-----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, VZlO26sWj8MdHMOsGo8uS73NiOCACdoq9KQZdg+LYtVgr8sg5ZU7HtryGMlMyy3R 4C/eEWVeN2+jzAANqaMi7g== 0000950137-08-005932.txt : 20080424 0000950137-08-005932.hdr.sgml : 20080424 20080424161159 ACCESSION NUMBER: 0000950137-08-005932 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 8 FILED AS OF DATE: 20080424 DATE AS OF CHANGE: 20080424 EFFECTIVENESS DATE: 20080501 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: 08774575 BUSINESS ADDRESS: STREET 1: 50605 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5229 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 6126780175 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: 08774576 BUSINESS ADDRESS: STREET 1: 50605 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5229 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 6126780175 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 C000009761 RiverSource Retirement Advisor Variable Annuity - Band 3 C000009762 RiverSource Retirement Advisor Advantage Variable Annuity/RiverSource Retirement Advisor Select Variable Annuity C000009763 RiverSource Retirement Advisor Advantage Variable Annuity - Band 3 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 c18311be485bpos.txt POST-EFFECTIVE AMENDMENT TO REGISTRATION STATEMENT 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. 49 (File No. 333-79311) [X] and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 50 (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 Elisabeth A. Dahl 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 May 1, 2008 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 MAY 1, 2008 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: - - AIM Variable Insurance Funds - - 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 - - Fidelity(R) Variable Insurance Products - Service Class - - Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 - - Goldman Sachs Variable Insurance Trust (VIT) - - Janus Aspen Series: Service Shares - - Lazard Retirement Series, 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 funds formerly known as RiverSource Variable Portfolio Funds - - 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)................. 11 FINANCIAL STATEMENTS........................................ 11 THE VARIABLE ACCOUNT AND THE FUNDS.......................... 11 THE FIXED ACCOUNT........................................... 28 BUYING YOUR CONTRACT........................................ 29 CHARGES..................................................... 31 VALUING YOUR INVESTMENT..................................... 34 MAKING THE MOST OF YOUR CONTRACT............................ 36 SURRENDERS.................................................. 43 TSA -- SPECIAL PROVISIONS................................... 43 CHANGING OWNERSHIP.......................................... 44 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT......... 44 OPTIONAL BENEFITS........................................... 46 THE ANNUITY PAYOUT PERIOD................................... 49 TAXES....................................................... 51 VOTING RIGHTS............................................... 54 SUBSTITUTION OF INVESTMENTS................................. 54 ABOUT THE SERVICE PROVIDERS................................. 55 APPENDIX: CONDENSED FINANCIAL INFORMATION (UNAUDITED)....... 56 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION....................... 67
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 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. 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 ASSET ALLOCATION PROGRAM (PN PROGRAM): This is an optional asset allocation program in which you may elect to participate by adding the optional PN program rider for an 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) under Section 408(b) of the Code - - Roth IRAs under Section 408 A 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 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. The rider adds the terms of the optional benefit to your contract. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 3 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) 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 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 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. 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: Current: 0.20% 0.10%
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, 2007, 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 0.52% 2.09%
(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 AIM V.I. Capital Appreciation Fund, Series I 0.61% --% 0.27% --% 0.88% Shares AIM V.I. Capital Development Fund, Series I 0.75 -- 0.31 -- 1.06(1) Shares AIM V.I. Global Health Care Fund, Series II 0.75 0.25 0.32 0.01 1.33(1) Shares AIM V.I. International Growth Fund, Series II 0.71 0.25 0.36 0.01 1.33(1) Shares AllianceBernstein VPS Global Technology 0.75 0.25 0.17 -- 1.17 Portfolio (Class B) AllianceBernstein VPS Growth and Income 0.55 0.25 0.04 -- 0.84 Portfolio (Class B) AllianceBernstein VPS International Value 0.75 0.25 0.06 -- 1.06 Portfolio (Class B) American Century VP International, Class I 1.20 -- 0.01 -- 1.21 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 0.93 -- 0.01 -- 0.94 Calvert Variable Series, Inc. Social Balanced 0.70 -- 0.20 -- 0.90 Portfolio Columbia Marsico Growth Fund, Variable 0.97 -- 0.02 -- 0.99 Series, Class A Columbia Marsico International Opportunities 1.02 0.25 0.12 -- 1.39 Fund, Variable Series, Class B Credit Suisse Trust - Commodity Return 0.50 0.25 0.28 -- 1.03(2) Strategy Portfolio Credit Suisse Trust - Mid-Cap Core Portfolio 0.70 -- 0.58 -- 1.28(2) Eaton Vance VT Floating-Rate Income Fund 0.57 0.25 0.32 -- 1.14 Fidelity(R) VIP Contrafund(R) Portfolio 0.56 0.25 0.09 -- 0.90 Service Class 2 Fidelity(R) VIP Growth & Income Portfolio 0.46 0.10 0.12 -- 0.68 Service Class Fidelity(R) VIP Mid Cap Portfolio Service 0.56 0.10 0.10 -- 0.76 Class Fidelity(R) VIP Overseas Portfolio Service 0.71 0.10 0.14 -- 0.95 Class FTVIPT Franklin Global Real Estate Securities 0.75 0.25 0.31 -- 1.31(3) Fund - Class 2 FTVIPT Franklin Small Cap Value Securities 0.51 0.25 0.15 0.02 0.93(4) Fund - Class 2 FTVIPT Templeton Foreign Securities 0.63 0.25 0.14 0.02 1.04(4) Fund - Class 2
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 Goldman Sachs VIT Mid Cap Value 0.80% --% 0.07% --% 0.87% Fund - Institutional Shares Goldman Sachs VIT Structured Small Cap Equity 0.75 -- 0.20 -- 0.95(5) Fund - Institutional Shares Goldman Sachs VIT Structured U.S. Equity 0.65 -- 0.07 -- 0.72(6) Fund - Institutional Shares Janus Aspen Series Global Technology 0.64 0.25 0.18 0.01 1.08 Portfolio: Service Shares Janus Aspen Series International Growth 0.64 0.25 0.06 -- 0.95 Portfolio: Service Shares Janus Aspen Series Large Cap Growth 0.64 0.25 0.02 0.01 0.92 Portfolio: Service Shares Janus Aspen Series Mid Cap Growth Portfolio: 0.64 0.25 0.04 -- 0.93 Service Shares Lazard Retirement International Equity 0.75 0.25 0.18 -- 1.18 Portfolio - Service Shares MFS(R) Investors Growth Stock 0.75 0.25 0.11 -- 1.11 Series - Service Class MFS(R) New Discovery Series - Service Class 0.90 0.25 0.11 -- 1.26 MFS(R) Utilities Series - Service Class 0.75 0.25 0.10 -- 1.10(7) Neuberger Berman Advisers Management Trust 1.14 0.25 0.17 -- 1.56(8) International Portfolio (Class S) Oppenheimer Global Securities Fund/VA, 0.62 0.25 0.02 -- 0.89 Service Shares Oppenheimer Main Street Small Cap Fund/VA, 0.70 0.25 0.02 -- 0.97 Service Shares Oppenheimer Strategic Bond Fund/VA, Service 0.57 0.25 0.02 0.02 0.86(9) Shares PIMCO VIT All Asset Portfolio, Advisor Share 0.18 0.25 0.25 0.69 1.37(10) Class Putnam VT International New Opportunities 1.00 0.25 0.17 -- 1.42(11) Fund - Class IB Shares Putnam VT Vista Fund - Class IB Shares 0.65 0.25 0.11 -- 1.01 Royce Capital Fund - Micro-Cap Portfolio, 1.25 -- 0.06 -- 1.31 Investment Class RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.76 1.31(12) Portfolios - Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.64 1.19(12) Portfolios - Conservative RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.70 1.25(12) Portfolios - Moderate RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.73 1.28(12) Portfolios - Moderately Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.67 1.22(12) Portfolios - Moderately Conservative RVST RiverSource(R) Partners Variable 0.70 0.13 0.16 -- 0.99(13) Portfolio - Fundamental Value Fund (previously RiverSource(R) Variable Portfolio - Fundamental Value Fund) RVST RiverSource(R) Partners Variable 0.83 0.13 1.13 -- 2.09(13) Portfolio - Select Value Fund (previously RiverSource(R) Variable Portfolio - Select Value Fund) RVST RiverSource(R) Partners Variable 0.97 0.13 0.18 -- 1.28(13) Portfolio - Small Cap Value Fund (previously RiverSource(R) Variable Portfolio - Small Cap Value Fund) RVST RiverSource(R) Variable 0.53 0.13 0.14 -- 0.80 Portfolio - Balanced Fund RVST RiverSource(R) Variable Portfolio - Cash 0.33 0.13 0.14 -- 0.60 Management Fund RVST RiverSource(R) Variable 0.45 0.13 0.16 -- 0.74 Portfolio - Diversified Bond Fund RVST RiverSource(R) Variable 0.59 0.13 0.14 -- 0.86 Portfolio - Diversified Equity Income Fund RVST RiverSource(R) Variable 0.68 0.13 0.19 -- 1.00(13) Portfolio - Global Bond Fund RVST RiverSource(R) Variable 0.44 0.13 0.17 -- 0.74(13) Portfolio - Global Inflation Protected Securities Fund RVST RiverSource(R) Variable 0.60 0.13 0.16 -- 0.89 Portfolio - Growth Fund RVST RiverSource(R) Variable Portfolio - High 0.59 0.13 0.15 -- 0.87 Yield Bond Fund RVST RiverSource(R) Variable 0.61 0.13 0.17 -- 0.91 Portfolio - Income Opportunities Fund RVST RiverSource(R) Variable 0.58 0.13 0.15 -- 0.86 Portfolio - Large Cap Equity Fund RVST RiverSource(R) Variable 0.59 0.13 0.36 -- 1.08(13) Portfolio - Large Cap Value Fund RVST RiverSource(R) Variable Portfolio - Mid 0.58 0.13 0.15 -- 0.86 Cap Growth Fund RVST RiverSource(R) Variable Portfolio - Mid 0.73 0.13 0.17 -- 1.03(13) Cap Value Fund RVST RiverSource(R) Variable Portfolio - S&P 0.22 0.13 0.17 -- 0.52(13) 500 Index Fund RVST RiverSource(R) Variable 0.48 0.13 0.18 -- 0.79 Portfolio - Short Duration U.S. Government 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 RiverSource(R) Variable 0.68% 0.13% 0.20% --% 1.01%(13) Portfolio - Small Cap Advantage Fund RVST Threadneedle(R) Variable 1.11 0.13 0.26 -- 1.50 Portfolio - Emerging Markets Fund (previously RiverSource(R) Variable Portfolio - Emerging Markets Fund) RVST Threadneedle(R) Variable 0.69 0.13 0.19 -- 1.01 Portfolio - International Opportunity Fund (previously RiverSource(R) Variable Portfolio - International Opportunity Fund) Third Avenue Value Portfolio 0.90 -- 0.27 -- 1.17 Van Kampen Life Investment Trust Comstock 0.56 0.25 0.03 -- 0.84 Portfolio, Class II Shares Van Kampen UIF Global Real Estate Portfolio, 0.85 0.35 0.38 -- 1.58(14) Class II Shares Van Kampen UIF Mid Cap Growth Portfolio, 0.75 0.35 0.35 -- 1.45(14) Class II Shares Wanger International Small Cap 0.88 -- 0.11 -- 0.99 (effective June 1, 2008, the Fund will change its name to Wanger International) Wanger U.S. Smaller Companies 0.90 -- 0.05 -- 0.95 (effective June 1, 2008, the Fund will change its name to Wanger USA) Wells Fargo Advantage VT Asset Allocation 0.55 0.25 0.22 -- 1.02(15) Fund Wells Fargo Advantage VT International Core 0.75 0.25 0.43 -- 1.43(15) Fund Wells Fargo Advantage VT Small Cap Growth 0.75 0.25 0.23 -- 1.23(15) Fund
* 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 Fund's advisor has contractually agreed to waive advisory fees and/or reimburse expenses of Series I shares and Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) of Series I shares to 1.30% and Series II shares to 1.45% of average daily net assets. In addition, effective July 1, 2007, AIM contractually agreed to waive 100% of the advisory fee AIM receives from affiliated money market funds on investments by the Fund in such affiliated money market funds. These waiver agreements are in effect through at least April 30, 2009. After fee waivers and expense reimbursements net expenses would be 1.05% for AIM V.I. Capital Development Fund, Series I Shares, 1.32% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. (2) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements net expenses would be 0.95% for Credit Suisse Trust - Commodity Return Strategy Portfolio and 1.25% for Credit Suisse Trust - Mid-Cap Core Portfolio. (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 waivers net expenses would be 0.89% for FTVIPT Franklin Global Real Estate Securities Fund - Class 2. (4) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent that the Fund's fees and expenses are due to those of the acquired 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 0.91% for FTVIPT Franklin Small Cap Value Securities Fund - Class 2 and 1.02% for FTVIPT Templeton Foreign Securities Fund - Class 2. (5) 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 reduction may be terminated at any time at the option of the Investment Adviser. In addition, 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. This waiver may be modified or terminated at any time at the option of the Investment Adviser. After fee waivers and expense reductions net expenses would be 0.90% for Goldman Sachs VIT Structured Small Cap Equity Fund - Institutional Shares. (6) The Investment Adviser has voluntarily agreed to reduce or limit "Other expenses" (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be terminated at any time at the option of the Investment Adviser. After expense reductions net expenses would be 0.71% for Goldman Sachs VIT Structured U.S. Equity Fund - Institutional Shares. (7) MFS has agreed in writing to reduce its management fee to 0.70% for MFS Utilities Series annually on average daily net assets in excess of $1 billion. After fee reductions net expenses would be 1.07% for MFS Utilities Series - Service Class. This written agreement will remain in effect until modified by the Fund's Board of Trustees. (8) Neuberger Berman Management Inc. ("NBMI") has undertaken through Dec. 31, 2011, to waive fees and/or reimburse certain operating expenses, including the compensation of NBMI 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. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBMI 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 1.53% for Neuberger Berman Advisers Management Trust International Portfolio (Class S). (9) The "Other expenses" in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2007, the transfer agent fees did not exceed this expense limitation. The Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund and OFI Master Loan Fund LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82% for Oppenheimer Strategic Bond Fund/VA, Service Shares. (10) PIMCO has contractually agreed through Dec. 31, 2008, to reduce its advisory fee to the extent that the "Acquired fund fees and expenses" attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.35%. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 9 (11) Putnam Management has a contractual agreement to limit expenses through Dec. 31, 2008. After fee waivers and expense reimbursements net expenses would be 1.36% for Putnam VT International New Opportunities Fund - Class IB Shares. (12) The Fund's expense figures are based on estimated expenses, before fee waivers and expense reimbursements. RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Aggressive, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Conservative, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderate, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Aggressive and 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Conservative. (13) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.98% for RVST RiverSource(R) Partners Variable Portfolio - Fundamental Value Fund, 1.03% for RVST RiverSource(R) Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource(R) Partners Variable Portfolio - Small Cap Value Fund, 0.98% for RVST RiverSource(R) Variable Portfolio - Global Bond Fund, 0.72% for RVST RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund, 1.05% for RVST RiverSource(R) Variable Portfolio - Large Cap Value Fund, 1.05% for RVST RiverSource(R) Variable Portfolio - Mid Cap Value Fund, 0.51% for RVST RiverSource(R) Variable Portfolio - S&P 500 Index Fund and 1.13% for RVST RiverSource(R) Variable Portfolio - Small Cap Advantage Fund. (14) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursement, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.16% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares. (15) The adviser has contractually agreed through April 30, 2009 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After fee waivers and expense reimbursements, net expenses would be 1.00% for Wells Fargo Advantage VT Asset Allocation Fund, 1.00% for Wells Fargo Advantage VT International Core Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. 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 AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED 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 $1,181 $1,957 $2,651 $4,221 $381 $1,157 $1,951 $4,021 RAVA with a seven-year surrender charge schedule 1,081 1,857 2,451 4,021 381 1,157 1,951 4,021 QUALIFIED ANNUITY RAVA with a ten-year surrender charge schedule $1,160 $1,897 $2,553 $4,040 $360 $1,097 $1,853 $3,840 RAVA with a seven-year surrender charge schedule 1,060 1,797 2,353 3,840 360 1,097 1,853 3,840
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 AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED 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 $953 $1,276 $1,522 $1,997 $153 $476 $822 $1,797 RAVA with a seven-year surrender charge schedule 853 1,176 1,322 1,797 153 476 822 1,797 QUALIFIED ANNUITY RAVA with a ten-year surrender charge schedule $933 $1,214 $1,415 $1,772 $133 $414 $715 $1,572 RAVA with a seven-year surrender charge schedule 833 1,114 1,215 1,572 133 414 715 1,572
* In these examples, the $30 contract administrative charge is approximated as a .027% charge. This percentage was determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to the contract by the total average net assets that are attributable to the contract. 10 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS CONDENSED FINANCIAL INFORMATION (Unaudited) You can find unaudited condensed financial information of the subaccounts in the Appendix. We do not include any condensed financial information for subaccounts that are new and did not have any activity as of the financial statements date. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the subaccounts in the SAI. The SAI does not include audited financial statements for subaccounts 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 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 11 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 Asset Allocation 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, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. 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 2007. 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. - 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. 12 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS - 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 VARIABLE ANNUITY -- PROSPECTUS 13 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 AIM V.I. Capital Growth of capital. Invests principally in common Invesco Aim Advisors, Inc. adviser, Appreciation Fund, Series I stocks of companies likely to benefit from new advisory entities affiliated with Shares or innovative products, services or processes as Invesco Aim Advisors, Inc., well as those with above-average growth and subadvisers. excellent prospects for future growth. The Fund may also invest up to 25% of its total assets in foreign securities that involve risks not associated with investing solely in the United States. AIM V.I. Capital Development Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Fund, Series I Shares in securities (including common stocks, advisory entities affiliated with convertible securities and bonds) of small- and Invesco Aim Advisors, Inc., medium-sized companies. The Fund may invest up subadvisers. to 25% of its total assets in foreign securities. AIM V.I. Global Health Care Capital growth. The fund seeks to meet its Invesco Aim Advisors, Inc. adviser, Fund, Series II Shares objective by investing, normally, at least 80% advisory entities affiliated with of its assets in securities of health care Invesco Aim Advisors, Inc., industry companies. The Fund may invest up to subadvisers. 20% of its total assets in companies located in developing countries, i.e., those countries that are in the initial stages of their industrial cycles. The Fund may also invest up to 5% of its total assets in lower-quality debt securities, i.e., junk bonds. AIM V.I. International Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Growth Fund, Series II in a diversified portfolio of international advisory entities affiliated with Shares equity securities, whose issuers are considered Invesco Aim Advisors, Inc., to have strong earnings momentum. The Fund may subadvisers. invest up to 20% of its total assets in security issuers located in developing countries and in securities exchangeable for or convertible into equity securities of foreign companies. AllianceBernstein VPS Global Long-term growth of capital. The Fund invests at AllianceBernstein L.P. Technology Portfolio (Class least 80% of its net assets in securities of B) companies that use technology extensively in the development of new or improved products or processes. Invests in a global portfolio of securities of U.S. and foreign companies selected for their growth potential. AllianceBernstein VPS Growth Long-term growth of capital. Invests primarily AllianceBernstein L.P. and Income Portfolio (Class in the equity securities of domestic companies B) that the Advisor deems to be undervalued. AllianceBernstein VPS Long-term growth of capital. Invests primarily AllianceBernstein L.P. International Value in a diversified portfolio of equity securities Portfolio (Class B) of established companies selected from more than 40 industries and from more than 40 developed and emerging market countries. American Century VP Capital growth. Invests primarily in stocks of American Century Global Investment International, Class I growing foreign companies in developed Management, Inc. countries.
14 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER American Century VP Mid Cap Long-term capital growth with income as a American Century Investment Management, Value, Class II secondary objective. Long-term capital growth Inc. with income as secondary objective. Invests primarily in stocks of companies that management believes are undervalued at the time of purchase. The fund will invest at least 80% of its assets in securities of companies whose market capitalization at the time of purchase is within the capitalization range of the Russell 3000 Index, excluding the largest 100 such companies. American Century VP Long-term capital growth. Analytical research American Century Investment Management, Ultra(R), Class II tools and techniques are used to identify the Inc. stocks of larger-sized companies that appear to have the best opportunity of sustaining long-term above average growth. American Century VP Value, Long-term capital growth, with income as a American Century Investment Management, Class I secondary objective. Invests primarily in stocks Inc. of companies that management believes to be undervalued at the time of purchase. Calvert Variable Series, Competitive total return through actively Calvert Asset Management Company, Inc., Inc. Social Balanced managed portfolio of stocks, bonds and money adviser. SSgA Funds Management, Inc. Portfolio market instruments which offer income and and New Amsterdam Partners, LLP, capital growth opportunity and which satisfy subadvisers on equity portion; no Portfolio's investment and social criteria. subadviser on fixed-income portion. Typically invests about 60% of net assets in stocks (primarily common stocks of U.S. large-cap companies) and 40% in investment grade bonds and other fixed-income investments. Investments must be consistent with Portfolio's current financial and social criteria. Columbia Marsico Growth Long-term growth of capital. Under normal Columbia Management Advisors, LLC, Fund, Variable Series, Class circumstances, the Fund invests primarily in adviser; Marsico Capital Management, A equity securities of large-capitalization LLC, sub-adviser. companies that have market capitalizations of $5 billion or more at the time of purchase. The Fund generally holds a core position of between 35 and 50 common stocks. It may hold up to 25% of total assets in foreign securities, including in emerging market securities. Columbia Marsico Long-term growth of capital. Under normal Columbia Management Advisors, LLC, International Opportunities circumstances, the Fund invests at least 65% of adviser; Marsico Capital Management, Fund, Variable Series, Class total assets in common stocks of foreign LLC, sub-adviser. B companies. The Fund may invest in companies of any size throughout the world that are selected for their long-term growth potential. The Fund normally invests in issuers from at least three different countries not including the United States. The Fund may invest in common stocks of companies operating in or economically tied to emerging markets countries. Some issuers or securities in the Fund's portfolio may be based in or economically tied to the United States.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 15
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Credit Suisse Trust - Total Return. Invests in commodity-linked Credit Suisse Asset Management, LLC Commodity Return Strategy derivative instruments backed and fixed-income Portfolio securities. The portfolio invests in commodity-linked derivative instruments, such as commodity-linked notes, swap agreements, commodity options, futures and options on futures that provide exposure to the investment returns of the commodities markets without investing directly in physical commodities. The portfolio invests all of its assets in commodity-linked derivative instruments, such as structured notes and swaps, and fixed-income securities, subject to applicable IRS limits. The portfolio may also gain exposure to commodity markets by investing in the Credit Suisse Cayman Commodity Fund II, a wholly owned subsidiary of the Portfolio formed in the Cayman Island. Credit Suisse Trust - Mid- Maximum capital appreciation. Invests in U.S. Credit Suisse Asset Management, LLC Cap Core Portfolio equity securities of "mid-cap" companies selected using proprietary quantitative stock selection models rather than the more traditional fundamental analysis approach. Maintains investment attributes similar to those of the Standard & Poor's MidCap 400(R) Index and intends to limit its divergence from that index in terms of market, industry and sector exposures. Eaton Vance VT Floating- High level of current income. The Fund invests Eaton Vance Management Rate Income Fund primarily in senior floating rate loans ("Senior Loans"). Senior Loans typically are of below investment grade quality and have below investment grade credit ratings, which ratings are associated with securities having high risk, speculative characteristics. The Fund invests at least 80% of its net assets in income producing floating rate loans and other floating rate debt securities. The Fund may also purchase investment grade fixed income debt securities and money market instruments. The Fund may invest up to 25% of its total assets in foreign securities and may engage in certain hedging transactions. The Fund may purchase derivative instruments, such as futures contracts and options thereon, interest rate and credit default swaps, credit linked notes and currency hedging derivatives. Fidelity(R) VIP Long-term capital appreciation. Normally invests Fidelity Management & Research Company Contrafund(R) Portfolio primarily in common stocks. Invests in (FMR), investment manager; FMR U.K. and Service Class 2 securities of companies whose value it believes FMR Far East, sub- advisers. is not fully recognized by the public. Invests in either "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers.
16 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Fidelity(R) VIP Growth & High total return through a combination of Fidelity Management & Research Company Income Portfolio Service current income and capital appreciation. (FMR), investment manager; FMR U.K., Class Normally invests a majority of assets in common FMR Far East, sub- advisers. stocks with a focus on those that pay current dividends and show potential for capital appreciation. May invest in bonds, including lower-quality debt securities, as well as stocks that are not currently paying dividends, but offer prospects for future income or 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 Long-term growth of capital. Allocates assets Fidelity Management & Research Company Portfolio Service Class across different market sectors and maturities. (FMR), investment manager; FMR U.K., Normally invests primarily in common stocks. FMR Far East, sub- advisers. Normally invests at least 80% of assets in 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 Long-term growth of capital. Normally invests Fidelity Management & Research Company Portfolio Service Class primarily in common stocks of foreign (FMR), investment manager; FMR U.K., securities. Normally invests at least 80% of FMR Far East, Fidelity International assets in non-U.S. securities. Investment Advisors (FIIA) and FIIA U.K., sub-advisers. FTVIPT Franklin Global Real High total return. The Fund normally invests at Franklin Templeton Institutional, LLC Estate Securities least 80% of its net assets in investments of Fund - Class 2 companies located anywhere in the world that operate in the real estate sector and normally invests predominantly in equity securities. FTVIPT Franklin Small Cap Long-term total return. The Fund normally Franklin Advisory Services, LLC Value Securities invests at least 80% of its net assets in Fund - Class 2 investments of small capitalization companies, and normally invests predominantly in equity securities. The Fund invests mainly in equity securities of companies that the manager believes are undervalued. FTVIPT Templeton Foreign Long-term capital growth. The Fund normally Templeton Investment Counsel, LLC Securities Fund - Class 2 invests at least 80% of its net assets in investments of issuers located outside the U.S., including those in emerging markets, and normally invests predominantly in equity securities.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 17
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Goldman Sachs VIT Mid Cap Long-term capital appreciation. The Fund Goldman Sachs Asset Management, L.P. Value Fund - Institutional invests, under normal circumstances, at least Shares 80% of its net assets plus any borrowings for investment purposes (measured at time of purchase) ("Net Assets") in a diversified portfolio of equity investments in mid-cap issuers with public stock market capitalizations (based upon shares available for trading on an unrestricted basis) within the range of the market capitalization of companies constituting the Russell Midcap(R) Value Index at the time of investment. If the market capitalization of a company held by the Fund moves outside this range, the Fund may, but is not required to, sell the securities. The capitalization range of the Russell Midcap(R) Value Index is currently between $1.1 billion and $21 billion. Although the Fund will invest primarily in publicly traded U.S. securities, it may invest up to 25% of its Net Assets in foreign securities, including securities of issuers in countries with emerging markets or economies ("emerging countries") and securities quoted in foreign currencies. The Fund may invest in the aggregate up to 20% of its Net Assets in companies with public stock market capitalizations outside the range of companies constituting the Russell Midcap(R) Value Index at the time of investment and in fixed-income securities, such as government, corporate and bank debt obligations.
18 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Goldman Sachs VIT Structured Long-term growth of capital through a broadly Goldman Sachs Asset Management, L.P. Small Cap Equity diversified portfolio of equity investments in Fund - Institutional Shares U.S. issuers. The Fund invests, under normal circumstances, at least 80% of its net assets plus any borrowings for investment purposes (measured at time of purchase) ("Net Assets") in a broadly diversified portfolio of equity investments in small-cap U.S. issuers, including foreign issuers that are traded in the United States. However, it is currently anticipated that, under normal circumstances the Fund will invest at least 85% of its Net Assets in such equity investments. These issuers will have public stock market capitalizations (based upon shares available for trading on an unrestricted basis) similar to that of the range of the market capitalization of companies constituting the Russell 2000(R) Index at the time of investment. The Fund is not required to limit its investments to securities in the Russell 2000(R) Index. In addition, if the market capitalization of a company held by the Fund moves outside this range, the Fund may, but is not required to, sell the securities. The capitalization range of the Russell 2000(R) Index is currently between $40 million and $4 billion. The Fund's investments are selected using a variety of quantitative techniques, derived from fundamental research including but not limited to valuation, momentum, profitability and earnings quality, in seeking to maximize the Fund's expected return. The Fund maintains risk, style, capitalization and industry characteristics similar to the Russell 2000 Index. The Russell 2000 Index is an index designed to represent an investable universe of small cap companies. The Fund seeks to maximize expected return while maintaining these and other characteristics similar to the benchmark. Goldman Sachs VIT Structured Long-term growth of capital and dividend income. Goldman Sachs Asset Management, L.P. U.S. Equity The Fund invests, under normal circumstances, at Fund - Institutional Shares least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) ("Net Assets") in a diversified portfolio of equity investments in U.S. issuers, including foreign companies that are traded in the United States. However, it is currently anticipated that, under normal circumstances, the Fund will invest at least 95% of its Net Assets in such equity investments. The Fund's investments are selected using a variety of quantitative techniques, derived from fundamental research including but not limited to valuation, momentum, profitability and earnings quality, in seeking to maximize the Fund's expected returns. The Fund maintains risk, style, capitalization and industry characteristics similar to the S&P 500 Index. The S&P 500 Index is an index of large-cap stocks designed to reflect a broad representation of the U.S. economy. The Fund seeks to maximize expected return while maintaining these and other characteristics similar to the benchmark. The Fund is not required to limit its investments to securities in the S&P 500 Index.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 19
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Janus Aspen Series Global Long-term growth of capital. Invests, under Janus Capital Management LLC Technology Portfolio: normal circumstances, at least 80% of its net Service Shares assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology. It implements this policy by investing primarily in equity securities of U.S. and foreign companies selected for their growth potential. Janus Aspen Series Long-term growth of capital. Invests, under Janus Capital Management LLC International Growth normal circumstances, at least 80% of its net Portfolio: Service Shares assets in securities of issuers from countries outside of the United States. The Portfolio normally invests in securities of issuers from several different countries excluding the United States. Although the Portfolio intends to invest substantially all of its assets in issuers located outside the United States, it may at times invest in U.S. issuers, and it may under unusual circumstances, invest all of its assets in a single country. The Portfolio may have significant exposure to emerging markets. Janus Aspen Series Large Cap Long-term growth of capital in a manner Janus Capital Management LLC Growth Portfolio: Service consistent with the preservation of capital. Shares Invests under normal circumstances at least 80% of its net assets in common stocks of large-sized companies. Large-sized companies are those whose market capitalization falls within the range of companies in the Russell 1000(R) Index at the time of purchase. Janus Aspen Series Mid Cap Long-term growth of capital. Invests, under Janus Capital Management LLC Growth Portfolio: Service normal circumstances, at least 80% of its net Shares assets in equity securities of mid-sized companies whose market capitalization falls, at the time of initial purchase, in the 12-month average of the capitalization ranges of the Russell Midcap Growth Index. Market capitalization is a commonly used measure of the size and value of a company. Lazard Retirement Long-term capital appreciation. Invests Lazard Asset Management, LLC International Equity primarily in equity securities, principally Portfolio - Service Shares common stocks, of relatively large non-U.S. companies with market capitalizations in the range of the Morgan Stanley Capital International (MSCI) Europe, Australia and Far East (EAFE(R)) Index that the Investment Manager believes are undervalued based on their earnings, cash flow or asset values. MFS(R) Investors Growth Capital appreciation. Normally invests at least MFS Investment Management(R) Stock Series - Service Class 80% of the fund's net assets in equity securities of companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). Growth companies tend to have stock prices that are high relative to their earnings, dividends, book value, or other financial measures. The Fund generally focuses on companies with large capitalizations.
20 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER MFS(R) New Discovery Capital appreciation. Invests in stocks of MFS Investment Management(R) Series - Service Class companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). Growth companies tend to have stock prices that are high relative to their earnings, dividends, book value, or other financial measures. The Fund generally focuses on companies with small capitalizations. MFS(R) Utilities Series - Total return. Normally invests at least 80% of MFS Investment Management(R) Service Class the fund's net assets in securities of issuers in the utilities industry. The Fund's assets may be invested in companies of any size. Neuberger Berman Advisers Long-term growth of capital. The Fund invests Neuberger Berman Management Inc. Management Trust mainly in foreign companies of any size, International Portfolio including companies in developed and emerging (Class S) industrialized markets. The Fund defines a foreign company as one that is organized outside of the United States and conducts the majority of its business abroad. The Fund seeks to reduce risk by diversifying among many industries. Although it has the flexibility to invest a significant portion of its assets in one country or region, it generally intends to remain well- diversified across countries and geographical regions. Oppenheimer Global Long-term capital appreciation. Invests mainly OppenheimerFunds, Inc. Securities Fund/VA, Service in common stocks of U.S. and foreign issuers Shares that are "growth-type" companies, cyclical industries and special situations that are considered to have appreciation possibilities. Oppenheimer Main Street Capital appreciation. Invests mainly in common OppenheimerFunds, Inc. Small Cap Fund/VA, Service stocks of small-capitalization U.S. companies Shares that the fund's investment manager believes have favorable business trends or prospects. Oppenheimer Strategic Bond High level of current income principally derived OppenheimerFunds, Inc. Fund/VA, Service Shares from interest on debt securities. Invests mainly in three market sectors: debt securities of foreign governments and companies, U.S. government securities and lower-rated high yield securities of U.S. and foreign companies. PIMCO VIT All Asset Maximum real return consistent with preservation Pacific Investment Management Company Portfolio, Advisor Share of real capital and prudent investment LLC Class management period. The Portfolio seeks to achieve its investment objective by investing under normal circumstances substantially all of its assets in Institutional Class shares of the PIMCO Funds, an affiliated open-end investment company, except the All Asset and All Asset All Authority Funds ("Underlying Funds"). Though it is anticipated that the Portfolio will not currently invest in the European StockPLUS(R) TR Strategy, Far East (ex-Japan) StocksPLUS(R) TR Strategy, Japanese StocksPLUS(R) TR Strategy, StocksPLUS(R) Municipal-Backed and StocksPLUS(R) TR Short Strategy Funds, the Portfolio may invest in these Funds in the future, without shareholder approval, at the discretion of the Portfolio's asset allocation sub-adviser.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 21
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Putnam VT International New Long-term capital appreciation. The fund pursues Putnam Investment Management, LLC Opportunities Fund - Class its goal by investing mainly in common stocks of IB Shares companies outside the United States with a focus on growth stocks. Putnam VT Vista Fund - Class Capital appreciation. The fund pursues its goal Putnam Investment Management, LLC IB Shares by investing mainly in common stocks of U.S. companies, with a focus on growth stocks. Royce Capital Fund - Long-term growth of capital. Invests primarily Royce & Associates, LLC Micro-Cap Portfolio, in a broadly diversified portfolio of equity Investment Class securities issued by micro-cap companies (companies with stock market capitalizations below $500 million). RVST Disciplined Asset High level of total return that is consistent RiverSource Investments, LLC Allocation Portfolios - with an aggressive level of risk. The Fund Aggressive invests primarily in equity securities and also invests a small amount in fixed income securities. The Fund may be most appropriate for investors with a longer term investment horizon. The Fund is intended for investors who have an objective of achieving a high level of total return, but prefer to have investment decisions managed by professional money managers. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a conservative level of risk. Conservative The Fund invests primarily in fixed income securities and may be most appropriate for investors with a shorter term investment horizon. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate level of risk. The Moderate Fund invests in a balance of fixed income and equity securities and may be most appropriate for investors with an intermediate term investment horizon. 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.
22 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST Disciplined Asset The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate aggressive level of Moderately Aggressive risk. The Fund invests primarily in equity securities and also invests a moderate amount in fixed income securities. The Fund may be most appropriate for investors with an intermediate-to-long term investment horizon. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate conservative level of Moderately Conservative risk. The Fund invests primarily in fixed income securities and also invests a moderate amount in equity securities. The Fund may be most appropriate for investors with a short-to-intermediate term investment horizon. 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 RiverSource Partners Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Variable primarily invested in equity securities of U.S. Davis Selected Advisers, L.P., Portfolio - Fundamental companies. Under normal market conditions, the subadviser. Value Fund Fund's assets will be invested primarily in companies with market capitalizations of at (previously RiverSource least $5 billion at the time of the Fund's Variable Portfolio - investment. The Fund may invest up to 25% of its Fundamental Value Fund) net assets in foreign investments. RVST RiverSource Partners Long-term growth of capital. Invests primarily RiverSource Investments, LLC, adviser; Variable Portfolio - Select in equity securities of mid cap companies as Systematic Financial Management, L.P. Value Fund well as companies with larger and smaller market and WEDGE Capital Management L.L.P., capitalizations. The Fund considers mid-cap sub- advisers. (previously RiverSource companies to be either those with a market Variable Portfolio - Select capitalization of up to $15 billion or those Value Fund) whose market capitalization falls within range of the Russell Midcap(R) Value Index. RVST RiverSource Partners Long-term capital appreciation. Under normal RiverSource Investments, LLC, adviser; Variable Portfolio - Small market conditions, at least 80% of the Fund's River Road Asset Management, LLC, Cap Value Fund net assets will be invested in small cap Donald Smith & Co., Inc., Franklin companies with market capitalization, at the Portfolio Associates LLC, Barrow, (previously RiverSource time of investment, of up to $2.5 billion or Hanley, Mewhinney & Strauss, Inc. and Variable Portfolio - Small that fall within the range of the Russell Denver Investment Advisors LLC, Cap Value Fund) 2000(R) Value Index. The Fund may invest up to subadvisers. 25% of its net assets in foreign investments.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 23
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable Maximum total investment return through a RiverSource Investments, LLC Portfolio - Balanced Fund combination of capital growth and current income. Invests primarily in a combination of common and preferred stocks, bonds and other debt securities. Under normal market conditions, at least 50% of the Fund's total assets are invested in common stocks and no less than 25% of the Fund's total assets are invested in debt securities. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Maximum current income consistent with liquidity RiverSource Investments, LLC Portfolio - Cash Management and stability of principal. Invests primarily in Fund money market instruments, such as marketable debt obligations issued by corporations or the U.S. government or its agencies, bank certificates of deposit, bankers' acceptances, letters of credit, and commercial paper, including asset-backed commercial paper. RVST RiverSource Variable High level of current income while attempting to RiverSource Investments, LLC Portfolio - Diversified Bond conserve the value of the investment for the Fund longest period of time. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and other debt securities. At least 50% of the Fund's net assets will be invested in securities like those included in the Lehman Brothers Aggregate Bond Index (Index), which are investment grade and denominated in U.S. dollars. The Index includes securities issued by the U.S. government, corporate bonds, and mortgage- and asset-backed securities. Although the Fund emphasizes high- and medium-quality debt securities, it will assume some credit risk to achieve higher yield and/or capital appreciation by buying lower-quality (junk) bonds. The Fund may invest up to 25% of its net assets in foreign investments, which may include instruments in emerging markets. RVST RiverSource Variable High level of current income and, as a secondary RiverSource Investments, LLC Portfolio - Diversified goal, steady growth of capital. Under normal Equity Income Fund market conditions, the Fund invests at least 80% of its net assets in dividend- paying common and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable High total return through income and growth of RiverSource Investments, LLC Portfolio - Global Bond Fund capital. Non-diversified mutual fund that invests primarily in debt obligations of U.S. and foreign issuers. Under normal market conditions, the Fund invests at least 80% of its net assets in investment-grade corporate or government debt obligations including money market instruments of issuers located in at least three different countries. RVST RiverSource Variable Total return that exceeds the rate of inflation RiverSource Investments, LLC Portfolio - Global Inflation over the long-term. Non-diversified mutual fund Protected Securities Fund that, under normal market conditions, invests at least 80% of its net assets in inflation-protected debt securities. These securities include inflation-indexed bonds of varying maturities issued by U.S. and foreign governments, their agencies or instrumentalities, and corporations.
24 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable Long-term capital growth. Invests primarily in RiverSource Investments, LLC Portfolio - Growth Fund common stocks and securities convertible into common stocks that appear to offer growth opportunities. These growth opportunities could result from new management, market developments, or technological superiority. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable High current income, with capital growth as a RiverSource Investments, LLC Portfolio - High Yield Bond secondary objective. Under normal market Fund conditions, the Fund invests at least 80% of its net assets in high-yield debt instruments (commonly referred to as "junk") including corporate debt securities as well as bank loans rated below investment grade by a nationally recognized statistical rating organization, or if unrated, determined to be of comparable quality. Up to 25% of the Fund may be invested in high yield debt instruments of foreign issuers. RVST RiverSource Variable High total return through current income and RiverSource Investments, LLC Portfolio - Income capital appreciation. Under normal market Opportunities Fund conditions, the Fund invests primarily in income-producing debt securities with an emphasis on the higher rated segment of the high-yield (junk bond) market. These income-producing debt securities include corporate debt securities as well as bank loans. The Fund will purchase only securities rated B or above, or unrated securities believed to be of the same quality. If a security falls below a B rating, the Fund may continue to hold the security. Up to 25% of the Fund may be in foreign investments. RVST RiverSource Variable Capital appreciation. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Equity conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with market capitalization greater than $5 billion at the time of purchase. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Long-term growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Value conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with a market capitalization greater than $5 billion. The Fund may also invest in income-producing equity securities and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Mid Cap Growth conditions, the Fund invests at least 80% of its Fund net assets at the time of purchase in equity securities of mid capitalization companies. The investment manager defines mid-cap companies as those whose market capitalization (number of shares outstanding multiplied by the share price) falls within the range of the Russell Midcap(R) Growth Index.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 25
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable Long-term growth of capital. Under normal RiverSource Investments, LLC Portfolio - Mid Cap Value circumstances, the Fund invests at least 80% of Fund its net assets (including the amount of any borrowings for investment purposes) in equity securities of medium-sized companies. Medium-sized companies are those whose market capitalizations at the time of purchase fall within the range of the Russell Midcap(R) Value Index. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Long-term capital appreciation. The Fund seeks RiverSource Investments, LLC Portfolio - S&P 500 Index to provide investment results that correspond to Fund the total return (the combination of appreciation and income) of large-capitalization stocks of U.S. companies. The Fund invests in common stocks included in the Standard & Poor's 500 Composite Stock Price Index (S&P 500). The S&P 500 is made up primarily of large-capitalization companies that represent a broad spectrum of the U.S. economy. RVST RiverSource Variable High level of current income and safety of RiverSource Investments, LLC Portfolio - Short Duration principal consistent with investment in U.S. U.S. Government Fund government and government agency securities. Under normal market conditions, at least 80% of the Fund's net assets are invested in securities issued or guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities. RVST RiverSource Variable Long-term capital growth. Under normal market RiverSource Investments, LLC, adviser; Portfolio - Small Cap conditions, at least 80% of the Fund's net Kenwood Capital Management LLC, Advantage Fund assets are invested in equity securities of sub-adviser. companies with market capitalization of up to $2 billion or that fall within the range of the Russell 2000(R) Index at the time of investment. RVST Threadneedle Variable Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Portfolio - Emerging Markets primarily invested in equity securities of Threadneedle International Limited, an Fund emerging market companies. Under normal market indirect wholly-owned subsidiary of conditions, at least 80% of the Fund's net Ameriprise Financial, sub-adviser. (previously RiverSource assets will be invested in securities of Variable Portfolio - companies that are located in emerging market Emerging Markets Fund) countries, or that earn 50% or more of their total revenues from goods and services produced in emerging market countries or from sales made in emerging market countries. RVST Threadneedle Variable Capital appreciation. Invests primarily in RiverSource Investments, LLC, adviser; Portfolio - International equity securities of foreign issuers that are Threadneedle International Limited, an Opportunity Fund believed to offer strong growth potential. The indirect wholly-owned subsidiary of Fund may invest in developed and in emerging Ameriprise Financial, sub-adviser. (previously RiverSource markets. Variable Portfolio - International Opportunity Fund)
26 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Third Avenue Value Portfolio Long-term capital appreciation. Invests Third Avenue Management LLC primarily in common stocks of well-financed companies, meaning companies without significant liabilities in comparison to their liquid resources at a discount to what the Adviser believes is their intrinsic value. Van Kampen Life Investment Capital growth and income through investments in Van Kampen Asset Management Trust Comstock Portfolio, equity securities, including common stocks, Class II Shares preferred stocks and securities convertible into common and preferred stocks. The Portfolio emphasizes value style of investing seeking well-established, undervalued companies believed by the Portfolio's investment adviser to posses the potential for capital growth and income. Van Kampen UIF Global Real Current income and capital appreciation. Invests Morgan Stanley Investment Management Estate Portfolio, Class II primarily in equity securities of companies in Inc., doing business as Van Kampen, Shares the real estate industry located throughout the adviser; Morgan Stanley Investment world, including real estate operating Management Limited and Morgan Stanley companies, real estate investment trusts and Investment Management Company, similar entities established outside the U.S. sub-advisers. (foreign real estate companies). Van Kampen UIF Mid Cap Long-term capital growth. Invests primarily in Morgan Stanley Investment Management Growth Portfolio, Class II growth- oriented equity securities of U.S. mid Inc., doing business as Van Kampen. Shares cap companies and foreign companies, including emerging market securities. Wanger International Small Long-term growth of capital. Invests primarily Columbia Wanger Asset Management, L.P. Cap in stocks of companies based outside the U.S. with market capitalizations of less than $5 Effective June 1, 2008, the billion at time of initial purchase. Fund will change its name to Effective June 1, 2008: Wanger International. Long-term growth of capital. Under normal market circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 27
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Wanger U.S. Smaller Long-term growth of capital. Invests primarily Columbia Wanger Asset Management, L.P. Companies in stocks of small- and medium-size U.S. companies with market capitalizations of less Effective June 1, 2008, the than $5 billion at time of initial purchase. Fund will change its name to Effective June 1, 2008: Wanger USA. Long-term growth of capital. Under normal market circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion. Wells Fargo Advantage VT Long-term total return, consisting of capital Wells Fargo Funds Management, LLC, Asset Allocation Fund appreciation and current income. We seek to adviser; Wells Capital Management achieve the Portfolio's investment objective by Incorporated, sub-adviser. allocating 60% of its assets to equity securities and 40% of its assets to fixed income securities. Wells Fargo Advantage VT Long-term capital appreciation. Invests in Wells Fargo Funds Management, LLC, International Core Fund equity securities of non-U.S. companies that we adviser; Wells Capital Management believe have strong growth potential and offer Incorporated, sub-adviser. good value relative to similar investments. We invest primarily in developed countries, but may invest in emerging markets. Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Small Cap Growth Fund principally in equity securities of adviser; Wells Capital Management small-capitalization companies that we believe Incorporated, sub-adviser. have above-average growth potential. We define small-capitalization companies as those with market capitalizations at the time of purchase of less than $2 billion.
