Registration Statement and in compliance with applicable law, will be legally issued and represent binding obligations of its Company in accordance with their terms. I hereby consent to the filing of this opinion as an exhibit to the Registration Statement. Sincerely, /s/ Rodney J. Vessels - ------------------------------------- Rodney J. Vessels Assistant General Counsel and Assistant Secretary EX-99.10.1 3 c56120bexv99w10w1.txt EX-99.10.1 Consent of Independent Registered Public Accounting Firm We consent to the reference to our firm under the caption "Independent Registered Public Accounting Firm" in the Statement of Additional Information and to the use of our report dated February 23, 2010 with respect to the consolidated financial statements of RiverSource Life Insurance Company and to the use of our report dated April 23, 2010 with respect to the financial statements of RiverSource Variable Account 10 included in Post-Effective Amendment No. 57 to the Registration Statement (Form N-4, No. 333-79311) for the registration of the RiverSource Retirement Advisor Variable Annuity(R) offered by RiverSource Life Insurance Company. /s/ Ernst & Young LLP Minneapolis, Minnesota April 23, 2010 EX-99.10.2 4 c56120bexv99w10w2.txt EX-99.10.2 Consent of Independent Registered Public Accounting Firm We consent to the reference to our firm under the caption "Independent Registered Public Accounting Firm" in the Statement of Additional Information and to the use of our report dated February 23, 2010 with respect to the consolidated financial statements of RiverSource Life Insurance Company and to the use of our report dated April 23, 2010 with respect to the financial statements of RiverSource Variable Account 10 included in Post-Effective Amendment No. 57 to the Registration Statement (Form N-4, No. 333-79311) for the registration of the RiverSource Retirement Advisor Advantage(R) Variable Annuity and RiverSource Retirement Advisor Select(R) Variable Annuity offered by RiverSource Life Insurance Company. /s/ Ernst & Young LLP Minneapolis, Minnesota April 23, 2010 EX-99.10.3 5 c56120bexv99w10w3.txt EX-99.10.3 Consent of Independent Registered Public Accounting Firm We consent to the reference to our firm under the caption "Independent Registered Public Accounting Firm" in the Statement of Additional Information and to the use of our report dated February 23, 2010 with respect to the consolidated financial statements of RiverSource Life Insurance Company and to the use of our report dated April 23, 2010 with respect to the financial statements of RiverSource Variable Account 10 included in Post-Effective Amendment No. 57 to the Registration Statement (Form N-4, No. 333-79311) for the registration of the RiverSource Retirement Advisor Advantage Plus(R) Variable Annuity and RiverSource Retirement Advisor Select Plus(R) Variable Annuity offered by RiverSource Life Insurance Company. /s/ Ernst & Young LLP Minneapolis, Minnesota April 23, 2010 EX-99.10.4 6 c56120bexv99w10w4.txt EX-99.10.4 Consent of Independent Registered Public Accounting Firm We consent to the reference to our firm under the caption "Independent Registered Public Accounting Firm" in the Statement of Additional Information and to the use of our report dated February 23, 2010 with respect to the consolidated financial statements of RiverSource Life Insurance Company and to the use of our report dated April 23, 2010 with respect to the financial statements of RiverSource Variable Account 10 included in Post-Effective Amendment No. 57 to the Registration Statement (Form N-4, No. 333-79311) for the registration of the RiverSource Retirement Advisor 4 Advantage(R) Variable Annuity, RiverSource Retirement Advisor 4 Select(R) Variable Annuity, and RiverSource Retirement Advisor 4 Access(SM) Variable Annuity offered by RiverSource Life Insurance Company. /s/ Ernst & Young LLP Minneapolis, Minnesota April 23, 2010 -----END PRIVACY-ENHANCED MESSAGE-----