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. 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.) 28 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. When we processed your application, we established the settlement date as the maximum age (or contract anniversary if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities or you selected a date within the maximum limits. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - - no earlier than the 60th day after the contract's effective date; and - - no later than the annuitant's 85th birthday or the tenth contract anniversary, if purchased after age 75, or a date that has been otherwise agreed to by us. (In Pennsylvania, the maximum settlement date ranges from age 85 to 96 based on the annuitant's age when we issue the contract. See contract for details.) FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - - for IRAs, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2; or - - for all other qualified annuities, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2, or, if later, retires (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 85th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. (In Pennsylvania, the annuity payout ranges from age 85 to 96 based on the annuitant's age when the contract is issued. See contract for details.) Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs or TSAs, and in that case, may delay the annuity payout start date for this contract. 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 29 MAXIMUM ALLOWABLE ANNUAL PURCHASE PAYMENTS(2) $100,000 for ages through 85 $50,000 for ages 86 to 90 (2) 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. 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**. The amount we pay to you under these circumstances will always equal or exceed your surrender value. 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 longer 30 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 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 law limitations, 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 31 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 We charge a fee for this optional feature only if you select it. This fee covers our internal administrative costs for providing this service. A portion of this fee is paid to an unaffiliated third party service provider for the design and maintenance of the program (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program"). If selected, we deduct an annual fee of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and the fixed account less any excluded accounts in the same proportion your interest in each account bears to your total contract value less any excluded accounts. (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program). The fee will only be deducted from the subaccounts in Washington. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. This fee does not apply after annuity payouts begin. 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. 32 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 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
* 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. 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 33
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. - - required minimum distributions from a qualified annuity provided the amount is not greater than the RMDs for the specific contract 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; 34 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS - - 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); - - minus any prorated portion of the EEB rider fee (if selected); and - - minus any prorated portion of the PN 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. 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 fee (if selected); - - a prorated portion of the EEB rider fee (if selected); and/or - - a prorated portion of the PN rider fee (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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 35 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 is selected. The potential effect is to lower your average cost per unit. 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 ARROW Mar 100 17 5.88 more units when the 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 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 Asset Allocation Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) The PN program is available for nonqualified annuities and for qualified annuities, except under 401(a) plans. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include the fixed account (if available under the PN program) that represent various asset classes (allocation options). The PN program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You may elect to participate in the PN program at any time for an additional charge (see "Charges"). You may cancel your participation in the PN program at any time by giving us written notice. However, you cannot elect to participate in the PN 36 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS program again until the next contract anniversary unless we agree otherwise. If you terminate the PN rider other than on a contract anniversary, we reserve the right to deduct the PN rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Similarly, if we discontinue the PN program, we reserve the right to deduct the PN program rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Upon cancellation, automated rebalancing associated with the PN program will end, and there will be no additional charges for the PN rider. You will also cancel the PN rider if you initiate transfers other than transfers to one of the current model portfolios. Partial surrenders do not cancel the PN rider. Your participation in the PN rider will terminate on the date you make a full surrender from your contract or on your settlement date. 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. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, an affiliate of ours, serves as non-discretionary investment adviser for the PN program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides 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 Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at or before the time they enroll in the PN program. Currently, the PN program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. 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, 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 identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates 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 conflict 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 CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included 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, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options 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 Portfolio Funds. In this role RiverSource Investments may, from time to time, recommend certain changes to the board of RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 37 directors of the RiverSource Variable Series Trust funds. These changes may include but not be limited to a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's 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 influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we 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 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 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 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. PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which model portfolio is best for you. 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 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 asset mix reflected in the model portfolio you select after completing the investor questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts and/or the fixed account that make up that model portfolio. By participating in the PN program, you instruct us to invest your contract value in the subaccounts and/or the fixed account (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN program, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Dollar-cost averaging arrangements (DCA) are currently not allowed while you are participating in the PN program. If we choose to allow for DCA arrangements, we will designate one or more subaccounts as "excluded accounts" which are not part of a model portfolio. If an account has been designated as an excluded account and you set up a DCA arrangement, we will make monthly transfers in accordance with your instructions from the excluded account into the model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. Model portfolios also may be evaluated in connection with the liquidation, substitution or merger of an underlying fund, a change in the investment objective of an underlying fund or when an underlying fund stops selling its shares to the variable account. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value according to the updated model portfolio. If you do not want your contract value to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such 38 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. 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 models based on the amount of your initial purchase payment we accept; - - substitute a fund of funds for your current 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. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN program, we would either have to find a replacement investment adviser or terminate the PN program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). 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 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. 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 and periodic updating 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 or periodic updating 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 a PN model 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 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 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 law limitations, we may suspend or modify transfer privileges at any time. For information on transfers after annuity payouts begin, see "Transfer policies" below. RIVERSOURCE RETIREMENT ADVISOR 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. - - 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. 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; 40 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS - - 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 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 41 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 a 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 between 7 a.m. and 7 p.m. Central time: (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. 42 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 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 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. 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 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. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 43 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; - effective Jan. 1, 2009, the distribution is due to plan termination; or - effective Jan. 1, 2009, 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 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. 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. 44 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 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; - - 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; or - - purchase payments minus adjusted partial surrenders. PS X DB ADJUSTED PARTIAL SURRENDERS = ------------ CV
PS = the partial surrender including any applicable surrender charge. 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 $30,000.00 anniversary: 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. 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 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 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 45 - - 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. 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 directly deposited into a checking account. OPTIONAL BENEFITS 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. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - - contract value; 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. 46 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 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. 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 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 47 - 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 -------- $114,000 Total death benefit of:
- - 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 -------- $114,000 Total death benefit of:
- - 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) --------------------- = $ 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
48 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS - - 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 -------- $255,000 Total death benefit of:
- - 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 -------- $305,000 Total death benefit of:
- - 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 -------- $308,000 Total death benefit of:
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." - - 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, sex; - - the annuity table in the contract; and - - the amounts you allocated to the accounts at settlement. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 49 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. - - 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 50 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 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 the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum 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 federal income tax until there is a distribution from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a 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. 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, 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 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 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 51 DEATH BENEFITS TO BENEFICIARIES: The death benefit under a nonqualified contract is not exempt from estate (federal or state) or income taxes. 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. 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. 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 to you like a surrender 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 are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. In addition, a new tax regulation, effective for RMDs calculated in 2006 and after, may cause the RMDs for some contracts with certain death benefits and optional riders to increase. RMDs may reduce the value of certain death benefits and optional benefits. 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. 52 RIVERSOURCE RETIREMENT ADVISOR 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; In the below situations, the distribution is subject to an optional 10% 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. Payments made to a surviving spouse instead of being directly rolled over to an IRA are subject to mandatory 20% income tax withholding. 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. 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 RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 53 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 taxed to us, and therefore no charge is made against the subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. 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. 54 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 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 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 55 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 price level is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2007.
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $1.03 $0.98 $0.90 $0.85 $0.66 $0.88 $1.16 $1.31 $1.00 Accumulation unit value at end of period $1.15 $1.03 $0.98 $0.90 $0.85 $0.66 $0.88 $1.16 $1.31 Number of accumulation units outstanding at end of period (000 omitted) 30,209 38,671 42,185 44,154 44,599 46,932 49,574 37,379 4,337 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $1.89 $1.64 $1.50 $1.31 $0.98 $1.25 $1.37 $1.26 $1.00 Accumulation unit value at end of period $2.08 $1.89 $1.64 $1.50 $1.31 $0.98 $1.25 $1.37 $1.26 Number of accumulation units outstanding at end of period (000 omitted) 11,683 13,834 16,329 18,834 19,915 21,745 23,324 16,977 1,678 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,881 33,923 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.57 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 48,018 1,744 127 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,111 14,120 2,021 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.30 $1.04 $0.93 $0.81 $0.66 $0.83 $1.19 $1.44 $1.00 Accumulation unit value at end of period $1.52 $1.30 $1.04 $0.93 $0.81 $0.66 $0.83 $1.19 $1.44 Number of accumulation units outstanding at end of period (000 omitted) 22,009 24,450 28,073 28,284 27,256 26,878 25,459 15,533 1,791 - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 56,815 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,321 78,916 10,074 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS I (09/15/1999) Accumulation unit value at beginning of period $1.87 $1.59 $1.52 $1.34 $1.05 $1.21 $1.08 $0.92 $1.00 Accumulation unit value at end of period $1.76 $1.87 $1.59 $1.52 $1.34 $1.05 $1.21 $1.08 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 41,125 47,446 53,724 50,678 46,232 43,222 35,248 14,536 3,657 - --------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $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) 21,893 24,975 23,850 20,551 15,315 9,520 4,490 1,283 -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 204,077 121,798 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,112 59,299 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,045 51,380 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - MID-CAP CORE PORTFOLIO (09/21/1999) Accumulation unit value at beginning of period $1.29 $1.27 $1.20 $1.07 $0.75 $1.07 $1.29 $1.32 $1.00 Accumulation unit value at end of period $1.43 $1.29 $1.27 $1.20 $1.07 $0.75 $1.07 $1.29 $1.32 Number of accumulation units outstanding at end of period (000 omitted) 7,945 9,789 12,277 14,837 16,665 17,821 20,158 17,825 1,838 - --------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 111,086 103,830 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 294,643 244,121 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.15 $1.03 $0.96 $0.92 $0.75 $0.90 $1.00 $1.05 $1.00 Accumulation unit value at end of period $1.28 $1.15 $1.03 $0.96 $0.92 $0.75 $0.90 $1.00 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 78,090 92,368 107,380 122,387 119,334 108,027 103,719 63,414 15,603 - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $3.15 $2.82 $2.41 $1.94 $1.41 $1.58 $1.65 $1.24 $1.00 Accumulation unit value at end of period $3.61 $3.15 $2.82 $2.41 $1.94 $1.41 $1.58 $1.65 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 56,323 67,426 72,759 73,206 67,863 63,268 59,393 38,193 5,709 - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.35 $1.15 $0.97 $0.86 $0.61 $0.77 $0.98 $1.23 $1.00 Accumulation unit value at end of period $1.57 $1.35 $1.15 $0.97 $0.86 $0.61 $0.77 $0.98 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 33,656 38,789 40,988 42,151 31,628 28,991 27,850 18,802 3,421 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 $1.00 Accumulation unit value at end of period $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 93,100 128,540 139,618 120,456 87,330 59,317 24,477 6,879 885 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 $1.00 Accumulation unit value at end of period $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 66,946 78,886 78,073 59,293 43,978 29,743 10,800 2,846 586 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT TEMPLETON FOREIGN SECURITIES FUND - CLASS 2 (03/01/2002) Accumulation unit value at beginning of period $1.71 $1.42 $1.30 $1.10 $0.84 $1.00 -- -- -- Accumulation unit value at end of period $1.96 $1.71 $1.42 $1.30 $1.10 $0.84 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,350 14,587 17,595 15,352 11,165 8,386 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 139,637 163,687 174,918 115,616 83,015 56,079 23,748 7,622 1,634 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED SMALL CAP EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.97 $1.76 $1.68 $1.45 $1.00 $1.19 $1.14 $1.13 $1.00 Accumulation unit value at end of period $1.63 $1.97 $1.76 $1.68 $1.45 $1.00 $1.19 $1.14 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 6,389 8,977 10,823 12,173 13,511 14,285 14,153 10,252 1,876 - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 57
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 187,585 231,223 248,935 128,074 83,166 71,820 60,343 42,626 8,981 - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.43 $0.40 $0.36 $0.36 $0.25 $0.43 $0.68 $1.00 -- Accumulation unit value at end of period $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) 28,860 30,606 32,606 37,258 40,520 37,200 34,767 20,288 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $1.34 $0.92 $0.70 $0.60 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $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) 80,158 77,239 72,832 75,760 81,742 81,189 60,527 25,763 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 154,650 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES MID CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.60 $0.54 $0.48 $0.40 $0.30 $0.42 $0.70 $1.00 -- Accumulation unit value at end of period $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) 27,632 29,699 34,555 40,872 48,862 52,428 54,805 29,626 -- - --------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (09/15/1999) Accumulation unit value at beginning of period $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $1.37 $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 69,884 86,802 101,054 90,221 62,349 29,532 15,860 7,958 1,981 - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $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) 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 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $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) 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 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 64,614 57,067 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.52 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.60 $1.52 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 48,173 51,514 33,811 11,540 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.43 $1.26 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.40 $1.43 $1.26 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 34,265 34,462 18,592 7,652 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.26 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 536,032 339,587 150,945 22,945 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 161,214 154,199 -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
58 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.22 $0.98 $0.83 $0.74 $0.56 $0.65 $0.92 $1.51 $1.00 Accumulation unit value at end of period $1.37 $1.22 $0.98 $0.83 $0.74 $0.56 $0.65 $0.92 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 34,921 40,790 47,078 55,071 64,872 72,395 78,901 62,964 6,079 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 33,551 42,808 49,747 57,095 67,224 72,033 74,819 49,764 5,084 - --------------------------------------------------------------------------------------------------------------------------------- ROYCE CAPITAL FUND - MICRO-CAP PORTFOLIO, INVESTMENT CLASS (09/15/1999) Accumulation unit value at beginning of period $3.36 $2.80 $2.53 $2.24 $1.51 $1.75 $1.36 $1.15 $1.00 Accumulation unit value at end of period $3.47 $3.36 $2.80 $2.53 $2.24 $1.51 $1.75 $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 16,842 20,156 22,799 26,803 26,590 25,593 20,056 8,005 1,228 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 117,605 123,150 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.29 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.36 $1.29 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,188 9,786 10,247 4,730 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $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) 148,793 126,637 127,559 90,541 67,609 43,199 6,885 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 $1.00 Accumulation unit value at end of period $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 86,628 89,309 92,705 84,704 79,035 64,273 37,760 28,348 5,220 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 286,121 258,492 193,996 187,100 203,753 255,251 243,870 171,785 65,522 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.71% and 3.78%, respectively. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.06 $1.03 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.06 $1.03 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 31,764 24,861 17,450 7,405 -- -- -- -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (09/15/1999) Accumulation unit value at beginning of period $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 599,680 511,100 332,677 221,377 188,939 154,530 83,968 30,783 7,186 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 560,416 585,144 408,559 255,776 134,486 86,442 43,328 12,124 3,149 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 204,316 169,931 130,135 82,347 51,936 31,133 16,572 8,968 1,552 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 147,400 161,490 91,038 2,274 -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 59
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) Accumulation unit value at beginning of period $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 $1.00 Accumulation unit value at end of period $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 283,769 326,108 323,849 191,140 192,314 135,693 129,186 97,754 16,891 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 218,538 251,768 262,154 242,254 177,150 93,845 58,348 31,722 7,774 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.14 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.16 $1.14 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 116,516 109,316 29,477 1,052 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (09/15/1999) Accumulation unit value at beginning of period $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 383,078 450,207 263,828 130,790 69,981 52,124 26,327 24,003 5,333 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.33 $1.34 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,988 7,937 6,232 3,498 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 $1.00 -- -- Accumulation unit value at end of period $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) 50,337 62,826 47,283 53,376 42,780 16,388 2,489 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.49 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 71,709 101,239 6,605 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $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) 127,010 139,008 154,949 144,039 103,587 64,771 35,957 9,812 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 120,018 125,729 145,087 160,725 155,718 124,866 50,510 16,258 11,135 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (09/15/1999) Accumulation unit value at beginning of period $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 38,095 49,721 59,243 61,563 44,627 29,202 22,792 14,830 2,970 - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $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) 89,546 89,672 75,520 22,549 8,256 4,750 1,789 906 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 75,421 80,961 77,787 51,446 23,614 20,012 15,821 13,967 2,575 - --------------------------------------------------------------------------------------------------------------------------------- THIRD AVENUE VALUE PORTFOLIO (09/21/1999) Accumulation unit value at beginning of period $3.32 $2.89 $2.54 $2.13 $1.51 $1.70 $1.51 $1.08 $1.00 Accumulation unit value at end of period $3.14 $3.32 $2.89 $2.54 $2.13 $1.51 $1.70 $1.51 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 23,692 28,765 31,916 32,334 31,927 31,335 27,040 8,231 1,873 - ---------------------------------------------------------------------------------------------------------------------------------
60 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.37 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.33 $1.37 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 224,730 258,223 203,272 36,974 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 51,109 51,499 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 14,940 37,273 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (09/15/1999) Accumulation unit value at beginning of period $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 $1.00 Accumulation unit value at end of period $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 164,570 186,862 170,230 104,567 66,022 43,554 27,818 18,245 1,234 *Effective June 1, 2008, the Fund will change its name to Wanger International. - --------------------------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (09/15/1999) Accumulation unit value at beginning of period $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 212,646 235,960 241,623 184,961 129,824 78,311 40,791 23,813 2,476 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.28 $1.15 $1.10 $1.02 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.28 $1.06 $0.98 $0.90 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $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) 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $1.02 $0.96 $0.89 $0.85 $0.66 $0.88 $1.16 $1.31 $1.00 Accumulation unit value at end of period $1.13 $1.02 $0.96 $0.89 $0.85 $0.66 $0.88 $1.16 $1.31 Number of accumulation units outstanding at end of period (000 omitted) 26,499 33,759 37,608 41,803 44,130 48,704 55,044 46,419 5,160 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $1.86 $1.62 $1.49 $1.30 $0.97 $1.25 $1.37 $1.26 $1.00 Accumulation unit value at end of period $2.05 $1.86 $1.62 $1.49 $1.30 $0.97 $1.25 $1.37 $1.26 Number of accumulation units outstanding at end of period (000 omitted) 11,661 14,226 16,359 19,515 20,889 23,015 25,531 19,878 1,892 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,964 15,226 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.38 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.57 $1.38 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,729 1,198 107 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.35 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,415 5,609 801 -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.28 $1.03 $0.92 $0.81 $0.66 $0.83 $1.18 $1.44 $1.00 Accumulation unit value at end of period $1.49 $1.28 $1.03 $0.92 $0.81 $0.66 $0.83 $1.18 $1.44 Number of accumulation units outstanding at end of period (000 omitted) 22,876 26,483 30,007 30,595 30,150 31,512 32,127 20,591 2,094 - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 28,466 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,170 35,411 4,856 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS I (09/15/1999) Accumulation unit value at beginning of period $1.84 $1.57 $1.51 $1.33 $1.04 $1.20 $1.08 $0.92 $1.00 Accumulation unit value at end of period $1.73 $1.84 $1.57 $1.51 $1.33 $1.04 $1.20 $1.08 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 40,862 47,256 53,403 50,775 49,145 49,161 41,460 21,041 4,775 - --------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $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) 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 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,001 66,352 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.26 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,702 32,712 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,631 26,224 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - MID-CAP CORE PORTFOLIO (09/21/1999) Accumulation unit value at beginning of period $1.27 $1.26 $1.18 $1.06 $0.74 $1.06 $1.28 $1.32 $1.00 Accumulation unit value at end of period $1.40 $1.27 $1.26 $1.18 $1.06 $0.74 $1.06 $1.28 $1.32 Number of accumulation units outstanding at end of period (000 omitted) 7,584 9,967 12,660 15,543 17,844 20,303 24,697 22,624 2,872 - --------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 71,987 59,159 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 166,815 127,364 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.14 $1.01 $0.95 $0.91 $0.74 $0.90 $1.00 $1.04 $1.00 Accumulation unit value at end of period $1.26 $1.14 $1.01 $0.95 $0.91 $0.74 $0.90 $1.00 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 75,513 89,221 108,101 127,378 125,390 117,223 119,736 77,558 18,137 - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $3.11 $2.79 $2.38 $1.93 $1.40 $1.57 $1.64 $1.24 $1.00 Accumulation unit value at end of period $3.56 $3.11 $2.79 $2.38 $1.93 $1.40 $1.57 $1.64 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 52,936 63,504 70,537 72,884 69,808 68,203 67,132 48,251 6,945 - ---------------------------------------------------------------------------------------------------------------------------------
62 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.33 $1.14 $0.96 $0.86 $0.60 $0.77 $0.98 $1.23 $1.00 Accumulation unit value at end of period $1.54 $1.33 $1.14 $0.96 $0.86 $0.60 $0.77 $0.98 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 32,307 37,262 40,363 43,553 34,462 33,063 32,758 22,910 3,612 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 $1.00 Accumulation unit value at end of period $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 59,503 81,589 88,911 80,587 63,047 44,591 19,803 6,181 683 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 $1.00 Accumulation unit value at end of period $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 46,935 55,078 55,521 44,541 34,639 23,553 9,584 2,897 590 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT TEMPLETON FOREIGN SECURITIES FUND - CLASS 2 (03/01/2002) Accumulation unit value at beginning of period $1.69 $1.41 $1.29 $1.10 $0.84 $1.00 -- -- -- Accumulation unit value at end of period $1.94 $1.69 $1.41 $1.29 $1.10 $0.84 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,682 15,475 18,421 15,951 12,608 9,570 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 96,413 112,452 117,932 84,473 65,106 47,539 24,711 10,265 2,023 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED SMALL CAP EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.94 $1.74 $1.66 $1.44 $1.00 $1.18 $1.14 $1.13 $1.00 Accumulation unit value at end of period $1.60 $1.94 $1.74 $1.66 $1.44 $1.00 $1.18 $1.14 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 7,429 9,981 12,490 14,537 16,300 17,792 18,974 14,809 2,665 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 126,734 160,736 168,697 108,140 80,350 75,489 71,185 55,239 9,951 - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.42 $0.40 $0.36 $0.36 $0.25 $0.42 $0.68 $1.00 -- Accumulation unit value at end of period $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) 19,559 22,668 24,131 27,479 30,159 31,354 34,050 22,949 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $1.33 $0.91 $0.70 $0.59 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $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) 64,174 61,879 59,325 61,390 68,389 74,111 64,147 29,251 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 72,177 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES MID CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.59 $0.53 $0.48 $0.40 $0.30 $0.42 $0.70 $1.00 -- Accumulation unit value at end of period $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) 18,083 20,670 24,803 30,043 36,658 42,883 51,500 33,689 -- - --------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (09/15/1999) Accumulation unit value at beginning of period $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $1.35 $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 51,659 62,992 73,982 66,844 53,159 28,853 19,727 10,774 2,504 - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 $1.00 -- Accumulation unit value at end of period $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) 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 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $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) 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 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $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) 51,479 45,869 35,163 18,264 12,519 7,093 2,778 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 63
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 30,611 26,517 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.51 $1.30 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.59 $1.51 $1.30 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,187 34,962 20,721 6,121 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.42 $1.25 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.39 $1.42 $1.25 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,107 22,606 12,037 4,085 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.15 $1.08 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.25 $1.15 $1.08 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 360,480 226,000 94,657 11,924 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 82,318 76,067 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.21 $0.97 $0.82 $0.73 $0.56 $0.65 $0.92 $1.51 $1.00 Accumulation unit value at end of period $1.35 $1.21 $0.97 $0.82 $0.73 $0.56 $0.65 $0.92 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 30,296 36,740 43,047 51,671 62,780 74,769 90,196 80,679 8,200 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 26,405 34,609 42,680 51,579 63,075 73,930 87,722 68,407 7,245 - --------------------------------------------------------------------------------------------------------------------------------- ROYCE CAPITAL FUND - MICRO-CAP PORTFOLIO, INVESTMENT CLASS (09/15/1999) Accumulation unit value at beginning of period $3.32 $2.76 $2.50 $2.22 $1.50 $1.74 $1.35 $1.15 $1.00 Accumulation unit value at end of period $3.41 $3.32 $2.76 $2.50 $2.22 $1.50 $1.74 $1.35 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 16,534 20,055 22,867 27,132 27,838 27,063 23,583 11,880 1,886 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.08 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.08 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 55,721 57,963 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.28 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.34 $1.28 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,203 5,724 5,777 2,540 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $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) 79,474 69,587 72,463 57,581 44,918 28,099 6,314 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 $1.00 Accumulation unit value at end of period $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 74,966 74,221 77,525 74,540 73,310 64,613 53,096 39,810 6,539 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 247,870 211,744 147,452 148,915 178,580 228,237 265,455 203,922 87,424 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.52% and 3.58%, respectively. - ---------------------------------------------------------------------------------------------------------------------------------
64 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.03 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.10 $1.05 $1.03 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,701 22,501 15,300 4,962 -- -- -- -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (09/15/1999) Accumulation unit value at beginning of period $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 408,270 351,043 257,273 190,125 176,013 159,405 106,760 43,920 11,675 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 363,274 383,460 278,737 181,318 99,776 67,958 41,299 14,227 3,441 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 $1.00 Accumulation unit value at end of period $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 141,675 123,834 102,876 72,702 54,100 36,626 23,970 14,137 2,368 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 88,734 95,224 51,906 1,504 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) Accumulation unit value at beginning of period $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 $1.00 Accumulation unit value at end of period $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 186,447 216,237 212,229 135,373 147,485 118,986 130,764 106,410 13,813 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 186,775 221,767 237,711 236,566 197,358 122,784 88,813 52,655 10,137 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.14 $1.06 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.16 $1.14 $1.06 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 65,977 61,812 18,068 783 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (09/15/1999) Accumulation unit value at beginning of period $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 242,876 290,744 144,230 94,730 45,599 34,956 26,779 22,159 3,227 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.13 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.32 $1.34 $1.13 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,152 4,707 3,594 2,030 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 $1.00 -- -- Accumulation unit value at end of period $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) 35,043 43,939 31,419 35,498 29,450 12,145 2,238 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.48 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 43,555 54,642 4,982 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $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) 92,416 104,302 122,070 117,372 91,398 65,011 40,575 14,084 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 104,637 108,222 121,249 130,386 135,202 116,147 56,966 24,654 12,796 - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 65
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (09/15/1999) Accumulation unit value at beginning of period $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 28,329 38,372 46,718 51,057 39,709 29,341 24,346 16,349 3,029 - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $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) 50,491 51,867 44,244 16,315 6,501 3,888 1,542 693 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 58,762 64,541 61,793 40,351 21,462 19,189 18,664 15,670 2,173 - --------------------------------------------------------------------------------------------------------------------------------- THIRD AVENUE VALUE PORTFOLIO (09/21/1999) Accumulation unit value at beginning of period $3.27 $2.85 $2.51 $2.12 $1.50 $1.69 $1.50 $1.08 $1.00 Accumulation unit value at end of period $3.08 $3.27 $2.85 $2.51 $2.12 $1.50 $1.69 $1.50 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 23,616 28,313 32,580 33,905 34,897 35,110 31,848 11,524 2,043 - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.36 $1.18 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.32 $1.36 $1.18 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,380 130,395 96,755 18,714 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.22 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.22 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,814 27,318 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,199 17,529 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (09/15/1999) Accumulation unit value at beginning of period $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 $1.00 Accumulation unit value at end of period $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 108,613 122,718 114,381 79,981 56,466 42,309 30,297 21,844 1,343 *Effective June 1, 2008, the Fund will change its name to Wanger International. - --------------------------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (09/15/1999) Accumulation unit value at beginning of period $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 145,262 164,257 169,886 140,320 108,046 72,853 46,456 29,881 2,723 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.26 $1.14 $1.09 $1.01 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.26 $1.05 $0.97 $0.89 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $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) 23,653 17,655 14,334 16,103 13,800 7,655 2,230 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
66 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 2007..... p. 4 Principal Underwriter........................... p. 5 Independent Registered Public Accounting Firm... p. 5 Financial Statements
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 67 THIS PAGE LEFT BLANK INTENTIONALLY 68 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 69 THIS PAGE LEFT BLANK INTENTIONALLY 70 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 71 (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 (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 RiverSource Life Insurance Company. All rights reserved. S-6467 M (5/08) PROSPECTUS MAY 1, 2008 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY(R) - BAND 3 INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITY FOR: - - current or retired employees of Ameriprise Financial, Inc. or its subsidiaries and their spouses (employees), - - current or retired Ameriprise Financial, Inc. financial advisors and their spouses (advisors), and - - individuals investing an initial purchase payment of $1 million (other individuals). NEW RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 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: - - AIM Variable Insurance Funds - - AllianceBernstein Variable Products Series Fund, Inc. - - American Century Variable Portfolios, Inc. - - Calvert Variable Series, Inc. - - Columbia Variable Insurance Trust - - Credit Suisse Trust - - Eaton Vance Variable Trust - - Fidelity(R) Variable Insurance Products Funds - Service Class - - Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 - - Goldman Sachs Variable Insurance Trust (VIT) - - Janus Aspen Series: Service Shares - - Lazard Retirement Series, 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) formerly known as RiverSource Variable Portfolio Funds - - 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 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 - BAND 3 -- 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 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....................................... 5 EXPENSE SUMMARY............................................. 6 CONDENSED FINANCIAL INFORMATION (UNAUDITED)................. 12 FINANCIAL STATEMENTS........................................ 12 THE VARIABLE ACCOUNT AND THE FUNDS.......................... 12 THE FIXED ACCOUNT........................................... 29 BUYING YOUR CONTRACT........................................ 30 CHARGES..................................................... 31 VALUING YOUR INVESTMENT..................................... 33 MAKING THE MOST OF YOUR CONTRACT............................ 34 SURRENDERS.................................................. 41 TSA -- SPECIAL PROVISIONS................................... 42 CHANGING OWNERSHIP.......................................... 42 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT......... 43 OPTIONAL BENEFITS........................................... 44 THE ANNUITY PAYOUT PERIOD................................... 47 TAXES....................................................... 49 VOTING RIGHTS............................................... 52 SUBSTITUTION OF INVESTMENTS................................. 52 ABOUT THE SERVICE PROVIDERS................................. 53 APPENDIX: CONDENSED FINANCIAL INFORMATION (UNAUDITED)....... 54 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION....................... 59
2 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- 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 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. 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 ASSET ALLOCATION PROGRAM (PN PROGRAM): This is an optional asset allocation program in which you may elect to participate by adding the optional PN program rider for an additional charge. 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) under Section 408(b) of the Code - - 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 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. 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 RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 3 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) 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 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 - BAND 3 -- 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. We will not deduct any 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 "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") 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. (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 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 - BAND 3 -- 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 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 vary between 3.50% and 5.00% depending on the applicable assumed investment rate. 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.") 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%
ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value.) MORTALITY AND EXPENSE RISK FEE 0.55%
6 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- 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, 2007, UNLESS OTHERWISE NOTED. THE FIRST TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE TOTAL 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 0.52% 2.09%
(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 AIM V.I. Capital Appreciation Fund, 0.61% --% 0.27% --% 0.88% Series I Shares AIM V.I. Capital Development Fund, 0.75 -- 0.31 -- 1.06(1) Series I Shares AIM V.I. Global Health Care Fund, 0.75 0.25 0.32 0.01 1.33(1) Series II Shares AIM V.I. International Growth Fund, 0.71 0.25 0.36 0.01 1.33(1) Series II Shares AllianceBernstein VPS Global 0.75 0.25 0.17 -- 1.17 Technology Portfolio (Class B) AllianceBernstein VPS Growth and 0.55 0.25 0.04 -- 0.84 Income Portfolio (Class B) AllianceBernstein VPS International 0.75 0.25 0.06 -- 1.06 Value Portfolio (Class B) American Century VP International, 1.20 -- 0.01 -- 1.21 Class I American Century VP Mid Cap Value, 0.90 0.25 0.01 -- 1.16 Class II American Century VP Ultra(R), Class 0.90 0.25 0.01 -- 1.16 II American Century VP Value, Class I 0.93 -- 0.01 -- 0.94 Calvert Variable Series, Inc. Social 0.70 -- 0.20 -- 0.90 Balanced Portfolio Columbia Marsico Growth Fund, 0.97 -- 0.02 -- 0.99 Variable Series, Class A Columbia Marsico International 1.02 0.25 0.12 -- 1.39 Opportunities Fund, Variable Series, Class B Credit Suisse Trust - Commodity 0.50 0.25 0.28 -- 1.03(2) Return Strategy Portfolio Credit Suisse Trust - Mid-Cap Core 0.70 -- 0.58 -- 1.28(2) Portfolio Eaton Vance VT Floating-Rate Income 0.57 0.25 0.32 -- 1.14 Fund Fidelity(R) VIP Contrafund(R) 0.56 0.25 0.09 -- 0.90 Portfolio Service Class 2 Fidelity(R) VIP Growth & Income 0.46 0.10 0.12 -- 0.68 Portfolio Service Class Fidelity(R) VIP Mid Cap Portfolio 0.56 0.10 0.10 -- 0.76 Service Class Fidelity(R) VIP Overseas Portfolio 0.71 0.10 0.14 -- 0.95 Service Class FTVIPT Franklin Global Real Estate 0.75 0.25 0.31 -- 1.31(3) Securities Fund - Class 2 FTVIPT Franklin Small Cap Value 0.51 0.25 0.15 0.02 0.93(4) Securities Fund - Class 2 FTVIPT Templeton Foreign Securities 0.63 0.25 0.14 0.02 1.04(4) Fund - Class 2 Goldman Sachs VIT Mid Cap Value 0.80 -- 0.07 -- 0.87 Fund - Institutional Shares Goldman Sachs VIT Structured Small 0.75 -- 0.20 -- 0.95(5) Cap Equity Fund - Institutional Shares Goldman Sachs VIT Structured U.S. 0.65 -- 0.07 -- 0.72(6) Equity Fund - Institutional Shares Janus Aspen Series Global Technology 0.64 0.25 0.18 0.01 1.08 Portfolio: Service Shares
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- 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 Janus Aspen Series International 0.64% 0.25% 0.06% --% 0.95% Growth Portfolio: Service Shares Janus Aspen Series Large Cap Growth 0.64 0.25 0.02 0.01 0.92 Portfolio: Service Shares Janus Aspen Series Mid Cap Growth 0.64 0.25 0.04 -- 0.93 Portfolio: Service Shares Lazard Retirement International 0.75 0.25 0.18 -- 1.18 Equity Portfolio - Service Shares MFS(R) Investors Growth Stock 0.75 0.25 0.11 -- 1.11 Series - Service Class MFS(R) New Discovery Series - Service 0.90 0.25 0.11 -- 1.26 Class MFS(R) Utilities Series - Service 0.75 0.25 0.10 -- 1.10(7) Class Neuberger Berman Advisers Management 1.14 0.25 0.17 -- 1.56(8) Trust International Portfolio (Class S) Oppenheimer Global Securities 0.62 0.25 0.02 -- 0.89 Fund/VA, Service Shares Oppenheimer Main Street Small Cap 0.70 0.25 0.02 -- 0.97 Fund/VA, Service Shares Oppenheimer Strategic Bond Fund/VA, 0.57 0.25 0.02 0.02 0.86(9) Service Shares PIMCO VIT All Asset Portfolio, 0.18 0.25 0.25 0.69 1.37(10) Advisor Share Class Putnam VT International New 1.00 0.25 0.17 -- 1.42(11) Opportunities Fund - Class IB Shares Putnam VT Vista Fund - Class IB 0.65 0.25 0.11 -- 1.01 Shares Royce Capital Fund - Micro-Cap 1.25 -- 0.06 -- 1.31 Portfolio, Investment Class RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.76 1.31(12) Portfolios - Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.64 1.19(12) Portfolios - Conservative RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.70 1.25(12) Portfolios - Moderate RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.73 1.28(12) Portfolios - Moderately Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.67 1.22(12) Portfolios - Moderately Conservative RVST RiverSource(R) Partners Variable 0.70 0.13 0.16 -- 0.99(13) Portfolio - Fundamental Value Fund (previously RiverSource(R) Variable Portfolio - Fundamental Value Fund) RVST RiverSource(R) Partners Variable 0.83 0.13 1.13 -- 2.09(13) Portfolio - Select Value Fund (previously RiverSource(R) Variable Portfolio - Select Value Fund) RVST RiverSource(R) Partners Variable 0.97 0.13 0.18 -- 1.28(13) Portfolio - Small Cap Value Fund (previously RiverSource(R) Variable Portfolio - Small Cap Value Fund) RVST RiverSource(R) Variable 0.53 0.13 0.14 -- 0.80 Portfolio - Balanced Fund RVST RiverSource(R) Variable 0.33 0.13 0.14 -- 0.60 Portfolio - Cash Management Fund RVST RiverSource(R) Variable 0.45 0.13 0.16 -- 0.74 Portfolio - Diversified Bond Fund RVST RiverSource(R) Variable 0.59 0.13 0.14 -- 0.86 Portfolio - Diversified Equity Income Fund RVST RiverSource(R) Variable 0.68 0.13 0.19 -- 1.00(13) Portfolio - Global Bond Fund RVST RiverSource(R) Variable 0.44 0.13 0.17 -- 0.74(13) Portfolio - Global Inflation Protected Securities Fund RVST RiverSource(R) Variable 0.60 0.13 0.16 -- 0.89 Portfolio - Growth Fund RVST RiverSource(R) Variable 0.59 0.13 0.15 -- 0.87 Portfolio - High Yield Bond Fund RVST RiverSource(R) Variable 0.61 0.13 0.17 -- 0.91 Portfolio - Income Opportunities Fund RVST RiverSource(R) Variable 0.58 0.13 0.15 -- 0.86 Portfolio - Large Cap Equity Fund RVST RiverSource(R) Variable 0.59 0.13 0.36 -- 1.08(13) Portfolio - Large Cap Value Fund RVST RiverSource(R) Variable 0.58 0.13 0.15 -- 0.86 Portfolio - Mid Cap Growth Fund RVST RiverSource(R) Variable 0.73 0.13 0.17 -- 1.03(13) Portfolio - Mid Cap Value Fund RVST RiverSource(R) Variable 0.22 0.13 0.17 -- 0.52(13) Portfolio - S&P 500 Index Fund RVST RiverSource(R) Variable 0.48 0.13 0.18 -- 0.79 Portfolio - Short Duration U.S. Government Fund RVST RiverSource(R) Variable 0.68 0.13 0.20 -- 1.01(13) Portfolio - Small Cap Advantage Fund RVST Threadneedle(R) Variable 1.11 0.13 0.26 -- 1.50 Portfolio - Emerging Markets Fund (previously RiverSource(R) Variable Portfolio - Emerging Markets Fund) RVST Threadneedle(R) Variable 0.69 0.13 0.19 -- 1.01 Portfolio - International Opportunity Fund (previously RiverSource(R) Variable Portfolio - International Opportunity Fund)
8 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- 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 Third Avenue Value Portfolio 0.90% --% 0.27% --% 1.17% Van Kampen Life Investment Trust 0.56 0.25 0.03 -- 0.84 Comstock Portfolio, Class II Shares Van Kampen UIF Global Real Estate 0.85 0.35 0.38 -- 1.58(14) Portfolio, Class II Shares Van Kampen UIF Mid Cap Growth 0.75 0.35 0.35 -- 1.45(14) Portfolio, Class II Shares Wanger International Small Cap 0.88 -- 0.11 -- 0.99 (effective June 1, 2008, the Fund will change its name to Wanger International) Wanger U.S. Smaller Companies 0.90 -- 0.05 -- 0.95 (effective June 1, 2008, the Fund will change its name to Wanger USA) Wells Fargo Advantage VT Asset 0.55 0.25 0.22 -- 1.02(15) Allocation Fund Wells Fargo Advantage VT 0.75 0.25 0.43 -- 1.43(15) International Core Fund Wells Fargo Advantage VT Small Cap 0.75 0.25 0.23 -- 1.23(15) Growth Fund
* 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 Fund's advisor has contractually agreed to waive advisory fees and/or reimburse expenses of Series I shares and Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) of Series I shares to 1.30% and Series II shares to 1.45% of average daily net assets. In addition, effective July 1, 2007, AIM contractually agreed to waive 100% of the advisory fee AIM receives from affiliated money market funds on investments by the Fund in such affiliated money market funds. These waiver agreements are in effect through at least April 30, 2009. After fee waivers and expense reimbursements net expenses would be 1.05% for AIM V.I. Capital Development Fund, Series I Shares, 1.32% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. (2) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements net expenses would be 0.95% for Credit Suisse Trust - Commodity Return Strategy Portfolio and 1.25% for Credit Suisse Trust - Mid-Cap Core Portfolio. (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 waivers net expenses would be 0.89% for FTVIPT Franklin Global Real Estate Securities Fund - Class 2. (4) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent that the Fund's fees and expenses are due to those of the acquired 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 0.91% for FTVIPT Franklin Small Cap Value Securities Fund - Class 2 and 1.02% for FTVIPT Templeton Foreign Securities Fund - Class 2. (5) 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 reduction may be terminated at any time at the option of the Investment Adviser. In addition, 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. This waiver may be modified or terminated at any time at the option of the Investment Adviser. After fee waivers and expense reductions net expenses would be 0.90% for Goldman Sachs VIT Structured Small Cap Equity Fund - Institutional Shares. (6) The Investment Adviser has voluntarily agreed to reduce or limit "Other expenses" (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be terminated at any time at the option of the Investment Adviser. After expense reductions net expenses would be 0.71% for Goldman Sachs VIT Structured U.S. Equity Fund - Institutional Shares. (7) MFS has agreed in writing to reduce its management fee to 0.70% for MFS Utilities Series annually on average daily net assets in excess of $1 billion. After fee reductions net expenses would be 1.07% for MFS Utilities Series - Service Class. This written agreement will remain in effect until modified by the Fund's Board of Trustees. (8) Neuberger Berman Management Inc. ("NBMI") has undertaken through Dec. 31, 2011, to waive fees and/or reimburse certain operating expenses, including the compensation of NBMI 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. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBMI 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 1.53% for Neuberger Berman Advisers Management Trust International Portfolio (Class S). (9) The "Other expenses" in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2007, the transfer agent fees did not exceed this expense limitation. The Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund and OFI Master Loan Fund LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82% for Oppenheimer Strategic Bond Fund/VA, Service Shares. (10) PIMCO has contractually agreed through Dec. 31, 2008, to reduce its advisory fee to the extent that the "Acquired fund fees and expenses" attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.35%. (11) Putnam Management has a contractual agreement to limit expenses through Dec. 31, 2008. After fee waivers and expense reimbursements net expenses would be 1.36% for Putnam VT International New Opportunities Fund - Class IB Shares. (12) The Fund's expense figures are based on estimated expenses, before fee waivers and expense reimbursements. RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Aggressive, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Conservative, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderate, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Aggressive and 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Conservative. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 9 (13) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.98% for RVST RiverSource(R) Partners Variable Portfolio - Fundamental Value Fund, 1.03% for RVST RiverSource(R) Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource(R) Partners Variable Portfolio - Small Cap Value Fund, 0.98% for RVST RiverSource(R) Variable Portfolio - Global Bond Fund, 0.72% for RVST RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund, 1.05% for RVST RiverSource(R) Variable Portfolio - Large Cap Value Fund, 1.05% for RVST RiverSource(R) Variable Portfolio - Mid Cap Value Fund, 0.51% for RVST RiverSource(R) Variable Portfolio - S&P 500 Index Fund and 1.13% for RVST RiverSource(R) Variable Portfolio - Small Cap Advantage Fund. (14) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursement, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.16% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares. (15) The adviser has contractually agreed through April 30, 2009 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After fee waivers and expense reimbursements, net expenses would be 1.00% for Wells Fargo Advantage VT Asset Allocation Fund, 1.00% for Wells Fargo Advantage VT International Core Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. 10 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- 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. This example assumes the maximum fees and expenses of any of the funds. It assumes that you select both the optional MAV, EEB and PN. Although your actual costs may be higher or lower, based on this assumption your costs would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS $340 $1,036 $1,755 $3,655
MINIMUM EXPENSES. This example assumes the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. It assumes 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:
1 YEAR 3 YEARS 5 YEARS 10 YEARS $112 $ 351 $ 608 $1,342
* In these examples, the $30 contract administrative charge is approximated as a .027% charge. This percentage was determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to this contract by the total average net assets that are attributable to the contract. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 11 CONDENSED FINANCIAL INFORMATION (Unaudited) You can find unaudited condensed financial information for the subaccounts in the Appendix. We do not include condensed financial information for subaccounts that are new and have no activity as of the financial statement date. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the subaccounts in the SAI. The SAI does not include audited financial statements for subaccounts 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 12 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 Asset Allocation 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, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. 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 2007. 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. - 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 13 - 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 - BAND 3 -- 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 AIM V.I. Capital Growth of capital. Invests principally in common Invesco Aim Advisors, Inc. adviser, Appreciation Fund, Series I stocks of companies likely to benefit from new advisory entities affiliated with Shares or innovative products, services or processes as Invesco Aim Advisors, Inc., well as those with above-average growth and subadvisers. excellent prospects for future growth. The Fund may also invest up to 25% of its total assets in foreign securities that involve risks not associated with investing solely in the United States. AIM V.I. Capital Development Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Fund, Series I Shares in securities (including common stocks, advisory entities affiliated with convertible securities and bonds) of small- and Invesco Aim Advisors, Inc., medium-sized companies. The Fund may invest up subadvisers. to 25% of its total assets in foreign securities. AIM V.I. Global Health Care Capital growth. The Fund seeks to meet its Invesco Aim Advisors, Inc. adviser, Fund, Series II Shares objective by investing, normally, at least 80% advisory entities affiliated with of its assets in securities of health care Invesco Aim Advisors, Inc., industry companies. The Fund may invest up to subadvisers. 20% of its total assets in companies located in developing countries, i.e., those countries that are in the initial stages of their industrial cycles. The Fund may also invest up to 5% of its total assets in lower-quality debt securities, i.e., junk bonds. AIM V.I. International Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Growth Fund, Series II in a diversified portfolio of international advisory entities affiliated with Shares equity securities, whose issuers are considered Invesco Aim Advisors, Inc., to have strong earnings momentum. The Fund may subadvisers. invest up to 20% of its total assets in security issuers located in developing countries and in securities exchangeable for or convertible into equity securities of foreign companies. AllianceBernstein VPS Global Long-term growth of capital. The Fund invests at AllianceBernstein L.P. Technology Portfolio (Class least 80% of its net assets in securities of B) companies that use technology extensively in the development of new or improved products or processes. Invests in a global portfolio of securities of U.S. and foreign companies selected for their growth potential. AllianceBernstein VPS Growth Long-term growth of capital. Invests primarily AllianceBernstein L.P. and Income Portfolio (Class in the equity securities of domestic companies B) that the Advisor deems to be undervalued. AllianceBernstein VPS Long-term growth of capital. Invests primarily AllianceBernstein L.P. International Value in a diversified portfolio of equity securities Portfolio (Class B) of established companies selected from more than 40 industries and from more than 40 developed and emerging market countries. American Century VP Capital growth. Invests primarily in stocks of American Century Global Investment International, Class I growing foreign companies in developed Management, Inc. countries.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 15
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER American Century VP Mid Cap Long-term capital growth with income as a American Century Investment Management, Value, Class II secondary objective. Long-term capital growth Inc. with income as secondary objective. Invests primarily in stocks of companies that management believes are undervalued at the time of purchase. The fund will invest at least 80% of its assets in securities of companies whose market capitalization at the time of purchase is within the capitalization range of the Russell 3000 Index, excluding the largest 100 such companies. American Century VP Long-term capital growth. Analytical research American Century Investment Management, Ultra(R), Class II tools and techniques are used to identify the Inc. stocks of larger-sized companies that appear to have the best opportunity of sustaining long-term above average growth. American Century VP Value, Long-term capital growth, with income as a American Century Investment Management, Class I secondary objective. Invests primarily in stocks Inc. of companies that management believes to be undervalued at the time of purchase. Calvert Variable Series, Competitive total return through actively Calvert Asset Management Company, Inc., Inc. Social Balanced managed portfolio of stocks, bonds and money adviser. SSgA Funds Management, Inc. Portfolio market instruments which offer income and and New Amsterdam Partners, LLP, capital growth opportunity and which satisfy subadvisers on equity portion; no Portfolio's investment and social criteria. subadviser on fixed-income portion. Typically invests about 60% of net assets in stocks (primarily common stocks of U.S. large-cap companies) and 40% in investment grade bonds and other fixed-income investments. Investments must be consistent with Portfolio's current financial and social criteria. Columbia Marsico Growth Long-term growth of capital. Under normal Columbia Management Advisors, LLC, Fund, Variable Series, Class circumstances, the Fund invests primarily in adviser; Marsico Capital Management, A equity securities of large-capitalization LLC, sub-adviser. companies that have market capitalizations of $5 billion or more at the time of purchase. The Fund generally holds a core position of between 35 and 50 common stocks. It may hold up to 25% of total assets in foreign securities, including in emerging market securities. Columbia Marsico Long-term growth of capital. Under normal Columbia Management Advisors, LLC, International Opportunities circumstances, the Fund invests at least 65% of adviser; Marsico Capital Management, Fund, Variable Series, Class total assets in common stocks of foreign LLC, sub-adviser. B companies. The Fund may invest in companies of any size throughout the world that are selected for their long-term growth potential. The Fund normally invests in issuers from at least three different countries not including the United States. The Fund may invest in common stocks of companies operating in or economically tied to emerging markets countries. Some issuers or securities in the Fund's portfolio may be based in or economically tied to the United States.
16 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Credit Suisse Trust - Total Return. Invests in commodity-linked Credit Suisse Asset Management, LLC Commodity Return Strategy derivative instruments backed and fixed-income Portfolio securities. The portfolio invests in commodity-linked derivative instruments, such as commodity-linked notes, swap agreements, commodity options, futures and options on futures that provide exposure to the investment returns of the commodities markets without investing directly in physical commodities. The portfolio invests all of its assets in commodity-linked derivative instruments, such as structured notes and swaps, and fixed-income securities, subject to applicable IRS limits. The portfolio may also gain exposure to commodity markets by investing in the Credit Suisse Cayman Commodity Fund II, a wholly owned subsidiary of the Portfolio formed in the Cayman Island. Credit Suisse Trust - Maximum capital appreciation. Invests in U.S. Credit Suisse Asset Management, LLC Mid-Cap Core Portfolio equity securities of "mid-cap" companies selected using proprietary quantitative stock selection models rather than the more traditional fundamental analysis approach. Maintains investment attributes similar to those of the Standard & Poor's MidCap 400(R) Index and intends to limit its divergence from that index in terms of market, industry and sector exposures. Eaton Vance VT Floating- High level of current income. The Fund invests Eaton Vance Management Rate Income Fund primarily in senior floating rate loans ("Senior Loans"). Senior Loans typically are of below investment grade quality and have below investment grade credit ratings, which ratings are associated with securities having high risk, speculative characteristics. The Fund invests at least 80% of its net assets in income producing floating rate loans and other floating rate debt securities. The Fund may also purchase investment grade fixed income debt securities and money market instruments. The Fund may invest up to 25% of its total assets in foreign securities and may engage in certain hedging transactions. The Fund may purchase derivative instruments, such as futures contracts and options thereon, interest rate and credit default swaps, credit linked notes and currency hedging derivatives. Fidelity(R) VIP Long-term capital appreciation. Normally invests Fidelity Management & Research Company Contrafund(R) Portfolio primarily in common stocks. Invests in (FMR), investment manager; FMR U.K. and Service Class 2 securities of companies whose value it believes FMR Far East, sub- advisers. is not fully recognized by the public. Invests in either "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 17
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Fidelity(R) VIP Growth & High total return through a combination of Fidelity Management & Research Company Income Portfolio Service current income and capital appreciation. (FMR), investment manager; FMR U.K., Class Normally invests a majority of assets in common FMR Far East, sub- advisers. stocks with a focus on those that pay current dividends and show potential for capital appreciation. May invest in bonds, including lower-quality debt securities, as well as stocks that are not currently paying dividends, but offer prospects for future income or 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 Long-term growth of capital. Allocates assets Fidelity Management & Research Company Portfolio Service Class across different market sectors and maturities. (FMR), investment manager; FMR U.K., Normally invests primarily in common stocks. FMR Far East, sub- advisers. Normally invests at least 80% of assets in 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 Long-term growth of capital. Normally invests Fidelity Management & Research Company Portfolio Service Class primarily in common stocks of foreign (FMR), investment manager; FMR U.K., securities. Normally invests at least 80% of FMR Far East, Fidelity International assets in non-U.S. securities. Investment Advisors (FIIA) and FIIA U.K., sub-advisers. FTVIPT Franklin Global Real High total return. The Fund normally invests at Franklin Templeton Institutional, LLC Estate Securities least 80% of its net assets in investments of Fund - Class 2 companies located anywhere in the world that operate in the real estate sector and normally invests predominantly in equity securities. FTVIPT Franklin Small Cap Long-term total return. The Fund normally Franklin Advisory Services, LLC Value Securities invests at least 80% of its net assets in Fund - Class 2 investments of small capitalization companies, and normally invests predominantly in equity securities. The Fund invests mainly in equity securities of companies that the manager believes are undervalued. FTVIPT Templeton Foreign Long-term capital growth. The Fund normally Templeton Investment Counsel, LLC Securities Fund - Class 2 invests at least 80% of its net assets in investments of issuers located outside the U.S., including those in emerging markets, and normally invests predominantly in equity securities.
18 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Goldman Sachs VIT Mid Cap Long-term capital appreciation. The Fund Goldman Sachs Asset Management, L.P. Value Fund - Institutional invests, under normal circumstances, at least Shares 80% of its net assets plus any borrowings for investment purposes (measured at time of purchase) ("Net Assets") in a diversified portfolio of equity investments in mid-cap issuers with public stock market capitalizations (based upon shares available for trading on an unrestricted basis) within the range of the market capitalization of companies constituting the Russell Midcap(R) Value Index at the time of investment. If the market capitalization of a company held by the Fund moves outside this range, the Fund may, but is not required to, sell the securities. The capitalization range of the Russell Midcap(R) Value Index is currently between $1.1 billion and $21 billion. Although the Fund will invest primarily in publicly traded U.S. securities, it may invest up to 25% of its Net Assets in foreign securities, including securities of issuers in countries with emerging markets or economies ("emerging countries") and securities quoted in foreign currencies. The Fund may invest in the aggregate up to 20% of its Net Assets in companies with public stock market capitalizations outside the range of companies constituting the Russell Midcap(R) Value Index at the time of investment and in fixed-income securities, such as government, corporate and bank debt obligations.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 19
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Goldman Sachs VIT Structured Long-term growth of capital through a broadly Goldman Sachs Asset Management, L.P. Small Cap Equity diversified portfolio of equity investments in Fund - Institutional Shares U.S. issuers. The Fund invests, under normal circumstances, at least 80% of its net assets plus any borrowings for investment purposes (measured at time of purchase) ("Net Assets") in a broadly diversified portfolio of equity investments in small-cap U.S. issuers, including foreign issuers that are traded in the United States. However, it is currently anticipated that, under normal circumstances the Fund will invest at least 85% of its Net Assets in such equity investments. These issuers will have public stock market capitalizations (based upon shares available for trading on an unrestricted basis) similar to that of the range of the market capitalization of companies constituting the Russell 2000(R) Index at the time of investment. The Fund is not required to limit its investments to securities in the Russell 2000(R) Index. In addition, if the market capitalization of a company held by the Fund moves outside this range, the Fund may, but is not required to, sell the securities. The capitalization range of the Russell 2000(R) Index is currently between $40 million and $4 billion. The Fund's investments are selected using a variety of quantitative techniques, derived from fundamental research including but not limited to valuation, momentum, profitability and earnings quality, in seeking to maximize the Fund's expected return. The Fund maintains risk, style, capitalization and industry characteristics similar to the Russell 2000(R) Index. The Russell 2000 Index is an index designed to represent an investable universe of small cap companies. The Fund seeks to maximize expected return while maintaining these and other characteristics similar to the benchmark. Goldman Sachs VIT Structured Long-term growth of capital and dividend income. Goldman Sachs Asset Management, L.P. U.S. Equity The Fund invests, under normal circumstances, at Fund - Institutional Shares least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) ("Net Assets") in a diversified portfolio of equity investments in U.S. issuers, including foreign companies that are traded in the United States. However, it is currently anticipated that, under normal circumstances, the Fund will invest at least 95% of its Net Assets in such equity investments. The Fund's investments are selected using a variety of quantitative techniques, derived from fundamental research including but not limited to valuation, momentum, profitability and earnings quality, in seeking to maximize the Fund's expected returns. The Fund maintains risk, style, capitalization and industry characteristics similar to the S&P 500 Index. The S&P 500 Index is an index of large-cap stocks designed to reflect a broad representation of the U.S. economy. The Fund seeks to maximize expected return while maintaining these and other characteristics similar to the benchmark. The Fund is not required to limit its investments to securities in the S&P 500 Index.
20 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Janus Aspen Series Global Long-term growth of capital. Invests, under Janus Capital Management LLC Technology Portfolio: normal circumstances, at least 80% of its net Service Shares assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology. It implements this policy by investing primarily in equity securities of U.S. and foreign companies selected for their growth potential. Janus Aspen Series Long-term growth of capital. Invests, under Janus Capital Management LLC International Growth normal circumstances, at least 80% of its net Portfolio: Service Shares assets in securities of issuers from countries outside of the United States. The Portfolio normally invests in securities of issuers from several different countries excluding the United States. Although the Portfolio intends to invest substantially all of its assets in issuers located outside the United States, it may at times invest in U.S. issuers, and it may under unusual circumstances, invest all of its assets in a single country. The Portfolio may have significant exposure to emerging markets. Janus Aspen Series Large Cap Long-term growth of capital in a manner Janus Capital Management LLC Growth Portfolio: Service consistent with the preservation of capital. Shares Invests under normal circumstances at least 80% of its net assets in common stocks of large-sized companies. Large-sized companies are those whose market capitalization falls within the range of companies in the Russell 1000(R) Index at the time of purchase. Janus Aspen Series Mid Cap Long-term growth of capital. Invests, under Janus Capital Management LLC Growth Portfolio: Service normal circumstances, at least 80% of its net Shares assets in equity securities of mid-sized companies whose market capitalization falls, at the time of initial purchase, in the 12-month average of the capitalization ranges of the Russell Midcap Growth Index. Market capitalization is a commonly used measure of the size and value of a company. Lazard Retirement Long-term capital appreciation. Invests Lazard Asset Management, LLC International Equity primarily in equity securities, principally Portfolio - Service Shares common stocks, of relatively large non-U.S. companies with market capitalizations in the range of the Morgan Stanley Capital International (MSCI) Europe, Australia and Far East (EAFE(R)) Index that the Investment Manager believes are undervalued based on their earnings, cash flow or asset values. MFS(R) Investors Growth Capital appreciation. Normally invests at least MFS Investment Management(R) Stock Series - Service Class 80% of the fund's net assets in equity securities of companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). Growth companies tend to have stock prices that are high relative to their earnings, dividends, book value, or other financial measures. The Fund generally focuses on companies with large capitalizations.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 21
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER MFS(R) New Discovery Capital appreciation. Invests in stocks of MFS Investment Management(R) Series - Service Class companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). Growth companies tend to have stock prices that are high relative to their earnings, dividends, book value, or other financial measures. The Fund generally focuses on companies with small capitalizations. MFS(R) Utilities Series - Total return. Normally invests at least 80% of MFS Investment Management(R) Service Class the fund's net assets in securities of issuers in the utilities industry. The Fund's assets may be invested in companies of any size. Neuberger Berman Advisers Long-term growth of capital. The Fund invests Neuberger Berman Management Inc. Management Trust mainly in foreign companies of any size, International Portfolio including companies in developed and emerging (Class S) industrialized markets. The Fund defines a foreign company as one that is organized outside of the United States and conducts the majority of its business abroad. The Fund seeks to reduce risk by diversifying among many industries. Although it has the flexibility to invest a significant portion of its assets in one country or region, it generally intends to remain well- diversified across countries and geographical regions. Oppenheimer Global Long-term capital appreciation. Invests mainly OppenheimerFunds, Inc. Securities Fund/VA, Service in common stocks of U.S. and foreign issuers Shares that are "growth-type" companies, cyclical industries and special situations that are considered to have appreciation possibilities. Oppenheimer Main Street Capital appreciation. Invests mainly in common OppenheimerFunds, Inc. Small Cap Fund/VA, Service stocks of small-capitalization U.S. companies Shares that the fund's investment manager believes have favorable business trends or prospects. Oppenheimer Strategic Bond High level of current income principally derived OppenheimerFunds, Inc. Fund/VA, Service Shares from interest on debt securities. Invests mainly in three market sectors: debt securities of foreign governments and companies, U.S. government securities and lower-rated high yield securities of U.S. and foreign companies. PIMCO VIT All Asset Maximum real return consistent with preservation Pacific Investment Management Company Portfolio, Advisor Share of real capital and prudent investment LLC Class management period. The Portfolio seeks to achieve its investment objective by investing under normal circumstances substantially all of its assets in Institutional Class shares of the PIMCO Funds, an affiliated open-end investment company, except the All Asset and All Asset All Authority Funds ("Underlying Funds"). Though it is anticipated that the Portfolio will not currently invest in the European StockPLUS(R) TR Strategy, Far East (ex-Japan) StocksPLUS(R) TR Strategy, Japanese StocksPLUS(R) TR Strategy, StocksPLUS(R) Municipal-Backed and StocksPLUS(R) TR Short Strategy Funds, the Portfolio may invest in these Funds in the future, without shareholder approval, at the discretion of the Portfolio's asset allocation sub-adviser.
22 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Putnam VT International New Long-term capital appreciation. The fund pursues Putnam Investment Management, LLC Opportunities Fund - Class its goal by investing mainly in common stocks of IB Shares companies outside the United States with a focus on growth stocks. Putnam VT Vista Fund - Class Capital appreciation. The fund pursues its goal Putnam Investment Management, LLC IB Shares by investing mainly in common stocks of U.S. companies, with a focus on growth stocks. Royce Capital Fund - Long-term growth of capital. Invests primarily Royce & Associates, LLC Micro-Cap Portfolio, in a broadly diversified portfolio of equity Investment Class securities issued by micro-cap companies (companies with stock market capitalizations below $500 million). RVST Disciplined Asset High level of total return that is consistent RiverSource Investments, LLC Allocation Portfolios - with an aggressive level of risk. The Fund Aggressive invests primarily in equity securities and also invests a small amount in fixed income securities. The Fund may be most appropriate for investors with a longer term investment horizon. The Fund is intended for investors who have an objective of achieving a high level of total return, but prefer to have investment decisions managed by professional money managers. 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 High level of total return that is consistent RiverSource Investments, LLC Allocation Portfolios - with a conservative level of risk. The Fund Conservative invests primarily in fixed income securities and may be most appropriate for investors with a shorter term investment horizon. 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 High level of total return that is consistent RiverSource Investments, LLC Allocation Portfolios - with a moderate level of risk. The Fund invests Moderate in a balance of fixed income and equity securities and may be most appropriate for investors with an intermediate term investment horizon. 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.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 23
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST Disciplined Asset High level of total return that is consistent RiverSource Investments, LLC Allocation Portfolios - with a moderate aggressive level of risk. The Moderately Aggressive Fund invests primarily in equity securities and also invests a moderate amount in fixed income securities. The Fund may be most appropriate for investors with an intermediate-to-long term investment horizon. 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 High level of total return that is consistent RiverSource Investments, LLC Allocation Portfolios - with a moderate conservative level of risk. The Moderately Conservative Fund invests primarily in fixed income securities and also invests a moderate amount in equity securities. The Fund may be most appropriate for investors with a short-to-intermediate term investment horizon. 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 RiverSource Partners Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Variable primarily invested in equity securities of U.S. Davis Selected Advisers, L.P., Portfolio - Fundamental companies. Under normal market conditions, the subadviser. Value Fund Fund's assets will be invested primarily in companies with market capitalizations of at (previously RiverSource least $5 billion at the time of the Fund's Variable Portfolio - investment. The Fund may invest up to 25% of its Fundamental Value Fund) net assets in foreign investments. RVST RiverSource Partners Long-term growth of capital. Invests primarily RiverSource Investments, LLC, adviser; Variable Portfolio - Select in equity securities of mid cap companies as Systematic Financial Management, L.P. Value Fund well as companies with larger and smaller market and WEDGE Capital Management L.L.P., capitalizations. The Fund considers mid-cap sub- advisers. (previously RiverSource companies to be either those with a market Variable Portfolio - Select capitalization of up to $15 billion or those Value Fund) whose market capitalization falls within range of the Russell Midcap(R) Value Index. RVST RiverSource Partners Long-term capital appreciation. Under normal RiverSource Investments, LLC, adviser; Variable Portfolio - Small market conditions, at least 80% of the Fund's River Road Asset Management, LLC, Cap Value Fund net assets will be invested in small cap Donald Smith & Co., Inc., Franklin companies with market capitalization, at the Portfolio Associates LLC, Barrow, (previously RiverSource time of investment, of up to $2.5 billion or Hanley, Mewhinney & Strauss, Inc. and Variable Portfolio - Small that fall within the range of the Russell Denver Investment Advisors LLC, Cap Value Fund) 2000(R) Value Index. The Fund may invest up to subadvisers. 25% of its net assets in foreign investments.
24 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable Maximum total investment return through a RiverSource Investments, LLC Portfolio - Balanced Fund combination of capital growth and current income. Invests primarily in a combination of common and preferred stocks, bonds and other debt securities. Under normal market conditions, at least 50% of the Fund's total assets are invested in common stocks and no less than 25% of the Fund's total assets are invested in debt securities. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Maximum current income consistent with liquidity RiverSource Investments, LLC Portfolio - Cash Management and stability of principal. Invests primarily in Fund money market instruments, such as marketable debt obligations issued by corporations or the U.S. government or its agencies, bank certificates of deposit, bankers' acceptances, letters of credit, and commercial paper, including asset-backed commercial paper. RVST RiverSource Variable High level of current income while attempting to RiverSource Investments, LLC Portfolio - Diversified Bond conserve the value of the investment for the Fund longest period of time. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and other debt securities. At least 50% of the Fund's net assets will be invested in securities like those included in the Lehman Brothers Aggregate Bond Index (Index), which are investment grade and denominated in U.S. dollars. The Index includes securities issued by the U.S. government, corporate bonds, and mortgage- and asset-backed securities. Although the Fund emphasizes high- and medium-quality debt securities, it will assume some credit risk to achieve higher yield and/or capital appreciation by buying lower-quality (junk) bonds. The Fund may invest up to 25% of its net assets in foreign investments, which may include instruments in emerging markets. RVST RiverSource Variable High level of current income and, as a secondary RiverSource Investments, LLC Portfolio - Diversified goal, steady growth of capital. Under normal Equity Income Fund market conditions, the Fund invests at least 80% of its net assets in dividend- paying common and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable High total return through income and growth of RiverSource Investments, LLC Portfolio - Global Bond Fund capital. Non-diversified mutual fund that invests primarily in debt obligations of U.S. and foreign issuers. Under normal market conditions, the Fund invests at least 80% of its net assets in investment-grade corporate or government debt obligations including money market instruments of issuers located in at least three different countries. RVST RiverSource Variable Total return that exceeds the rate of inflation RiverSource Investments, LLC Portfolio - Global Inflation over the long-term. Non-diversified mutual fund Protected Securities Fund that, under normal market conditions, invests at least 80% of its net assets in inflation-protected debt securities. These securities include inflation-indexed bonds of varying maturities issued by U.S. and foreign governments, their agencies or instrumentalities, and corporations.
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 25
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable Long-term capital growth. Invests primarily in RiverSource Investments, LLC Portfolio - Growth Fund common stocks and securities convertible into common stocks that appear to offer growth opportunities. These growth opportunities could result from new management, market developments, or technological superiority. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable High current income, with capital growth as a RiverSource Investments, LLC Portfolio - High Yield Bond secondary objective. Under normal market Fund conditions, the Fund invests at least 80% of its net assets in high-yield debt instruments (commonly referred to as "junk") including corporate debt securities as well as bank loans rated below investment grade by a nationally recognized statistical rating organization, or if unrated, determined to be of comparable quality. Up to 25% of the Fund may be invested in high yield debt instruments of foreign issuers. RVST RiverSource Variable High total return through current income and RiverSource Investments, LLC Portfolio - Income capital appreciation. Under normal market Opportunities Fund conditions, the Fund invests primarily in income-producing debt securities with an emphasis on the higher rated segment of the high-yield (junk bond) market. These income-producing debt securities include corporate debt securities as well as bank loans. The Fund will purchase only securities rated B or above, or unrated securities believed to be of the same quality. If a security falls below a B rating, the Fund may continue to hold the security. Up to 25% of the Fund may be in foreign investments. RVST RiverSource Variable Capital appreciation. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Equity conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with market capitalization greater than $5 billion at the time of purchase. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Long-term growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Value conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with a market capitalization greater than $5 billion. The Fund may also invest in income-producing equity securities and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Mid Cap Growth conditions, the Fund invests at least 80% of its Fund net assets at the time of purchase in equity securities of mid capitalization companies. The investment manager defines mid-cap companies as those whose market capitalization (number of shares outstanding multiplied by the share price) falls within the range of the Russell Midcap(R) Growth Index.
26 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable Long-term growth of capital. Under normal RiverSource Investments, LLC Portfolio - Mid Cap Value circumstances, the Fund invests at least 80% of Fund its net assets (including the amount of any borrowings for investment purposes) in equity securities of medium-sized companies. Medium-sized companies are those whose market capitalizations at the time of purchase fall within the range of the Russell Midcap(R) Value Index. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Long-term capital appreciation. The Fund seeks RiverSource Investments, LLC Portfolio - S&P 500 Index to provide investment results that correspond to Fund the total return (the combination of appreciation and income) of large-capitalization stocks of U.S. companies. The Fund invests in common stocks included in the Standard & Poor's 500 Composite Stock Price Index (S&P 500). The S&P 500 is made up primarily of large-capitalization companies that represent a broad spectrum of the U.S. economy. RVST RiverSource Variable High level of current income and safety of RiverSource Investments, LLC Portfolio - Short Duration principal consistent with investment in U.S. U.S. Government Fund government and government agency securities. Under normal market conditions, at least 80% of the Fund's net assets are invested in securities issued or guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities. RVST RiverSource Variable Long-term capital growth. Under normal market RiverSource Investments, LLC, adviser; Portfolio - Small Cap conditions, at least 80% of the Fund's net Kenwood Capital Management LLC, Advantage Fund assets are invested in equity securities of sub-adviser. companies with market capitalization of up to $2 billion or that fall within the range of the Russell 2000(R) Index at the time of investment. RVST Threadneedle Variable Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Portfolio - Emerging Markets primarily invested in equity securities of Threadneedle International Limited, an Fund emerging market companies. Under normal market indirect wholly-owned subsidiary of conditions, at least 80% of the Fund's net Ameriprise Financial, sub-adviser. (previously RiverSource assets will be invested in securities of Variable Portfolio - companies that are located in emerging market Emerging Markets Fund) countries, or that earn 50% or more of their total revenues from goods and services produced in emerging market countries or from sales made in emerging market countries. RVST Threadneedle Variable Capital appreciation. Invests primarily in RiverSource Investments, LLC, adviser; Portfolio - International equity securities of foreign issuers that are Threadneedle International Limited, an Opportunity Fund believed to offer strong growth potential. The indirect wholly-owned subsidiary of Fund may invest in developed and in emerging Ameriprise Financial, sub-adviser. (previously RiverSource markets. Variable Portfolio - International Opportunity Fund)
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 27
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Third Avenue Value Portfolio Long-term capital appreciation. Invests Third Avenue Management LLC primarily in common stocks of well-financed companies, meaning companies without significant liabilities in comparison to their liquid resources at a discount to what the Adviser believes is their intrinsic value. Van Kampen Life Investment Capital growth and income through investments in Van Kampen Asset Management Trust Comstock Portfolio, equity securities, including common stocks, Class II Shares preferred stocks and securities convertible into common and preferred stocks. The Portfolio emphasizes value style of investing seeking well-established, undervalued companies believed by the Portfolio's investment adviser to posses the potential for capital growth and income. Van Kampen UIF Global Real Current income and capital appreciation. Invests Morgan Stanley Investment Management Estate Portfolio, Class II primarily in equity securities of companies in Inc., doing business as Van Kampen, Shares the real estate industry located throughout the adviser; Morgan Stanley Investment world, including real estate operating Management Limited and Morgan Stanley companies, real estate investment trusts and Investment Management Company, similar entities established outside the U.S. sub-advisers. (foreign real estate companies). Van Kampen UIF Mid Cap Long-term capital growth. Invests primarily in Morgan Stanley Investment Management Growth Portfolio, Class II growth- oriented equity securities of U.S. mid Inc., doing business as Van Kampen. Shares cap companies and foreign companies, including emerging market securities. Wanger International Small Long-term growth of capital. Invests primarily Columbia Wanger Asset Management, L.P. Cap in stocks of companies based outside the U.S. with market capitalizations of less than $5 billion at time of initial purchase. Effective June 1, 2008, the Effective June 1, 2008: Columbia Wanger Asset Management, L.P. Fund will change its name to Long-term growth of capital. Under normal market Wanger International. circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion.
28 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Wanger U.S. Smaller Long-term growth of capital. Invests primarily Companies in stocks of small- and medium-size U.S. companies with market capitalizations of less than $5 billion at time of initial purchase. Effective June 1, 2008, the Effective June 1, 2008: Fund will change its name to Long-term growth of capital. Under normal market Wanger USA. circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion. Wells Fargo Advantage VT Long-term total return, consisting of capital Wells Fargo Funds Management, LLC, Asset Allocation Fund appreciation and current income. We seek to adviser; Wells Capital Management achieve the Portfolio's investment objective by Incorporated, sub-adviser. allocating 60% of its assets to equity securities and 40% of its assets to fixed income securities. Wells Fargo Advantage VT Long-term capital appreciation. Invests in Wells Fargo Funds Management, LLC, International Core Fund equity securities of non-U.S. companies that we adviser; Wells Capital Management believe have strong growth potential and offer Incorporated, sub-adviser. good value relative to similar investments. We invest primarily in developed countries, but may invest in emerging markets. Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Small Cap Growth Fund principally in equity securities of adviser; Wells Capital Management small-capitalization companies that we believe Incorporated, sub-adviser. have above-average growth potential. We define small-capitalization companies as those with market capitalizations at the time of purchase of less than $2 billion.
THE FIXED ACCOUNT You also may allocate purchase payments and 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. 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 for your fixed account is guaranteed for 12 months from the contract issue date. Thereafter, we will change 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.) RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 29 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 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. When we processed your application, we established the settlement date as the maximum age (or contract anniversary if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities or you selected a date within the maximum limits. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - - no earlier than the 60th day after the contract's effective date; and - - no later than the annuitant's 85th birthday or the tenth contract anniversary, if purchased after age 75 or a date that has been otherwise agreed to by us. (In Pennsylvania, the maximum settlement date ranges from age 85 to 96 based on the annuitant's age when we issue the contract. See contract for details.) FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - - for IRAs, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2; or - - for all other qualified annuities, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2, or, if later, retires (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 85th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. (In Pennsylvania, the annuity payout ranges from age 85 to 96 based on the annuitant's age when the contract is issued. See contract for details.) Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs and TSAs, and in that case, may delay the annuity payouts start date for this contract. 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.) 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) 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 New Jersey. 30 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS MAXIMUM ALLOWABLE ANNUAL PURCHASE PAYMENTS(2) FOR EMPLOYEES/ADVISORS: $100,000 for ages through 85 $50,000 for ages 86 to 90 FOR OTHER INDIVIDUALS: $100,000 (2) 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 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 FOR EMPLOYEES/ADVISORS ONLY We can help you set up: - - an automatic payroll deduction, salary reduction or other group billing arrangement; or - - a bank authorization. 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 law limitations, 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 and it totals 0.55% 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, RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 31 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. 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. 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 We charge a fee for this optional feature only if you select it. This fee covers our internal administrative costs for providing this service. A portion of this fee is paid to an unaffiliated third party service provider for the design and maintenance of the program (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program"). If selected, we deduct an annual fee of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and the fixed account less any excluded accounts in the same proportion your interest in each account bears to your total contract value less any excluded accounts (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program"). In Washington the fee will only be deducted from the subaccounts. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. This fee does not apply after annuity payouts begin. SURRENDER CHARGE There is no charge if you surrender all or part of your contract. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this 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 vary between 3.50% and 5.00% depending on the applicable assumed investment rate. 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.") 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 (waived in case of death or disability). 32 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 the 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 make purchase payments or when you surrender your contract. 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 transfer amounts allocated to the fixed account; - - plus interest credited; - - minus the sum of amounts surrendered and amounts transferred out; - - minus any prorated portion of the contract administrative charge; - - minus any prorated portion of the MAV rider fee (if selected); - - minus any prorated portion of the EEB rider fee (if selected); and - - minus any prorated portion of the PN 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, 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 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. 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; - - transfers into or out of the subaccounts; - - partial surrenders; and/or RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 33 a deduction of: - - a prorated portion of the contract administrative charge; - - a prorated portion of the MAV rider fee (if selected); - - a prorated portion of the EEB rider fee (if selected); and/or - - a prorated portion of the PN rider fee (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 - - 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 our automated transfer if the PN is selected. The potential effect is to lower your average cost per unit. HOW DOLLAR-COST AVERAGING WORKS
By investing an equal NUMBER number of dollars each AMOUNT ACCUMULATION OF UNITS month ... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy more units when the per unit market price is low ... (ARROW) Mar 100 17 5.88 Apr 100 15 6.67 May 100 16 6.25 Jun 100 18 5.56 Jul 100 17 5.88 and fewer units when the per unit market price is high .... (ARROW) Aug 100 19 5.26 Sept 100 21 4.76 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 34 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 Asset Allocation Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) The PN program is available for nonqualified annuities and for qualified annuities, except under 401(a) plans. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include the fixed account (if available under the PN program) that represent various asset classes (allocation options). The PN program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You may elect to participate in the PN program at any time for an additional charge (see "Charges"). You may cancel your participation in the PN program at any time by giving us written notice. However, you cannot elect to participate in the PN program again until the next contract anniversary unless we agree otherwise. If you terminate the PN rider other than on a contract anniversary, we reserve the right to deduct the PN rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Similarly, if we discontinue the PN program, we reserve the right to deduct the PN program rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Upon cancellation, automated rebalancing associated with the PN program will end, and there will be no additional charges for the PN rider. You will also cancel the PN rider if you initiate transfers other than transfers to one of the current model portfolios. Partial surrenders do not cancel the PN rider. Your participation in the PN rider will terminate on the date you make a full surrender from your contract or on your settlement date. 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. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, an affiliate of ours, serves as non-discretionary investment adviser for the PN program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides 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 Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at or before the time they enroll in the PN program. Currently, the PN program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. 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, 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 identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates 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 conflict 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 35 POTENTIAL CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included 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, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options 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, recommend certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may include but not be limited to a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's 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 influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we 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 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 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 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. PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which model portfolio is best for you. 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 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 asset mix reflected in the model portfolio you select after completing the investor questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts and/or the fixed account that make up that model portfolio. By participating in the PN program, you instruct us to invest your contract value in the subaccounts and/or the fixed account (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN program, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Dollar-cost averaging arrangements (DCA) are currently not allowed while you are participating in the PN program. If we choose to allow for DCA arrangements, we will designate one or more subaccounts as "excluded accounts" which are not part of a model portfolio. If an account has been designated as an excluded account and you set up a DCA arrangement, we will make monthly transfers in accordance with your instructions from the excluded account into the model portfolio you have chosen. 36 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. Model portfolios also may be evaluated in connection with the liquidation, substitution or merger of an underlying fund, a change in the investment objective of an underlying fund or when an underlying fund stops selling its shares to the variable account. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value according to the updated model portfolio. If you do not want your contract value to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. 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 models based on the amount of your initial purchase payment we accept; - - substitute a fund of funds for your current 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. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN program, we would either have to find a replacement investment adviser or terminate the PN program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). 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 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. 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 and periodic updating 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 or periodic updating 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 37 TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while a PN model 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 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 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 limitations, 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. 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. 38 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- 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 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 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 39 - - 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 a PN program is in effect, you are not allowed to set up an 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 between 7 a.m. and 7 p.m. Central time: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance 40 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 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, 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. 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 41 TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES 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. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. 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; - effective Jan. 1, 2009, the distribution is due to plan termination; or - effective Jan. 1, 2009, 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 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 42 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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. 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; - - 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; or - - purchase payments minus adjusted partial surrenders. PS X DB ADJUSTED PARTIAL SURRENDERS = ------------ CV
PS = the partial surrender including any applicable surrender charge. 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 ---------------- = -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. 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 you elected any optional contract features and riders your spouse and the next 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 43 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 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 next 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. 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 directly deposited into a checking account. OPTIONAL BENEFITS 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. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - - contract value; 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. 44 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 anniversary 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. 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 45 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 and both you and the annuitant are under age 70. You selected 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
- - 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 of $50,000. 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. 46 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- 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 $250,000. 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 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." - - 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, 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 47 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. - - 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 48 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- 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 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 the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum 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 federal income tax until there is a distribution from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a 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. 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, 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 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 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. 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. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 49 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. 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 to you like a surrender 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 are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. In addition, a new tax regulation, effective for RMDs calculated in 2006 and after, may cause the RMDs for some contracts with certain death benefits and optional riders to increase. RMDs may reduce the value of certain death benefits and optional benefits. 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. 50 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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; In the below situations, the distribution is subject to an optional 10% 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. Payments made to a surviving spouse instead of being directly rolled over to an IRA are subject to mandatory 20% income tax withholding. 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. ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. OTHER 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 taxed to us, and therefore no charge is made against the RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 51 subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. 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. 52 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 1.15% 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 - BAND 3 -- PROSPECTUS 53 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 price level is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2007.
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $1.05 $0.99 $0.91 $0.86 $0.67 $0.89 $1.17 $1.31 $1.00 Accumulation unit value at end of period $1.16 $1.05 $0.99 $0.91 $0.86 $0.67 $0.89 $1.17 $1.31 Number of accumulation units outstanding at end of period (000 omitted) 310 380 910 866 867 1,024 1,358 1,343 185 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $1.92 $1.66 $1.52 $1.32 $0.98 $1.26 $1.38 $1.27 $1.00 Accumulation unit value at end of period $2.12 $1.92 $1.66 $1.52 $1.32 $0.98 $1.26 $1.38 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 134 212 283 298 274 302 394 318 4 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.14 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 115 1,114 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.58 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,479 105 5 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 61 653 144 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 3,600 3,592 2,607 984 472 606 210 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS I (09/15/1999) Accumulation unit value at beginning of period $1.32 $1.06 $0.94 $0.82 $0.66 $0.84 $1.19 $1.44 $1.00 Accumulation unit value at end of period $1.54 $1.32 $1.06 $0.94 $0.82 $0.66 $0.84 $1.19 $1.44 Number of accumulation units outstanding at end of period (000 omitted) 155 352 594 675 517 634 781 532 9 - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,710 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.00 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.00 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 187 2,939 618 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS I (09/15/1999) Accumulation unit value at beginning of period $1.89 $1.61 $1.54 $1.35 $1.06 $1.21 $1.08 $0.92 $1.00 Accumulation unit value at end of period $1.79 $1.89 $1.61 $1.54 $1.35 $1.06 $1.21 $1.08 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 578 747 1,037 1,067 904 766 506 435 59 - --------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $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) 21 18 5 54 8 8 6 5 -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,466 2,834 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 772 2,194 -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
54 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 677 1,600 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - MID-CAP CORE PORTFOLIO (09/21/1999) Accumulation unit value at beginning of period $1.30 $1.29 $1.21 $1.08 $0.75 $1.07 $1.29 $1.32 $1.00 Accumulation unit value at end of period $1.45 $1.30 $1.29 $1.21 $1.08 $0.75 $1.07 $1.29 $1.32 Number of accumulation units outstanding at end of period (000 omitted) 28 86 281 378 431 421 467 891 17 - --------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,116 2,567 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.21 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,443 6,582 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.17 $1.04 $0.97 $0.92 $0.75 $0.91 $1.00 $1.05 $1.00 Accumulation unit value at end of period $1.30 $1.17 $1.04 $0.97 $0.92 $0.75 $0.91 $1.00 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 676 754 1,103 1,370 1,249 1,172 1,090 764 445 - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $3.20 $2.86 $2.43 $1.96 $1.42 $1.59 $1.65 $1.24 $1.00 Accumulation unit value at end of period $3.68 $3.20 $2.86 $2.43 $1.96 $1.42 $1.59 $1.65 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 591 664 915 1,023 984 862 781 616 102 - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.37 $1.16 $0.98 $0.87 $0.61 $0.77 $0.99 $1.23 $1.00 Accumulation unit value at end of period $1.59 $1.37 $1.16 $0.98 $0.87 $0.61 $0.77 $0.99 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 92 298 605 429 144 82 114 116 25 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 $1.00 Accumulation unit value at end of period $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 688 836 667 487 349 205 211 148 4 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 $1.00 Accumulation unit value at end of period $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 576 738 593 414 242 282 150 9 2 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT TEMPLETON FOREIGN SECURITIES FUND - CLASS 2 (03/01/2002) Accumulation unit value at beginning of period $1.73 $1.43 $1.30 $1.11 $0.84 $1.00 -- -- -- Accumulation unit value at end of period $1.98 $1.73 $1.43 $1.30 $1.11 $0.84 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 272 283 357 348 232 182 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 $1.00 Accumulation unit value at end of period $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 2,008 2,339 1,930 834 639 450 200 15 8 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED SMALL CAP EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.00 $1.79 $1.69 $1.46 $1.01 $1.19 $1.15 $1.13 $1.00 Accumulation unit value at end of period $1.66 $2.00 $1.79 $1.69 $1.46 $1.01 $1.19 $1.15 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 12 114 119 150 104 87 97 100 41 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 $1.00 Accumulation unit value at end of period $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,678 2,499 3,019 1,522 735 694 943 577 170 - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 $0.68 $1.00 -- Accumulation unit value at end of period $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 $0.68 -- Number of accumulation units outstanding at end of period (000 omitted) 37 180 200 333 426 343 202 310 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 $0.80 -- Number of accumulation units outstanding at end of period (000 omitted) 272 231 250 132 295 875 606 556 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,448 -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 55
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES MID CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.61 $0.54 $0.49 $0.41 $0.30 $0.42 $0.70 $1.00 -- Accumulation unit value at end of period $0.74 $0.61 $0.54 $0.49 $0.41 $0.30 $0.42 $0.70 -- Number of accumulation units outstanding at end of period (000 omitted) 51 125 125 144 215 246 280 343 -- - --------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (09/15/1999) Accumulation unit value at beginning of period $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 $1.00 Accumulation unit value at end of period $1.40 $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,072 1,291 1,238 1,236 2,397 636 253 57 8 - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $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) 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 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $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) 130 243 558 576 622 485 548 352 -- - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.05 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.05 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,116 1,957 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.53 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.62 $1.53 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,099 1,309 756 158 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.44 $1.26 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.41 $1.44 $1.26 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 676 773 643 432 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.27 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,223 6,331 3,173 403 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,555 4,105 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.24 $0.99 $0.84 $0.75 $0.56 $0.66 $0.92 $1.52 $1.00 Accumulation unit value at end of period $1.40 $1.24 $0.99 $0.84 $0.75 $0.56 $0.66 $0.92 $1.52 Number of accumulation units outstanding at end of period (000 omitted) 99 131 507 592 707 914 1,347 1,802 87 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 $1.00 Accumulation unit value at end of period $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 370 429 374 375 431 525 1,092 1,330 183 - --------------------------------------------------------------------------------------------------------------------------------- ROYCE CAPITAL FUND - MICRO-CAP PORTFOLIO, INVESTMENT CLASS (09/15/1999) Accumulation unit value at beginning of period $3.41 $2.83 $2.55 $2.26 $1.52 $1.75 $1.36 $1.15 $1.00 Accumulation unit value at end of period $3.53 $3.41 $2.83 $2.55 $2.26 $1.52 $1.75 $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 358 405 539 591 516 453 344 193 19 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,570 3,666 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.30 $1.13 $1.13 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.37 $1.30 $1.13 $1.13 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 115 77 235 182 -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
56 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $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) 3,487 2,495 2,068 860 982 627 411 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 $1.00 Accumulation unit value at end of period $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 372 459 623 257 221 120 296 145 10 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 $1.00 Accumulation unit value at end of period $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 11,779 8,286 4,504 2,098 447 3,911 5,658 6,615 2,266 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.91% and 3.99%, respectively. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.07 $1.04 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.07 $1.04 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 391 135 100 73 -- -- -- -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio --Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (09/15/1999) Accumulation unit value at beginning of period $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 9,540 7,272 3,619 2,145 1,691 762 985 410 47 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio --Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 $1.00 Accumulation unit value at end of period $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 9,289 9,434 5,165 3,041 1,239 1,262 281 218 23 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 3,115 2,645 1,377 741 714 251 249 4 3 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.06 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.06 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,713 2,959 1,455 5,004 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) Accumulation unit value at beginning of period $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 $1.00 Accumulation unit value at end of period $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 3,768 6,049 6,193 2,153 1,664 1,064 1,285 1,762 401 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 1,605 1,925 2,397 2,886 4,230 1,480 1,549 1,186 48 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.15 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.17 $1.15 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,599 2,358 493 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (09/15/1999) Accumulation unit value at beginning of period $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 $1.00 Accumulation unit value at end of period $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,682 2,453 3,121 1,484 172 202 291 266 872 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.35 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.34 $1.35 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67 184 92 65 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 $1.00 -- -- Accumulation unit value at end of period $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) 268 450 655 523 578 328 38 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.37 $1.20 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.50 $1.37 $1.20 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,406 2,575 115 -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 57
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 $1.00 -- Accumulation unit value at end of period $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) 1,022 1,170 2,054 1,958 1,381 973 770 285 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 $1.00 Accumulation unit value at end of period $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 817 493 688 870 1,097 1,275 592 1 10 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (09/15/1999) Accumulation unit value at beginning of period $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 214 333 514 779 660 393 378 286 28 - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 $1.00 -- Accumulation unit value at end of period $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) 1,993 2,144 1,491 475 115 277 3 1 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 1,307 1,343 1,252 848 143 488 65 81 133 - --------------------------------------------------------------------------------------------------------------------------------- THIRD AVENUE VALUE PORTFOLIO (09/21/1999) Accumulation unit value at beginning of period $3.37 $2.92 $2.57 $2.15 $1.52 $1.71 $1.51 $1.08 $1.00 Accumulation unit value at end of period $3.19 $3.37 $2.92 $2.57 $2.15 $1.52 $1.71 $1.51 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 175 287 371 347 311 279 314 70 120 - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.38 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.34 $1.38 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,639 4,892 3,642 641 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,463 1,473 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.21 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 140 1,068 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (09/15/1999) Accumulation unit value at beginning of period $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 $1.00 Accumulation unit value at end of period $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 2,932 3,471 2,814 1,701 1,136 1,484 769 599 112 *Effective June 1, 2008, the Fund will change its name to Wanger International. - --------------------------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (09/15/1999) Accumulation unit value at beginning of period $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 $1.00 Accumulation unit value at end of period $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 3,659 3,852 2,709 1,415 1,250 847 820 990 125 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.29 $1.16 $1.11 $1.02 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $1.38 $1.29 $1.16 $1.11 $1.02 $0.84 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 7 31 355 91 66 29 8 -- -- - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $1.29 $1.07 $0.99 $0.90 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $1.45 $1.29 $1.07 $0.99 $0.90 $0.69 $0.90 -- -- Number of accumulation units outstanding at end of period (000 omitted) 5 5 82 84 4 144 1 -- -- - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $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) 231 84 35 10 10 6 2 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
58 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts..................... p. 3 Rating Agencies................................. p. 4 Revenues Received During Calendar Year 2007..... p. 4 Principal Underwriter........................... p. 5 Independent Registered Public Accounting Firm... p. 5 Financial Statements
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 59 THIS PAGE LEFT BLANK INTENTIONALLY 60 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 61 THIS PAGE LEFT BLANK INTENTIONALLY 62 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 63 (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 (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 RiverSource Life Insurance Company. All rights reserved. S-6477 M (5/08) PROSPECTUS MAY 1, 2008 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: - - AIM Variable Insurance Funds - - 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) - - Janus Aspen Series: Service Shares - - Lazard Retirement Series, Inc. - - MFS(R) Variable Insurance Trust(SM) - - Neuberger Berman Advisers Management Trust - - Oppenheimer Variable Account Funds - Service Shares - - Pioneer Variable Contracts Trust (VCT), Class II Shares - - PIMCO Variable Insurance Trust (VIT) - - Putnam Variable Trust - Class IB Shares - - RiverSource Variable Series Trust (RVST) formerly known as RiverSource Variable Portfolio Funds - - 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........................................... 32 BUYING YOUR CONTRACT........................................ 32 CHARGES..................................................... 35 VALUING YOUR INVESTMENT..................................... 39 MAKING THE MOST OF YOUR CONTRACT............................ 40 SURRENDERS.................................................. 48 TSA -- SPECIAL PROVISIONS................................... 49 CHANGING OWNERSHIP.......................................... 49 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT......... 50 OPTIONAL BENEFITS........................................... 51 THE ANNUITY PAYOUT PERIOD................................... 55 TAXES....................................................... 57 VOTING RIGHTS............................................... 60 SUBSTITUTION OF INVESTMENTS................................. 60 ABOUT THE SERVICE PROVIDERS................................. 60 APPENDIX A: EXAMPLE -- SURRENDER CHARGES.................... 63 APPENDIX B: EXAMPLE -- OPTIONAL BENEFITS.................... 64 APPENDIX C: CONDENSED FINANCIAL INFORMATION (UNAUDITED)..... 67 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION....................... 89
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 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. 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 ASSET PROGRAM (PN PROGRAM): This is an optional asset allocation program in which you may elect to participate by adding the optional PN program rider for an 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) under Section 408(b) of the Code - - 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 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 3 - - Custodial and investment only 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. 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) 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 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 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. 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") 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") RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 5 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 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. 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: Current: 0.20% 0.10%
* For contracts purchased before May 1, 2003, the MAV rider fee is 0.15%. 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, 2007, 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 0.52% 2.09%
(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 GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AIM V.I. Capital Appreciation Fund, Series II Shares 0.61% 0.25% 0.27% --% 1.13% AIM V.I. Capital Development Fund, Series II Shares 0.75 0.25 0.31 -- 1.31(1) AIM V.I. Dynamics Fund, Series I Shares 0.75 -- 0.36 -- 1.11 AIM V.I. Financial Services Fund, Series I Shares 0.75 -- 0.36 -- 1.11 AIM V.I. Global Health Care Fund, Series II Shares 0.75 0.25 0.32 0.01 1.33(1) AIM V.I. International Growth Fund, Series II Shares 0.71 0.25 0.36 0.01 1.33(1) AIM V.I. Technology Fund, Series I Shares 0.75 -- 0.35 0.01 1.11 AllianceBernstein VPS Global Technology Portfolio 0.75 0.25 0.17 -- 1.17 (Class B) AllianceBernstein VPS Growth and Income Portfolio 0.55 0.25 0.04 -- 0.84 (Class B) AllianceBernstein VPS International Value Portfolio 0.75 0.25 0.06 -- 1.06 (Class B) American Century VP International, Class II 1.10 0.25 0.01 -- 1.36 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 0.83 0.25 0.01 -- 1.09 Calvert Variable Series, Inc. Social Balanced 0.70 -- 0.20 -- 0.90 Portfolio Columbia Marsico Growth Fund, Variable Series, Class 0.97 -- 0.02 -- 0.99 A Columbia Marsico International Opportunities Fund, 1.02 0.25 0.12 -- 1.39 Variable Series, Class B Credit Suisse Trust - Commodity Return Strategy 0.50 0.25 0.28 -- 1.03(2) Portfolio Eaton Vance VT Floating-Rate Income Fund 0.57 0.25 0.32 -- 1.14 Evergreen VA Fundamental Large Cap Fund - Class 2 0.58 0.25 0.17 -- 1.00 Fidelity(R) VIP Contrafund(R) Portfolio Service Class 0.56 0.25 0.09 -- 0.90 2 Fidelity(R) VIP Growth & Income Portfolio Service 0.46 0.25 0.12 -- 0.83 Class 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 0.56 0.25 0.10 -- 0.91 Fidelity(R) VIP Overseas Portfolio Service Class 2 0.71 0.25 0.14 -- 1.10
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 GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES FTVIPT Franklin Global Real Estate Securities 0.75% 0.25% 0.31% --% 1.31%(3) Fund - Class 2 FTVIPT Franklin Small Cap Value Securities 0.51 0.25 0.15 0.02 0.93(4) Fund - Class 2 FTVIPT Mutual Shares Securities Fund - Class 2 0.59 0.25 0.13 -- 0.97 Goldman Sachs VIT Mid Cap Value Fund - Institutional 0.80 -- 0.07 -- 0.87 Shares Goldman Sachs VIT Structured U.S. Equity 0.65 -- 0.07 -- 0.72(5) Fund - Institutional Shares Janus Aspen Series Global Technology Portfolio: 0.64 0.25 0.18 0.01 1.08 Service Shares Janus Aspen Series International Growth Portfolio: 0.64 0.25 0.06 -- 0.95 Service Shares Janus Aspen Series Large Cap Growth Portfolio: 0.64 0.25 0.02 0.01 0.92 Service Shares Lazard Retirement International Equity 0.75 0.25 0.18 -- 1.18 Portfolio - Service Shares 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 0.11 -- 1.26 MFS(R) Utilities Series - Service Class 0.75 0.25 0.10 -- 1.10(6) Neuberger Berman Advisers Management Trust 1.14 0.25 0.17 -- 1.56(7) International Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service Shares 0.62 0.25 0.02 -- 0.89 Oppenheimer Main Street Small Cap Fund/VA, Service 0.70 0.25 0.02 -- 0.97 Shares Oppenheimer Strategic Bond Fund/VA, Service Shares 0.57 0.25 0.02 0.02 0.86(8) PIMCO VIT All Asset Portfolio, Advisor Share Class 0.18 0.25 0.25 0.69 1.37(9) Pioneer Equity Income VCT Portfolio - Class II Shares 0.65 0.25 0.05 -- 0.95 Pioneer International Value VCT Portfolio - Class II 0.85 0.25 0.32 -- 1.42 Shares Putnam VT Health Sciences Fund - Class IB Shares 0.70 0.25 0.13 -- 1.08 Putnam VT International Equity Fund - Class IB Shares 0.73 0.25 0.11 0.01 1.10 Putnam VT Vista Fund - Class IB Shares 0.65 0.25 0.11 -- 1.01 RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.76 1.31(10) Portfolios - Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.64 1.19(10) Portfolios - Conservative RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.70 1.25(10) Portfolios - Moderate RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.73 1.28(10) Portfolios - Moderately Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.67 1.22(10) Portfolios - Moderately Conservative RVST RiverSource(R) Partners Variable 0.70 0.13 0.16 -- 0.99(11) Portfolio - Fundamental Value Fund (previously RiverSource(R) Variable Portfolio - Fundamental Value Fund) RVST RiverSource(R) Partners Variable 0.83 0.13 1.13 -- 2.09(11) Portfolio - Select Value Fund (previously RiverSource(R) Variable Portfolio - Select Value Fund) RVST RiverSource(R) Partners Variable 0.97 0.13 0.18 -- 1.28(11) Portfolio - Small Cap Value Fund (previously RiverSource(R) Variable Portfolio - Small Cap Value Fund) RVST RiverSource(R) Variable Portfolio - Balanced 0.53 0.13 0.14 -- 0.80 Fund RVST RiverSource(R) Variable Portfolio - Cash 0.33 0.13 0.14 -- 0.60 Management Fund RVST RiverSource(R) Variable Portfolio - Diversified 0.45 0.13 0.16 -- 0.74 Bond Fund RVST RiverSource(R) Variable Portfolio - Diversified 0.59 0.13 0.14 -- 0.86 Equity Income Fund RVST RiverSource(R) Variable Portfolio - Global Bond 0.68 0.13 0.19 -- 1.00(11) Fund RVST RiverSource(R) Variable Portfolio - Global 0.44 0.13 0.17 -- 0.74(11) Inflation Protected Securities Fund RVST RiverSource(R) Variable Portfolio - Growth Fund 0.60 0.13 0.16 -- 0.89
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 GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES RVST RiverSource(R) Variable Portfolio - High Yield 0.59% 0.13% 0.15% --% 0.87% Bond Fund RVST RiverSource(R) Variable Portfolio - Income 0.61 0.13 0.17 -- 0.91 Opportunities Fund RVST RiverSource(R) Variable Portfolio - Large Cap 0.58 0.13 0.15 -- 0.86 Equity Fund RVST RiverSource(R) Variable Portfolio - Large Cap 0.59 0.13 0.36 -- 1.08(11) Value Fund RVST RiverSource(R) Variable Portfolio - Mid Cap 0.58 0.13 0.15 -- 0.86 Growth Fund RVST RiverSource(R) Variable Portfolio - Mid Cap 0.73 0.13 0.17 -- 1.03(11) Value Fund RVST RiverSource(R) Variable Portfolio - S&P 500 0.22 0.13 0.17 -- 0.52(11) Index Fund RVST RiverSource(R) Variable Portfolio - Short 0.48 0.13 0.18 -- 0.79 Duration U.S. Government Fund RVST RiverSource(R) Variable Portfolio - Small Cap 0.68 0.13 0.20 -- 1.01(11) Advantage Fund RVST Threadneedle(R) Variable Portfolio - Emerging 1.11 0.13 0.26 -- 1.50 Markets Fund (previously RiverSource(R) Variable Portfolio - Emerging Markets Fund) RVST Threadneedle(R) Variable 0.69 0.13 0.19 -- 1.01 Portfolio - International Opportunity Fund (previously RiverSource(R) Variable Portfolio - International Opportunity Fund) Van Kampen Life Investment Trust Comstock Portfolio, 0.56 0.25 0.03 -- 0.84 Class II Shares Van Kampen UIF Global Real Estate Portfolio, Class II 0.85 0.35 0.38 -- 1.58(12) Shares Van Kampen UIF Mid Cap Growth Portfolio, Class II 0.75 0.35 0.35 -- 1.45(12) Shares Wanger International Small Cap 0.88 -- 0.11 -- 0.99 (effective June 1, 2008, the Fund will change its name to Wanger International) Wanger U.S. Smaller Companies 0.90 -- 0.05 -- 0.95 (effective June 1, 2008, the Fund will change its name to Wanger USA) Wells Fargo Advantage VT Asset Allocation Fund 0.55 0.25 0.22 -- 1.02(13) Wells Fargo Advantage VT International Core Fund 0.75 0.25 0.43 -- 1.43(13) Wells Fargo Advantage VT Opportunity Fund 0.73 0.25 0.20 -- 1.18(13) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.23 -- 1.23(13)
* 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 Fund's advisor has contractually agreed to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) of Series II shares to 1.45% of average daily net assets. In addition, effective July 1, 2007, AIM contractually agreed to waive 100% of the advisory fee AIM receives from affiliated money market funds on investments by the Fund in such affiliated money market funds. These waiver agreements are in effect through at least April 30, 2009. After fee waivers and expense reimbursements net expenses would be 1.30% for AIM V.I. Capital Development Fund, Series II Shares, 1.32% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. (2) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements net expenses would be 0.95% for Credit Suisse Trust - Commodity Return Strategy Portfolio. (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 waivers net expenses would be 0.89% for FTVIPT Franklin Global Real Estate Securities Fund - Class 2. (4) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent that the Fund's fees and expenses are due to those of the acquired 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 0.91% for FTVIPT Franklin Small Cap Value Securities Fund - Class 2. (5) The Investment Adviser has voluntarily agreed to reduce or limit "Other expenses" (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be terminated at any time at the option of the Investment Adviser. After expense reductions net expenses would be 0.71% for Goldman Sachs VIT Structured U.S. Equity Fund - Institutional Shares. (6) MFS has agreed in writing to reduce its management fee to 0.70% for MFS Utilities Series annually on average daily net assets in excess of $1 billion. After fee reductions net expenses would be 1.07% for MFS Utilities Series - Service Class. This written agreement will remain in effect until modified by the Fund's Board of Trustees. (7) Neuberger Berman Management Inc. ("NBMI") has undertaken through Dec. 31, 2011, to waive fees and/or reimburse certain operating expenses, including the compensation of NBMI 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. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBMI within three years of the RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 11 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 1.53% for Neuberger Berman Advisers Management Trust International Portfolio (Class S). (8) The "Other expenses" in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2007, the transfer agent fees did not exceed this expense limitation. The Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund and OFI Master Loan Fund LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82% for Oppenheimer Strategic Bond Fund/VA, Service Shares. (9) PIMCO has contractually agreed through Dec. 31, 2008, to reduce its advisory fee to the extent that the "Acquired fund fees and expenses" attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.35%. (10) The Fund's expense figures are based on estimated expenses, before fee waivers and expense reimbursements. RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Aggressive, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Conservative, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderate, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Aggressive and 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Conservative. (11) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.98% for RVST RiverSource(R) Partners Variable Portfolio - Fundamental Value Fund, 1.03% for RVST RiverSource(R) Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource(R) Partners Variable Portfolio - Small Cap Value Fund, 0.98% for RVST RiverSource(R) Variable Portfolio - Global Bond Fund, 0.72% for RVST RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund, 1.05% for RVST RiverSource(R) Variable Portfolio - Large Cap Value Fund, 1.05% for RVST RiverSource(R) Variable Portfolio - Mid Cap Value Fund, 0.51% for RVST RiverSource(R) Variable Portfolio - S&P 500 Index Fund and 1.13% for RVST RiverSource(R) Variable Portfolio - Small Cap Advantage Fund. (12) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursement, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.16% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares. (13) The adviser has contractually agreed through April 30, 2009 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After fee waivers and expense reimbursements, net expenses would be 1.00% for Wells Fargo Advantage VT Asset Allocation Fund, 1.00% for Wells Fargo Advantage VT International Core Fund, 1.07% for Wells Fargo Advantage VT Opportunity Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. 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 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: 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 $1,201 $2,014 $2,744 $4,392 $401 $1,214 $2,044 $4,192 RAVA ADVANTAGE With a seven-year surrender charge schedule 1,101 1,914 2,544 4,192 401 1,214 2,044 4,192 RAVA SELECT 1,127 1,991 2,168 4,416 427 1,291 2,168 4,416 RAVA SELECT - TEXAS 1,227 1,891 2,168 4,416 427 1,291 2,168 4,416
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 With a ten-year surrender charge schedule $1,180 $1,955 $2,647 $4,214 $380 $1,155 $1,947 $4,014 RAVA ADVANTAGE With a seven-year surrender charge schedule 1,080 1,855 2,447 4,014 380 1,155 1,947 4,014 RAVA SELECT 1,107 1,932 2,072 4,243 407 1,232 2,072 4,243 RAVA SELECT - TEXAS 1,207 1,832 2,072 4,243 407 1,232 2,072 4,243
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 AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF 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 $953 $1,274 $1,519 $1,989 $153 $474 $819 $1,789 RAVA ADVANTAGE With a seven-year surrender charge schedule 853 1,174 1,319 1,789 153 474 819 1,789 RAVA SELECT 879 1,255 956 2,075 179 555 956 2,075 RAVA SELECT - TEXAS 979 1,155 956 2,075 179 555 956 2,075
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 13
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 With a ten-year surrender charge schedule $932 $1,211 $1,412 $1,764 $132 $411 $712 $1,564 RAVA ADVANTAGE With a seven-year surrender charge schedule 832 1,111 1,212 1,564 132 411 712 1,564 RAVA SELECT 859 1,193 850 1,855 159 493 850 1,855 RAVA SELECT - TEXAS 959 1,093 850 1,855 159 493 850 1,855
* In these examples, the $30 contract administrative charge is approximated as a .020% charge for RAVA Advantage, a .029% charge for RAVA Select and a .029% for RAVA Select - Texas. These percentages were determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to each contract by the total average net assets that are attributable to that contract. 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 subaccounts in the SAI. The SAI does not include audited financial statements for subaccounts 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 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 15 - - 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 Asset Allocation 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, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. 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 2007. 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. 16 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS - 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 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 AIM V.I. Capital Growth of capital. Invests principally in common Invesco Aim Advisors, Inc. adviser, Appreciation Fund, Series II stocks of companies likely to benefit from new advisory entities affiliated with Shares or innovative products, services or processes as Invesco Aim Advisors, Inc., well as those with above-average long-term subadvisers. growth and excellent prospects for future growth. The Fund can invest up to 25% of its total assets in foreign securities that involve risks not associated with investing solely in the United States. AIM V.I. Capital Development Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Fund, Series II Shares in securities (including common stocks, advisory entities affiliated with convertible securities and bonds) of small- and Invesco Aim Advisors, Inc., medium-sized companies. The Fund may invest up subadvisers. to 25% of its total assets in foreign securities. AIM V.I. Dynamics Fund, Capital growth. Invests at least 65% of its net Invesco Aim Advisors, Inc. adviser, Series I Shares assets primarily in common stocks of mid-sized advisory entities affiliated with companies, companies included in the Russell Invesco Aim Advisors, Inc., Midcap(R)Growth Index at the time of purchase. subadvisers. The Fund also has the flexibility to invest in other types of securities, including preferred stocks, convertible securities and bonds. AIM V.I. Financial Services Capital growth. Actively managed. Invests at Invesco Aim Advisors, Inc. adviser, Fund, Series I Shares least 80% of its net assets in the equity advisory entities affiliated with securities and equity-related instruments of Invesco Aim Advisors, Inc., companies involved in the financial services subadvisers. sector. These companies include, but are not limited to, banks, insurance companies, investment and miscellaneous industries (asset managers, brokerage firms, and government-sponsored agencies and suppliers to financial services companies). AIM V.I. Global Health Care Capital growth. The fund seeks to meet its Invesco Aim Advisors, Inc. adviser, Fund, Series II Shares objective by investing, normally, at least 80% advisory entities affiliated with of its assets in securities of health care Invesco Aim Advisors, Inc., industry companies. The Fund may invest up to subadvisers. 20% of its total assets in companies located in developing countries, i.e., those countries that are in the initial stages of their industrial cycles. The Fund may also invest up to 5% of its total assets in lower-quality debt securities, i.e., junk bonds. AIM V.I. International Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Growth Fund, Series II in a diversified portfolio of international advisory entities affiliated with Shares equity securities, whose issuers are considered Invesco Aim Advisors, Inc., to have strong earnings momentum. The Fund may subadvisers. invest up to 20% of its total assets in security issuers located in developing countries and in securities exchangeable for or convertible into equity securities of foreign companies.
18 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER AIM V.I. Technology Fund, Capital growth. The Fund is actively managed. Invesco Aim Advisors, Inc. adviser, Series I Shares Invests at least 80% of its net assets in equity advisory entities affiliated with securities and equity-related instruments of Invesco Aim Advisors, Inc., companies engaged in technology-related subadvisers. industries. These include, but are not limited to, various applied technologies, hardware, software, semiconductors, telecommunications equipment and services, and service-related companies in information technology. Many of these products and services are subject to rapid obsolescence, which may lower the market value of securities of the companies in this sector. AllianceBernstein VPS Global Long-term growth of capital. The Fund invests at AllianceBernstein L.P. Technology Portfolio (Class least 80% of its net assets in securities of B) companies that use technology extensively in the development of new or improved products or processes. Invests in a global portfolio of securities of U.S. and foreign companies selected for their growth potential. AllianceBernstein VPS Growth Long-term growth of capital. Invests primarily AllianceBernstein L.P. and Income Portfolio (Class in the equity securities of domestic companies B) that the Advisor deems to be undervalued. AllianceBernstein VPS Long-term growth of capital. Invests primarily AllianceBernstein L.P. International Value in a diversified portfolio of equity securities Portfolio (Class B) of established companies selected from more than 40 industries and from more than 40 developed and emerging market countries. American Century VP Capital growth. Invests primarily in stocks of American Century Global Investment International, Class II growing foreign companies in developed Management, Inc. countries. American Century VP Mid Cap Long-term capital growth with income as a American Century Investment Management, Value, Class II secondary objective. Long-term capital growth Inc. with income as secondary objective. Invests primarily in stocks of companies that management believes are undervalued at the time of purchase. The fund will invest at least 80% of its assets in securities of companies whose market capitalization at the time of purchase is within the capitalization range of the Russell 3000 Index, excluding the largest 100 such companies. American Century VP Long-term capital growth. Analytical research American Century Investment Management, Ultra(R), Class II tools and techniques are used to identify the Inc. stocks of larger-sized companies that appear to have the best opportunity of sustaining long-term above average growth. American Century VP Value, Long-term capital growth, with income as a American Century Investment Management, Class II secondary objective. Invests primarily in stocks Inc. of companies that management believes to be undervalued at the time of purchase.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 19
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Calvert Variable Series, Competitive total return through actively Calvert Asset Management Company, Inc., Inc. Social Balanced managed portfolio of stocks, bonds and money adviser. SSgA Funds Management, Inc. Portfolio market instruments which offer income and and New Amsterdam Partners, LLP, capital growth opportunity and which satisfy subadvisers on equity portion; no Portfolio's investment and social criteria. subadviser on fixed-income portion. Typically invests about 60% of net assets in stocks (primarily common stocks of U.S. large-cap companies) and 40% in investment grade bonds and other fixed-income investments. Investments must be consistent with Portfolio's current financial and social criteria. Columbia Marsico Growth Long-term growth of capital. Under normal Columbia Management Advisors, LLC, Fund, Variable Series, Class circumstances, the Fund invests primarily in adviser; Marsico Capital Management, A equity securities of large-capitalization LLC, sub-adviser. companies that have market capitalizations of $5 billion or more at the time of purchase. The Fund generally holds a core position of between 35 and 50 common stocks. It may hold up to 25% of total assets in foreign securities, including in emerging market securities. Columbia Marsico Long-term growth of capital. Under normal Columbia Management Advisors, LLC, International Opportunities circumstances, the Fund invests at least 65% of adviser; Marsico Capital Management, Fund, Variable Series, Class total assets in common stocks of foreign LLC, sub-adviser. B companies. The Fund may invest in companies of any size throughout the world that are selected for their long-term growth potential. The Fund normally invests in issuers from at least three different countries not including the United States. The Fund may invest in common stocks of companies operating in or economically tied to emerging markets countries. Some issuers or securities in the Fund's portfolio may be based in or economically tied to the United States. Credit Suisse Trust - Total Return. Invests in commodity-linked Credit Suisse Asset Management, LLC Commodity Return Strategy derivative instruments backed and fixed-income Portfolio securities. The portfolio invests in commodity-linked derivative instruments, such as commodity-linked notes, swap agreements, commodity options, futures and options on futures that provide exposure to the investment returns of the commodities markets without investing directly in physical commodities. The portfolio invests all of its assets in commodity-linked derivative instruments, such as structured notes and swaps, and fixed-income securities, subject to applicable IRS limits. The portfolio may also gain exposure to commodity markets by investing in the Credit Suisse Cayman Commodity Fund II, a wholly owned subsidiary of the Portfolio formed in the Cayman Island.
20 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Eaton Vance VT Floating- High level of current income. The Fund invests Eaton Vance Management Rate Income Fund primarily in senior floating rate loans ("Senior Loans"). Senior Loans typically are of below investment grade quality and have below investment grade credit ratings, which ratings are associated with securities having high risk, speculative characteristics. The Fund invests at least 80% of its net assets in income producing floating rate loans and other floating rate debt securities. The Fund may also purchase investment grade fixed income debt securities and money market instruments. The Fund may invest up to 25% of its total assets in foreign securities and may engage in certain hedging transactions. The Fund may purchase derivative instruments, such as futures contracts and options thereon, interest rate and credit default swaps, credit linked notes and currency hedging derivatives. Evergreen VA Fundamental Capital growth with the potential for current Evergreen Investment Management Large Cap Fund - Class 2 income. Invests primarily in common stocks of Company, LLC large U.S. companies whose market capitalizations measured at time of purchase fall within the market capitalization range of the companies tracked by the Russell 1000(R) Index. Fidelity(R) VIP Long-term capital appreciation. Normally invests Fidelity Management & Research Company Contrafund(R) Portfolio primarily in common stocks. Invests in (FMR), investment manager; FMR U.K. and Service Class 2 securities of companies whose value it believes FMR Far East, is not fully recognized by the public. Invests subadvisers. in either "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. Fidelity(R) VIP Growth & High total return through a combination of Fidelity Management & Research Company Income Portfolio Service current income and capital appreciation. (FMR), investment manager; FMR U.K., Class 2 Normally invests a majority of assets in common FMR Far East, stocks with a focus on those that pay current subadvisers. dividends and show potential for capital appreciation. May invest in bonds, including lower-quality debt securities, as well as stocks that are not currently paying dividends, but offer prospects for future income or 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 Long-term growth of capital. Normally invests Fidelity Management & Research Company Portfolio Service Class 2 primarily in common stocks. Normally invests at (FMR), investment manager; FMR U.K., least 80% of assets in securities of companies FMR Far East, with medium market capitalizations. May invest subadvisers. 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 Long-term growth of capital. Normally invests Fidelity Management & Research Company Portfolio Service Class 2 primarily in common stocks of foreign (FMR), investment manager; FMR U.K., securities. Normally invests at least 80% of FMR Far East, Fidelity International assets in non-U.S. securities. Investment Advisors (FIIA) and FIIA U.K., sub-advisers.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 21
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER FTVIPT Franklin Global Real High total return. The Fund normally invests at Franklin Templeton Institutional, LLC Estate Securities least 80% of its net assets in investments of Fund - Class 2 companies located anywhere in the world that operate in the real estate sector and normally invests predominantly in equity securities. FTVIPT Franklin Small Cap Long-term total return. The Fund normally Franklin Advisory Services, LLC Value Securities invests at least 80% of its net assets in Fund - Class 2 investments of small capitalization companies, and normally invests predominantly in equity securities. The Fund invests mainly in equity securities of companies that the manager believes are undervalued. FTVIPT Mutual Shares Capital appreciation, with income as a secondary Franklin Mutual Advisers, LLC Securities Fund - Class 2 goal. The Fund normally invests primarily in equity securities of companies that the manager believes are undervalued. The Fund also invests, to a lesser extent in risk arbitrage securities and distressed companies. Goldman Sachs VIT Mid Cap Long-term capital appreciation. The Fund Goldman Sachs Asset Value Fund - Institutional invests, under normal circumstances, at least Management, L.P. Shares 80% of its net assets plus any borrowings for investment purposes (measured at time of purchase) ("Net Assets") in a diversified portfolio of equity investments in mid-cap issuers with public stock market capitalizations (based upon shares available for trading on an unrestricted basis) within the range of the market capitalization of companies constituting the Russell Midcap(R) Value Index at the time of investment. If the market capitalization of a company held by the Fund moves outside this range, the Fund may, but is not required to, sell the securities. The capitalization range of the Russell Midcap(R) Value Index is currently between $1.1 billion and $21 billion. Although the Fund will invest primarily in publicly traded U.S. securities, it may invest up to 25% of its Net Assets in foreign securities, including securities of issuers in countries with emerging markets or economies ("emerging countries") and securities quoted in foreign currencies. The Fund may invest in the aggregate up to 20% of its Net Assets in companies with public stock market capitalizations outside the range of companies constituting the Russell Midcap(R) Value Index at the time of investment and in fixed-income securities, such as government, corporate and bank debt obligations.
22 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Goldman Sachs VIT Structured Long-term growth of capital and dividend income. Goldman Sachs Asset U.S. Equity The Fund invests, under normal circumstances, at Management, L.P. Fund - Institutional Shares least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) ("Net Assets") in a diversified portfolio of equity investments in U.S. issuers, including foreign companies that are traded in the United States. However, it is currently anticipated that, under normal circumstances, the Fund will invest at least 95% of its Net Assets in such equity investments. The Fund's investments are selected using a variety of quantitative techniques, derived from fundamental research including but not limited to valuation, momentum, profitability and earnings quality, in seeking to maximize the Fund's expected returns. The Fund maintains risk, style, capitalization and industry characteristics similar to the S&P 500 Index. The S&P 500 Index is an index of large-cap stocks designed to reflect a broad representation of the U.S. economy. The Fund seeks to maximize expected return while maintaining these and other characteristics similar to the benchmark. The Fund is not required to limit its investments to securities in the S&P 500 Index. Janus Aspen Series Global Long-term growth of capital. Invests, under Janus Capital Management LLC Technology Portfolio: normal circumstances, at least 80% of its net Service Shares assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology. It implements this policy by investing primarily in equity securities of U.S. and foreign companies selected for their growth potential. Janus Aspen Series Long-term growth of capital. Invests, under Janus Capital Management LLC International Growth normal circumstances, at least 80% of its net Portfolio: Service Shares assets in securities of issuers from countries outside of the United States. The Portfolio normally invests in securities of issuers from several different countries excluding the United States. Although the Portfolio intends to invest substantially all of its assets in issuers located outside the United States, it may at times invest in U.S. issuers, and it may under unusual circumstances, invest all of its assets in a single country. The Portfolio may have significant exposure to emerging markets. Janus Aspen Series Large Cap Long-term growth of capital in a manner Janus Capital Management LLC Growth Portfolio: Service consistent with the preservation of capital. Shares Invests under normal circumstances at least 80% of its net assets in common stocks of large-sized companies. Large-sized companies are those whose market capitalization falls within the range of companies in the Russell 1000(R) Index at the time of purchase.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 23
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Lazard Retirement Long-term capital appreciation. Invests Lazard Asset Management, LLC International Equity primarily in equity securities, principally Portfolio - Service Shares common stocks, of relatively large non-U.S. companies with market capitalizations in the range of the Morgan Stanley Capital International (MSCI) Europe, Australia and Far East (EAFE(R)) Index that the Investment Manager believes are undervalued based on their earnings, cash flow or asset values. MFS(R) Investors Growth Capital appreciation. Normally invests at least MFS Investment Management(R) Stock Series - Service Class 80% of the fund's net assets in equity securities of companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). Growth companies tend to have stock prices that are high relative to their earnings, dividends, book value, or other financial measures. The Fund generally focuses on companies with large capitalizations. MFS(R) New Discovery Capital appreciation. Invests in stocks of MFS Investment Management(R) Series - Service Class companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). Growth companies tend to have stock prices that are high relative to their earnings, dividends, book value, or other financial measures. The Fund generally focuses on companies with small capitalizations. MFS(R) Utilities Series - Total return. Normally invests at least 80% of MFS Investment Management(R) Service Class the fund's net assets in securities of issuers in the utilities industry. The Fund's assets may be invested in companies of any size. Neuberger Berman Advisers Long-term growth of capital. The Fund invests Neuberger Berman Management Inc. Management Trust mainly in foreign companies of any size, International Portfolio including companies in developed and emerging (Class S) industrialized markets. The Fund defines a foreign company as one that is organized outside of the United States and conducts the majority of its business abroad. The Fund seeks to reduce risk by diversifying among many industries. Although it has the flexibility to invest a significant portion of its assets in one country or region, it generally intends to remain well- diversified across countries and geographical regions. Oppenheimer Global Long-term capital appreciation. Invests mainly OppenheimerFunds, Inc. Securities Fund/VA, Service in common stocks of U.S. and foreign issuers Shares that are "growth-type" companies, cyclical industries and special situations that are considered to have appreciation possibilities. Oppenheimer Main Street Capital appreciation. Invests mainly in common OppenheimerFunds, Inc. Small Cap Fund/VA, Service stocks of small-capitalization U.S. companies Shares that the fund's investment manager believes have favorable business trends or prospects. Oppenheimer Strategic Bond High level of current income principally derived OppenheimerFunds, Inc. Fund/VA, Service Shares from interest on debt securities. Invests mainly in three market sectors: debt securities of foreign governments and companies, U.S. government securities and lower-rated high yield securities of U.S. and foreign companies.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER PIMCO VIT All Asset Maximum real return consistent with preservation Pacific Investment Management Company Portfolio, Advisor Share of real capital and prudent investment LLC Class management period. The Portfolio seeks to achieve its investment objective by investing under normal circumstances substantially all of its assets in Institutional Class shares of the PIMCO Funds, an affiliated open-end investment company, except the All Asset and All Asset All Authority Funds ("Underlying Funds"). Though it is anticipated that the Portfolio will not currently invest in the European StockPLUS(R) TR Strategy, Far East (ex-Japan) StocksPLUS(R) TR Strategy, Japanese StocksPLUS(R) TR Strategy, StocksPLUS(R) Municipal-Backed and StocksPLUS(R) TR Short Strategy Funds, the Portfolio may invest in these Funds in the future, without shareholder approval, at the discretion of the Portfolio's asset allocation sub-adviser. Pioneer Equity Income VCT Current income and long-term growth of capital Pioneer Investment Management, Inc. Portfolio - Class II Shares from a portfolio consisting primarily of income producing equity securities of U.S. corporations. Normally, the portfolio invests at least 80% of its total assets in income producing equity securities of U.S. issuers. The income producing equity securities in which the portfolio may invest include common stocks, preferred stocks and interests in real estate investment trusts (REITs). The remainder of the portfolio may be invested in debt securities, most of which are expected to be convertible into common stocks. Pioneer International Value Long-term capital growth. Long-term capital Pioneer Investment Management, Inc. VCT Portfolio - Class II growth. Normally, the portfolio invests at least Shares 80% of its total assets in equity securities of non-U.S. issuers. These issuers may be located in both developed and emerging markets. Under normal circumstances, the portfolio's assets will be invested in securities of companies domiciled in at least three different foreign countries. Putnam VT Health Sciences Capital appreciation. The fund pursues its goal Putnam Investment Management, LLC Fund - Class IB Shares by investing mainly in common stocks of companies in the health sciences industries, with a focus on growth stocks. Under normal circumstances, the fund invests at least 80% of its net assets in securities of (a) companies that derive at least 50% of their assets, revenues or profits from the pharmaceutical, health care services, applied research and development and medical equipment and supplies industries, or (b) companies Putnam Management thinks have the potential for growth as a result of their particular products, technology, patents or other market advantages in the health sciences industries. Putnam VT International Capital appreciation. The fund pursues its goal Putnam Investment Management, LLC Equity Fund - Class IB by investing mainly in common stocks of Shares companies outside the United States that Putnam Management believes have favorable investment potential. Under normal circumstances, the fund invests at least 80% of its net assets in equity investments.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 25
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Putnam VT Vista Fund - Class Capital appreciation. The fund pursues its goal Putnam Investment Management, LLC IB Shares by investing mainly in common stocks of U.S. companies, with a focus on growth stocks. RVST Disciplined Asset High level of total return that is consistent RiverSource Investments, LLC Allocation Portfolios - with an aggressive level of risk. The Fund Aggressive invests primarily in equity securities and also invests the small amount in a fixed income securities. The Fund may be most appropriate for investors with a longer term investment horizon. The Fund is intended for investors who have an objective of achieving a high level of total return, but prefer to have investment decisions managed by professional money managers. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a conservative level of risk. Conservative The Fund invests primarily in fixed income securities and may be most appropriate for investors with a shorter term investment horizon. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate level of risk. The Moderate Fund invests in a balance of fixed income and equity securities and may be most appropriate for investors with an intermediate term investment horizon. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate aggressive level of Moderately Aggressive risk. The Fund invests primarily in equity securities and also invests a moderate amount in fixed income securities. The Fund may be most appropriate for investors with an intermediate-to-long term investment horizon. 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.
26 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST Disciplined Asset The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate conservative level of Moderately Conservative risk. The Fund invests primarily in fixed income securities and also invests a moderate amount in equity securities. The Fund may be most appropriate for investors with a short-to-intermediate term investment horizon. 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 RiverSource Partners Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Variable primarily invested in equity securities of U.S. Davis Selected Advisers, L.P., Portfolio - Fundamental companies. Under normal market conditions, the subadviser. Value Fund Fund's assets will be invested primarily in companies with market capitalizations of at (previously RiverSource least $5 billion at the time of the Fund's Variable Portfolio - investment. The Fund may invest up to 25% of its Fundamental Value Fund) net assets in foreign investments. RVST RiverSource Partners Long-term growth of capital. Invests primarily RiverSource Investments, LLC, adviser; Variable Portfolio - Select in equity securities of mid cap companies as Systematic Financial Management, L.P. Value Fund well as companies with larger and smaller market and WEDGE Capital Management L.L.P., capitalizations. The Fund considers mid-cap subadvisers. (previously RiverSource companies to be either those with a market Variable Portfolio - Select capitalization of up to $15 billion or those Value Fund) whose market capitalization falls within range of the Russell Midcap(R) Value Index. RVST RiverSource Partners Long-term capital appreciation. Under normal RiverSource Investments, LLC, adviser; Variable Portfolio - Small market conditions, at least 80% of the Fund's River Road Asset Management, LLC, Cap Value Fund net assets will be invested in small cap Donald Smith & Co., Inc., Franklin companies with market capitalization, at the Portfolio Associates LLC, Barrow, (previously RiverSource time of investment, of up to $2.5 billion or Hanley, Mewhinney & Strauss, Inc. and Variable Portfolio - Small that fall within the range of the Russell Denver Investment Advisors LLC, Cap Value Fund) 2000(R) Value Index. The Fund may invest up to subadvisers. 25% of its net assets in foreign investments. RVST RiverSource Variable Maximum total investment return through a RiverSource Investments, LLC Portfolio - Balanced Fund combination of capital growth and current income. Invests primarily in a combination of common and preferred stocks, bonds and other debt securities. Under normal market conditions, at least 50% of the Fund's total assets are invested in common stocks and no less than 25% of the Fund's total assets are invested in debt securities. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Maximum current income consistent with liquidity RiverSource Investments, LLC Portfolio - Cash Management and stability of principal. Invests primarily in Fund money market instruments, such as marketable debt obligations issued by corporations or the U.S. government or its agencies, bank certificates of deposit, bankers' acceptances, letters of credit, and commercial paper, including asset-backed commercial paper.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 27
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable High level of current income while attempting to RiverSource Investments, LLC Portfolio - Diversified Bond conserve the value of the investment for the Fund longest period of time. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and other debt securities. At least 50% of the Fund's net assets will be invested in securities like those included in the Lehman Brothers Aggregate Bond Index (Index), which are investment grade and denominated in U.S. dollars. The Index includes securities issued by the U.S. government, corporate bonds, and mortgage- and asset-backed securities. Although the Fund emphasizes high- and medium-quality debt securities, it will assume some credit risk to achieve higher yield and/or capital appreciation by buying lower-quality (junk) bonds. The Fund may invest up to 25% of its net assets in foreign investments, which may include instruments in emerging markets. RVST RiverSource Variable High level of current income and, as a secondary RiverSource Investments, LLC Portfolio - Diversified goal, steady growth of capital. Under normal Equity Income Fund market conditions, the Fund invests at least 80% of its net assets in dividend- paying common and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable High total return through income and growth of RiverSource Investments, LLC Portfolio - Global Bond Fund capital. Non-diversified mutual fund that invests primarily in debt obligations of U.S. and foreign issuers. Under normal market conditions, the Fund invests at least 80% of its net assets in investment-grade corporate or government debt obligations including money market instruments of issuers located in at least three different countries. RVST RiverSource Variable Total return that exceeds the rate of inflation RiverSource Investments, LLC Portfolio - Global Inflation over the long-term. Non-diversified mutual fund Protected Securities Fund that, under normal market conditions, invests at least 80% of its net assets in inflation-protected debt securities. These securities include inflation-indexed bonds of varying maturities issued by U.S. and foreign governments, their agencies or instrumentalities, and corporations. RVST RiverSource Variable Long-term capital growth. Invests primarily in RiverSource Investments, LLC Portfolio - Growth Fund common stocks and securities convertible into common stocks that appear to offer growth opportunities. These growth opportunities could result from new management, market developments, or technological superiority. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable High current income, with capital growth as a RiverSource Investments, LLC Portfolio - High Yield Bond secondary objective. Under normal market Fund conditions, the Fund invests at least 80% of its net assets in high-yield debt instruments (commonly referred to as "junk") including corporate debt securities as well as bank loans rated below investment grade by a nationally recognized statistical rating organization, or if unrated, determined to be of comparable quality. Up to 25% of the Fund may be invested in high yield debt instruments of foreign issuers.
28 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable High total return through current income and RiverSource Investments, LLC Portfolio - Income capital appreciation. Under normal market Opportunities Fund conditions, the Fund invests primarily in income-producing debt securities with an emphasis on the higher rated segment of the high-yield (junk bond) market. These income-producing debt securities include corporate debt securities as well as bank loans. The Fund will purchase only securities rated B or above, or unrated securities believed to be of the same quality. If a security falls below a B rating, the Fund may continue to hold the security. Up to 25% of the Fund may be in foreign investments. RVST RiverSource Variable Capital appreciation. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Equity conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with market capitalization greater than $5 billion at the time of purchase. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Long-term growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Value conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with a market capitalization greater than $5 billion. The Fund may also invest in income-producing equity securities and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Mid Cap Growth conditions, the Fund invests at least 80% of its Fund net assets at the time of purchase in equity securities of mid capitalization companies. The investment manager defines mid-cap companies as those whose market capitalization (number of shares outstanding multiplied by the share price) falls within the range of the Russell Midcap(R) Growth Index. RVST RiverSource Variable Long-term growth of capital. Under normal RiverSource Investments, LLC Portfolio - Mid Cap Value circumstances, the Fund invests at least 80% of Fund its net assets (including the amount of any borrowings for investment purposes) in equity securities of medium-sized companies. Medium-sized companies are those whose market capitalizations at the time of purchase fall within the range of the Russell Midcap(R) Value Index. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Long-term capital appreciation. The Fund seeks RiverSource Investments, LLC Portfolio - S&P 500 Index to provide investment results that correspond to Fund the total return (the combination of appreciation and income) of large-capitalization stocks of U.S. companies. The Fund invests in common stocks included in the Standard & Poor's 500 Composite Stock Price Index (S&P 500). The S&P 500 is made up primarily of large-capitalization companies that represent a broad spectrum of the U.S. economy.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 29
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable High level of current income and safety of RiverSource Investments, LLC Portfolio - Short Duration principal consistent with investment in U.S. U.S. Government Fund government and government agency securities. Under normal market conditions, at least 80% of the Fund's net assets are invested in securities issued or guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities. RVST RiverSource Variable Long-term capital growth. Under normal market RiverSource Investments, LLC, adviser; Portfolio - Small Cap conditions, at least 80% of the Fund's net Kenwood Capital Management LLC, Advantage Fund assets are invested in equity securities of sub-adviser. companies with market capitalization of up to $2 billion or that fall within the range of the Russell 2000(R) Index at the time of investment. RVST Threadneedle Variable Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Portfolio - Emerging Markets primarily invested in equity securities of Threadneedle International Limited, an Fund emerging market companies. Under normal market indirect wholly-owned subsidiary of conditions, at least 80% of the Fund's net Ameriprise Financial, sub-adviser. (previously RiverSource assets will be invested in securities of Variable Portfolio - companies that are located in emerging market Emerging Markets Fund) countries, or that earn 50% or more of their total revenues from goods and services produced in emerging market countries or from sales made in emerging market countries. RVST Threadneedle Variable Capital appreciation. Invests primarily in RiverSource Investments, LLC, adviser; Portfolio - International equity securities of foreign issuers that are Threadneedle International Limited, an Opportunity Fund believed to offer strong growth potential. The indirect wholly-owned subsidiary of Fund may invest in developed and in emerging Ameriprise Financial, sub-adviser. (previously RiverSource markets. Variable Portfolio - International Opportunity Fund) Van Kampen Life Investment Capital growth and income through investments in Van Kampen Asset Management Trust Comstock Portfolio, equity securities, including common stocks, Class II Shares preferred stocks and securities convertible into common and preferred stocks. The Portfolio emphasizes value style of investing seeking well-established, undervalued companies believed by the Portfolio's investment adviser to posses the potential for capital growth and income. Van Kampen UIF Global Real Current income and capital appreciation. Invests Morgan Stanley Investment Management Estate Portfolio, Class II primarily in equity securities of companies in Inc., doing business as Van Kampen, Shares the real estate industry located throughout the adviser; Morgan Stanley Investment world, including real estate operating Management Limited and Morgan Stanley companies, real estate investment trusts and Investment Management Company, similar entities established outside the U.S. sub-advisers. (foreign real estate companies). Van Kampen UIF Mid Cap Long-term capital growth. Invests primarily in Morgan Stanley Investment Management Growth Portfolio, Class II growth- oriented equity securities of U.S. mid Inc., doing business as Van Kampen. Shares cap companies and foreign companies, including emerging market securities.
30 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Wanger International Small Long-term growth of capital. Invests primarily Columbia Wanger Asset Cap in stocks of companies based outside the U.S. Management, L.P. with market capitalizations of less than $5 billion at time of initial purchase. Effective June 1, 2008, the Effective June 1, 2008: Fund will change its name to Long-term growth of capital. Under normal market Wanger International. circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion. Wanger U.S. Smaller Long-term growth of capital. Invests primarily Columbia Wanger Asset Companies in stocks of small- and medium-size U.S. Management, L.P. companies with market capitalizations of less than $5 billion at time of initial purchase. Effective June 1, 2008, the Effective June 1, 2008: Fund will change its name to Long-term growth of capital. Under normal market Wanger USA. circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion. Wells Fargo Advantage VT Long-term total return, consisting of capital Wells Fargo Funds Management, LLC, Asset Allocation Fund appreciation and current income. We seek to adviser; Wells Capital Management achieve the Portfolio's investment objective by Incorporated, sub-adviser. allocating 60% of its assets to equity securities and 40% of its assets to fixed income securities. Wells Fargo Advantage VT Long-term capital appreciation. Invests in Wells Fargo Funds Management, LLC, International Core Fund equity securities of non-U.S. companies that we adviser; Wells Capital Management believe have strong growth potential and offer Incorporated, sub-adviser. good value relative to similar investments. We invest primarily in developed countries, but may invest in emerging markets.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 31
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Opportunity Fund principally in equity securities of adviser; Wells Capital Management medium-capitalization companies, defined as Incorporated, sub-adviser. those within the range of market capitalizations of companies in the Russell Midcap(R) Index. We reserve the right to hedge the portfolio's foreign currency exposure by purchasing or selling currency futures and foreign currency forward contracts. However, under normal circumstances, we will not engage in extensive foreign currency hedging. Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Small Cap Growth Fund principally in equity securities of adviser; Wells Capital Management small-capitalization companies that we believe Incorporated, sub-adviser. have above-average growth potential. We define small-capitalization companies as those with market capitalizations at the time of purchase of less than $2 billion.
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. 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 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, the amount of any purchase payment allocated to the fixed account cannot exceed 30% of the purchase payment. More than 30% of a purchase payment may be so allocated if you establish a dollar cost averaging arrangement with respect to the purchase payment according to procedures currently in effect. 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 32 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 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. When we processed your application, we established the settlement date as the maximum age (or contract anniversary if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - - no earlier than the 60th day after the contract's effective date; and - - no later than the annuitant's 85th birthday or the tenth contract anniversary, if purchased after age 75, or a date that has been agreed to by us. FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - - for IRAs, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2; or - - for all other qualified annuities, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2, or, if later, retires (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 85th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs or TSAs, and in that case, may delay the annuity payout start date 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.) 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 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 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 33 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 1BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 2BY 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. - - 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.* The amount we pay to you under these circumstances will always equal or exceed your surrender value. 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. 34 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 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 law limitations, 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, 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 35 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. 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 We charge a fee for this optional feature only if you select it. This fee covers our internal administrative costs for providing this service. A portion of this fee is paid to an unaffiliated third party service provider for the design and maintenance of the program (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program"). If selected, we deduct an annual fee of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and the fixed account less any excluded accounts in the same proportion your interest in each account bears to your total contract value, less any excluded accounts (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program"). In Washington the fee will only be deducted from the subaccounts. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. 36 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS This fee does not apply after annuity payouts begin. 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. 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
* 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 37 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
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; - - required minimum distributions from a qualified annuity provided the amount is no greater than the RMDs for the specific contract in force; 38 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS - - 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 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 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: 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 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); and - - minus any prorated portion of the PN 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 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 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 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 39 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 fee (if selected); - - a prorated portion of the EEB rider fee (if selected); - - a prorated portion of the EEP rider fee (if selected); and/or - - a prorated portion of the PN rider fee (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 - - 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 is selected. The potential effect is to lower your average cost per unit. 40 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS HOW DOLLAR-COST AVERAGING WORKS
By investing an equal NUMBER number of dollars each AMOUNT ACCUMULATION OF UNITS month ... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy more units when the per unit market price is low ... Mar 100 17 5.88 Apr 100 15 6.67 May 100 16 6.25 Jun 100 18 5.56 Jul 100 17 5.88 and fewer units when the per unit market price is high. Aug 100 19 5.26 Sept 100 21 4.76 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. Different rules apply to asset rebalancing under the Portfolio Navigator program (see "Portfolio Navigator Asset Allocation Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) The PN program is available for nonqualified annuities and for qualified annuities, except under 401(a) plans. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include the fixed account (if available under the PN program) that represent various asset classes (allocation options). The PN program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You may elect to participate in the PN program at any time for an additional charge (see "Charges"). You may cancel your participation in the PN program at any time by giving us written notice. However, you cannot elect to participate in the PN program again until the next contract anniversary unless we agree otherwise. If you terminate the PN rider other than on a contract anniversary, we reserve the right to deduct the PN rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Similarly, if we discontinue the PN program, we reserve the right to deduct the PN program rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Upon cancellation, automated rebalancing associated with the PN program will end, and there will be no additional charges for the PN rider. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 41 You will also cancel the PN rider if you initiate transfers other than transfers to one of the current model portfolios. Partial surrenders do not cancel the PN rider. Your participation in the PN rider will terminate on the date you make a full surrender from your contract or on your settlement date. 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. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, an affiliate of ours, serves as non-discretionary investment adviser for the PN program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides 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 Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at the time or before they enroll in the PN program. Currently, the PN program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. 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, 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 identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates 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 conflict 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 CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included 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, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options 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, recommend certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may include but not be limited to a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by 42 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS redemptions. All of these factors may impact RiverSource Investment's 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 influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we 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 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 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 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. PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which model portfolio is best for you. 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 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 asset mix reflected in the model portfolio you select after completing the investor questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts and/or the fixed account that make up that model portfolio. By participating in the PN program, you instruct us to invest your contract value in the subaccounts and/or the fixed account (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN program, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Dollar-cost averaging arrangements (DCA) are currently not allowed while you are participating in the PN program. If we choose to allow for DCA arrangements, we will designate one or more subaccounts as "excluded accounts" which are not part of a model portfolio. If an account has been designated as an excluded account and you set up a DCA arrangement, we will make monthly transfers in accordance with your instructions from the excluded account into the model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. Model portfolios also may be evaluated in connection with the liquidation, substitution or merger of an underlying fund, a change in the investment objective of an underlying fund or when an underlying fund stops selling its shares to the variable account. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value according to the updated model portfolio. If you do not want your contract value to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 43 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 models based on the amount of your initial purchase payment we accept; - - substitute a fund of funds for your current 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. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN program, we would either have to find a replacement investment adviser or terminate the PN program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). 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 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. 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 and periodic updating 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 or periodic updating 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 a PN model 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 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 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 law limitations, we may suspend or modify transfer privileges at any time. For more information on transfers after annuity payments begin, see "Transfer Policies" below. 44 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 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, the amount of contract value transferred to the fixed account cannot result in the value of the fixed account being 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. 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 45 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. - - 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. 46 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT 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 a 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) 3 BY TELEPHONE Call between 7 a.m. and 7 p.m. Central time: (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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 47 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 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. 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. 48 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES 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. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. 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; - effective Jan. 1, 2009, distribution is due to plan termination; or - effective Jan. 1, 2009, 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 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.") RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 49 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; - - 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; or - - purchase payments minus adjusted partial surrenders. PS X DB ADJUSTED PARTIAL SURRENDERS = ------------ CV
PS = the partial surrender including any applicable surrender charge. 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 $30,000.00 anniversary: 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. 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 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. 50 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 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 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. 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 directly deposited into a checking account. OPTIONAL BENEFITS 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; or - - purchase payments minus adjusted partial surrenders; or RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 51 - - 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 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. 52 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 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 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 53 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; 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." 54 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT 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 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." 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, 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 55 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 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 the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum 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. 56 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS TAXES Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay federal income tax until there is a distribution from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a 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. 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, 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 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 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. 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. 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 57 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. 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 to you like a surrender 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 are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. In addition, a new tax regulation, effective for RMDs calculated in 2006 and after, may cause the RMDs for some contracts with certain death benefits and optional riders to increase. RMDs may reduce the value of certain death benefits and optional benefits. 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; 58 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS In the below situations, the distribution is subject to an optional 10% 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. Payments made to a surviving spouse instead of being directly rolled over to an IRA are subject to mandatory 20% income tax withholding. 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. 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 taxed to us, and therefore no charge is made against the subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. 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 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 59 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. 60 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT 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 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. 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 ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 61 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. 62 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 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
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 63 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
- - 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 $22,000
plus the EEB (40% of earnings at death): 0.40 X ($57,619 - $55,000) = +1,048 ------- Total death benefit of: $58,667
64 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS - - 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. - - 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 RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 65 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
- - 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
66 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 price level is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2007.
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.12 $1.07 $0.99 $0.94 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 90,475 109,952 134,591 39,117 20,015 11,313 1,710 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.47 $1.27 $1.17 $1.02 $0.76 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 23,253 25,868 24,349 20,043 10,924 6,981 1,459 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. DYNAMICS FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.27 $1.10 $1.00 $0.89 $0.65 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 6,317 7,291 8,602 10,118 10,880 6,887 1,550 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.38 $1.19 $1.14 $1.05 $0.82 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 9,208 12,088 10,621 10,625 8,724 5,572 1,081 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,881 33,923 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.57 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 48,018 1,744 127 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.80 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $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) 21,716 25,440 31,926 14,454 7,882 3,769 490 -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,111 14,120 2,021 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.44 $1.16 $1.03 $0.91 $0.73 $0.93 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 56,815 -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,321 78,916 10,074 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.59 $1.35 $1.30 $1.15 $0.90 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 118,591 136,167 142,660 110,681 74,984 42,497 7,356 -- -- - --------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $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) 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 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 204,077 121,798 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,112 59,299 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,045 51,380 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 111,086 103,830 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $1.12 $1.00 $0.93 $0.86 $0.83 -- -- -- -- Accumulation unit value at end of period $1.20 $1.12 $1.00 $0.93 $0.86 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,704 15,189 16,191 11,992 9,885 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 294,643 244,121 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.26 $1.13 $1.06 $1.01 $0.82 $1.00 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.06 $1.85 $1.58 $1.27 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.64 $1.40 $1.19 $1.06 $0.75 $0.95 $1.00 -- -- Accumulation unit value at end of period $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) 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 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 $1.00 Accumulation unit value at end of period $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 93,100 128,540 139,618 120,456 87,330 59,317 24,477 6,879 885 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 $1.00 Accumulation unit value at end of period $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 66,946 78,886 78,073 59,293 43,978 29,743 10,800 2,846 586 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.51 $1.29 $1.17 $1.05 $0.85 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 94,998 90,391 69,986 45,710 26,370 10,942 942 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 139,637 163,687 174,918 115,616 83,015 56,079 23,748 7,622 1,634 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 187,585 231,223 248,935 128,074 83,166 71,820 60,343 42,626 8,981 - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.43 $0.40 $0.36 $0.36 $0.25 $0.43 $0.68 $1.00 -- Accumulation unit value at end of period $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) 28,860 30,606 32,606 37,258 40,520 37,200 34,767 20,288 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $1.34 $0.92 $0.70 $0.60 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $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) 80,158 77,239 72,832 75,760 81,742 81,189 60,527 25,763 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 154,650 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (09/15/1999) Accumulation unit value at beginning of period $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $1.37 $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 69,884 86,802 101,054 90,221 62,349 29,532 15,860 7,958 1,981 - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $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) 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 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $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) 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 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 64,614 57,067 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.52 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.60 $1.52 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 48,173 51,514 33,811 11,540 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.43 $1.26 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.40 $1.43 $1.26 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 34,265 34,462 18,592 7,652 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.26 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 536,032 339,587 150,945 22,945 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 161,214 154,199 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIONEER EQUITY INCOME VCT PORTFOLIO - CLASS II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.44 $1.19 $1.14 $0.99 $0.81 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.44 $1.44 $1.19 $1.14 $0.99 $0.81 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,422 24,624 27,263 24,442 21,608 11,651 1,316 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- PIONEER INTERNATIONAL VALUE VCT PORTFOLIO - CLASS II SHARES (12/15/2006) Accumulation unit value at beginning of period $1.01 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.01 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,030 4,723 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.11 $1.09 $0.97 $0.91 $0.78 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.63 $1.29 $1.15 $1.00 $0.78 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 33,551 42,808 49,747 57,095 67,224 72,033 74,819 49,764 5,084 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 117,605 123,150 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.29 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.36 $1.29 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,188 9,786 10,247 4,730 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $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) 148,793 126,637 127,559 90,541 67,609 43,199 6,885 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 $1.00 Accumulation unit value at end of period $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 86,628 89,309 92,705 84,704 79,035 64,273 37,760 28,348 5,220 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 286,121 258,492 193,996 187,100 203,753 255,251 243,870 171,785 65,522 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.71% and 3.78%, respectively. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.06 $1.03 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.06 $1.03 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 31,764 24,861 17,450 7,405 -- -- -- -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (09/15/1999) Accumulation unit value at beginning of period $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 599,680 511,100 332,677 221,377 188,939 154,530 83,968 30,783 7,186 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 560,416 585,144 408,559 255,776 134,486 86,442 43,328 12,124 3,149 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 204,316 169,931 130,135 82,347 51,936 31,133 16,572 8,968 1,552 - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 147,400 161,490 91,038 2,274 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) Accumulation unit value at beginning of period $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 $1.00 Accumulation unit value at end of period $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 283,769 326,108 323,849 191,140 192,314 135,693 129,186 97,754 16,891 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 218,538 251,768 262,154 242,254 177,150 93,845 58,348 31,722 7,774 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.14 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.16 $1.14 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 116,516 109,316 29,477 1,052 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (09/15/1999) Accumulation unit value at beginning of period $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 383,078 450,207 263,828 130,790 69,981 52,124 26,327 24,003 5,333 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.33 $1.34 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,988 7,937 6,232 3,498 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 $1.00 -- -- Accumulation unit value at end of period $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) 50,337 62,826 47,283 53,376 42,780 16,388 2,489 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.49 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 71,709 101,239 6,605 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $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) 127,010 139,008 154,949 144,039 103,587 64,771 35,957 9,812 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 120,018 125,729 145,087 160,725 155,718 124,866 50,510 16,258 11,135 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (09/15/1999) Accumulation unit value at beginning of period $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 38,095 49,721 59,243 61,563 44,627 29,202 22,792 14,830 2,970 - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $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) 89,546 89,672 75,520 22,549 8,256 4,750 1,789 906 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 75,421 80,961 77,787 51,446 23,614 20,012 15,821 13,967 2,575 - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.37 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.33 $1.37 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 224,730 258,223 203,272 36,974 -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 71
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 51,109 51,499 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 14,940 37,273 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (09/15/1999) Accumulation unit value at beginning of period $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 $1.00 Accumulation unit value at end of period $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 164,570 186,862 170,230 104,567 66,022 43,554 27,818 18,245 1,234 *Effective June 1, 2008, the Fund will change its name to Wanger International. - --------------------------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (09/15/1999) Accumulation unit value at beginning of period $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 212,646 235,960 241,623 184,961 129,824 78,311 40,791 23,813 2,476 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.28 $1.15 $1.10 $1.02 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.28 $1.06 $0.98 $0.90 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.36 $1.22 $1.14 $0.97 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $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) 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.11 $1.06 $0.98 $0.93 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 46,783 56,007 64,800 21,785 12,215 7,624 1,711 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.45 $1.26 $1.16 $1.02 $0.76 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 13,998 14,692 13,500 12,074 7,348 4,808 1,224 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. DYNAMICS FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.25 $1.09 $0.99 $0.88 $0.65 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 3,800 4,211 4,924 5,936 6,700 4,845 1,426 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.36 $1.18 $1.13 $1.05 $0.82 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 5,805 7,305 6,396 6,649 5,460 3,709 901 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,964 15,226 -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.38 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.57 $1.38 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,729 1,198 107 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.79 $0.72 $0.71 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $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) 10,072 12,094 14,960 8,076 5,212 2,845 911 -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.35 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,415 5,609 801 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.42 $1.15 $1.03 $0.90 $0.73 $0.93 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 28,466 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,170 35,411 4,856 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.57 $1.34 $1.29 $1.14 $0.89 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 81,683 93,343 95,710 71,318 50,607 30,523 7,298 -- -- - --------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $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) 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 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,001 66,352 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.26 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,702 32,712 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,631 26,224 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 71,987 59,159 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $1.11 $1.00 $0.92 $0.86 $0.82 -- -- -- -- Accumulation unit value at end of period $1.19 $1.11 $1.00 $0.92 $0.86 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,609 9,669 10,001 8,036 6,384 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 166,815 127,364 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.25 $1.12 $1.05 $1.00 $0.82 $1.00 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.04 $1.83 $1.57 $1.27 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.62 $1.39 $1.18 $1.05 $0.74 $0.94 $1.00 -- -- Accumulation unit value at end of period $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) 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 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 $1.00 Accumulation unit value at end of period $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 59,503 81,589 88,911 80,587 63,047 44,591 19,803 6,181 683 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 $1.00 Accumulation unit value at end of period $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 46,935 55,078 55,521 44,541 34,639 23,553 9,584 2,897 590 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.50 $1.28 $1.17 $1.04 $0.84 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 96,413 112,452 117,932 84,473 65,106 47,539 24,711 10,265 2,023 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 126,734 160,736 168,697 108,140 80,350 75,489 71,185 55,239 9,951 - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.42 $0.40 $0.36 $0.36 $0.25 $0.42 $0.68 $1.00 -- Accumulation unit value at end of period $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) 19,559 22,668 24,131 27,479 30,159 31,354 34,050 22,949 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $1.33 $0.91 $0.70 $0.59 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $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) 64,174 61,879 59,325 61,390 68,389 74,111 64,147 29,251 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 72,177 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (09/15/1999) Accumulation unit value at beginning of period $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $1.35 $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 51,659 62,992 73,982 66,844 53,159 28,853 19,727 10,774 2,504 - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 $1.00 -- Accumulation unit value at end of period $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) 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 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $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) 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 30,611 26,517 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.51 $1.30 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.59 $1.51 $1.30 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,187 34,962 20,721 6,121 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.42 $1.25 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.39 $1.42 $1.25 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,107 22,606 12,037 4,085 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.15 $1.08 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.25 $1.15 $1.08 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 360,480 226,000 94,657 11,924 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 82,318 76,067 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIONEER EQUITY INCOME VCT PORTFOLIO - CLASS II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.43 $1.18 $1.13 $0.98 $0.81 $0.97 $1.00 -- -- Accumulation unit value at end of period $1.42 $1.43 $1.18 $1.13 $0.98 $0.81 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,657 15,917 17,370 15,748 13,512 7,193 1,106 -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIONEER INTERNATIONAL VALUE VCT PORTFOLIO - CLASS II SHARES (12/15/2006) Accumulation unit value at beginning of period $1.01 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.01 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,397 2,935 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.10 $1.08 $0.96 $0.91 $0.77 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.61 $1.27 $1.15 $1.00 $0.78 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 26,405 34,609 42,680 51,579 63,075 73,930 87,722 68,407 7,245 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.08 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.08 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 55,721 57,963 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.28 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.34 $1.28 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,203 5,724 5,777 2,540 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $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) 79,474 69,587 72,463 57,581 44,918 28,099 6,314 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 $1.00 Accumulation unit value at end of period $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 74,966 74,221 77,525 74,540 73,310 64,613 53,096 39,810 6,539 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 247,870 211,744 147,452 148,915 178,580 228,237 265,455 203,922 87,424 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.52% and 3.59%, respectively. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.03 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.10 $1.05 $1.03 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,701 22,501 15,300 4,962 -- -- -- -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (09/15/1999) Accumulation unit value at beginning of period $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 408,270 351,043 257,273 190,125 176,013 159,405 106,760 43,920 11,675 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 363,274 383,460 278,737 181,318 99,776 67,958 41,299 14,227 3,441 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 $1.00 Accumulation unit value at end of period $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 141,675 123,834 102,876 72,702 54,100 36,626 23,970 14,137 2,368 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 88,734 95,224 51,906 1,504 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) Accumulation unit value at beginning of period $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 $1.00 Accumulation unit value at end of period $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 186,447 216,237 212,229 135,373 147,485 118,986 130,764 106,410 13,813 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 186,775 221,767 237,711 236,566 197,358 122,784 88,813 52,655 10,137 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.14 $1.06 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.16 $1.14 $1.06 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 65,977 61,812 18,068 783 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (09/15/1999) Accumulation unit value at beginning of period $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 242,876 290,744 144,230 94,730 45,599 34,956 26,779 22,159 3,227 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.13 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.32 $1.34 $1.13 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,152 4,707 3,594 2,030 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 $1.00 -- -- Accumulation unit value at end of period $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) 35,043 43,939 31,419 35,498 29,450 12,145 2,238 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.48 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 43,555 54,642 4,982 -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $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) 92,416 104,302 122,070 117,372 91,398 65,011 40,575 14,084 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 104,637 108,222 121,249 130,386 135,202 116,147 56,966 24,654 12,796 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (09/15/1999) Accumulation unit value at beginning of period $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 28,329 38,372 46,718 51,057 39,709 29,341 24,346 16,349 3,029 - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $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) 50,491 51,867 44,244 16,315 6,501 3,888 1,542 693 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 58,762 64,541 61,793 40,351 21,462 19,189 18,664 15,670 2,173 - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.36 $1.18 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.32 $1.36 $1.18 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,380 130,395 96,755 18,714 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.22 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.22 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,814 27,318 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,199 17,529 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (09/15/1999) Accumulation unit value at beginning of period $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 $1.00 Accumulation unit value at end of period $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 108,613 122,718 114,381 79,981 56,466 42,309 30,297 21,844 1,343 *Effective June 1, 2008, the Fund will change its name to Wanger International. - --------------------------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (09/15/1999) Accumulation unit value at beginning of period $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 145,262 164,257 169,886 140,320 108,046 72,853 46,456 29,881 2,723 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.26 $1.14 $1.09 $1.01 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.26 $1.05 $0.97 $0.89 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.35 $1.21 $1.13 $0.97 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $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) 23,653 17,655 14,334 16,103 13,800 7,655 2,230 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 77
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------ AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.18 $1.13 $1.05 $1.00 $0.78 $1.00 Accumulation unit value at end of period $1.31 $1.18 $1.13 $1.05 $1.00 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 15,385 19,282 24,536 5,492 1,386 379 - ------------------------------------------------------------------------------------------------------------------ AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.53 $1.33 $1.23 $1.07 $0.80 $1.00 Accumulation unit value at end of period $1.67 $1.53 $1.33 $1.23 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 3,003 3,321 2,836 2,429 1,198 552 - ------------------------------------------------------------------------------------------------------------------ AIM V.I. DYNAMICS FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.37 $1.19 $1.09 $0.97 $0.71 $1.00 Accumulation unit value at end of period $1.53 $1.37 $1.19 $1.09 $0.97 $0.71 Number of accumulation units outstanding at end of period (000 omitted) 479 608 830 916 758 242 - ------------------------------------------------------------------------------------------------------------------ AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.45 $1.26 $1.20 $1.11 $0.87 $1.00 Accumulation unit value at end of period $1.12 $1.45 $1.26 $1.20 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 1,004 1,342 1,322 1,122 925 526 - ------------------------------------------------------------------------------------------------------------------ AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 753 5,096 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $1.57 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,000 503 2 -- -- -- - ------------------------------------------------------------------------------------------------------------------ AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $0.93 $0.85 $0.84 $0.81 $0.56 $1.00 Accumulation unit value at end of period $0.99 $0.93 $0.85 $0.84 $0.81 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 2,913 3,543 4,728 1,650 851 192 - ------------------------------------------------------------------------------------------------------------------ ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.14 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $1.35 $1.14 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 664 2,023 333 -- -- -- - ------------------------------------------------------------------------------------------------------------------ ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.40 $1.21 $1.16 $1.06 $0.81 $1.00 Accumulation unit value at end of period $1.45 $1.40 $1.21 $1.16 $1.06 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 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 $2.59 $1.94 $1.68 $1.36 $0.95 $1.00 Accumulation unit value at end of period $2.71 $2.59 $1.94 $1.68 $1.36 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.64 $1.33 $1.19 $1.05 $0.85 $1.00 Accumulation unit value at end of period $1.92 $1.64 $1.33 $1.19 $1.05 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,862 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,203 12,931 2,015 -- -- -- - ------------------------------------------------------------------------------------------------------------------ AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.56 $1.33 $1.28 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.46 $1.56 $1.33 $1.28 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 20,382 24,433 25,428 16,423 8,977 2,837 - ------------------------------------------------------------------------------------------------------------------ CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $1.26 $1.17 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $1.28 $1.26 $1.17 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 2,380 3,270 3,186 2,458 1,272 211 - ------------------------------------------------------------------------------------------------------------------
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. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------ COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.19 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 31,378 21,100 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.26 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,198 9,849 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $1.13 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,423 9,239 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,211 18,826 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $1.23 $1.11 $1.03 $0.95 $0.93 -- Accumulation unit value at end of period $1.32 $1.23 $1.11 $1.03 $0.95 -- Number of accumulation units outstanding at end of period (000 omitted) 1,422 1,855 2,338 2,067 1,338 -- - ------------------------------------------------------------------------------------------------------------------ FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.20 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 45,072 40,094 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.30 $1.16 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.44 $1.30 $1.16 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.97 $1.77 $1.52 $1.23 $0.90 $1.00 Accumulation unit value at end of period $2.25 $1.97 $1.77 $1.52 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.80 $1.55 $1.32 $1.17 $0.83 $1.00 Accumulation unit value at end of period $2.09 $1.80 $1.55 $1.32 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 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 $2.37 $1.99 $1.77 $1.36 $1.01 $1.00 Accumulation unit value at end of period $1.86 $2.37 $1.99 $1.77 $1.36 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.84 $1.59 $1.47 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.77 $1.84 $1.59 $1.47 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.58 $1.35 $1.23 $1.10 $0.89 $1.00 Accumulation unit value at end of period $1.62 $1.58 $1.35 $1.23 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.94 $1.69 $1.51 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.98 $1.94 $1.69 $1.51 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.38 $1.24 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $1.35 $1.38 $1.24 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 20,871 27,339 30,636 9,922 2,742 1,048 - ------------------------------------------------------------------------------------------------------------------ JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $1.08 $1.01 $0.92 $0.92 $0.64 $1.00 Accumulation unit value at end of period $1.30 $1.08 $1.01 $0.92 $0.92 $0.64 Number of accumulation units outstanding at end of period (000 omitted) 507 505 468 467 428 68 - ------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------ JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $2.34 $1.61 $1.23 $1.05 $0.79 $1.00 Accumulation unit value at end of period $2.97 $2.34 $1.61 $1.23 $1.05 $0.79 Number of accumulation units outstanding at end of period (000 omitted) 1,484 1,656 1,555 1,500 1,254 681 - ------------------------------------------------------------------------------------------------------------------ JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,246 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $1.77 $1.46 $1.33 $1.17 $0.92 $1.00 Accumulation unit value at end of period $1.94 $1.77 $1.46 $1.33 $1.17 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 5,119 6,555 7,418 5,816 3,058 499 - ------------------------------------------------------------------------------------------------------------------ MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.09 $1.03 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $1.20 $1.09 $1.03 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.17 $1.04 $1.00 $0.96 $0.72 $1.00 Accumulation unit value at end of period $1.18 $1.17 $1.04 $1.00 $0.96 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 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 $2.20 $1.70 $1.47 $1.14 $0.85 $1.00 Accumulation unit value at end of period $2.78 $2.20 $1.70 $1.47 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.07 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 10,350 9,305 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.51 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.59 $1.51 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,884 14,402 11,208 4,318 -- -- - ------------------------------------------------------------------------------------------------------------------ OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.42 $1.25 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.38 $1.42 $1.25 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,606 10,328 6,924 2,998 -- -- - ------------------------------------------------------------------------------------------------------------------ OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.15 $1.08 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.24 $1.15 $1.08 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 92,164 64,615 34,899 7,003 -- -- - ------------------------------------------------------------------------------------------------------------------ PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,066 26,857 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ PIONEER EQUITY INCOME VCT PORTFOLIO - CLASS II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.49 $1.24 $1.18 $1.03 $0.85 $1.00 Accumulation unit value at end of period $1.49 $1.49 $1.24 $1.18 $1.03 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,618 4,901 5,727 5,442 4,416 1,439 - ------------------------------------------------------------------------------------------------------------------ PIONEER INTERNATIONAL VALUE VCT PORTFOLIO - CLASS II SHARES (12/15/2006) Accumulation unit value at beginning of period $1.01 $1.00 -- -- -- -- Accumulation unit value at end of period $1.13 $1.01 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 404 560 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.14 $1.12 $1.00 $0.94 $0.81 $1.00 Accumulation unit value at end of period $1.12 $1.14 $1.12 $1.00 $0.94 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.77 $1.40 $1.26 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.90 $1.77 $1.40 $1.26 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 3,409 3,961 4,252 4,043 4,165 2,086 - ------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VISTA FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.31 $1.25 $1.13 $0.96 $0.73 $1.00 Accumulation unit value at end of period $1.35 $1.31 $1.25 $1.13 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 771 986 736 559 614 267 - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,675 20,639 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.28 $1.12 $1.12 $1.00 -- -- Accumulation unit value at end of period $1.34 $1.28 $1.12 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,469 1,490 1,493 840 -- -- - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.79 $1.50 $1.43 $1.21 $0.88 $1.00 Accumulation unit value at end of period $1.68 $1.79 $1.50 $1.43 $1.21 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 23,547 19,283 20,683 11,379 7,181 3,316 - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (02/13/2002) Accumulation unit value at beginning of period $1.35 $1.19 $1.16 $1.07 $0.90 $1.00 Accumulation unit value at end of period $1.36 $1.35 $1.19 $1.16 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 5,018 4,466 3,385 2,471 1,608 531 - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (02/13/2002) Accumulation unit value at beginning of period $1.04 $1.01 $0.99 $1.00 $1.00 $1.00 Accumulation unit value at end of period $1.08 $1.04 $1.01 $0.99 $1.00 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 39,420 37,806 22,067 19,507 13,022 12,452 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.46% and 3.52%, respectively. - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.02 $1.02 $1.00 -- -- Accumulation unit value at end of period $1.10 $1.05 $1.02 $1.02 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,804 4,756 3,994 1,612 -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (02/13/2002) Accumulation unit value at beginning of period $1.16 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.21 $1.16 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 103,330 87,923 50,746 22,751 13,984 6,481 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (02/13/2002) Accumulation unit value at beginning of period $1.82 $1.53 $1.36 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.94 $1.82 $1.53 $1.36 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 69,629 75,610 47,282 24,579 8,342 3,101 - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.38 $1.31 $1.39 $1.28 $1.14 $1.00 Accumulation unit value at end of period $1.47 $1.38 $1.31 $1.39 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 31,193 26,716 18,771 8,568 3,885 1,060 - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.05 $1.05 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.12 $1.05 $1.05 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,608 31,048 20,279 653 -- -- - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.17 $1.06 $0.99 $0.92 $0.77 $1.00 Accumulation unit value at end of period $1.19 $1.17 $1.06 $0.99 $0.92 $0.77 Number of accumulation units outstanding at end of period (000 omitted) 20,603 24,725 23,296 7,403 5,647 973 - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.44 $1.32 $1.28 $1.16 $0.94 $1.00 Accumulation unit value at end of period $1.46 $1.44 $1.32 $1.28 $1.16 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 20,960 27,180 28,189 24,305 16,280 3,957 - ------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.14 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.15 $1.14 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,632 21,052 7,061 300 -- -- - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.20 $1.05 $1.00 $0.95 $0.75 $1.00 Accumulation unit value at end of period $1.22 $1.20 $1.05 $1.00 $0.95 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 23,697 27,942 27,550 4,862 1,779 291 - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $1.31 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 925 1,124 921 450 -- -- - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.24 $1.26 $1.15 $1.07 $0.88 $1.00 Accumulation unit value at end of period $1.40 $1.24 $1.26 $1.15 $1.07 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 2,984 4,676 5,505 5,961 4,649 1,153 - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.36 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $1.48 $1.36 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,445 15,321 622 -- -- -- - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (02/13/2002) Accumulation unit value at beginning of period $1.30 $1.14 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $1.35 $1.30 $1.14 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 10,644 13,132 14,184 11,269 6,544 1,889 - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (02/13/2002) Accumulation unit value at beginning of period $1.08 $1.05 $1.04 $1.05 $1.04 $1.00 Accumulation unit value at end of period $1.13 $1.08 $1.05 $1.04 $1.05 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 12,583 16,153 18,707 17,403 14,902 6,107 - ------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (02/13/2002) Accumulation unit value at beginning of period $1.68 $1.52 $1.46 $1.25 $0.85 $1.00 Accumulation unit value at end of period $1.59 $1.68 $1.52 $1.46 $1.25 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,378 4,827 5,744 5,617 2,920 900 - ------------------------------------------------------------------------------------------------------------------ RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.70 $2.04 $1.54 $1.25 $0.90 $1.00 Accumulation unit value at end of period $3.70 $2.70 $2.04 $1.54 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 9,394 9,829 8,412 1,983 492 220 - ------------------------------------------------------------------------------------------------------------------ RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.74 $1.42 $1.26 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.94 $1.74 $1.42 $1.26 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 5,324 5,986 5,133 2,551 340 55 - ------------------------------------------------------------------------------------------------------------------ VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.36 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.31 $1.36 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 51,531 60,771 53,896 12,916 -- -- - ------------------------------------------------------------------------------------------------------------------ VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,916 8,886 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $1.20 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,519 6,372 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ WANGER INTERNATIONAL SMALL CAP* (02/13/2002) Accumulation unit value at beginning of period $2.71 $1.99 $1.66 $1.28 $0.87 $1.00 Accumulation unit value at end of period $3.12 $2.71 $1.99 $1.66 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 18,491 21,367 19,260 9,273 4,376 1,523 *Effective June 1, 2008, the Fund will change its name to Wanger International. - ------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------ WANGER U.S. SMALLER COMPANIES* (02/13/2002) Accumulation unit value at beginning of period $1.66 $1.56 $1.41 $1.21 $0.85 $1.00 Accumulation unit value at end of period $1.73 $1.66 $1.56 $1.41 $1.21 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 36,469 42,372 41,455 26,304 13,657 3,732 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - ------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (02/13/2002) Accumulation unit value at beginning of period $1.33 $1.20 $1.16 $1.07 $0.88 $1.00 Accumulation unit value at end of period $1.42 $1.33 $1.20 $1.16 $1.07 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.48 $1.24 $1.14 $1.05 $0.81 $1.00 Accumulation unit value at end of period $1.65 $1.48 $1.24 $1.14 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 589 856 1,179 1,653 832 81 - ------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.40 $1.26 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $1.48 $1.40 $1.26 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.35 $1.11 $1.06 $0.94 $0.67 $1.00 Accumulation unit value at end of period $1.52 $1.35 $1.11 $1.06 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.17 $1.12 $1.04 $0.99 $0.78 $1.00 Accumulation unit value at end of period $1.29 $1.17 $1.12 $1.04 $0.99 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 7,314 10,002 11,202 2,736 978 447 - ----------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.51 $1.32 $1.22 $1.07 $0.80 $1.00 Accumulation unit value at end of period $1.65 $1.51 $1.32 $1.22 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,796 2,051 1,835 1,591 774 463 - ----------------------------------------------------------------------------------------------------------------- AIM V.I. DYNAMICS FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.36 $1.19 $1.08 $0.97 $0.71 $1.00 Accumulation unit value at end of period $1.51 $1.36 $1.19 $1.08 $0.97 $0.71 Number of accumulation units outstanding at end of period (000 omitted) 257 357 495 596 554 286 - ----------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.43 $1.25 $1.19 $1.11 $0.87 $1.00 Accumulation unit value at end of period $1.10 $1.43 $1.25 $1.19 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 586 904 832 915 731 446 - ----------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 456 2,466 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $1.56 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,140 267 5 -- -- -- - ----------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $0.92 $0.84 $0.83 $0.80 $0.56 $1.00 Accumulation unit value at end of period $0.98 $0.92 $0.84 $0.83 $0.80 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 1,544 1,896 2,168 923 573 157 - ----------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.13 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $1.34 $1.13 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 264 846 148 -- -- -- - -----------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 83
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.38 $1.20 $1.16 $1.05 $0.81 $1.00 Accumulation unit value at end of period $1.43 $1.38 $1.20 $1.16 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 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 $2.57 $1.92 $1.67 $1.35 $0.95 $1.00 Accumulation unit value at end of period $2.68 $2.57 $1.92 $1.67 $1.35 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.63 $1.32 $1.18 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.90 $1.63 $1.32 $1.18 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,266 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,445 6,545 1,015 -- -- -- - ----------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.54 $1.32 $1.27 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.45 $1.54 $1.32 $1.27 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 12,429 15,592 16,716 10,779 5,922 2,396 - ----------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $1.24 $1.16 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $1.26 $1.24 $1.16 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.18 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,689 10,663 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- Accumulation unit value at end of period $1.26 $1.06 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,426 5,251 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $1.12 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,728 4,962 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,146 12,200 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $1.22 $1.10 $1.02 $0.95 $0.91 -- Accumulation unit value at end of period $1.30 $1.22 $1.10 $1.02 $0.95 -- Number of accumulation units outstanding at end of period (000 omitted) 954 1,268 1,570 1,304 1,011 -- - ----------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.19 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,069 20,348 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.28 $1.15 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.42 $1.28 $1.15 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.95 $1.76 $1.51 $1.23 $0.90 $1.00 Accumulation unit value at end of period $2.23 $1.95 $1.76 $1.51 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 25,720 32,335 28,423 18,934 9,886 3,541 - -----------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.79 $1.53 $1.31 $1.17 $0.83 $1.00 Accumulation unit value at end of period $2.07 $1.79 $1.53 $1.31 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 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 $2.35 $1.97 $1.76 $1.35 $1.01 $1.00 Accumulation unit value at end of period $1.84 $2.35 $1.97 $1.76 $1.35 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.82 $1.57 $1.46 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.75 $1.82 $1.57 $1.46 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.56 $1.34 $1.22 $1.10 $0.89 $1.00 Accumulation unit value at end of period $1.60 $1.56 $1.34 $1.22 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.92 $1.68 $1.50 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.96 $1.92 $1.68 $1.50 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.37 $1.23 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $1.33 $1.37 $1.23 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 11,550 15,324 16,269 6,220 2,770 1,483 - ----------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $1.07 $1.01 $0.91 $0.92 $0.63 $1.00 Accumulation unit value at end of period $1.29 $1.07 $1.01 $0.91 $0.92 $0.63 Number of accumulation units outstanding at end of period (000 omitted) 206 215 230 249 279 112 - ----------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $2.32 $1.60 $1.23 $1.05 $0.79 $1.00 Accumulation unit value at end of period $2.93 $2.32 $1.60 $1.23 $1.05 $0.79 Number of accumulation units outstanding at end of period (000 omitted) 1,042 1,094 854 1,006 956 646 - ----------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,686 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $1.75 $1.45 $1.33 $1.17 $0.92 $1.00 Accumulation unit value at end of period $1.92 $1.75 $1.45 $1.33 $1.17 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 3,267 4,513 4,983 4,090 2,091 566 - ----------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.08 $1.02 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $1.18 $1.08 $1.02 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 3,135 4,033 4,710 3,047 2,246 712 - ----------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.16 $1.04 $1.00 $0.95 $0.72 $1.00 Accumulation unit value at end of period $1.17 $1.16 $1.04 $1.00 $0.95 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 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 $2.18 $1.68 $1.46 $1.14 $0.85 $1.00 Accumulation unit value at end of period $2.74 $2.18 $1.68 $1.46 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.06 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,922 4,471 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.50 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.58 $1.50 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,986 8,796 5,927 2,391 -- -- - -----------------------------------------------------------------------------------------------------------------
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, 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 $1.41 $1.24 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.37 $1.41 $1.24 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,773 5,725 3,700 1,477 -- -- - ----------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.14 $1.08 $1.06 $1.00 -- -- Accumulation unit value at end of period $1.23 $1.14 $1.08 $1.06 -- -- Number of accumulation units outstanding at end of period (000 omitted) 62,902 46,387 23,303 4,223 -- -- - ----------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 14,755 14,860 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- PIONEER EQUITY INCOME VCT PORTFOLIO - CLASS II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.48 $1.23 $1.18 $1.03 $0.85 $1.00 Accumulation unit value at end of period $1.47 $1.48 $1.23 $1.18 $1.03 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 1,844 2,541 3,006 3,078 2,659 1,189 - ----------------------------------------------------------------------------------------------------------------- PIONEER INTERNATIONAL VALUE VCT PORTFOLIO - CLASS II SHARES (12/15/2006) Accumulation unit value at beginning of period $1.01 $1.00 -- -- -- -- Accumulation unit value at end of period $1.13 $1.01 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 300 390 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.13 $1.11 $1.00 $0.94 $0.80 $1.00 Accumulation unit value at end of period $1.11 $1.13 $1.11 $1.00 $0.94 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.75 $1.39 $1.25 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.87 $1.75 $1.39 $1.25 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.30 $1.24 $1.12 $0.96 $0.73 $1.00 Accumulation unit value at end of period $1.33 $1.30 $1.24 $1.12 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 448 706 598 413 417 192 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,646 10,682 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.27 $1.11 $1.12 $1.00 -- -- Accumulation unit value at end of period $1.33 $1.27 $1.11 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 980 1,141 1,193 732 -- -- - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.77 $1.49 $1.42 $1.20 $0.88 $1.00 Accumulation unit value at end of period $1.66 $1.77 $1.49 $1.42 $1.20 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 12,216 10,437 11,559 7,783 5,093 2,665 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (02/13/2002) Accumulation unit value at beginning of period $1.34 $1.18 $1.15 $1.07 $0.90 $1.00 Accumulation unit value at end of period $1.35 $1.34 $1.18 $1.15 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 4,008 3,764 3,085 2,273 1,117 462 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (02/13/2002) Accumulation unit value at beginning of period $1.03 $1.00 $0.99 $0.99 $1.00 $1.00 Accumulation unit value at end of period $1.07 $1.03 $1.00 $0.99 $0.99 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 33,791 33,401 18,979 15,014 12,047 12,148 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.25% and 3.31%, respectively. - -----------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.02 $1.02 $1.00 -- -- Accumulation unit value at end of period $1.09 $1.05 $1.02 $1.02 -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,252 4,585 3,473 1,734 -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (02/13/2002) Accumulation unit value at beginning of period $1.15 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.20 $1.15 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 68,622 60,502 37,023 19,654 12,452 5,971 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (02/13/2002) Accumulation unit value at beginning of period $1.79 $1.51 $1.35 $1.15 $0.83 $1.00 Accumulation unit value at end of period $1.91 $1.79 $1.51 $1.35 $1.15 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 43,798 50,646 33,232 17,932 5,976 2,058 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.37 $1.30 $1.38 $1.27 $1.14 $1.00 Accumulation unit value at end of period $1.46 $1.37 $1.30 $1.38 $1.27 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 22,272 19,781 15,541 8,857 4,839 1,529 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.04 $1.04 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.11 $1.04 $1.04 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,958 20,730 13,014 516 -- -- - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.16 $1.05 $0.98 $0.92 $0.76 $1.00 Accumulation unit value at end of period $1.18 $1.16 $1.05 $0.98 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 10,992 13,741 13,519 4,079 2,868 392 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.43 $1.31 $1.27 $1.15 $0.93 $1.00 Accumulation unit value at end of period $1.44 $1.43 $1.31 $1.27 $1.15 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 19,687 25,271 27,474 25,456 15,576 4,269 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.13 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.15 $1.13 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,716 13,255 4,187 271 -- -- - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.29 $1.13 $1.08 $1.03 $0.81 $1.00 Accumulation unit value at end of period $1.31 $1.29 $1.13 $1.08 $1.03 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 10,299 12,875 11,604 2,482 744 96 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $1.30 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 789 734 632 499 -- -- - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.23 $1.25 $1.15 $1.06 $0.88 $1.00 Accumulation unit value at end of period $1.38 $1.23 $1.25 $1.15 $1.06 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,887 2,741 2,961 3,400 2,602 889 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.35 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $1.47 $1.35 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,225 7,878 393 -- -- -- - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (02/13/2002) Accumulation unit value at beginning of period $1.29 $1.13 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $1.34 $1.29 $1.13 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 8,187 9,874 10,825 9,241 5,428 1,648 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (02/13/2002) Accumulation unit value at beginning of period $1.07 $1.04 $1.04 $1.04 $1.04 $1.00 Accumulation unit value at end of period $1.11 $1.07 $1.04 $1.04 $1.04 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 12,745 15,464 16,802 16,700 13,079 7,646 - -----------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (02/13/2002) Accumulation unit value at beginning of period $1.66 $1.51 $1.45 $1.24 $0.85 $1.00 Accumulation unit value at end of period $1.57 $1.66 $1.51 $1.45 $1.24 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 2,098 3,358 3,917 3,802 2,139 516 - ----------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.68 $2.02 $1.53 $1.25 $0.90 $1.00 Accumulation unit value at end of period $3.65 $2.68 $2.02 $1.53 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 5,242 5,716 4,677 1,199 318 121 - ----------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.73 $1.41 $1.25 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.92 $1.73 $1.41 $1.25 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,162 3,800 3,647 2,172 496 105 - ----------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.35 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.30 $1.35 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,381 32,887 26,831 6,418 -- -- - ----------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $1.10 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,961 4,670 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $1.19 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,490 3,111 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (02/13/2002) Accumulation unit value at beginning of period $2.68 $1.98 $1.65 $1.28 $0.87 $1.00 Accumulation unit value at end of period $3.08 $2.68 $1.98 $1.65 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 10,565 12,918 11,470 5,817 2,667 1,055 *Effective June 1, 2008, the Fund will change its name to Wanger International. - ----------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (02/13/2002) Accumulation unit value at beginning of period $1.64 $1.54 $1.40 $1.20 $0.85 $1.00 Accumulation unit value at end of period $1.71 $1.64 $1.54 $1.40 $1.20 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 19,504 23,503 23,080 15,408 8,442 3,131 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - ----------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (02/13/2002) Accumulation unit value at beginning of period $1.32 $1.19 $1.15 $1.06 $0.88 $1.00 Accumulation unit value at end of period $1.40 $1.32 $1.19 $1.15 $1.06 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.47 $1.23 $1.13 $1.05 $0.81 $1.00 Accumulation unit value at end of period $1.63 $1.47 $1.23 $1.13 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 370 403 576 551 374 80 - ----------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.39 $1.25 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $1.47 $1.39 $1.25 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.34 $1.10 $1.05 $0.94 $0.67 $1.00 Accumulation unit value at end of period $1.51 $1.34 $1.10 $1.05 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 1,799 1,527 1,557 1,643 1,441 387 - -----------------------------------------------------------------------------------------------------------------
88 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 2007..... 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 89 THIS PAGE LEFT BLANK INTENTIONALLY 90 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 91 THIS PAGE LEFT BLANK INTENTIONALLY 92 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 93 THIS PAGE LEFT BLANK INTENTIONALLY 94 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 95 (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 (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 RiverSource Life Insurance Company. All rights reserved. S-6406 L (5/08) PROSPECTUS MAY 1, 2008 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY - BAND 3 INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITY - - current or retired employees of Ameriprise Financial, Inc. or its subsidiaries and their spouses (employees), - - current or retired Ameriprise Financial, Inc. financial advisors and their spouses (advisors), and - - individuals investing an initial purchase payment of $1 million (other individuals). New RiverSource Retirement Advisor Advantage Variable Annuity - Band 3 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: - - AIM Variable Insurance Funds - - 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) - - Janus Aspen Series: Service Shares - - Lazard Retirement Series, Inc. - - MFS(R) Variable Insurance Trust(SM) - - Neuberger Berman Advisers Management Trust - - Oppenheimer Variable Account Funds - Service Shares - - PIMCO Variable Insurance Trust (VIT) - - Pioneer Variable Contracts Trust (VCT), Class II Shares - - Putnam Variable Trust - Class IB Shares - - RiverSource Variable Investment Trust (RVIT) formerly known as RiverSource Variable Portfolio Funds - - 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 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, and whether the variable annuity is appropriate for you, based upon your financial situation and objectives. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- 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 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)................. 11 FINANCIAL STATEMENTS........................................ 11 THE VARIABLE ACCOUNT AND THE FUNDS.......................... 11 THE FIXED ACCOUNT........................................... 29 BUYING YOUR CONTRACT........................................ 29 CHARGES..................................................... 31 VALUING YOUR INVESTMENT..................................... 33 MAKING THE MOST OF YOUR CONTRACT............................ 34 SURRENDERS.................................................. 41 TSA -- SPECIAL PROVISIONS................................... 42 CHANGING OWNERSHIP.......................................... 42 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT......... 43 OPTIONAL BENEFITS........................................... 44 THE ANNUITY PAYOUT PERIOD................................... 48 TAXES....................................................... 49 VOTING RIGHTS............................................... 52 SUBSTITUTION OF INVESTMENTS................................. 52 ABOUT THE SERVICE PROVIDERS................................. 53 APPENDIX A: EXAMPLE -- OPTIONAL BENEFITS.................... 56 APPENDIX B: CONDENSED FINANCIAL INFORMATION (UNAUDITED)..... 59 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION....................... 65
2 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- 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 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. 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 ASSET ALLOCATION PROGRAM (PN PROGRAM): This is an optional asset allocation program in which you may elect to participate by adding the optional PN program rider for an additional charge. 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) under Section 408(b) of the Code - - 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 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. 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 RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 3 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) 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 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 VARIABLE ANNUITY - BAND 3 -- 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. We will not deduct any 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 "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") 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. (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 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 VARIABLE ANNUITY - BAND 3 -- 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 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 vary between 3.50% and 5.00% depending on the applicable assumed investment rate. 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.") 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%
ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value) MORTALITY AND EXPENSE RISK FEE 0.55%
* For contracts purchased before May 1, 2003, the MAV rider fee is 0.15%. 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, 2007, UNLESS OTHERWISE NOTED. THE FIRST ITEM SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE TOTAL 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 0.52% 2.09%
(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. 6 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
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 AIM V.I. Capital Appreciation Fund, Series II 0.61% 0.25% 0.27% --% 1.13% Shares AIM V.I. Capital Development Fund, Series II 0.75 0.25 0.31 -- 1.31(1) Shares AIM V.I. Dynamics Fund, Series I Shares 0.75 -- 0.36 -- 1.11 AIM V.I. Financial Services Fund, Series I Shares 0.75 -- 0.36 -- 1.11 AIM V.I. Global Health Care Fund, Series II Shares 0.75 0.25 0.32 0.01 1.33(1) AIM V.I. International Growth Fund, Series II 0.71 0.25 0.36 0.01 1.33(1) Shares AIM V.I. Technology Fund, Series I Shares 0.75 -- 0.35 0.01 1.11 AllianceBernstein VPS Global Technology Portfolio 0.75 0.25 0.17 -- 1.17 (Class B) AllianceBernstein VPS Growth and Income Portfolio 0.55 0.25 0.04 -- 0.84 (Class B) AllianceBernstein VPS International Value 0.75 0.25 0.06 -- 1.06 Portfolio (Class B) American Century VP International, Class II 1.10 0.25 0.01 -- 1.36 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 0.83 0.25 0.01 -- 1.09 Calvert Variable Series, Inc. Social Balanced 0.70 -- 0.20 -- 0.90 Portfolio Columbia Marsico Growth Fund, Variable Series, 0.97 -- 0.02 -- 0.99 Class A Columbia Marsico International Opportunities Fund, 1.02 0.25 0.12 -- 1.39 Variable Series, Class B Credit Suisse Trust - Commodity Return Strategy 0.50 0.25 0.28 -- 1.03(2) Portfolio Eaton Vance VT Floating-Rate Income Fund 0.57 0.25 0.32 -- 1.14 Evergreen VA Fundamental Large Cap Fund - Class 2 0.58 0.25 0.17 -- 1.00 Fidelity(R) VIP Contrafund(R) Portfolio Service 0.56 0.25 0.09 -- 0.90 Class 2 Fidelity(R) VIP Growth & Income Portfolio Service 0.46 0.25 0.12 -- 0.83 Class 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 0.56 0.25 0.10 -- 0.91 Fidelity(R) VIP Overseas Portfolio Service Class 2 0.71 0.25 0.14 -- 1.10 FTVIPT Franklin Global Real Estate Securities 0.75 0.25 0.31 -- 1.31(3) Fund - Class 2 FTVIPT Franklin Small Cap Value Securities 0.51 0.25 0.15 0.02 0.93(4) Fund - Class 2 FTVIPT Mutual Shares Securities Fund - Class 2 0.59 0.25 0.13 -- 0.97 Goldman Sachs VIT Mid Cap Value 0.80 -- 0.07 -- 0.87 Fund - Institutional Shares Goldman Sachs VIT Structured U.S. Equity 0.65 -- 0.07 -- 0.72(5) Fund - Institutional Shares Janus Aspen Series Global Technology Portfolio: 0.64 0.25 0.18 0.01 1.08 Service Shares Janus Aspen Series International Growth Portfolio: 0.64 0.25 0.06 -- 0.95 Service Shares Janus Aspen Series Large Cap Growth Portfolio: 0.64 0.25 0.02 0.01 0.92 Service Shares Lazard Retirement International Equity 0.75 0.25 0.18 -- 1.18 Portfolio - Service 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 0.11 -- 1.26 MFS(R) Utilities Series - Service Class 0.75 0.25 0.10 -- 1.10(6) Neuberger Berman Advisers Management Trust 1.14 0.25 0.17 -- 1.56(7) International Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service 0.62 0.25 0.02 -- 0.89 Shares Oppenheimer Main Street Small Cap Fund/VA, Service 0.70 0.25 0.02 -- 0.97 Shares Oppenheimer Strategic Bond Fund/VA, Service Shares 0.57 0.25 0.02 0.02 0.86(8) PIMCO VIT All Asset Portfolio, Advisor Share Class 0.18 0.25 0.25 0.69 1.37(9) Pioneer Equity Income VCT Portfolio - Class II 0.65 0.25 0.05 -- 0.95 Shares Pioneer International Value VCT Portfolio - Class 0.85 0.25 0.32 -- 1.42 II Shares Putnam VT Health Sciences Fund - Class IB Shares 0.70 0.25 0.13 -- 1.08 Putnam VT International Equity Fund - Class IB 0.73 0.25 0.11 0.01 1.10 Shares
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- 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 Putnam VT Vista Fund - Class IB Shares 0.65% 0.25% 0.11% --% 1.01% RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.76 1.31(10) Portfolios - Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.64 1.19(10) Portfolios - Conservative RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.70 1.25(10) Portfolios - Moderate RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.73 1.28(10) Portfolios - Moderately Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.67 1.22(10) Portfolios - Moderately Conservative RVST RiverSource(R) Partners Variable 0.70 0.13 0.16 -- 0.99(11) Portfolio - Fundamental Value Fund (previously RiverSource(R) Variable Portfolio - Fundamental Value Fund) RVST RiverSource(R) Partners Variable 0.83 0.13 1.13 -- 2.09(11) Portfolio - Select Value Fund (previously RiverSource(R) Variable Portfolio - Select Value Fund) RVST RiverSource(R) Partners Variable 0.97 0.13 0.18 -- 1.28(11) Portfolio - Small Cap Value Fund (previously RiverSource(R) Variable Portfolio - Small Cap Value Fund) RVST RiverSource(R) Variable Portfolio - Balanced 0.53 0.13 0.14 -- 0.80 Fund RVST RiverSource(R) Variable Portfolio - Cash 0.33 0.13 0.14 -- 0.60 Management Fund RVST RiverSource(R) Variable 0.45 0.13 0.16 -- 0.74 Portfolio - Diversified Bond Fund RVST RiverSource(R) Variable 0.59 0.13 0.14 -- 0.86 Portfolio - Diversified Equity Income Fund RVST RiverSource(R) Variable Portfolio - Global 0.68 0.13 0.19 -- 1.00(11) Bond Fund RVST RiverSource(R) Variable Portfolio - Global 0.44 0.13 0.17 -- 0.74(11) Inflation Protected Securities Fund RVST RiverSource(R) Variable Portfolio - Growth 0.60 0.13 0.16 -- 0.89 Fund RVST RiverSource(R) Variable Portfolio - High 0.59 0.13 0.15 -- 0.87 Yield Bond Fund RVST RiverSource(R) Variable Portfolio - Income 0.61 0.13 0.17 -- 0.91 Opportunities Fund RVST RiverSource(R) Variable Portfolio - Large Cap 0.58 0.13 0.15 -- 0.86 Equity Fund RVST RiverSource(R) Variable Portfolio - Large Cap 0.59 0.13 0.36 -- 1.08(11) Value Fund RVST RiverSource(R) Variable Portfolio - Mid Cap 0.58 0.13 0.15 -- 0.86 Growth Fund RVST RiverSource(R) Variable Portfolio - Mid Cap 0.73 0.13 0.17 -- 1.03(11) Value Fund RVST RiverSource(R) Variable Portfolio - S&P 500 0.22 0.13 0.17 -- 0.52(11) Index Fund RVST RiverSource(R) Variable Portfolio - Short 0.48 0.13 0.18 -- 0.79 Duration U.S. Government Fund RVST RiverSource(R) Variable Portfolio - Small Cap 0.68 0.13 0.20 -- 1.01(11) Advantage Fund RVST Threadneedle(R) Variable Portfolio - Emerging 1.11 0.13 0.26 -- 1.50 Markets Fund (previously RiverSource(R) Variable Portfolio - Emerging Markets Fund) RVST Threadneedle(R) Variable 0.69 0.13 0.19 -- 1.01 Portfolio - International Opportunity Fund (previously RiverSource(R) Variable Portfolio - International Opportunity Fund) Van Kampen Life Investment Trust Comstock 0.56 0.25 0.03 -- 0.84 Portfolio, Class II Shares Van Kampen UIF Global Real Estate Portfolio, Class 0.85 0.35 0.38 -- 1.58(12) II Shares Van Kampen UIF Mid Cap Growth Portfolio, Class II 0.75 0.35 0.35 -- 1.45(12) Shares Wanger International Small Cap 0.88 -- 0.11 -- 0.99 (effective June 1, 2008, the Fund will change its name to Wanger International) Wanger U.S. Smaller Companies 0.90 -- 0.05 -- 0.95 (effective June 1, 2008, the Fund will change its name to Wanger USA) Wells Fargo Advantage VT Asset Allocation Fund 0.55 0.25 0.22 -- 1.02(13) Wells Fargo Advantage VT International Core Fund 0.75 0.25 0.43 -- 1.43(13) Wells Fargo Advantage VT Opportunity Fund 0.73 0.25 0.20 -- 1.18(13) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.23 -- 1.23(13)
* 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 Fund's advisor has contractually agreed to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) of Series II shares to 1.45% of average daily net assets. In addition, effective July 1, 2007, AIM contractually agreed to waive 100% of the advisory fee AIM receives from affiliated money market funds on investments by the Fund in such affiliated money market funds. These waiver agreements are in effect 8 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS through at least April 30, 2009. After fee waivers and expense reimbursements net expenses would be 1.30% for AIM V.I. Capital Development Fund, Series II Shares, 1.32% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. (2) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements net expenses would be 0.95% for Credit Suisse Trust - Commodity Return Strategy Portfolio. (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 waivers net expenses would be 0.89% for FTVIPT Franklin Global Real Estate Securities Fund - Class 2. (4) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent that the Fund's fees and expenses are due to those of the acquired 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 0.91% for FTVIPT Franklin Small Cap Value Securities Fund - Class 2. (5) The Investment Adviser has voluntarily agreed to reduce or limit "Other expenses" (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be terminated at any time at the option of the Investment Adviser. After expense reductions net expenses would be 0.71% for Goldman Sachs VIT Structured U.S. Equity Fund - Institutional Shares. (6) MFS has agreed in writing to reduce its management fee to 0.70% for MFS Utilities Series annually on average daily net assets in excess of $1 billion. After fee reductions net expenses would be 1.07% for MFS Utilities Series - Service Class. This written agreement will remain in effect until modified by the Fund's Board of Trustees. (7) Neuberger Berman Management Inc. ("NBMI") has undertaken through Dec. 31, 2011, to waive fees and/or reimburse certain operating expenses, including the compensation of NBMI 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. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBMI 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 1.53% for Neuberger Berman Advisers Management Trust International Portfolio (Class S). (8) The "Other expenses" in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2007, the transfer agent fees did not exceed this expense limitation. The Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund and OFI Master Loan Fund LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82% for Oppenheimer Strategic Bond Fund/VA, Service Shares. (9) PIMCO has contractually agreed through Dec. 31, 2008, to reduce its advisory fee to the extent that the "Acquired fund fees and expenses" attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.35%. (10) The Fund's expense figures are based on estimated expenses, before fee waivers and expense reimbursements. RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Aggressive, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Conservative, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderate, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Aggressive and 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Conservative. (11) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.98% for RVST RiverSource(R) Partners Variable Portfolio - Fundamental Value Fund, 1.03% for RVST RiverSource(R) Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource(R) Partners Variable Portfolio - Small Cap Value Fund, 0.98% for RVST RiverSource(R) Variable Portfolio - Global Bond Fund, 0.72% for RVST RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund, 1.05% for RVST RiverSource(R) Variable Portfolio - Large Cap Value Fund, 1.05% for RVST RiverSource(R) Variable Portfolio - Mid Cap Value Fund, 0.51% for RVST RiverSource(R) Variable Portfolio - S&P 500 Index Fund and 1.13% for RVST RiverSource(R) Variable Portfolio - Small Cap Advantage Fund. (12) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursement, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.16% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares. (13) The adviser has contractually agreed through April 30, 2009 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After fee waivers and expense reimbursements, net expenses would be 1.00% for Wells Fargo Advantage VT Asset Allocation Fund, 1.00% for Wells Fargo Advantage VT International Core Fund, 1.07% for Wells Fargo Advantage VT Opportunity Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 9 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. This example assumes the maximum fees and expenses of any of the funds. It assumes that you select the optional MAV, EEP and PN. Although your actual costs may be higher or lower, based on this assumption your costs would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS $360 $1,095 $1,850 $3,833
MINIMUM EXPENSES. This example assumes the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. It assumes 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:
1 YEAR 3 YEARS 5 YEARS 10 YEARS $112 $348 $604 $1,334
* In these examples, the $30 contract administrative charge is approximated as a .020% charge. This percentage was determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to the contract by the total average net assets that are attributable to the contract. 10 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS CONDENSED FINANCIAL INFORMATION (Unaudited) You can find unaudited condensed financial information for the subaccounts in Appendix B. We do not include 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 subaccounts in the SAI. The SAI does not include audited financial statements for subaccounts 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 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 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 11 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 Asset Allocation 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, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. 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 2007. 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. - 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. 12 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS - 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 VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 13 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 AIM V.I. Capital Growth of capital. Invests principally in Invesco Aim Advisors, Inc. adviser, Appreciation Fund, Series II common stocks of companies likely to benefit advisory entities affiliated with Shares from new or innovative products, services or Invesco Aim Advisors, Inc., processes as well as those with above-average subadvisers. long-term growth and excellent prospects for future growth. The Fund can invest up to 25% of its total assets in foreign securities that involve risks not associated with investing solely in the United States. AIM V.I. Capital Development Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Fund, Series II Shares in securities (including common stocks, advisory entities affiliated with convertible securities and bonds) of small- Invesco Aim Advisors, Inc., and medium-sized companies. The Fund may subadvisers. invest up to 25% of its total assets in foreign securities. AIM V.I. Dynamics Fund, Capital growth. Invests at least 65% of its Invesco Aim Advisors, Inc. adviser, Series I Shares net assets primarily in common stocks of advisory entities affiliated with mid-sized companies, companies included in the Invesco Aim Advisors, Inc., Russell Midcap(R)Growth Index at the time of subadvisers. purchase. The Fund also has the flexibility to invest in other types of securities, including preferred stocks, convertible securities and bonds. AIM V.I. Financial Services Capital growth. Actively managed. Invests at Invesco Aim Advisors, Inc. adviser, Fund, Series I Shares least 80% of its net assets in the equity advisory entities affiliated with securities and equity- related instruments of Invesco Aim Advisors, Inc., companies involved in the financial services subadvisers. sector. These companies include, but are not limited to, banks, insurance companies, investment and miscellaneous industries (asset managers, brokerage firms, and government-sponsored agencies and suppliers to financial services companies). AIM V.I. Global Health Care Capital growth. The Fund seeks to meet its Invesco Aim Advisors, Inc. adviser, Fund, Series II Shares objective by investing, normally, at least 80% advisory entities affiliated with of its assets in securities of health care Invesco Aim Advisors, Inc., industry companies. The Fund may invest up to subadvisers. 20% of its total assets in companies located in developing countries, i.e., those countries that are in the initial stages of their industrial cycles. The Fund may also invest up to 5% of its total assets in lower-quality debt securities, i.e., junk bonds. AIM V.I. International Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Growth Fund, Series II in a diversified portfolio of international advisory entities affiliated with Shares equity securities, whose issuers are Invesco Aim Advisors, Inc., considered to have strong earnings momentum. subadvisers. The Fund may invest up to 20% of its total assets in security issuers located in developing countries and in securities exchangeable for or convertible into equity securities of foreign companies.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER AIM V.I. Technology Fund, Capital growth. The Fund is actively managed. Invesco Aim Advisors, Inc. adviser, Series I Shares Invests at least 80% of its net assets in advisory entities affiliated with equity securities and equity-related Invesco Aim Advisors, Inc., instruments of companies engaged in subadvisers. technology-related industries. These include, but are not limited to, various applied technologies, hardware, software, semiconductors, telecommunications equipment and services, and service-related companies in information technology. Many of these products and services are subject to rapid obsolescence, which may lower the market value of securities of the companies in this sector. AllianceBernstein VPS Global Long-term growth of capital. The Fund invests AllianceBernstein L.P. Technology Portfolio (Class at least 80% of its net assets in securities B) of companies that use technology extensively in the development of new or improved products or processes. Invests in a global portfolio of securities of U.S. and foreign companies selected for their growth potential. AllianceBernstein VPS Growth Long-term growth of capital. Invests primarily AllianceBernstein L.P. and Income Portfolio (Class in the equity securities of domestic companies B) that the Advisor deems to be undervalued. AllianceBernstein VPS Long-term growth of capital. Invests primarily AllianceBernstein L.P. International Value in a diversified portfolio of equity Portfolio (Class B) securities of established companies selected from more than 40 industries and from more than 40 developed and emerging market countries. American Century VP Capital growth. Invests primarily in stocks of American Century Global Investment International, Class II growing foreign companies in developed Management, Inc. countries. American Century VP Mid Cap Long-term capital growth with income as a American Century Investment Management, Value, Class II secondary objective. Long-term capital growth Inc. with income as secondary objective. Invests primarily in stocks of companies that management believes are undervalued at the time of purchase. The fund will invest at least 80% of its assets in securities of companies whose market capitalization at the time of purchase is within the capitalization range of the Russell 3000 Index, excluding the largest 100 such companies. American Century VP Long-term capital growth. Analytical research American Century Investment Management, Ultra(R), Class II tools and techniques are used to identify the Inc. stocks of larger-sized companies that appear to have the best opportunity of sustaining long-term above average growth. American Century VP Value, Long-term capital growth, with income as a American Century Investment Management, Class II secondary objective. Invests primarily in Inc. stocks of companies that management believes to be undervalued at the time of purchase.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Calvert Variable Series, Competitive total return through actively Calvert Asset Management Company, Inc., Inc. Social Balanced managed portfolio of stocks, bonds and money adviser. SSgA Funds Management, Inc. Portfolio market instruments which offer income and and New Amsterdam Partners, LLP, capital growth opportunity and which satisfy subadvisers on equity portion; no Portfolio's investment and social criteria. subadviser on fixed-income portion. Typically invests about 60% of net assets in stocks (primarily common stocks of U.S. large-cap companies) and 40% in investment grade bonds and other fixed-income investments. Investments must be consistent with Portfolio's current financial and social criteria. Columbia Marsico Growth Long-term growth of capital. Under normal Columbia Management Advisors, LLC, Fund, Variable Series, Class circumstances, the Fund invests primarily in adviser; Marsico Capital Management, A equity securities of large-capitalization LLC, sub-adviser. companies that have market capitalizations of $5 billion or more at the time of purchase. The Fund generally holds a core position of between 35 and 50 common stocks. It may hold up to 25% of total assets in foreign securities, including in emerging market securities. Columbia Marsico Long-term growth of capital. Under normal Columbia Management Advisors, LLC, International Opportunities circumstances, the Fund invests at least 65% adviser; Marsico Capital Management, Fund, Variable Series, Class of total assets in common stocks of foreign LLC, sub-adviser. B companies. The Fund may invest in companies of any size throughout the world that are selected for their long-term growth potential. The Fund normally invests in issuers from at least three different countries not including the United States. The Fund may invest in common stocks of companies operating in or economically tied to emerging markets countries. Some issuers or securities in the Fund's portfolio may be based in or economically tied to the United States. Credit Suisse Trust - Total Return. Invests in commodity-linked Credit Suisse Asset Management, LLC Commodity Return Strategy derivative instruments backed and fixed-income Portfolio securities. The portfolio invests in commodity-linked derivative instruments, such as commodity-linked notes, swap agreements, commodity options, futures and options on futures that provide exposure to the investment returns of the commodities markets without investing directly in physical commodities. The portfolio invests all of its assets in commodity-linked derivative instruments, such as structured notes and swaps, and fixed-income securities, subject to applicable IRS limits. The portfolio may also gain exposure to commodity markets by investing in the Credit Suisse Cayman Commodity Fund II, a wholly owned subsidiary of the Portfolio formed in the Cayman Island.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Eaton Vance VT Floating- High level of current income. The Fund invests Eaton Vance Management Rate Income Fund primarily in senior floating rate loans ("Senior Loans"). Senior Loans typically are of below investment grade quality and have below investment grade credit ratings, which ratings are associated with securities having high risk, speculative characteristics. The Fund invests at least 80% of its net assets in income producing floating rate loans and other floating rate debt securities. The Fund may also purchase investment grade fixed income debt securities and money market instruments. The Fund may invest up to 25% of its total assets in foreign securities and may engage in certain hedging transactions. The Fund may purchase derivative instruments, such as futures contracts and options thereon, interest rate and credit default swaps, credit linked notes and currency hedging derivatives. Evergreen VA Fundamental Capital growth with the potential for current Evergreen Investment Management Large Cap Fund - Class 2 income. Invests primarily in common stocks of Company, LLC large U.S. companies whose market capitalizations measured at time of purchase fall within the market capitalization range of the companies tracked by the Russell 1000(R) Index. Fidelity(R) VIP Long-term capital appreciation. Normally Fidelity Management & Research Company Contrafund(R) Portfolio invests primarily in common stocks. Invests in (FMR), investment manager; FMR U.K. and Service Class 2 securities of companies whose value it FMR Far East, sub-advisers. believes is not fully recognized by the public. Invests in either "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. Fidelity(R) VIP Growth & High total return through a combination of Fidelity Management & Research Company Income Portfolio Service current income and capital appreciation. (FMR), investment manager; FMR U.K., Class 2 Normally invests a majority of assets in FMR Far East, sub-advisers. common stocks with a focus on those that pay current dividends and show potential for capital appreciation. May invest in bonds, including lower-quality debt securities, as well as stocks that are not currently paying dividends, but offer prospects for future income or 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 Long-term growth of capital. Normally invests Fidelity Management & Research Company Portfolio Service Class 2 primarily in common stocks. Normally invests (FMR), investment manager; FMR U.K., at least 80% of assets in securities of FMR Far East, sub-advisers. 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 Long-term growth of capital. Normally invests Fidelity Management & Research Company Portfolio Service Class 2 primarily in common stocks of foreign (FMR), investment manager; FMR U.K., securities. Normally invests at least 80% of FMR Far East, Fidelity International assets in non-U.S. securities. Investment Advisors (FIIA) and FIIA U.K., sub-advisers.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER FTVIPT Franklin Global Real High total return. The Fund normally invests Franklin Templeton Institutional, LLC Estate Securities at least 80% of its net assets in investments Fund - Class 2 of companies located anywhere in the world that operate in the real estate sector and normally invests predominantly in equity securities. FTVIPT Franklin Small Cap Long-term total return. The Fund normally Franklin Advisory Services, LLC Value Securities invests at least 80% of its net assets in Fund - Class 2 investments of small capitalization companies, and normally invests predominantly in equity securities. The Fund invests mainly in equity securities of companies that the manager believes are undervalued. FTVIPT Mutual Shares Capital appreciation, with income as a Franklin Mutual Advisers, LLC Securities Fund - Class 2 secondary goal. The Fund normally invests primarily in equity securities of companies that the manager believes are undervalued. The Fund also invests, to a lesser extent in risk arbitrage securities and distressed companies. Goldman Sachs VIT Mid Cap Long-term capital appreciation. The Fund Goldman Sachs Asset Management, L.P. Value Fund - Institutional invests, under normal circumstances, at least Shares 80% of its net assets plus any borrowings for investment purposes (measured at time of purchase) ("Net Assets") in a diversified portfolio of equity investments in mid-cap issuers with public stock market capitalizations (based upon shares available for trading on an unrestricted basis) within the range of the market capitalization of companies constituting the Russell Midcap(R) Value Index at the time of investment. If the market capitalization of a company held by the Fund moves outside this range, the Fund may, but is not required to, sell the securities. The capitalization range of the Russell Midcap(R)Value Index is currently between $1.1 billion and $21 billion. Although the Fund will invest primarily in publicly traded U.S. securities, it may invest up to 25% of its Net Assets in foreign securities, including securities of issuers in countries with emerging markets or economies ("emerging countries") and securities quoted in foreign currencies. The Fund may invest in the aggregate up to 20% of its Net Assets in companies with public stock market capitalizations outside the range of companies constituting the Russell Midcap(R) Value Index at the time of investment and in fixed-income securities, such as government, corporate and bank debt obligations.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Goldman Sachs VIT Structured Long-term growth of capital and dividend Goldman Sachs Asset Management, L.P. U.S. Equity income. The Fund invests, under normal Fund - Institutional Shares circumstances, at least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) ("Net Assets") in a diversified portfolio of equity investments in U.S. issuers, including foreign companies that are traded in the United States. However, it is currently anticipated that, under normal circumstances, the Fund will invest at least 95% of its Net Assets in such equity investments. The Fund's investments are selected using a variety of quantitative techniques, derived from fundamental research including but not limited to valuation, momentum, profitability and earnings quality, in seeking to maximize the Fund's expected returns. The Fund maintains risk, style, capitalization and industry characteristics similar to the S&P 500 Index. The S&P 500 Index is an index of large-cap stocks designed to reflect a broad representation of the U.S. economy. The Fund seeks to maximize expected return while maintaining these and other characteristics similar to the benchmark. The Fund is not required to limit its investments to securities in the S&P 500 Index. Janus Aspen Series Global Long-term growth of capital. Invests, under Janus Capital Management LLC Technology Portfolio: normal circumstances, at least 80% of its net Service Shares assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology. It implements this policy by investing primarily in equity securities of U.S. and foreign companies selected for their growth potential. Janus Aspen Series Long-term growth of capital. Invests, under Janus Capital Management LLC International Growth normal circumstances, at least 80% of its net Portfolio: Service Shares assets in securities of issuers from countries outside of the United States. The Portfolio normally invests in securities of issuers from several different countries excluding the United States. Although the Portfolio intends to invest substantially all of its assets in issuers located outside the United States, it may at times invest in U.S. issuers, and it may under unusual circumstances, invest all of its assets in a single country. The Portfolio may have significant exposure to emerging markets. Janus Aspen Series Large Cap Long-term growth of capital in a manner Janus Capital Management LLC Growth Portfolio: Service consistent with the preservation of capital. Shares Invests under normal circumstances at least 80% of its net assets in common stocks of large-sized companies. Large-sized companies are those whose market capitalization falls within the range of companies in the Russell 1000(R) Index at the time of purchase.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Lazard Retirement Long-term capital appreciation. Invests Lazard Asset Management, LLC International Equity primarily in equity securities, principally Portfolio - Service Shares common stocks, of relatively large non-U.S. companies with market capitalizations in the range of the Morgan Stanley Capital International (MSCI) Europe, Australia and Far East (EAFE(R)) Index that the Investment Manager believes are undervalued based on their earnings, cash flow or asset values. MFS(R) Investors Growth Capital appreciation. Normally invests at MFS Investment Management(R) Stock Series - Service Class least 80% of the fund's net assets in equity securities of companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). Growth companies tend to have stock prices that are high relative to their earnings, dividends, book value, or other financial measures. The Fund generally focuses on companies with large capitalizations. MFS(R) New Discovery Capital appreciation. Invests in stocks of MFS Investment Management(R) Series - Service Class companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). Growth companies tend to have stock prices that are high relative to their earnings, dividends, book value, or other financial measures. The Fund generally focuses on companies with small capitalizations. MFS(R) Utilities Series - Total return. Normally invests at least 80% of MFS Investment Management(R) Service Class the fund's net assets in securities of issuers in the utilities industry. The Fund's assets may be invested in companies of any size. Neuberger Berman Advisers Long-term growth of capital. The Fund invests Neuberger Berman Management Inc. Management Trust mainly in foreign companies of any size, International Portfolio including companies in developed and emerging (Class S) industrialized markets. The Fund defines a foreign company as one that is organized outside of the United States and conducts the majority of its business abroad. The Fund seeks to reduce risk by diversifying among many industries. Although it has the flexibility to invest a significant portion of its assets in one country or region, it generally intends to remain well-diversified across countries and geographical regions. Oppenheimer Global Long-term capital appreciation. Invests mainly OppenheimerFunds, Inc. Securities Fund/VA, Service in common stocks of U.S. and foreign issuers Shares that are "growth-type" companies, cyclical industries and special situations that are considered to have appreciation possibilities. Oppenheimer Main Street Capital appreciation. Invests mainly in common OppenheimerFunds, Inc. Small Cap Fund/VA, Service stocks of small-capitalization U.S. companies Shares that the fund's investment manager believes have favorable business trends or prospects.
20 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Oppenheimer Strategic Bond High level of current income principally OppenheimerFunds, Inc. Fund/VA, Service Shares derived from interest on debt securities. Invests mainly in three market sectors: debt securities of foreign governments and companies, U.S. government securities and lower-rated high yield securities of U.S. and foreign companies. PIMCO VIT All Asset Maximum real return consistent with Pacific Investment Management Company Portfolio, Advisor Share preservation of real capital and prudent LLC Class investment management period. The Portfolio seeks to achieve its investment objective by investing under normal circumstances substantially all of its assets in Institutional Class shares of the PIMCO Funds, an affiliated open-end investment company, except the All Asset and All Asset All Authority Funds ("Underlying Funds"). Though it is anticipated that the Portfolio will not currently invest in the European StockPLUS(R) TR Strategy, Far East (ex-Japan) StocksPLUS(R) TR Strategy, Japanese StocksPLUS(R) TR Strategy, StocksPLUS(R)Municipal-Backed and StocksPLUS(R) TR Short Strategy Funds, the Portfolio may invest in these Funds in the future, without shareholder approval, at the discretion of the Portfolio's asset allocation sub-adviser. Pioneer Equity Income VCT Current income and long-term growth of capital Pioneer Investment Management, Inc. Portfolio - Class II Shares from a portfolio consisting primarily of income producing equity securities of U.S. corporations. Normally, the portfolio invests at least 80% of its total assets in income producing equity securities of U.S. issuers. The income producing equity securities in which the portfolio may invest include common stocks, preferred stocks and interests in real estate investment trusts (REITs). The remainder of the portfolio may be invested in debt securities, most of which are expected to be convertible into common stocks. Pioneer International Value Long-term capital growth. Long-term capital Pioneer Investment Management, Inc. VCT Portfolio - Class II growth. Normally, the portfolio invests at Shares least 80% of its total assets in equity securities of non-U.S. issuers. These issuers may be located in both developed and emerging markets. Under normal circumstances, the portfolio's assets will be invested in securities of companies domiciled in at least three different foreign countries.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Putnam VT Health Sciences Capital appreciation. The fund pursues its Putnam Investment Management, LLC Fund - Class IB Shares goal by investing mainly in common stocks of companies in the health sciences industries, with a focus on growth stocks. Under normal circumstances, the fund invests at least 80% of its net assets in securities of (a) companies that derive at least 50% of their assets, revenues or profits from the pharmaceutical, health care services, applied research and development and medical equipment and supplies industries, or (b) companies Putnam Management thinks have the potential for growth as a result of their particular products, technology, patents or other market advantages in the health sciences industries. Putnam VT International Capital appreciation. The fund pursues its Putnam Investment Management, LLC Equity Fund - Class IB goal by investing mainly in common stocks of Shares companies outside the United States that Putnam Management believes have favorable investment potential. Under normal circumstances, the fund invests at least 80% of its net assets in equity investments. Putnam VT Vista Fund - Class Capital appreciation. The fund pursues its Putnam Investment Management, LLC IB Shares goal by investing mainly in common stocks of U.S. companies, with a focus on growth stocks. RVST Disciplined Asset High level of total return that is consistent RiverSource Investments, LLC Allocation Portfolios - with an aggressive level of risk. The Fund Aggressive invests primarily in equity securities and also invests a small amount in fixed income securities. The Fund may be most appropriate for investors with a longer term investment horizon. The Fund is intended for investors who have an objective of achieving a high level of total return, but prefer to have investment decisions managed by professional money managers. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a conservative level of risk. Conservative The Fund invests primarily in fixed income securities and may be most appropriate for investors with a shorter term investment horizon. 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.
22 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST Disciplined Asset The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate level of risk. The Moderate Fund invests in a balance of fixed income and equity securities and may be most appropriate for investors with an intermediate term investment horizon. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate aggressive level of Moderately Aggressive risk. The Fund invests primarily in equity securities and also invests a moderate amount in fixed income securities. The Fund may be most appropriate for investors with an intermediate-to-long term investment horizon. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate conservative level Moderately Conservative of risk. The Fund invests primarily in fixed income securities and also invests a moderate amount in equity securities. The Fund may be most appropriate for investors with a short-to-intermediate term investment horizon. 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 RiverSource Partners Long-term capital growth. The Fund's assets RiverSource Investments, LLC, adviser; Variable are primarily invested in equity securities of Davis Selected Advisers, L.P., Portfolio - Fundamental U.S. companies. Under normal market subadviser. Value Fund conditions, the Fund's assets will be invested primarily in companies with market (previously RiverSource capitalizations of at least $5 billion at the Variable Portfolio - time of the Fund's investment. The Fund may Fundamental Value Fund) invest up to 25% of its net assets in foreign investments. RVST RiverSource Partners Long-term growth of capital. Invests primarily RiverSource Investments, LLC, adviser; Variable Portfolio - Select in equity securities of mid cap companies as Systematic Financial Management, L.P. Value Fund well as companies with larger and smaller and WEDGE Capital Management L.L.P., market capitalizations. The Fund considers sub-advisers. (previously RiverSource mid-cap companies to be either those with a Variable Portfolio - Select market capitalization of up to $15 billion or Value Fund) those whose market capitalization falls within range of the Russell Midcap(R) Value Index.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Partners Long-term capital appreciation. Under normal RiverSource Investments, LLC, adviser; Variable Portfolio - Small market conditions, at least 80% of the Fund's River Road Asset Management, LLC, Cap Value Fund net assets will be invested in small cap Donald Smith & Co., Inc., Franklin companies with market capitalization, at the Portfolio Associates LLC, Barrow, (previously RiverSource time of investment, of up to $2.5 billion or Hanley, Mewhinney & Strauss, Inc. and Variable Portfolio - Small that fall within the range of the Russell Denver Investment Advisors LLC, Cap Value Fund) 2000(R) Value Index. The Fund may invest up to subadvisers. 25% of its net assets in foreign investments. RVST RiverSource Variable Maximum total investment return through a RiverSource Investments, LLC Portfolio - Balanced Fund combination of capital growth and current income. Invests primarily in a combination of common and preferred stocks, bonds and other debt securities. Under normal market conditions, at least 50% of the Fund's total assets are invested in common stocks and no less than 25% of the Fund's total assets are invested in debt securities. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Maximum current income consistent with RiverSource Investments, LLC Portfolio - Cash Management liquidity and stability of principal. Invests Fund primarily in money market instruments, such as marketable debt obligations issued by corporations or the U.S. government or its agencies, bank certificates of deposit, bankers' acceptances, letters of credit, and commercial paper, including asset-backed commercial paper. RVST RiverSource Variable High level of current income while attempting RiverSource Investments, LLC Portfolio - Diversified Bond to conserve the value of the investment for Fund the longest period of time. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and other debt securities. At least 50% of the Fund's net assets will be invested in securities like those included in the Lehman Brothers Aggregate Bond Index (Index), which are investment grade and denominated in U.S. dollars. The Index includes securities issued by the U.S. government, corporate bonds, and mortgage- and asset-backed securities. Although the Fund emphasizes high-and medium-quality debt securities, it will assume some credit risk to achieve higher yield and/or capital appreciation by buying lower-quality (junk) bonds. The Fund may invest up to 25% of its net assets in foreign investments, which may include instruments in emerging markets. RVST RiverSource Variable High level of current income and, as a RiverSource Investments, LLC Portfolio - Diversified secondary goal, steady growth of capital. Equity Income Fund Under normal market conditions, the Fund invests at least 80% of its net assets in dividend-paying common and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments.
24 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable High total return through income and growth of RiverSource Investments, LLC Portfolio - Global Bond Fund capital. Non-diversified mutual fund that invests primarily in debt obligations of U.S. and foreign issuers. Under normal market conditions, the Fund invests at least 80% of its net assets in investment - grade corporate or government debt obligations including money market instruments of issuers located in at least three different countries. RVST RiverSource Variable Total return that exceeds the rate of RiverSource Investments, LLC Portfolio - Global Inflation inflation over the long-term. Non-diversified Protected Securities Fund mutual fund that, under normal market conditions, invests at least 80% of its net assets in inflation-protected debt securities. These securities include inflation-indexed bonds of varying maturities issued by U.S. and foreign governments, their agencies or instrumentalities, and corporations. RVST RiverSource Variable Long-term capital growth. Invests primarily in RiverSource Investments, LLC Portfolio - Growth Fund common stocks and securities convertible into common stocks that appear to offer growth opportunities. These growth opportunities could result from new management, market developments, or technological superiority. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable High current income, with capital growth as a RiverSource Investments, LLC Portfolio - High Yield Bond secondary objective. Under normal market Fund conditions, the Fund invests at least 80% of its net assets in high-yield debt instruments (commonly referred to as "junk") including corporate debt securities as well as bank loans rated below investment grade by a nationally recognized statistical rating organization, or if unrated, determined to be of comparable quality. Up to 25% of the Fund may be invested in high yield debt instruments of foreign issuers. RVST RiverSource Variable High total return through current income and RiverSource Investments, LLC Portfolio - Income capital appreciation. Under normal market Opportunities Fund conditions, the Fund invests primarily in income-producing debt securities with an emphasis on the higher rated segment of the high-yield (junk bond) market. These income-producing debt securities include corporate debt securities as well as bank loans. The Fund will purchase only securities rated B or above, or unrated securities believed to be of the same quality. If a security falls below a B rating, the Fund may continue to hold the security. Up to 25% of the Fund may be in foreign investments. RVST RiverSource Variable Capital appreciation. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Equity conditions, the Fund invests at least 80% of Fund its net assets in equity securities of companies with market capitalization greater than $5 billion at the time of purchase. The Fund may invest up to 25% of its net assets in foreign investments.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 25
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable Long-term growth of capital. Under normal RiverSource Investments, LLC Portfolio - Large Cap Value market conditions, the Fund invests at least Fund 80% of its net assets in equity securities of companies with a market capitalization greater than $5 billion. The Fund may also invest in income-producing equity securities and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Mid Cap Growth conditions, the Fund invests at least 80% of Fund its net assets at the time of purchase in equity securities of mid capitalization companies. The investment manager defines mid-cap companies as those whose market capitalization (number of shares outstanding multiplied by the share price) falls within the range of the Russell Midcap(R) Growth Index. RVST RiverSource Variable Long-term growth of capital. Under normal RiverSource Investments, LLC Portfolio - Mid Cap Value circumstances, the Fund invests at least 80% Fund of its net assets (including the amount of any borrowings for investment purposes) in equity securities of medium-sized companies. Medium-sized companies are those whose market capitalizations at the time of purchase fall within the range of the Russell Midcap(R) Value Index. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Long-term capital appreciation. The Fund seeks RiverSource Investments, LLC Portfolio - S&P 500 Index to provide investment results that correspond Fund to the total return (the combination of appreciation and income) of large-capitalization stocks of U.S. companies. The Fund invests in common stocks included in the Standard & Poor's 500 Composite Stock Price Index (S&P 500). The S&P 500 is made up primarily of large-capitalization companies that represent a broad spectrum of the U.S. economy. RVST RiverSource Variable High level of current income and safety of RiverSource Investments, LLC Portfolio - Short Duration principal consistent with investment in U.S. U.S. Government Fund government and government agency securities. Under normal market conditions, at least 80% of the Fund's net assets are invested in securities issued or guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities. RVST RiverSource Variable Long-term capital growth. Under normal market RiverSource Investments, LLC, adviser; Portfolio - Small Cap conditions, at least 80% of the Fund's net Kenwood Capital Management LLC, Advantage Fund assets are invested in equity securities of sub-adviser. companies with market capitalization of up to $2 billion or that fall within the range of the Russell 2000(R) Index at the time of investment.
26 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST Threadneedle Variable Long-term capital growth. The Fund's assets RiverSource Investments, LLC, adviser; Portfolio - Emerging Markets are primarily invested in equity securities of Threadneedle International Limited, an Fund emerging market companies. Under normal market indirect wholly-owned subsidiary of conditions, at least 80% of the Fund's net Ameriprise Financial, sub-adviser. (previously RiverSource assets will be invested in securities of Variable Portfolio - companies that are located in emerging market Emerging Markets Fund) countries, or that earn 50% or more of their total revenues from goods and services produced in emerging market countries or from sales made in emerging market countries. RVST Threadneedle Variable Capital appreciation. Invests primarily in RiverSource Investments, LLC, adviser; Portfolio - International equity securities of foreign issuers that are Threadneedle International Limited, an Opportunity Fund believed to offer strong growth potential. The indirect wholly-owned subsidiary of Fund may invest in developed and in emerging Ameriprise Financial, sub-adviser. (previously RiverSource markets. Variable Portfolio - International Opportunity Fund) Van Kampen Life Investment Capital growth and income through investments Van Kampen Asset Management Trust Comstock Portfolio, in equity securities, including common stocks, Class II Shares preferred stocks and securities convertible into common and preferred stocks. The Portfolio emphasizes value style of investing seeking well-established, undervalued companies believed by the Portfolio's investment adviser to posses the potential for capital growth and income. Van Kampen UIF Global Real Current income and capital appreciation. Morgan Stanley Investment Management Estate Portfolio, Class II Invests primarily in equity securities of Inc., doing business as Van Kampen, Shares companies in the real estate industry located adviser; Morgan Stanley Investment throughout the world, including real estate Management Limited and Morgan Stanley operating companies, real estate investment Investment Management Company, trusts and similar entities established sub-advisers. outside the U.S. (foreign real estate companies). Van Kampen UIF Mid Cap Long-term capital growth. Invests primarily in Morgan Stanley Investment Management Growth Portfolio, Class II growth- oriented equity securities of U.S. mid Inc., doing business as Van Kampen. Shares cap companies and foreign companies, including emerging market securities.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 27
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Wanger International Small Long-term growth of capital. Invests primarily Columbia Wanger Asset Management, L.P. Cap in stocks of companies based outside the U.S. with market capitalizations of less than $5 billion at time of initial purchase. Effective June 1, 2008, the Effective June 1, 2008: Fund will change its name to Long-term growth of capital. Under normal Wanger International. market circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion. Wanger U.S. Smaller Long-term growth of capital. Invests primarily Columbia Wanger Asset Management, L.P. Companies in stocks of small- and medium-size U.S. companies with market capitalizations of less than $5 billion at time of initial purchase. Effective June 1, 2008, the Effective June 1, 2008: Fund will change its name to Long-term growth of capital. Under normal Wanger USA. market circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion. Wells Fargo Advantage VT Long-term total return, consisting of capital Wells Fargo Funds Management, LLC, Asset Allocation Fund appreciation and current income. We seek to adviser; Wells Capital Management achieve the Portfolio's investment objective Incorporated, sub-adviser. by allocating 60% of its assets to equity securities and 40% of its assets to fixed income securities. Wells Fargo Advantage VT Long-term capital appreciation. Invests in Wells Fargo Funds Management, LLC, International Core Fund equity securities of non-U.S. companies that adviser; Wells Capital Management we believe have strong growth potential and Incorporated, sub-adviser. offer good value relative to similar investments. We invest primarily in developed countries, but may invest in emerging markets.
28 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Opportunity Fund principally in equity securities of adviser; Wells Capital Management medium-capitalization companies, defined as Incorporated, sub-adviser. those within the range of market capitalizations of companies in the Russell Midcap(R) Index. We reserve the right to hedge the portfolio's foreign currency exposure by purchasing or selling currency futures and foreign currency forward contracts. However, under normal circumstances, we will not engage in extensive foreign currency hedging. Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Small Cap Growth Fund principally in equity securities of adviser; Wells Capital Management small-capitalization companies that we believe Incorporated, sub-adviser. have above-average growth potential. We define small-capitalization companies as those with market capitalizations at the time of purchase of less than $2 billion.
THE FIXED ACCOUNT You also may allocate purchase payments and 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. 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 for your fixed account is guaranteed for 12 months from the contract issue date. Thereafter, we will change 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.) 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 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, the amount of any purchase payment allocated to the fixed account cannot exceed 30% of the purchase payment. More than 30% of a purchase payment may be so allocated if you establish a dollar cost averaging arrangement with respect to the purchase payment according to procedures currently in effect. We applied your initial purchase payment 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 29 THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. When we processed your application, we established the settlement date as the maximum age (or contract anniversary if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - - no earlier than the 60th day after the contract's effective date; and - - no later than the annuitant's 85th birthday or the tenth contract anniversary, if purchased after age 75 or a date that has been otherwise agreed to by us. (In Pennsylvania, the maximum settlement date ranges from age 85 to 96 based on the annuitant's age when we issue the contract. See contract for details.) FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - - for IRAs, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2; or - - all other qualified annuities, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2, or, if later, retires (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 85th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. (In Pennsylvania, the annuity payout ranges from age 85 to 96 based on the annuitant's age when the contract is issued. See contract for details.) Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs and TSAs, and in that case, may delay annuity payout start date for this contract. 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 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.) PURCHASE PAYMENTS MINIMUM ALLOWABLE PURCHASE PAYMENTS(1) FOR EMPLOYEES/ADVISORS If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month If paying by any other method: $1,000 initial payment for qualified annuities $2,000 initial payment for nonqualified annuities $50 for any additional payments FOR OTHER INDIVIDUALS $1 million(2) MAXIMUM ALLOWABLE PURCHASE PAYMENTS(2) FOR EMPLOYEES/ADVISORS $100,000 for ages through 85 $50,000 for ages 86 to 90 FOR OTHER INDIVIDUALS $100,000 (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. (2) 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. 30 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 FOR EMPLOYEES/ADVISORS ONLY We can help you set up: - - an automatic payroll deduction, salary reduction or other group billing arrangement; or - - a bank authorization. LIMITATIONS ON THE 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 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 on your contract anniversary at the end of each contract year. Subject to state law limitations, 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 and it totals 0.55% of their average daily net assets on an annual basis. This fee covers the mortality and expense risk that we assume. 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 31 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 on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account 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 on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account 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. 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 on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account 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 EEP. Riders may not be available in all states. The MAV, EEB and EEP riders are only available if you and the annuitant are 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 is 0.15%. PN RIDER FEE We charge a fee for this optional feature only if you select it. This fee covers our internal administrative costs for providing this service. A portion of this fee is paid to an unaffiliated third party service provider for the design and maintenance of the program (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program"). If selected, we deduct an annual fee of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and the fixed account less any excluded accounts in the same proportion your interest in each account bears to your total contract value less any excluded accounts. (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program") In Washington the fee will only be deducted from the subaccounts. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. This fee does not apply after annuity payouts begin. SURRENDER CHARGE There is no charge if you surrender all or part of your contract. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this 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 vary between 3.50% and 5.00% depending on the applicable assumed investment rate. 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.") 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 (waived in case of death or disability). 32 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 the 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 make purchase payments or when you surrender your contract. 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 transfer amounts allocated to the fixed account; - - plus interest credited; - - minus the sum of amounts surrendered and amounts transferred out; - - minus any prorated contract administrative charge; - - minus any prorated portion of the 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); and - - minus any prorated portion of the PN 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, 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 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. 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; - - transfers into or out of the subaccounts; - - partial surrenders; RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 33 and a deduction of: - - a prorated portion of the contract administrative charge; - - a prorated portion of the MAV rider fee (if selected); - - a prorated portion of the EEB rider fee (if selected); - - a prorated portion of the EEP rider fee (if selected); and - - a prorated portion of the PN rider fee (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 - - 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 is selected. The potential effect is to lower your average cost per unit. HOW DOLLAR-COST AVERAGING WORKS
By investing an equal NUMBER number of dollars each AMOUNT ACCUMULATION OF UNITS month ... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy more units when the per unit market price is low ... (ARROW) Mar 100 17 5.88 Apr 100 15 6.67 May 100 16 6.25 Jun 100 18 5.56 Jul 100 17 5.88 and fewer units when the per unit market price is high. (ARROW) Aug 100 19 5.26 Sept 100 21 4.76 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 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. 34 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 Asset Allocation Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) The PN Program is available for nonqualified annuities and for qualified annuities, except under 401(a) plans. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include the fixed account (if available under the PN Program) that represent various asset classes (allocation options). The PN Program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You may elect to participate in the PN Program at any time for an additional charge (see "Charges"). You may cancel your participation in the PN program at any time by giving us written notice. However, you cannot elect to participate in the PN program again until the next contract anniversary unless we agree otherwise. If you terminate the PN rider other than on a contract anniversary, we reserve the right to deduct the PN rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Similarly, if we discontinue the PN program, we reserve the right to deduct the PN program rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Upon cancellation, automated rebalancing associated with the PN program will end, and there will be no additional charges for the PN rider. You will also cancel the PN rider if you initiate transfers other than transfers to one of the current model portfolios. Partial surrenders do not cancel the PN rider. Your participation in the PN rider will terminate on the date you make a full surrender from your contract or on your settlement date. 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. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, an affiliate of ours, serves as non-discretionary investment adviser for the PN Program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN Program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides 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 Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at or before the time they enroll in the PN Program. Currently, the PN Program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. 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, 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 identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 35 However, as described below under "Potential conflict 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 CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included 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, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options 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, recommend certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may include but not be limited to a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's 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 influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we 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 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 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 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. PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which model portfolio is best for you. 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 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 asset mix reflected in the model portfolio you select after completing the investor questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN Program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts and/or the fixed account that make up that model portfolio. By participating in the PN Program, you instruct us to invest your contract value in the subaccounts and/or the fixed account (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN Program, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Dollar-cost averaging arrangements (DCA) are currently not allowed while you are participating in the PN program. If we choose to allow for DCA arrangements, we will designate one or more subaccounts as "excluded accounts" which are not part of a model portfolio. If an account has been designated as an excluded account and you set up a DCA arrangement, we will 36 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS make monthly transfers in accordance with your instructions from the excluded account into the model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. Model portfolios also may be evaluated in connection with the liquidation, substitution or merger of an underlying fund, a change in the investment objective of an underlying fund or when an underlying fund stops selling its shares to the variable account. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN Program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value according to the updated model portfolio. If you do not want your contract value to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. 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 models based on the amount of your initial purchase payment we accept; - - substitute a fund of funds for your current 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. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN Program, we would either have to find a replacement investment adviser or terminate the PN Program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). 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 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. 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 and periodic updating 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 or periodic updating 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 37 TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while a PN model 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 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 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 law limitations, 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. For contracts issued on or after July 1, 2003, the amount of contract value transferred to the fixed account cannot result in the value of the fixed account being 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, 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 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. 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 38 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 MARKETING 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 asset balancing 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 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 VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 39 - - 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 a PN program is in effect, you are not allowed to set up an 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 between 7 a.m. and 7 p.m. Central time: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 40 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 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, 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. 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 41 TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES 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. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. 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; - effective Jan. 1, 2009, the distribution is due to plan termination; or - effective Jan. 1, 2009, 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 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.") 42 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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; - - 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; or - - purchase payments minus adjusted partial surrenders. ADJUSTED PARTIAL SURRENDERS PS X DB ------- CV
PS = 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. 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 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 these features or riders. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 43 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 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 these 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. 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 directly deposited into a checking account. OPTIONAL BENEFITS 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; 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. 44 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS - - 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 A. 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 variable account 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. 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 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 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 Death 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 45 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. 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." - - 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 reduced benefits if you or the annuitant 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 financial 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. 46 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS The EEP provides that if you 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; 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 + 10% of exchange purchase payments*) 5+ 40% x (earnings at death + 20% of exchange purchase payments*) 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 + 3.75% of exchange purchase payments*) 5+ 15% x (earnings at death + 7.5% of exchange purchase payments)
* 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 spousal continuation if the new owner is age 76 or older. For an example, see Appendix A. 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 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." RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 47 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, 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. - - 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. 48 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS - - 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 have been made 7 seven 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 life of you and your designated beneficiary; or - - in equal or substantially equal payments over a period not longer than your life expectancy 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. 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 the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum 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 federal income tax until there is a distribution from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a 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. 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, 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 49 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 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 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. 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. 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. 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 to you like a surrender 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 50 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 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 are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. In addition, a new tax regulation, effective for RMDs calculated in 2006 and after, may cause the RMDs for some contracts with certain death benefits and optional riders to increase. RMDs may reduce the value of certain death benefits and optional benefits. 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; In the below situations, the distribution is subject to an optional 10% 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. Payments made to a surviving spouse instead of being directly rolled over to an IRA are subject to mandatory 20% income tax withholding. 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. ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 51 OTHER 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 taxed to us, and therefore no charge is made against the subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. 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; 52 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS - - 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 1.15% 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 53 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. 54 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS APPENDICES THE PURPOSE OF THESE APPENDICES IS TO ILLUSTRATE THE OPERATION OF VARIOUS CONTRACT RIDERS AND TO PROVIDE CONDENSED FINANCIAL HISTORY DISCLOSURE REGARDING THE SUBACCOUNTS. 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, FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. THE EXAMPLES OF THE OPTIONAL DEATH BENEFITS IN APPENDIX A 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 VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 55 APPENDIX A: 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 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
- - During the third contract year the contract value remains at $105,000 and you request a partial surrender of $50,000. 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. 56 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- 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 $250,000. 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 exchanged purchase payment of $100,000 and both you and the annuitant are under age 70. You select 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. - - 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 benefit (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 VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 57 - - During the third contract year the contract value remains at $105, 000 and you request a partial surrender of $50,000. 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
- - 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 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
58 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS APPENDIX B: 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 price level is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2007.
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.14 $1.08 $1.00 $0.94 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 371 489 1,554 110 85 4 6 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.48 $1.28 $1.18 $1.03 $0.77 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 208 183 141 107 284 180 3 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. DYNAMICS FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.28 $1.11 $1.01 $0.89 $0.65 $0.96 $1.00 -- -- Accumulation unit value at end of period $1.43 $1.28 $1.11 $1.01 $0.89 $0.65 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 12 11 19 18 249 149 1 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.39 $1.20 $1.14 $1.06 $0.82 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 54 158 140 132 66 3 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.14 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 115 1,114 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.58 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,479 105 5 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.81 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $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) 275 418 532 249 96 3 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 61 653 144 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.45 $1.17 $1.04 $0.91 $0.74 $0.93 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,710 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.00 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.00 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 187 2,939 618 -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 59
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.61 $1.36 $1.31 $1.15 $0.90 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 848 1,060 1,104 1,064 673 483 146 -- -- - --------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $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) 21 18 5 54 8 8 6 5 -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,466 2,834 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 772 2,194 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 677 1,600 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,116 2,567 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $1.13 $1.01 $0.94 $0.86 $0.83 -- -- -- -- Accumulation unit value at end of period $1.22 $1.13 $1.01 $0.94 $0.86 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 47 56 56 49 90 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.21 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,443 6,582 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.28 $1.14 $1.06 $1.01 $0.83 $1.00 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.08 $1.86 $1.59 $1.28 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.66 $1.42 $1.20 $1.06 $0.75 $0.95 $1.00 -- -- Accumulation unit value at end of period $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) 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 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 $1.00 Accumulation unit value at end of period $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 688 836 667 487 349 205 211 148 4 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 $1.00 Accumulation unit value at end of period $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 576 738 593 414 242 282 150 9 2 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.53 $1.30 $1.18 $1.05 $0.85 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 $1.00 Accumulation unit value at end of period $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 2,008 2,339 1,930 834 639 450 200 15 8 - ---------------------------------------------------------------------------------------------------------------------------------
60 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 $1.00 Accumulation unit value at end of period $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,678 2,499 3,019 1,522 735 694 943 577 170 - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 $0.68 $1.00 -- Accumulation unit value at end of period $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 $0.68 -- Number of accumulation units outstanding at end of period (000 omitted) 37 180 200 333 426 343 202 310 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 $0.80 -- Number of accumulation units outstanding at end of period (000 omitted) 272 231 250 132 295 875 606 556 -- - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,448 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (09/15/1999) Accumulation unit value at beginning of period $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 $1.00 Accumulation unit value at end of period $1.40 $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,072 1,291 1,238 1,236 2,397 636 253 57 8 - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $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) 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 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $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) 130 243 558 576 622 485 548 352 -- - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.05 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.05 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,116 1,957 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.53 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.62 $1.53 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,099 1,309 756 158 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.44 $1.26 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.41 $1.44 $1.26 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 676 773 643 432 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.27 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,223 6,331 3,173 403 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,555 4,105 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIONEER EQUITY INCOME VCT PORTFOLIO - CLASS II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.46 $1.20 $1.14 $0.99 $0.81 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.46 $1.46 $1.20 $1.14 $0.99 $0.81 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 53 81 156 182 283 175 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIONEER INTERNATIONAL VALUE VCT PORTFOLIO - CLASS II SHARES (12/15/2006) Accumulation unit value at beginning of period $1.01 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.01 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2 -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 61
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.12 $1.10 $0.98 $0.92 $0.78 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.65 $1.30 $1.16 $1.01 $0.79 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 69 164 145 194 207 881 418 -- -- - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 $1.00 Accumulation unit value at end of period $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 370 429 374 375 431 525 1,092 1,330 183 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,570 3,666 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.30 $1.13 $1.13 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.37 $1.30 $1.13 $1.13 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 115 77 235 182 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $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) 3,487 2,495 2,068 860 982 627 411 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 $1.00 Accumulation unit value at end of period $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 372 459 623 257 221 120 296 145 10 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 $1.00 Accumulation unit value at end of period $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 11,779 8,286 4,504 2,098 447 3,911 5,658 6,615 2,266 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.92% and 4.00%, respectively. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.07 $1.04 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.07 $1.04 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 391 135 100 73 -- -- -- -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (09/15/1999) Accumulation unit value at beginning of period $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 9,540 7,272 3,619 2,145 1,691 762 985 410 47 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 $1.00 Accumulation unit value at end of period $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 9,289 9,434 5,165 3,041 1,239 1,262 281 218 23 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 3,115 2,645 1,377 741 714 251 249 4 3 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.06 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.06 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,713 2,959 1,455 5,004 -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
62 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) Accumulation unit value at beginning of period $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 $1.00 Accumulation unit value at end of period $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 3,768 6,049 6,193 2,153 1,664 1,064 1,285 1,762 401 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 1,605 1,925 2,397 2,886 4,230 1,480 1,549 1,186 48 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.15 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.17 $1.15 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,599 2,358 493 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (09/15/1999) Accumulation unit value at beginning of period $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 $1.00 Accumulation unit value at end of period $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,682 2,453 3,121 1,484 172 202 291 266 872 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.35 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.34 $1.35 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67 184 92 65 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 $1.00 -- -- Accumulation unit value at end of period $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) 268 450 655 523 578 328 38 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.37 $1.20 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.50 $1.37 $1.20 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,406 2,575 115 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 $1.00 -- Accumulation unit value at end of period $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) 1,022 1,170 2,054 1,958 1,381 973 770 285 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 $1.00 Accumulation unit value at end of period $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 817 493 688 870 1,097 1,275 592 1 10 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (09/15/1999) Accumulation unit value at beginning of period $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 214 333 514 779 660 393 378 286 28 - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 $1.00 -- Accumulation unit value at end of period $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) 1,993 2,144 1,491 475 115 277 3 1 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 1,307 1,343 1,252 848 143 488 65 81 133 - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.38 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.34 $1.38 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,639 4,892 3,642 641 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,463 1,473 -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 63
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.21 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 140 1,068 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (09/15/1999) Accumulation unit value at beginning of period $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 $1.00 Accumulation unit value at end of period $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 2,932 3,471 2,814 1,701 1,136 1,484 769 599 112 *Effective June 1, 2008, the Fund will change its name to Wanger International. - --------------------------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (09/15/1999) Accumulation unit value at beginning of period $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 $1.00 Accumulation unit value at end of period $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 3,659 3,852 2,709 1,415 1,250 847 820 990 125 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.29 $1.16 $1.11 $1.02 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $1.38 $1.29 $1.16 $1.11 $1.02 $0.84 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 7 31 355 91 66 29 8 -- -- - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $1.29 $1.07 $0.99 $0.90 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $1.45 $1.29 $1.07 $0.99 $0.90 $0.69 $0.90 -- -- Number of accumulation units outstanding at end of period (000 omitted) 5 5 82 84 4 144 1 -- -- - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $1.38 $1.23 $1.15 $0.98 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $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) 231 84 35 10 10 6 2 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
64 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts..................... p. 3 Rating Agencies................................. p. 4 Revenues Received During Calendar Year 2007..... p. 4 Principal Underwriter........................... p. 5 Independent Registered Public Accounting Firm... p. 5 Financial Statements
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 65 THIS PAGE LEFT BLANK INTENTIONALLY 66 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 67 THIS PAGE LEFT BLANK INTENTIONALLY 68 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 69 THIS PAGE LEFT BLANK INTENTIONALLY 70 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 71 (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 (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 RiverSource Life Insurance Company. All rights reserved. S-6407 J (5/08) PROSPECTUS MAY 1, 2008 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: - - AIM Variable Insurance Funds - - 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) - - Janus Aspen Series: Service Shares - - Lazard Retirement Series, Inc. - - 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) formerly known as RiverSource Variable Portfolio Funds - - 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....................................... 5 EXPENSE SUMMARY............................................. 7 CONDENSED FINANCIAL INFORMATION (UNAUDITED)................. 15 FINANCIAL STATEMENTS........................................ 15 THE VARIABLE ACCOUNT AND THE FUNDS.......................... 15 GUARANTEE PERIOD ACCOUNTS (GPAS)............................ 32 THE FIXED ACCOUNT........................................... 33 THE SPECIAL DCA ACCOUNT..................................... 34 BUYING YOUR CONTRACT........................................ 34 CHARGES..................................................... 37 VALUING YOUR INVESTMENT..................................... 43 MAKING THE MOST OF YOUR CONTRACT............................ 45 SURRENDERS.................................................. 54 TSA -- SPECIAL PROVISIONS................................... 55 CHANGING OWNERSHIP.......................................... 56 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT......... 56 OPTIONAL BENEFITS........................................... 58 THE ANNUITY PAYOUT PERIOD................................... 71 TAXES....................................................... 73 VOTING RIGHTS............................................... 76 SUBSTITUTION OF INVESTMENTS................................. 76 ABOUT THE SERVICE PROVIDERS................................. 77 ADDITIONAL INFORMATION...................................... 78 APPENDIX A: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA)........ 80 APPENDIX B: EXAMPLE -- SURRENDER CHARGES.................... 82 APPENDIX C: EXAMPLE -- OPTIONAL BENEFITS.................... 86 APPENDIX D: CONDENSED FINANCIAL INFORMATION (UNAUDITED)..... 91 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION............................................... 118
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 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. 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 Asset Allocation Program. 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 one of the asset allocation programs. 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 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 3 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 (PN) ASSET ALLOCATION PROGRAM: This is an asset allocation program in which you are required to participate 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 rider for an 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) under Section 408(b) of the Code - - 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 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, Withdrawal Benefit and/or PN. 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 valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) 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 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 PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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 accounts, 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 features that are available for additional charges if you meet certain criteria. Optional benefits may require the use of an asset allocation model 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") RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 5 ANNUITY PAYOUTS: You can apply your contract value 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 PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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 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
* 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. SURRENDER CHARGE FOR RAVA SELECT PLUS (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 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 2 3 THEREAFTER 1 8% 7% 6% 0% 2 8 7 0 3 8 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.") RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 7 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%
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%
8 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS 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, 2007, 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 0.52% 2.09%
(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 AIM V.I. Capital Appreciation Fund, Series II Shares 0.61% 0.25% 0.27% --% 1.13% AIM V.I. Capital Development Fund, Series II Shares 0.75 0.25 0.31 -- 1.31(1) AIM V.I. Financial Services Fund, Series I Shares 0.75 -- 0.36 -- 1.11 AIM V.I. Global Health Care Fund, Series II Shares 0.75 0.25 0.32 0.01 1.33(1) AIM V.I. International Growth Fund, Series II Shares 0.71 0.25 0.36 0.01 1.33(1) AIM V.I. Technology Fund, Series I Shares 0.75 -- 0.35 0.01 1.11 AllianceBernstein VPS Global Technology Portfolio 0.75 0.25 0.17 -- 1.17 (Class B) AllianceBernstein VPS Growth and Income Portfolio 0.55 0.25 0.04 -- 0.84 (Class B) AllianceBernstein VPS International Value Portfolio 0.75 0.25 0.06 -- 1.06 (Class B) American Century VP International, Class II 1.10 0.25 0.01 -- 1.36 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 0.83 0.25 0.01 -- 1.09 Calvert Variable Series, Inc. Social Balanced 0.70 -- 0.20 -- 0.90 Portfolio Columbia High Yield Fund, Variable Series, Class B 0.78 0.25 0.12 -- 1.15(2) Columbia Marsico Growth Fund, Variable Series, Class 0.97 -- 0.02 -- 0.99 A Columbia Marsico International Opportunities Fund, 1.02 0.25 0.12 -- 1.39 Variable Series, Class B Credit Suisse Trust - Commodity Return Strategy 0.50 0.25 0.28 -- 1.03(3) Portfolio Eaton Vance VT Floating-Rate Income Fund 0.57 0.25 0.32 -- 1.14 Evergreen VA International Equity Fund - Class 2 0.39 0.25 0.24 -- 0.88 Fidelity(R) VIP Contrafund(R) Portfolio Service Class 0.56 0.25 0.09 -- 0.90 2 Fidelity(R) VIP Growth & Income Portfolio Service 0.46 0.25 0.12 -- 0.83 Class 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 0.56 0.25 0.10 -- 0.91 Fidelity(R) VIP Overseas Portfolio Service Class 2 0.71 0.25 0.14 -- 1.10 FTVIPT Franklin Global Real Estate Securities 0.75 0.25 0.31 -- 1.31(4) Fund - Class 2 FTVIPT Franklin Small Cap Value Securities 0.51 0.25 0.15 0.02 0.93(5) Fund - Class 2 FTVIPT Mutual Shares Securities Fund - Class 2 0.59 0.25 0.13 -- 0.97
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 9
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 Goldman Sachs VIT Mid Cap Value Fund - Institutional 0.80% --% 0.07% --% 0.87% Shares Goldman Sachs VIT Structured U.S. Equity 0.65 -- 0.07 -- 0.72(6) Fund - Institutional Shares Janus Aspen Series Large Cap Growth Portfolio: 0.64 0.25 0.02 0.01 0.92 Service Shares Lazard Retirement International Equity 0.75 0.25 0.18 -- 1.18 Portfolio - Service Shares Legg Mason Partners Variable Small Cap Growth 0.75 -- 0.35 -- 1.10(7) 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 0.11 -- 1.26 MFS(R) Total Return Series - Service Class 0.75 0.25 0.08 -- 1.08(8) MFS(R) Utilities Series - Service Class 0.75 0.25 0.10 -- 1.10(8) Neuberger Berman Advisers Management Trust 1.14 0.25 0.17 -- 1.56(9) International Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service Shares 0.62 0.25 0.02 -- 0.89 Oppenheimer Main Street Small Cap Fund/VA, Service 0.70 0.25 0.02 -- 0.97 Shares Oppenheimer Strategic Bond Fund/VA, Service Shares 0.57 0.25 0.02 0.02 0.86(10) PIMCO VIT All Asset Portfolio, Advisor Share Class 0.18 0.25 0.25 0.69 1.37(11) Putnam VT Health Sciences Fund - Class IB Shares 0.70 0.25 0.13 -- 1.08 Putnam VT International Equity Fund - Class IB Shares 0.73 0.25 0.11 0.01 1.10 Putnam VT Vista Fund - Class IB Shares 0.65 0.25 0.11 -- 1.01 RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.76 1.31(12) Portfolios - Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.64 1.19(12) Portfolios - Conservative RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.70 1.25(12) Portfolios - Moderate RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.73 1.28(12) Portfolios - Moderately Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.67 1.22(12) Portfolios - Moderately Conservative RVST RiverSource(R) Partners Variable 0.70 0.13 0.16 -- 0.99(13) Portfolio - Fundamental Value Fund (previously RiverSource(R) Variable Portfolio - Fundamental Value Fund) RVST RiverSource(R) Partners Variable 0.83 0.13 1.13 -- 2.09(13) Portfolio - Select Value Fund (previously RiverSource(R) Variable Portfolio - Select Value Fund) RVST RiverSource(R) Partners Variable 0.97 0.13 0.18 -- 1.28(13) Portfolio - Small Cap Value Fund (previously RiverSource(R) Variable Portfolio - Small Cap Value Fund) RVST RiverSource(R) Variable Portfolio - Balanced 0.53 0.13 0.14 -- 0.80 Fund RVST RiverSource(R) Variable Portfolio - Cash 0.33 0.13 0.14 -- 0.60 Management Fund RVST RiverSource(R) Variable Portfolio - Diversified 0.45 0.13 0.16 -- 0.74 Bond Fund RVST RiverSource(R) Variable Portfolio - Diversified 0.59 0.13 0.14 -- 0.86 Equity Income Fund RVST RiverSource(R) Variable Portfolio - Global Bond 0.68 0.13 0.19 -- 1.00(13) Fund RVST RiverSource(R) Variable Portfolio - Global 0.44 0.13 0.17 -- 0.74(13) Inflation Protected Securities Fund RVST RiverSource(R) Variable Portfolio - Growth Fund 0.60 0.13 0.16 -- 0.89 RVST RiverSource(R) Variable Portfolio - High Yield 0.59 0.13 0.15 -- 0.87 Bond Fund RVST RiverSource(R) Variable Portfolio - Income 0.61 0.13 0.17 -- 0.91 Opportunities Fund RVST RiverSource(R) Variable Portfolio - Large Cap 0.58 0.13 0.15 -- 0.86 Equity Fund RVST RiverSource(R) Variable Portfolio - Large Cap 0.59 0.13 0.36 -- 1.08(13) Value Fund RVST RiverSource(R) Variable Portfolio - Mid Cap 0.58 0.13 0.15 -- 0.86 Growth Fund RVST RiverSource(R) Variable Portfolio - Mid Cap 0.73 0.13 0.17 -- 1.03(13) Value Fund RVST RiverSource(R) Variable Portfolio - S&P 500 0.22 0.13 0.17 -- 0.52(13) Index Fund RVST RiverSource(R) Variable Portfolio - Short 0.48 0.13 0.18 -- 0.79 Duration U.S. Government Fund RVST RiverSource(R) Variable Portfolio - Small Cap 0.68 0.13 0.20 -- 1.01(13) Advantage Fund RVST Threadneedle(R) Variable Portfolio - Emerging 1.11 0.13 0.26 -- 1.50 Markets Fund (previously RiverSource(R) Variable Portfolio - Emerging Markets Fund)
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 RVST Threadneedle(R) Variable 0.69% 0.13% 0.19% --% 1.01% Portfolio - International Opportunity Fund (previously RiverSource(R) Variable Portfolio - International Opportunity Fund) Van Kampen Life Investment Trust Comstock Portfolio, 0.56 0.25 0.03 -- 0.84 Class II Shares Van Kampen UIF Global Real Estate Portfolio, Class II 0.85 0.35 0.38 -- 1.58(14) Shares Van Kampen UIF Mid Cap Growth Portfolio, Class II 0.75 0.35 0.35 -- 1.45(14) Shares Wanger International Small Cap 0.88 -- 0.11 -- 0.99 (effective June 1, 2008, the Fund will change its name to Wanger International) Wanger U.S. Smaller Companies 0.90 -- 0.05 -- 0.95 (effective June 1, 2008, the Fund will change its name to Wanger USA) Wells Fargo Advantage VT Opportunity Fund 0.73 0.25 0.20 -- 1.18(15) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.23 -- 1.23(15)
* 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 Fund's advisor has contractually agreed to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) of Series II shares to 1.45% of average daily net assets. In addition, effective July 1, 2007, AIM contractually agreed to waive 100% of the advisory fee AIM receives from affiliated money market funds on investments by the Fund in such affiliated money market funds. These waiver agreements are in effect through at least April 30, 2009. After fee waivers and expense reimbursements net expenses would be 1.30% for AIM V.I. Capital Development Fund, Series II Shares, 1.32% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. (2) The Fund's investment adviser has contractually agreed to waive 0.19% of the distribution (12b-1) fees until April 30, 2009. In addition, the Fund's investment adviser has contractually agreed to waive advisory fees and reimburse the Fund for certain expenses so that the total annual Fund operating expenses (exclusive of distribution fees, brokerage commissions, interest, taxes and extraordinary expenses, (if any)) do not exceed 0.60% annually through April 30, 2009. If these waivers were reflected in the above table, net expenses would be 0.66%. There is no guarantee that these waivers and/or limitations will continue after April 30, 2009. (3) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements net expenses would be 0.95% for Credit Suisse Trust - Commodity Return Strategy Portfolio. (4) 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 waivers net expenses would be 0.89% for FTVIPT Franklin Global Real Estate Securities Fund - Class 2. (5) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent that the Fund's fees and expenses are due to those of the acquired 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 0.91% for FTVIPT Franklin Small Cap Value Securities Fund - Class 2. (6) The Investment Adviser has voluntarily agreed to reduce or limit "Other expenses" (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be terminated at any time at the option of the Investment Adviser. After expense reductions net expenses would be 0.71% for Goldman Sachs VIT Structured U.S. Equity Fund - Institutional Shares. (7) Because of voluntary waivers and/or reimbursements, actual total operating expenses are not expected to exceed 1.00%. These voluntary fee waivers and reimbursements do not cover brokerage, taxes, interest and extraordinary expenses and may be reduced or terminated at any time. After fee waivers and expense reimbursements net expenses would be 1.00%. (8) MFS has agreed in writing to reduce its management fee to 0.65% for MFS Total Return Series annually on average daily net assets in excess of $3 billion and 0.70% for MFS Utilities Series annually on average daily net assets in excess of $1 billion. After fee reductions net expenses would be 1.05% for MFS Total Return Series - Service Class and 1.07% for MFS Utilities Series - Service Class. This written agreement will remain in effect until modified by the Fund's Board of Trustees. (9) Neuberger Berman Management Inc. ("NBMI") has undertaken through Dec. 31, 2011, to waive fees and/or reimburse certain operating expenses, including the compensation of NBMI 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. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBMI 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 1.53% for Neuberger Berman Advisers Management Trust International Portfolio (Class S). (10) The "Other expenses" in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2007, the transfer agent fees did not exceed this expense limitation. The Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund and OFI Master Loan Fund LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82% for Oppenheimer Strategic Bond Fund/VA, Service Shares. (11) PIMCO has contractually agreed through Dec. 31, 2008, to reduce its advisory fee to the extent that the "Acquired fund fees and expenses" attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.35%. (12) The Fund's expense figures are based on estimated expenses, before fee waivers and expense reimbursements. RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Aggressive, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Conservative, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderate, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Aggressive and 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Conservative. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 11 (13) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.98% for RVST RiverSource(R) Partners Variable Portfolio - Fundamental Value Fund, 1.03% for RVST RiverSource(R) Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource(R) Partners Variable Portfolio - Small Cap Value Fund, 0.98% for RVST RiverSource(R) Variable Portfolio - Global Bond Fund, 0.72% for RVST RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund, 1.05% for RVST RiverSource(R) Variable Portfolio - Large Cap Value Fund, 1.05% for RVST RiverSource(R) Variable Portfolio - Mid Cap Value Fund, 0.51% for RVST RiverSource(R) Variable Portfolio - S&P 500 Index Fund and 1.13% for RVST RiverSource(R) Variable Portfolio - Small Cap Advantage Fund. (14) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursement, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.16% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares. (15) The adviser has contractually agreed through April 30, 2009 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After fee waivers and expense reimbursements, net expenses would be 1.07% for Wells Fargo Advantage VT Opportunity Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. 12 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS 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(1), 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(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 AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED 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) $1,447 $2,712 $3,840 $6,256 $647 $1,912 $3,140 $6,056 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 1,347 2,612 3,640 6,056 647 1,912 3,140 6,056 RAVA SELECT PLUS 1,374 2,686 3,253 6,234 674 1,986 3,253 6,234 RAVA SELECT PLUS - TEXAS 1,474 2,586 3,253 6,234 674 1,986 3,253 6,234
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) $1,426 $2,655 $3,753 $6,118 $626 $1,855 $3,053 $5,918 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 1,326 2,555 3,553 5,918 626 1,855 3,053 5,918 RAVA SELECT PLUS 1,353 2,630 3,167 6,099 653 1,930 3,167 6,099 RAVA SELECT PLUS - TEXAS 1,453 2,530 3,167 6,099 653 1,930 3,167 6,099
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) $1,406 $2,598 $3,665 $5,977 $606 $1,798 $2,965 $5,777 RAVA ADVANTAGE PLUS - BAND 3 With a seven-year surrender charge schedule 1,306 2,498 3,465 5,777 606 1,798 2,965 5,777 RAVA SELECT PLUS - BAND 3 1,328 2,559 3,059 5,927 628 1,859 3,059 5,927 RAVA SELECT PLUS - TEXAS - BAND 3 1,428 2,459 3,059 5,927 628 1,859 3,059 5,927
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 13 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 AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED 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) $953 $1,274 $1,518 $1,988 $153 $474 $818 $1,788 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 853 1,174 1,318 1,788 153 474 818 1,788 RAVA SELECT PLUS 880 1,256 957 2,078 180 556 957 2,078 RAVA SELECT PLUS - TEXAS 980 1,156 957 2,078 180 556 957 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: 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) $932 $1,211 $1,411 $1,763 $132 $411 $711 $1,563 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 832 1,111 1,211 1,563 132 411 711 1,563 RAVA SELECT PLUS 859 1,194 852 1,858 159 494 852 1,858 RAVA SELECT PLUS - TEXAS 959 1,094 852 1,858 159 494 852 1,858
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) $912 $1,148 $1,303 $1,533 $112 $348 $603 $1,333 RAVA ADVANTAGE PLUS - BAND 3 With a seven-year surrender charge schedule 812 1,048 1,103 1,333 112 348 603 1,333 RAVA SELECT PLUS - BAND 3 833 1,115 718 1,578 133 415 718 1,578 RAVA SELECT PLUS - TEXAS - BAND 3 933 1,015 718 1,578 133 415 718 1,578
(1) In these examples, the contract administrative charge is approximated as a .019% charge for RAVA Advantage Plus, a .032% charge for RAVA Select Plus, a .032% for RAVA Select Plus - Texas, a .019% charge for RAVA Advantage Plus - Band 3, a .032% charge for RAVA Select Plus - Band 3 and a .032% charge for RAVA Select Plus - Texas - Band 3. These percentages were determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to each contract by the total average net assets that are attributable to that contract. (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. 14 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS CONDENSED FINANCIAL INFORMATION (Unaudited) You can find unaudited condensed financial information for the subaccounts in Appendix D. 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 subaccounts with financial history in the SAI. The SAI does not include audited financial statements for subaccounts 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 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 15 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 Asset Allocation 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, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. 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 2007. 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. - 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. 16 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - 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 PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 17 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 AIM V.I. Capital Growth of capital. Invests principally in common Invesco Aim Advisors, Inc. adviser, Appreciation Fund, Series II stocks of companies likely to benefit from new advisory entities affiliated with Shares or innovative products, services or processes as Invesco Aim Advisors, Inc., well as those with above-average long-term subadvisers. growth and excellent prospects for future growth. The Fund can invest up to 25% of its total assets in foreign securities that involve risks not associated with investing solely in the United States. AIM V.I. Capital Development Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Fund, Series II Shares in securities (including common stocks, advisory entities affiliated with convertible securities and bonds) of small- and Invesco Aim Advisors, Inc., medium-sized companies. The Fund may invest up subadvisers. to 25% of its total assets in foreign securities. AIM V.I. Financial Services Capital growth. Actively managed. Invests at Invesco Aim Advisors, Inc. adviser, Fund, Series I Shares least 80% of its net assets in the equity advisory entities affiliated with securities and equity-related instruments of Invesco Aim Advisors, Inc., companies involved in the financial services subadvisers. sector. These companies include, but are not limited to, banks, insurance companies, investment and miscellaneous industries (asset managers, brokerage firms, and government-sponsored agencies and suppliers to financial services companies). AIM V.I. Global Health Care Capital growth. The fund seeks to meet its Invesco Aim Advisors, Inc. adviser, Fund, Series II Shares objective by investing, normally, at least 80% advisory entities affiliated with of its assets in securities of health care Invesco Aim Advisors, Inc., industry companies. The Fund may invest up to subadvisers. 20% of its total assets in companies located in developing countries, i.e., those countries that are in the initial stages of their industrial cycles. The Fund may also invest up to 5% of its total assets in lower-quality debt securities, i.e., junk bonds. AIM V.I. International Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Growth Fund, Series II in a diversified portfolio of international advisory entities affiliated with Shares equity securities, whose issuers are considered Invesco Aim Advisors, Inc., to have strong earnings momentum. The Fund may subadvisers. invest up to 20% of its total assets in security issuers located in developing countries and in securities exchangeable for or convertible into equity securities of foreign companies. AIM V.I. Technology Fund, Capital growth. The Fund is actively managed. Invesco Aim Advisors, Inc. adviser, Series I Shares Invests at least 80% of its net assets in equity advisory entities affiliated with securities and equity-related instruments of Invesco Aim Advisors, Inc., companies engaged in technology-related subadvisers. industries. These include, but are not limited to, various applied technologies, hardware, software, semiconductors, telecommunications equipment and services, and service-related companies in information technology. Many of these products and services are subject to rapid obsolescence, which may lower the market value of securities of the companies in this sector.
18 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER AllianceBernstein VPS Global Long-term growth of capital. The Fund invests at AllianceBernstein L.P. Technology Portfolio (Class least 80% of its net assets in securities of B) companies that use technology extensively in the development of new or improved products or processes. Invests in a global portfolio of securities of U.S. and foreign companies selected for their growth potential. AllianceBernstein VPS Growth Long-term growth of capital. Invests primarily AllianceBernstein L.P. and Income Portfolio (Class in the equity securities of domestic companies B) that the Advisor deems to be undervalued. AllianceBernstein VPS Long-term growth of capital. Invests primarily AllianceBernstein L.P. International Value in a diversified portfolio of equity securities Portfolio (Class B) of established companies selected from more than 40 industries and from more than 40 developed and emerging market countries. American Century VP Capital growth. Invests primarily in stocks of American Century Global Investment International, Class II growing foreign companies in developed Management, Inc. countries. American Century VP Mid Cap Long-term capital growth with income as a American Century Investment Management, Value, Class II secondary objective. Long-term capital growth Inc. with income as secondary objective. Invests primarily in stocks of companies that management believes are undervalued at the time of purchase. The fund will invest at least 80% of its assets in securities of companies whose market capitalization at the time of purchase is within the capitalization range of the Russell 3000 Index, excluding the largest 100 such companies. American Century VP Long-term capital growth. Analytical research American Century Investment Management, Ultra(R), Class II tools and techniques are used to identify the Inc. stocks of larger-sized companies that appear to have the best opportunity of sustaining long-term above average growth. American Century VP Value, Long-term capital growth, with income as a American Century Investment Management, Class II secondary objective. Invests primarily in stocks Inc. of companies that management believes to be undervalued at the time of purchase. Calvert Variable Series, Competitive total return through actively Calvert Asset Management Company, Inc., Inc. Social Balanced managed portfolio of stocks, bonds and money adviser. SSgA Funds Management, Inc. Portfolio market instruments which offer income and and New Amsterdam Partners, LLP, capital growth opportunity and which satisfy subadvisers on equity portion; no Portfolio's investment and social criteria. subadviser on fixed-income portion. Typically invests about 60% of net assets in stocks (primarily common stocks of U.S. large-cap companies) and 40% in investment grade bonds and other fixed-income investments. Investments must be consistent with Portfolio's current financial and social criteria.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 19
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Columbia High Yield Fund, Total return, consisting of a high level of Columbia Management Advisors, LLC, Variable Series, Class B income and capital appreciation. Under normal advisor; MacKay Shields LLC, circumstances, the Fund invests at least 80% of subadviser. net assets in domestic and foreign corporate below investment grade debt securities. These securities generally will be, at the time of purchase, rated BB or below by Standard & Poor's Corporation (S&P) or Fitch, rated "Ba" or below by Moody's, or unrated but determined by the Advisor to be of comparable quality. The Fund invests primarily in domestic corporate below investment grade securities (including private placements), U.S. dollar-denominated foreign corporate below investment grade securities (including private placements), zero-coupon bonds and U.S. Government obligations. The Fund may invest up to 20% of net assets in equity securities that may include convertible securities. The Fund is not managed to a specific duration. Columbia Marsico Growth Long-term growth of capital. Under normal Columbia Management Advisors, LLC, Fund, Variable Series, Class circumstances, the Fund invests primarily in adviser; Marsico Capital Management, A equity securities of large-capitalization LLC, sub-adviser. companies that have market capitalizations of $5 billion or more at the time of purchase. The Fund generally holds a core position of between 35 and 50 common stocks. It may hold up to 25% of total assets in foreign securities, including in emerging market securities. Columbia Marsico Long-term growth of capital. Under normal Columbia Management Advisors, LLC, International Opportunities circumstances, the Fund invests at least 65% of adviser; Marsico Capital Management, Fund, Variable Series, Class total assets in common stocks of foreign LLC, sub-adviser. B companies. The Fund may invest in companies of any size throughout the world that are selected for their long-term growth potential. The Fund normally invests in issuers from at least three different countries not including the United States. The Fund may invest in common stocks of companies operating in or economically tied to emerging markets countries. Some issuers or securities in the Fund's portfolio may be based in or economically tied to the United States. Credit Suisse Trust - Total Return. Invests in commodity- linked Credit Suisse Asset Management, LLC Commodity Return Strategy derivative instruments backed and fixed-income Portfolio securities. The portfolio invests in commodity-linked derivative instruments, such as commodity-linked notes, swap agreements, commodity options, futures and options on futures that provide exposure to the investment returns of the commodities markets without investing directly in physical commodities. The portfolio invests all of its assets in commodity-linked derivative instruments, such as structured notes and swaps, and fixed-income securities, subject to applicable IRS limits. The portfolio may also gain exposure to commodity markets by investing in the Credit Suisse Cayman Commodity Fund II, a wholly owned subsidiary of the Portfolio formed in the Cayman Island.
20 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Eaton Vance VT Floating - High level of current income. The Fund invests Eaton Vance Management Rate Income Fund primarily in senior floating rate loans ("Senior Loans"). Senior Loans typically are of below investment grade quality and have below investment grade credit ratings, which ratings are associated with securities having high risk, speculative characteristics. The Fund invests at least 80% of its net assets in income producing floating rate loans and other floating rate debt securities. The Fund may also purchase investment grade fixed income debt securities and money market instruments. The Fund may invest up to 25% of its total assets in foreign securities and may engage in certain hedging transactions. The Fund may purchase derivative instruments, such as futures contracts and options thereon, interest rate and credit default swaps, credit linked notes and currency hedging derivatives. Evergreen VA International Long-term capital growth, with modest income as Evergreen Investment Management Equity Fund - Class 2 a secondary objective. The Fund seeks to achieve Company, LLC its goal by investing primarily in equity securities issued by established, quality non-U.S. companies located in countries with developed markets and may purchase securities across all market capitalizations. The Fund may also invest in emerging markets. Fidelity(R) VIP Long-term capital appreciation. Normally invests Fidelity Management & Research Company Contrafund(R) Portfolio primarily in common stocks. Invests in (FMR), investment manager; FMR U.K. and Service Class 2 securities of companies whose value it believes FMR Far East, sub- advisers. is not fully recognized by the public. Invests in either "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. Fidelity(R) VIP Growth & High total return through a combination of Fidelity Management & Research Company Income Portfolio Service current income and capital appreciation. (FMR), investment manager; FMR U.K., Class 2 Normally invests a majority of assets in common FMR Far East, sub- advisers. stocks with a focus on those that pay current dividends and show potential for capital appreciation. May invest in bonds, including lower-quality debt securities, as well as stocks that are not currently paying dividends, but offer prospects for future income or 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 Long-term growth of capital. Normally invests Fidelity Management & Research Company Portfolio Service Class 2 primarily in common stocks. Normally invests at (FMR), investment manager; FMR U.K., least 80% of assets in securities of companies FMR Far East, sub- advisers. 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 Long-term growth of capital. Normally invests Fidelity Management & Research Company Portfolio Service Class 2 primarily in common stocks of foreign (FMR), investment manager; FMR U.K.,FMR securities. Normally invests at least 80% of Far East, Fidelity International assets in non-U.S. securities. Investment Advisors (FIIA) and FIIA U.K., sub-advisers.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 21
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER FTVIPT Franklin Global Real High total return. The Fund normally invests at Franklin Templeton Institutional, LLC Estate Securities least 80% of its net assets in investments of Fund - Class 2 companies located anywhere in the world that operate in the real estate sector and normally invests predominantly in equity securities. FTVIPT Franklin Small Cap Long-term total return. The Fund normally Franklin Advisory Services, LLC Value Securities invests at least 80% of its net assets in Fund - Class 2 investments of small capitalization companies, and normally invests predominantly in equity securities. The Fund invests mainly in equity securities of companies that the manager believes are undervalued. FTVIPT Mutual Shares Capital appreciation, with income as a secondary Franklin Mutual Advisers, LLC Securities Fund - Class 2 goal. The Fund normally invests primarily in equity securities of companies that the manager believes are undervalued. The Fund also invests, to a lesser extent in risk arbitrage securities and distressed companies. Goldman Sachs VIT Mid Cap Long-term capital appreciation. The Fund Goldman Sachs Asset Management, L.P. Value Fund - Institutional invests, under normal circumstances, at least Shares 80% of its net assets plus any borrowings for investment purposes (measured at time of purchase) ("Net Assets") in a diversified portfolio of equity investments in mid-cap issuers with public stock market capitalizations (based upon shares available for trading on an unrestricted basis) within the range of the market capitalization of companies constituting the Russell Midcap(R) Value Index at the time of investment. If the market capitalization of a company held by the Fund moves outside this range, the Fund may, but is not required to, sell the securities. The capitalization range of the Russell Midcap(R) Value Index is currently between $1.1 billion and $21 billion. Although the Fund will invest primarily in publicly traded U.S. securities, it may invest up to 25% of its Net Assets in foreign securities, including securities of issuers in countries with emerging markets or economies ("emerging countries") and securities quoted in foreign currencies. The Fund may invest in the aggregate up to 20% of its Net Assets in companies with public stock market capitalizations outside the range of companies constituting the Russell Midcap(R) Value Index at the time of investment and in fixed-income securities, such as government, corporate and bank debt obligations.
22 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Goldman Sachs VIT Structured Long-term growth of capital and dividend income. Goldman Sachs Asset Management, L.P. U.S. Equity The Fund invests, under normal circumstances, at Fund - Institutional Shares least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) ("Net Assets") in a diversified portfolio of equity investments in U.S. issuers, including foreign companies that are traded in the United States. However, it is currently anticipated that, under normal circumstances, the Fund will invest at least 95% of its Net Assets in such equity investments. The Fund's investments are selected using a variety of quantitative techniques, derived from fundamental research including but not limited to valuation, momentum, profitability and earnings quality, in seeking to maximize the Fund's expected returns. The Fund maintains risk, style, capitalization and industry characteristics similar to the S&P 500 Index. The S&P 500 Index is an index of large-cap stocks designed to reflect a broad representation of the U.S. economy. The Fund seeks to maximize expected return while maintaining these and other characteristics similar to the benchmark. The Fund is not required to limit its investments to securities in the S&P 500 Index. Janus Aspen Series Large Cap Long-term growth of capital in a manner Janus Capital Management LLC Growth Portfolio: Service consistent with the preservation of capital. Shares Invests under normal circumstances at least 80% of its net assets in common stocks of large-sized companies. Large-sized companies are those whose market capitalization falls within the range of companies in the Russell 1000(R) Index at the time of purchase. Lazard Retirement Long-term capital appreciation. Invests Lazard Asset Management, LLC International Equity primarily in equity securities, principally Portfolio - Service Shares common stocks, of relatively large non-U.S. companies with market capitalizations in the range of the Morgan Stanley Capital International (MSCI) Europe, Australia and Far East (EAFE(R)) Index that the Investment Manager believes are undervalued based on their earnings, cash flow or asset values. Legg Mason Partners Variable Long-term growth of capital. Under normal Legg Mason Partners Fund Advisor, LLC, Small Cap Growth Portfolio, circumstances, the fund invests at least 80% of adviser; ClearBridge Advisors, LLC, Class I its net assets in equity securities of companies sub-adviser. with small market capitalizations and related investments. MFS(R) Investors Growth Capital appreciation. Normally invests at least MFS Investment Management(R) Stock Series - Service Class 80% of the fund's net assets in equity securities of companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). Growth companies tend to have stock prices that are high relative to their earnings, dividends, book value, or other financial measures. The Fund generally focuses on companies with large capitalizations.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 23
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER MFS(R) New Discovery Capital appreciation. Invests in stocks of MFS Investment Management(R) Series - Service Class companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). Growth companies tend to have stock prices that are high relative to their earnings, dividends, book value, or other financial measures. The Fund generally focuses on companies with small capitalizations. MFS(R) Total Return Total return. Invests primarily in equity and MFS Investment Management(R) Series - Service Class fixed income securities. MFS invests between 40% and 75% of the fund's net assets in equity securities and at least 25% of the fund's total assets in fixed-income senior securities. MFS(R) Utilities Series - Total return. Normally invests at least 80% of MFS Investment Management(R) Service Class the fund's net assets in securities of issuers in the utilities industry. The Fund's assets may be invested in companies of any size. Neuberger Berman Advisers Long-term growth of capital. The Fund invests Neuberger Berman Management Inc. Management Trust mainly in foreign companies of any size, International Portfolio including companies in developed and emerging (Class S) industrialized markets. The Fund defines a foreign company as one that is organized outside of the United States and conducts the majority of its business abroad. The Fund seeks to reduce risk by diversifying among many industries. Although it has the flexibility to invest a significant portion of its assets in one country or region, it generally intends to remain well- diversified across countries and geographical regions. Oppenheimer Global Long-term capital appreciation. Invests mainly OppenheimerFunds, Inc. Securities Fund/VA, Service in common stocks of U.S. and foreign issuers Shares that are "growth-type" companies, cyclical industries and special situations that are considered to have appreciation possibilities. Oppenheimer Main Street Capital appreciation. Invests mainly in common OppenheimerFunds, Inc. Small Cap Fund/VA, Service stocks of small-capitalization U.S. companies Shares that the fund's investment manager believes have favorable business trends or prospects. Oppenheimer Strategic Bond High level of current income principally derived OppenheimerFunds, Inc. Fund/VA, Service Shares from interest on debt securities. Invests mainly in three market sectors: debt securities of foreign governments and companies, U.S. government securities and lower-rated high yield securities of U.S. and foreign companies.
24 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER PIMCO VIT All Asset Maximum real return consistent with preservation Pacific Investment Management Company Portfolio, Advisor Share of real capital and prudent investment LLC Class management period. The Portfolio seeks to achieve its investment objective by investing under normal circumstances substantially all of its assets in Institutional Class shares of the PIMCO Funds, an affiliated open-end investment company, except the All Asset and All Asset All Authority Funds ("Underlying Funds"). Though it is anticipated that the Portfolio will not currently invest in the European StockPLUS(R) TR Strategy, Far East (ex-Japan) StocksPLUS(R) TR Strategy, Japanese StocksPLUS(R) TR Strategy, StocksPLUS(R) Municipal-Backed and StocksPLUS(R) TR Short Strategy Funds, the Portfolio may invest in these Funds in the future, without shareholder approval, at the discretion of the Portfolio's asset allocation sub-adviser. Putnam VT Health Sciences Capital appreciation. The fund pursues its goal Putnam Investment Management, LLC Fund - Class IB Shares by investing mainly in common stocks of companies in the health sciences industries, with a focus on growth stocks. Under normal circumstances, the fund invests at least 80% of its net assets in securities of (a) companies that derive at least 50% of their assets, revenues or profits from the pharmaceutical, health care services, applied research and development and medical equipment and supplies industries, or (b) companies Putnam Management thinks have the potential for growth as a result of their particular products, technology, patents or other market advantages in the health sciences industries. Putnam VT International Capital appreciation. The fund pursues its goal Putnam Investment Management, LLC Equity Fund - Class IB by investing mainly in common stocks of Shares companies outside the United States that Putnam Management believes have favorable investment potential. Under normal circumstances, the fund invests at least 80% of its net assets in equity investments. Putnam VT Vista Fund - Class Capital appreciation. The fund pursues its goal Putnam Investment Management, LLC IB Shares by investing mainly in common stocks of U.S. companies, with a focus on growth stocks. RVST Disciplined Asset High level of total return that is consistent RiverSource Investments, LLC Allocation Portfolios - with an aggressive level of risk. The Fund Aggressive invests primarily in equity securities and also invests the small amount in fixed income securities. The Fund may be most appropriate for investors with a longer term investment horizon. The Fund is intended for investors who have an objective of achieving a high level of total return, but prefer to have investment decisions managed by professional money managers. 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.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 25
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST Disciplined Asset The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a conservative level of risk. Conservative The Fund invests primarily in fixed income securities and may be most appropriate for investors with a shorter term investment horizon. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate level of risk. The Moderate Fund invests in a balance of fixed income and equity securities and may be most appropriate for investors with an intermediate term investment horizon. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate aggressive level of Moderately Aggressive risk. The Fund invests primarily in equity securities and also invests a moderate amount in fixed income securities. The Fund may be most appropriate for investors with an intermediate-to-long term investment horizon. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate conservative level of Moderately Conservative risk. The Fund invests primarily in fixed income securities and also invests a moderate amount in equity securities. The Fund may be most appropriate for investors with a short-to-intermediate term investment horizon. 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.
26 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Partners Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Variable primarily invested in equity securities of U.S. Davis Selected Advisers, L.P., Portfolio - Fundamental companies. Under normal market conditions, the subadviser. Value Fund Fund's assets will be invested primarily in companies with market capitalizations of at (previously RiverSource least $5 billion at the time of the Fund's Variable Portfolio - investment. The Fund may invest up to 25% of its Fundamental Value Fund) net assets in foreign investments. RVST RiverSource Partners Long-term growth of capital. Invests primarily RiverSource Investments, LLC, adviser; Variable Portfolio - Select in equity securities of mid cap companies as Systematic Financial Management, L.P. Value Fund well as companies with larger and smaller market and WEDGE Capital Management L.L.P., capitalizations. The Fund considers mid-cap sub- advisers. (previously RiverSource companies to be either those with a market Variable Portfolio - Select capitalization of up to $15 billion or those Value Fund) whose market capitalization falls within range of the Russell Midcap(R) Value Index. RVST RiverSource Partners Long-term capital appreciation. Under normal RiverSource Investments, LLC, adviser; Variable Portfolio - Small market conditions, at least 80% of the Fund's River Road Asset Management, LLC, Cap Value Fund net assets will be invested in small cap Donald Smith & Co., Inc., Franklin companies with market capitalization, at the Portfolio Associates LLC, Barrow, (previously RiverSource time of investment, of up to $2.5 billion or Hanley, Mewhinney & Strauss, Inc. and Variable Portfolio - Small that fall within the range of the Russell Denver Investment Advisors LLC, Cap Value Fund) 2000(R) Value Index. The Fund may invest up to subadvisers. 25% of its net assets in foreign investments. RVST RiverSource Variable Maximum total investment return through a RiverSource Investments, LLC Portfolio - Balanced Fund combination of capital growth and current income. Invests primarily in a combination of common and preferred stocks, bonds and other debt securities. Under normal market conditions, at least 50% of the Fund's total assets are invested in common stocks and no less than 25% of the Fund's total assets are invested in debt securities. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Maximum current income consistent with liquidity RiverSource Investments, LLC Portfolio - Cash Management and stability of principal. Invests primarily in Fund money market instruments, such as marketable debt obligations issued by corporations or the U.S. government or its agencies, bank certificates of deposit, bankers' acceptances, letters of credit, and commercial paper, including asset-backed commercial paper.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 27
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable High level of current income while attempting to RiverSource Investments, LLC Portfolio - Diversified Bond conserve the value of the investment for the Fund longest period of time. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and other debt securities. At least 50% of the Fund's net assets will be invested in securities like those included in the Lehman Brothers Aggregate Bond Index (Index), which are investment grade and denominated in U.S. dollars. The Index includes securities issued by the U.S. government, corporate bonds, and mortgage- and asset-backed securities. Although the Fund emphasizes high- and medium-quality debt securities, it will assume some credit risk to achieve higher yield and/or capital appreciation by buying lower-quality (junk) bonds. The Fund may invest up to 25% of its net assets in foreign investments, which may include instruments in emerging markets. RVST RiverSource Variable High level of current income and, as a secondary RiverSource Investments, LLC Portfolio - Diversified goal, steady growth of capital. Under normal Equity Income Fund market conditions, the Fund invests at least 80% of its net assets in dividend- paying common and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable High total return through income and growth of RiverSource Investments, LLC Portfolio - Global Bond Fund capital. Non-diversified mutual fund that invests primarily in debt obligations of U.S. and foreign issuers. Under normal market conditions, the Fund invests at least 80% of its net assets in investment-grade corporate or government debt obligations including money market instruments of issuers located in at least three different countries. RVST RiverSource Variable Total return that exceeds the rate of inflation RiverSource Investments, LLC Portfolio - Global Inflation over the long-term. Non-diversified mutual fund Protected Securities Fund that, under normal market conditions, invests at least 80% of its net assets in inflation-protected debt securities. These securities include inflation-indexed bonds of varying maturities issued by U.S. and foreign governments, their agencies or instrumentalities, and corporations. RVST RiverSource Variable Long-term capital growth. Invests primarily in RiverSource Investments, LLC Portfolio - Growth Fund common stocks and securities convertible into common stocks that appear to offer growth opportunities. These growth opportunities could result from new management, market developments, or technological superiority. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable High current income, with capital growth as a RiverSource Investments, LLC Portfolio - High Yield Bond secondary objective. Under normal market Fund conditions, the Fund invests at least 80% of its net assets in high-yield debt instruments (commonly referred to as "junk") including corporate debt securities as well as bank loans rated below investment grade by a nationally recognized statistical rating organization, or if unrated, determined to be of comparable quality. Up to 25% of the Fund may be invested in high yield debt instruments of foreign issuers.
28 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable High total return through current income and RiverSource Investments, LLC Portfolio - Income capital appreciation. Under normal market Opportunities Fund conditions, the Fund invests primarily in income-producing debt securities with an emphasis on the higher rated segment of the high-yield (junk bond) market. These income-producing debt securities include corporate debt securities as well as bank loans. The Fund will purchase only securities rated B or above, or unrated securities believed to be of the same quality. If a security falls below a B rating, the Fund may continue to hold the security. Up to 25% of the Fund may be in foreign investments. RVST RiverSource Variable Capital appreciation. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Equity conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with market capitalization greater than $5 billion at the time of purchase. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Long-term growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Value conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with a market capitalization greater than $5 billion. The Fund may also invest in income-producing equity securities and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Mid Cap Growth conditions, the Fund invests at least 80% of its Fund net assets at the time of purchase in equity securities of mid capitalization companies. The investment manager defines mid-cap companies as those whose market capitalization (number of shares outstanding multiplied by the share price) falls within the range of the Russell Midcap(R) Growth Index. RVST RiverSource Variable Long-term growth of capital. Under normal RiverSource Investments, LLC Portfolio - Mid Cap Value circumstances, the Fund invests at least 80% of Fund its net assets (including the amount of any borrowings for investment purposes) in equity securities of medium-sized companies. Medium- sized companies are those whose market capitalizations at the time of purchase fall within the range of the Russell Midcap(R) Value Index. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Long-term capital appreciation. The Fund seeks RiverSource Investments, LLC Portfolio - S&P 500 Index to provide investment results that correspond to Fund the total return (the combination of appreciation and income) of large- capitalization stocks of U.S. companies. The Fund invests in common stocks included in the Standard & Poor's 500 Composite Stock Price Index (S&P 500). The S&P 500 is made up primarily of large-capitalization companies that represent a broad spectrum of the U.S. economy.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 29
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable High level of current income and safety of RiverSource Investments, LLC Portfolio - Short Duration principal consistent with investment in U.S. U.S. Government Fund government and government agency securities. Under normal market conditions, at least 80% of the Fund's net assets are invested in securities issued or guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities. RVST RiverSource Variable Long-term capital growth. Under normal market RiverSource Investments, LLC, adviser; Portfolio - Small Cap conditions, at least 80% of the Fund's net Kenwood Capital Management LLC, Advantage Fund assets are invested in equity securities of sub-adviser. companies with market capitalization of up to $2 billion or that fall within the range of the Russell 2000(R) Index at the time of investment. RVST Threadneedle Variable Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Portfolio - Emerging Markets primarily invested in equity securities of Threadneedle International Limited, an Fund emerging market companies. Under normal market indirect wholly-owned subsidiary of conditions, at least 80% of the Fund's net Ameriprise Financial, sub-adviser. (previously RiverSource assets will be invested in securities of Variable Portfolio - companies that are located in emerging market Emerging Markets Fund) countries, or that earn 50% or more of their total revenues from goods and services produced in emerging market countries or from sales made in emerging market countries. RVST Threadneedle Variable Capital appreciation. Invests primarily in RiverSource Investments, LLC, adviser; Portfolio - International equity securities of foreign issuers that are Threadneedle International Limited, an Opportunity Fund believed to offer strong growth potential. The indirect wholly-owned subsidiary of Fund may invest in developed and in emerging Ameriprise Financial, sub-adviser. (previously RiverSource markets. Variable Portfolio - International Opportunity Fund) Van Kampen Life Investment Capital growth and income through investments in Van Kampen Asset Management Trust Comstock Portfolio, equity securities, including common stocks, Class II Shares preferred stocks and securities convertible into common and preferred stocks. The Portfolio emphasizes value style of investing seeking well-established, undervalued companies believed by the Portfolio's investment adviser to posses the potential for capital growth and income. Van Kampen UIF Global Real Current income and capital appreciation. Invests Morgan Stanley Investment Management Estate Portfolio, Class II primarily in equity securities of companies in Inc., doing business as Van Kampen, Shares the real estate industry located throughout the adviser; Morgan Stanley Investment world, including real estate operating Management Limited and Morgan Stanley companies, real estate investment trusts and Investment Management Company, similar entities established outside the U.S. sub-advisers. (foreign real estate companies). Van Kampen UIF Mid Cap Long-term capital growth. Invests primarily in Morgan Stanley Investment Management Growth Portfolio, Class II growth- oriented equity securities of U.S. mid Inc., doing business as Van Kampen. Shares cap companies and foreign companies, including emerging market securities.
30 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Wanger International Small Long-term growth of capital. Invests primary in Columbia Wanger Asset Management, L.P. Cap stocks of companies based outside the U.S. with market capitalizations of less than $5 billion Effective June 1, 2008, the at time of initial purchase. Fund will change its name to Wanger International. Effective June 1, 2008: Long-term growth of capital. Under normal market circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion. Wanger U.S. Smaller Long-term growth of capital. Invests primarily Columbia Wanger Asset Management, L.P. Companies in stocks of small- and medium-size U.S. companies with market capitalizations of less Effective June 1, 2008, the than $5 billion at time of initial purchase. Fund will change its name to Wanger USA. Effective June 1, 2008: Long-term growth of capital. Under normal market circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion. Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Opportunity Fund principally in equity securities of adviser; Wells Capital Management medium-capitalization companies, defined as Incorporated, sub-adviser. those within the range of market capitalizations of companies in the Russell Midcap(R) Index. We reserve the right to hedge the portfolio's foreign currency exposure by purchasing or selling currency futures and foreign currency forward contracts. However, under normal circumstances, we will not engage in extensive foreign currency hedging.
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 31
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Small Cap Growth Fund principally in equity securities of adviser; Wells Capital Management small-capitalization companies that we believe Incorporated, sub-adviser. have above-average growth potential. We define small-capitalization companies as those with market capitalizations at the time of purchase of less than $2 billion.
GUARANTEE PERIOD ACCOUNTS (GPAS) The GPAs may not be available for contracts in some states. GPAs are not available if either the Withdrawal Benefit, Accumulation Benefit or PN rider is selected. Currently, unless an asset allocation 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. (Exception: if a model portfolio includes one or more GPAs, the required minimum does not apply.) 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 we have established under the Minnesota Insurance Code. 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. 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. 32 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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; - - amounts surrendered from the GPA within 30 days prior to the end of the Guarantee Period; - - automatic rebalancing under any asset allocation model portfolio which includes one or more GPAs. However, an MVA will apply if you reallocate to a new asset allocation model portfolio; and - - amounts applied to an annuity payout plan while an asset allocation model including one or more GPAs in in effect. 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 an asset allocation 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. 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 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 33 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. When we process your application, we will establish the settlement date as the maximum age (or contract anniversary, if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities. You can also select a date within the maximum limits. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - - no earlier than the 60th day after the contract's effective date; and - - no later than the annuitant's 85th birthday or the tenth contract anniversary, if purchased after age 75, or a date that has been otherwise agreed to by us. 34 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - - for IRAs, by April 1 of the year following the calendar year when you reach age 70 1/2; or - - for all other qualified annuities, by April 1 of the year following the calendar year when you reach age 70 1/2, or, if later, retire (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 85th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs or TSAs, and in that case, may delay the annuity payout start date 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 also reserve the right to limit the cumulative amount of purchase payments for contracts with the Withdrawal Benefit rider, 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 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 35 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. 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.") 36 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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.* The amount we pay to you under these circumstances will always equal or exceed your surrender value. 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 law limitations, 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. 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; RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 37 - - 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. 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. 38 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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 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
* 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. 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. 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 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 39 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; - - required minimum distributions from a qualified annuity provided the amount is 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 the prior 60 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). 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 fee 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 fee. Currently, the Accumulation Benefit rider charge does not vary with the model portfolio selected; however, we reserve the right to increase this charge and/or charge a separate rider fee for each model portfolio. The Accumulation Benefit rider fee will not exceed a maximum charge of 2.50%. 40 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS We will not change the Accumulation Benefit rider charge after the rider effective date unless: (a) you choose the annual Elective Step up after we have exercised our rights to increase the rider charge; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you change your model portfolio after we have exercised our rights to increase the rider charge; (d) you change your model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. If you elect to change your model portfolio 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, the increase in fees we charge for this rider will become effective on the contract anniversary following your change of model portfolio. Any model portfolio changes on the contract anniversary will have the new charge effective on that contract anniversary. Also, in the event you change your model portfolio twice in the same contract year (see "Asset Allocation Program" and "Portfolio Navigator Asset Allocation Program"), the fee we charge for this rider will be the greatest fee applicable to any model portfolio 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 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 model portfolio. 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 select a model portfolio with this rider (see "Portfolio Navigator Asset Allocation 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 select a model portfolio with this rider (see "Asset Allocation Program" and "Portfolio Navigator Asset Allocation 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. 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 after we have exercised our rights to increase the rider charge; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you change your model portfolio after we have exercised our rights to increase the rider charge; (d) you change your model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. We reserve the right to charge a fee that varies by the model portfolio selected. If you elect the spousal continuation step up or to change your model portfolio 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, 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 charge effective on that contract anniversary. Also, in the event you make more than one change in the same contract year, the fee we charge 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 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 41 ROPP RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.20% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee 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 fee 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 0.30%. If the contract is terminated for any reason, we will deduct the charge 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 fee of 0.25% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee 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 fee 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 0.35%. If the contract is terminated for any reason, we will deduct the charge 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 fee of 0.10% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee 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 fee 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 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. EEB RIDER FEE We charge a fee for this optional feature only if you select it.(4) 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, less amounts invested in the GPAs and 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. 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 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 fee 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 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 fee 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 0.50%. 42 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS If the contract is terminated for any reason, we will deduct the charge 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 We charge a fee for this optional feature only if you select it.(6) This fee covers our internal administrative costs for providing this service. A portion of this fee is paid to an unaffiliated third party service provider for the design and maintenance of the program (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program"). If selected, we deduct an annual fee of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and the fixed account less any excluded accounts in the same proportion your interest in each account bears to your total contract value, less any excluded accounts (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program"). The fee will only be deducted from the subaccounts in Washington. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If we allow you to add the rider other than on a contract anniversary, we reserve the right to adjust the rider fee for the number of calendar days coverage was in place. If the rider terminates for any reason other than on a contract anniversary, we reserve the right to deduct this fee at that time and adjust it for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary, we will deduct this fee on that anniversary. This fee does not apply after annuity payouts begin. (6) We do not charge this fee and you may not discontinue your participation if you are required to participate in the PN program because you purchased an optional Accumulation Benefit or Withdrawal Benefit rider. 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; - - plus or minus any applicable MVA; and/or - - minus any remaining portion of fees where the values of the fixed account and the subaccounts are insufficient to cover those fees. 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; - - 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); RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 43 - - 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 Withdrawal Benefit rider fee (if selected)*; and - - minus any prorated portion of the PN 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 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. 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 ROPP rider fee (if selected); - - a prorated portion of the MAV rider fee (if selected); - - a prorated portion of the 5-Year MAV rider fee (if selected); - - a prorated portion of the EEB rider fee (if selected); 44 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - - a prorated portion of the EEP rider fee (if selected); - - a prorated portion of the Accumulation Benefit rider fee (if selected); - - a prorated portion of the Withdrawal Benefit rider fee (if selected); and/or - - a prorated portion of the PN rider fee (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 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 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 more units when the per unit market price is low .... ARROW Mar 100 17 5.88 Apr 100 15 6.67 May 100 16 6.25 June 100 18 5.56 July 100 17 5.88 and fewer units when the per unit market price is high. Aug 100 19 5.26 Sept 100 21 4.76 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 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 45 - - 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 an asset allocation program is in effect, and the 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 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. - - 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 are 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 an asset allocation program is in effect when you elect to end your participation in the Special DCA program, and the asset allocation program does not end at the same time, we will transfer the remaining balance to the model portfolio which is in effect). - - 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 Asset Allocation Program" below). ASSET ALLOCATION PROGRAM 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. 46 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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. PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM The Portfolio Navigator Asset Allocation Program (PN program) described in this section replaces the previously offered asset allocation program described above for owners of all contracts purchased on or after Nov. 1, 2005 and for contract owners who choose to move from the previously offered asset allocation program to the PN program or who add the PN program on or after Nov. 1, 2005. The PN program is available for nonqualified annuities and for qualified annuities except under 401(k) and 401(a) plans. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include the fixed account and certain GPAs (if available under the PN program) that represent various asset classes (allocation options). The PN program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You are required to participate in the PN program if your contract includes an optional Accumulation Benefit rider or Withdrawal Benefit rider. If your contract does not include one of these riders, you also may participate in the PN program by purchasing a separate optional rider for an RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 47 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. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, LLC, an affiliate of ours, serves as non-discretionary investment adviser for the PN program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides 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 Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at or before the time they enroll in the PN program. Currently, the PN program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. 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, 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 identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates 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 conflict 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 CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included 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, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options 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, recommend certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may include, but not be limited to, a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's 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 48 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we 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.") Therefore, we may have 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 or certain GPAs than from other allocation options. We therefore may have 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 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. PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which model portfolio is best for you. Your sales representative can help you make this determination. In addition, your sales representative may provide you with a 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 questionnaire can help you determine which model portfolio most closely matches your investing style. While the scoring of the questionnaire is objective, there is no guarantee that your responses to the questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the asset mix reflected in the model portfolio you select after completing the questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. 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 PN program, you instruct 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. By participating in the PN program, 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 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 PN program, we will make monthly transfers in accordance with your instructions from the Special DCA account (and subaccounts we may choose to allow for DCA arrangements which are not part of a model portfolio -- "excluded accounts") into the model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value, less amounts allocated to the Special DCA account, is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value, less amounts allocated to the Special DCA account, according to the updated model portfolio. If you do not want your contract value, less amounts allocated to the Special DCA account, to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. However, if your contract RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 49 includes an optional Accumulation Benefit or Withdrawal Benefit rider and you make such change (other than a scheduled periodic reallocation), we may charge you a higher fee for your optional Accumulation Benefit or Withdrawal Benefit rider. 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 models based on the amount of your initial purchase payment we accept; - - cancel required participation in the program after 30 days written notice; - - substitute a fund of funds for your current 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. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN program, we would either have to find a replacement investment adviser or terminate the PN program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). 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 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. 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 and periodic updating 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 or periodic updating 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. 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. There is no additional charge for the PN program when used with either of these optional riders. - - 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 model portfolios. The Accumulation Benefit rider automatically ends at the end of the waiting period as does your participation in the PN program. At all other times, if you do not want to participate in 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 END OF WAITING PERIOD. - - WITHDRAWAL BENEFIT RIDER: 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 do not want to participate in any of the model 50 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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 RIDER If you do not select the optional Accumulation Benefit rider or the optional Withdrawal Benefit rider with your contract, you may elect to participate in the PN program by adding the optional Portfolio Navigator Model Portfolio Rider (PN rider) to your contract for an additional charge (see "Charges"). Unless we agree otherwise, you may only add the PN rider at contract issue. You may cancel your participation in the PN program at any time by giving us written notice. However, you cannot elect to participate in the PN program again until the next contract anniversary unless we agree otherwise. If you terminate the PN rider other than on a contract anniversary, we reserve the right to deduct the PN rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Similarly, if we discontinue the PN program, we reserve the right to deduct the PN program rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Upon cancellation, automated rebalancing associated with the PN program will end, and there will be no additional charges for the PN rider. You will also cancel the PN rider if you initiate transfers other than transfers to one of the current model portfolios or transfers from a Special DCA account (see "Special Dollar-Cost Averaging (Special DCA) Program") or an excluded account. Partial surrenders do not cancel the PN rider. Your participation in the PN rider will terminate on the date you make a full surrender from your contract or on your settlement date. TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while a PN model portfolio 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 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 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 law limitations, 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 51 - - 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 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. 52 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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. - - 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 53 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. - - 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 a PN program is in effect, you are not allowed to set up automated transfers except in connection with a Special DCA account. MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the fixed account) 3 BY TELEPHONE Call between 7 a.m. and 7 p.m. Central time: (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 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 54 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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"). 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, 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 1BY 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. 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 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. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. 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; RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 55 - you severed employment with the employer who purchased the contract; - the distribution is because of your death; - effective Jan. 1, 2009, the distribution is due to plan termination; or - effective Jan. 1, 2009, 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 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 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 a pro rata portion of rider fees; or - - purchase payments minus adjusted partial surrenders. 56 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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 a pro rata portion of rider fees. PS X DB ADJUSTED PARTIAL SURRENDERS = ------------ 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. 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 ------------------ = -1,667 $18,000 ------- 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. 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 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 a pro rata portion of rider fees; 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 a pro rata portion of rider fees. 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 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 a pro rata portion of rider fees; or - purchase payments minus adjusted partial surrenders. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 57 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 a pro rata portion of rider fees. 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 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. - - 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 directly deposited into a checking account. OPTIONAL BENEFITS 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 a pro rata portion of rider fees; or - - purchase payments minus adjusted partial surrenders. PS X DB ADJUSTED PARTIAL SURRENDERS FOR THE ROPP DEATH BENEFIT = ------------ 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. If you terminate the ROPP, the standard death benefit applies. For an example, see Appendix C. IF YOUR SPOUSE IS THE SOLE BENEFICIARY AND 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 58 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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 a pro rata portion of rider fees; 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 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 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 59 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 a pro rata portion of rider fees; 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 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. 60 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 61 - - 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 ON THE RIDER EFFECTIVE DATE, ADD . . . CONTRACT YEAR 1 Zero 2 40% x earnings at death (see above) 3 & 4 40% x (earnings at death + 25% of exchange purchase payment*) 5+ 15% x (earnings at death + 50% of exchange IF YOU ARE AGE 70 OR OLDER ON THE RIDER EFFECTIVE DATE, ADD . . . CONTRACT YEAR 1 Zero 2 15% x earnings at death 3 & 4 15% x (earnings at death + 25% of exchange purchase payment*) 5+ 40% x (earnings at death + 50% of exchange purchase payment*)
* 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. 62 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - - 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 elect one of the model portfolios. This requirement limits your choice of subaccounts, fixed account and GPAs (if available) to those that are in the model portfolio you select. 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, when available (see "The Special DCA Account"), and we will make monthly transfers into the model portfolio you have chosen. (See "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation 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 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 63 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 model portfolio 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 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. 64 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 65 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 model portfolio, the rider charge may change (see "Charges"). WITHDRAWAL BENEFIT IS SUBJECT TO CERTAIN RESTRICTIONS AND LIMITATIONS DESCRIBED BELOW: - - USE OF ASSET ALLOCATION PROGRAM REQUIRED: You must participate in the Portfolio Navigator program with this rider (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program"). The Portfolio Navigator program limits your choice of subaccounts and fixed account to those that are in the model portfolio you select. 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 you have chosen. (See "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation 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. - - 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 before age 59 1/2 may incur a 10% IRS early withdrawal penalty and may be considered taxable income; - - 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. 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, 66 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - 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). - - 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; RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 67 (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. 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. 68 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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. - - 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 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 69 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 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. 70 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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, plus or minus any applicable MVA on GPAs 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; - - your 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." 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 your age and, when applicable, your 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 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 71 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 72 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 the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum 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 federal income tax until there is a distribution from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a 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. 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, 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 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 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. 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. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 73 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. 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 to you like a surrender 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 are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. In addition, a new tax regulation, effective for RMDs calculated in 2006 and after, may cause the RMDs for some contracts with certain death benefits and optional riders to increase. RMDs may reduce the value of certain death benefits and optional benefits. 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. 74 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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; In the below situations, the distribution is subject to an optional 10% 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. Payments made to a surviving spouse instead of being directly rolled over to an IRA are subject to mandatory 20% income tax withholding. 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. 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 taxed to us, and therefore no charge is made against the RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 75 subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. 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. 76 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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. 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 ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 77 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 for the year ended Dec. 31, 2007 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. 78 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 79 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 + 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. 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 80 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 81 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 $120,000.00 $80,000.00 Contract Value at time of full surrender: 115,000.00 85,000.00 Contract Value on prior 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: 20,000.00 0.00 Earnings in the contract: 11,500.00 8,500.00 10% of the prior anniversary's contract value: ----------- ---------- 20,000.00 8,500.00 Total Free Amount: STEP 2. We determine the TFA that is from Purchase Payments: 20,000.00 8,500.00 Total Free Amount: 20,000.00 0.00 Earnings in the contract: 0.00 8,500.00 Purchase Payments being Surrendered Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] 120,000.00 80,000.00 = the amount of the surrender WD = 20,000.00 8,500.00 = the total free amount, step 1 TFA = 120,000.00 80,000.00 = the contract value at the time of the surrender CV = 100% 100% = the premium ratio PR = STEP 4. We calculate Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) 100% 100% = premium ratio, step 3 PR = 100,000.00 100,000.00 = purchase payments not previously surrendered PP = 0.00 8,500.00 = purchase payments being surrendered free, step 2 PPF = 100,000.00 91,500.00 CPP = STEP 5. We calculate the Surrender Charges: 100,000.00 91,500.00 Chargeable Purchase Payments: 7% 7% Surrender Charge Percentage: 7,000.00 6,405.00 Surrender Charge: 120,000.00 80,000.00 STEP 6. We calculate the Net Surrender Value: (7,000.00) (6,405.00) Contract Value Surrendered: (30.00) (30.00) Contract Charge (assessed upon full surrender): 112,970.00 73,565.00 NET FULL SURRENDER PROCEEDS:
82 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 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 $120,000.00 $80,000.00 Contract Value at time of partial surrender: 115,000.00 85,000.00 Contract Value on prior 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: 20,000.00 0.00 Earnings in the contract: 11,500.00 8,500.00 10% of the prior anniversary's contract value: ----------- ---------- 20,000.00 8,500.00 Total Free Amount: STEP 2. We determine the TFA that is from Purchase Payments: 20,000.00 8,500.00 Total Free Amount: 20,000.00 0.00 Earnings in the contract: 0.00 8,500.00 Purchase Payments being Surrendered Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] 50,000.00 50,000.00 = the amount of the surrender WD = 20,000.00 8,500.00 = the total free amount, step 1 TFA = 120,000.00 80,000.00 = the contract value at the time of surrender CV = 30% 58% = the premium ratio PR = STEP 4. We calculate the Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) 30% 58% = premium ratio, step 3 PR = 100,000.00 100,000.00 = purchase payments not previously surrendered PP = 0.00 8,500.00 = purchase payments being surrendered free, step 2 PPF = 30,000.00 53,108.39 = chargeable purchase payments being surrendered CPP = STEP 5. We calculate the Surrender Charges: 30,000.00 53,108.39 Chargeable Purchase Payments: 7% 7% Surrender Charge Percentage: 2,100 3,718 Surrender Charge: STEP 6. We calculate the Net Surrender Value: 50,000.00 50,000.00 Contract Value Surrendered: (2,100.00) (3,717.59) SURRENDER CHARGE: 47,900.00 46,282.41 NET FULL SURRENDER PROCEEDS: ...............................................
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 83 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 $120,000.00 $80,000.00 Contract Value at time of full surrender: 115,000.00 85,000.00 Contract Value on prior 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: 20,000.00 0.00 Earnings in the Contract: 11,500.00 8,500.00 10% of the prior anniversary's contract value: ----------- ---------- 20,000.00 8,500.00 Total Free Amount: STEP 2. We determine the TFA and Amount Free that is from Purchase Payments: 20,000.00 8,500.00 Total Free Amount: 20,000.00 0.00 Earnings in the contract: 0.00 8,500.00 Purchase Payments being Surrendered Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] 120,000.00 80,000.00 = the amount of the surrender WD = 20,000.00 8,500.00 = the total free amount, step 1 TFA = 120,000.00 80,000.00 = the contract value at the time of the surrender CV = 100% 100% PR = STEP 4. We calculate Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) 100% 100% = premium ratio, step 3 PR = 100,000.00 100,000.00 = purchase payments not previously surrendered PP = 0.00 8,500.00 = purchase payments being surrendered free, step 2 PPF = 100,000.00 91,500.00 CPP = STEP 5. We calculate the Surrender Charges: 100,000.00 91,500.00 Chargeable Purchase Payments: 7% 7% Surrender Charge Percentage: 7,000.00 6,405.00 Surrender Charge: 120,000.00 80,000.00 STEP 6. We calculate the Net Surrender Value: (7,000.00) (6,405.00) Contract Value Surrendered: (30.00) (30.00) Contract Charge (assessed upon full surrender): 112,970.00 73,565.00 NET FULL SURRENDER PROCEEDS:
84 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 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 $120,000.00 $80,000.00 Contract Value at time of partial surrender: 115,000.00 85,000.00 Contract Value on prior 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: 20,000.00 0.00 Earnings in the contract: 11,500.00 8,500.00 10% of the prior anniversary's contract value: ----------- ---------- 20,000.00 8,500.00 Total Free Amount: STEP We determine the Amount Free that is from 2.... Purchase Payments: 20,000.00 8,500.00 Total Free Amount: 20,000.00 0.00 Earnings in the contract: 0.00 8,500.00 Purchase Payments being Surrendered Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] 50,000.00 50,000.00 = the amount of the surrender WD = 20,000.00 8,500.00 = the total free amount, step 1 TFA = 120,000.00 80,000.00 = the contract value at the time of surrender CV = 30% 58% = the premium ratio PR = STEP 4. We calculate the Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) 30% 58% = premium ratio, step 3 PR = 100,000.00 100,000.00 = purchase payments not previously surrendered PP = 0.00 8,500.00 = purchase payments being surrendered free, step 2 PPF = 30,000.00 53,108.39 = chargeable purchase payments being surrendered CPP = STEP 5. We calculate the Surrender Charges: 30,000.00 53,108.39 Chargeable Purchase Payments: 7% 7% Surrender Charge Percentage: 2,100 3,718 Surrender Charge: STEP 6. We calculate the Net Surrender Value: 50,000.00 50,000.00 Contract Value Surrendered: (2,100.00) (3,717.00) SURRENDER CHARGE: 47,900.00 46,282.41 NET FULL SURRENDER PROCEEDS:
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 85 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%.
ASSUMED NET PARTIAL SURRENDER ADJUSTED ACCUMULATION END OF CONTRACT YEAR RATE OF RETURN (BEGINNING OF YEAR) PARTIAL SURRENDER MCAV BENEFIT AMOUNT 1 12% 0 0 100,000 0 2 15% 0 0 102,422 0 3 3% 0 0 104,861 0 4 -8% 0 0 104,861 0 5 -15% 0 0 104,861 0 6 20% 2,000 2,084 102,778 0 7 15% 0 0 108,252 0 8 -10% 0 0 108,252 0 9 -20% 5,000 4,498 103,754 0 10 -12% 0 0 103,754 23,734 END OF CONTRACT YEAR CONTRACT VALUE 1 111,328 2 127,259 3 130,290 4 119,148 5 100,647 6 117,666 7 134,504 8 120,327 9 91,639 10 103,754
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%. - - 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 VALUE WITHDRAWAL CONTRACT VALUE CONTRACT 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
86 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 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. 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
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 87 - - 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): $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. - - 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 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
88 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - - 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): $110,000 - 50,000 x $110,000) -- $ 105,000 = $57,619 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
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 89 - - 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 $55,000 = +11,000 -------- Total death benefit of: $319,700
90 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 price level is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2007.
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.14 $1.08 $1.00 $0.94 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 371 489 1,554 110 85 4 6 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.48 $1.28 $1.18 $1.03 $0.77 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 208 183 141 107 284 180 3 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.39 $1.20 $1.14 $1.06 $0.82 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 54 158 140 132 66 3 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.14 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 115 1,114 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.58 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,479 105 5 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.81 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $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) 275 418 532 249 96 3 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 61 653 144 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.45 $1.17 $1.04 $0.91 $0.74 $0.93 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,710 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.00 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.00 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 187 2,939 618 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.61 $1.36 $1.31 $1.15 $0.90 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 848 1,060 1,104 1,064 673 483 146 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $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) 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 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.09 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 788 585 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,466 2,834 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 772 2,194 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 677 1,600 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,116 2,567 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.62 $1.32 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.84 $1.62 $1.32 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 500 669 661 76 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.21 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,443 6,582 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.28 $1.14 $1.06 $1.01 $0.83 $1.00 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.08 $1.86 $1.59 $1.28 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.66 $1.42 $1.20 $1.06 $0.75 $0.95 $1.00 -- -- Accumulation unit value at end of period $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) 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 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 $1.00 Accumulation unit value at end of period $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 688 836 667 487 349 205 211 148 4 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 $1.00 Accumulation unit value at end of period $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 576 738 593 414 242 282 150 9 2 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.53 $1.30 $1.18 $1.05 $0.85 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 $1.00 Accumulation unit value at end of period $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 2,008 2,339 1,930 834 639 450 200 15 8 - ---------------------------------------------------------------------------------------------------------------------------------
92 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 $1.00 Accumulation unit value at end of period $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,678 2,499 3,019 1,522 735 694 943 577 170 - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,448 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (09/15/1999) Accumulation unit value at beginning of period $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 $1.00 Accumulation unit value at end of period $1.40 $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,072 1,291 1,238 1,236 2,397 636 253 57 8 - --------------------------------------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I* (04/27/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.02 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 65 -- -- -- -- -- -- -- -- *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $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) 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 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $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) 130 243 558 576 622 485 548 352 -- - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (02/04/2004) Accumulation unit value at beginning of period $1.24 $1.12 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.28 $1.24 $1.12 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 226 264 291 92 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.05 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.05 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,116 1,957 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.53 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.62 $1.53 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,099 1,309 756 158 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.44 $1.26 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.41 $1.44 $1.26 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 676 773 643 432 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.27 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,223 6,331 3,173 403 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,555 4,105 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.12 $1.10 $0.98 $0.92 $0.78 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 67 195 218 67 170 145 129 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 93
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.65 $1.30 $1.16 $1.01 $0.79 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 69 164 145 194 207 881 418 -- -- - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 $1.00 Accumulation unit value at end of period $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 370 429 374 375 431 525 1,092 1,330 183 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,570 3,666 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.30 $1.13 $1.13 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.37 $1.30 $1.13 $1.13 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 115 77 235 182 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $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) 3,487 2,495 2,068 860 982 627 411 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 $1.00 Accumulation unit value at end of period $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 372 459 623 257 221 120 296 145 10 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 $1.00 Accumulation unit value at end of period $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 11,779 8,286 4,504 2,098 447 3,911 5,658 6,615 2,266 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.92% and 4.00%, respectively. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.07 $1.04 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.07 $1.04 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 391 135 100 73 -- -- -- -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (09/15/1999) Accumulation unit value at beginning of period $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 9,540 7,272 3,619 2,145 1,691 762 985 410 47 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 $1.00 Accumulation unit value at end of period $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 9,289 9,434 5,165 3,041 1,239 1,262 281 218 23 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 3,115 2,645 1,377 741 714 251 249 4 3 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.06 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.06 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,713 2,959 1,455 5,004 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) Accumulation unit value at beginning of period $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 $1.00 Accumulation unit value at end of period $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 3,768 6,049 6,193 2,153 1,664 1,064 1,285 1,762 401 - ---------------------------------------------------------------------------------------------------------------------------------
94 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 1,605 1,925 2,397 2,886 4,230 1,480 1,549 1,186 48 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.15 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.17 $1.15 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,599 2,358 493 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (09/15/1999) Accumulation unit value at beginning of period $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 $1.00 Accumulation unit value at end of period $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,682 2,453 3,121 1,484 172 202 291 266 872 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.35 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.34 $1.35 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67 184 92 65 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 $1.00 -- -- Accumulation unit value at end of period $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) 268 450 655 523 578 328 38 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.37 $1.20 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.50 $1.37 $1.20 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,406 2,575 115 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 $1.00 -- Accumulation unit value at end of period $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) 1,022 1,170 2,054 1,958 1,381 973 770 285 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 $1.00 Accumulation unit value at end of period $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 817 493 688 870 1,097 1,275 592 1 10 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (09/15/1999) Accumulation unit value at beginning of period $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 214 333 514 779 660 393 378 286 28 - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 $1.00 -- Accumulation unit value at end of period $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) 1,993 2,144 1,491 475 115 277 3 1 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 1,307 1,343 1,252 848 143 488 65 81 133 - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.38 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.34 $1.38 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,639 4,892 3,642 641 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,463 1,473 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.21 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 140 1,068 -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 95
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (09/15/1999) Accumulation unit value at beginning of period $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 $1.00 Accumulation unit value at end of period $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 2,932 3,471 2,814 1,701 1,136 1,484 769 599 112 *Effective June 1, 2008, the Fund will change its name to Wanger International. - --------------------------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (09/15/1999) Accumulation unit value at beginning of period $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 $1.00 Accumulation unit value at end of period $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 3,659 3,852 2,709 1,415 1,250 847 820 990 125 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $1.38 $1.23 $1.15 $0.98 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $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) 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.12 $1.07 $0.99 $0.94 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 90,475 109,952 134,591 39,117 20,015 11,313 1,710 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.47 $1.27 $1.17 $1.02 $0.76 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 23,253 25,868 24,349 20,043 10,924 6,981 1,459 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.38 $1.19 $1.14 $1.05 $0.82 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 9,208 12,088 10,621 10,625 8,724 5,572 1,081 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,881 33,923 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.57 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 48,018 1,744 127 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.80 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $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) 21,716 25,440 31,926 14,454 7,882 3,769 490 -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,111 14,120 2,021 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 217,241 203,016 153,107 70,504 34,604 12,313 805 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.44 $1.16 $1.03 $0.91 $0.73 $0.93 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 56,815 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,321 78,916 10,074 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.59 $1.35 $1.30 $1.15 $0.90 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 118,591 136,167 142,660 110,681 74,984 42,497 7,356 -- -- - --------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $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) 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 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.08 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 41,917 48,099 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 204,077 121,798 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,112 59,299 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,045 51,380 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 111,086 103,830 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.61 $1.32 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.83 $1.61 $1.32 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 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 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 294,643 244,121 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.26 $1.13 $1.06 $1.01 $0.82 $1.00 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.06 $1.85 $1.58 $1.27 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.64 $1.40 $1.19 $1.06 $0.75 $0.95 $1.00 -- -- Accumulation unit value at end of period $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) 66,434 74,339 70,878 66,935 31,322 13,157 2,147 -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 $1.00 Accumulation unit value at end of period $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 93,100 128,540 139,618 120,456 87,330 59,317 24,477 6,879 885 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 $1.00 Accumulation unit value at end of period $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 66,946 78,886 78,073 59,293 43,978 29,743 10,800 2,846 586 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.51 $1.29 $1.17 $1.05 $0.85 $0.97 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 139,637 163,687 174,918 115,616 83,015 56,079 23,748 7,622 1,634 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 187,585 231,223 248,935 128,074 83,166 71,820 60,343 42,626 8,981 - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 154,650 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (09/15/1999) Accumulation unit value at beginning of period $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $1.37 $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 69,884 86,802 101,054 90,221 62,349 29,532 15,860 7,958 1,981 - --------------------------------------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I* (04/27/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.02 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,080 -- -- -- -- -- -- -- -- *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $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) 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 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $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) 42,261 51,188 62,995 77,406 74,690 59,272 34,072 12,308 -- - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (02/04/2004) Accumulation unit value at beginning of period $1.23 $1.11 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.27 $1.23 $1.11 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 35,070 36,759 33,809 12,116 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 64,614 57,067 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.52 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.60 $1.52 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 48,173 51,514 33,811 11,540 -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
98 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.43 $1.26 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.40 $1.43 $1.26 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 34,265 34,462 18,592 7,652 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.26 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 536,032 339,587 150,945 22,945 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 161,214 154,199 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.11 $1.09 $0.97 $0.91 $0.78 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.63 $1.29 $1.15 $1.00 $0.78 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 33,551 42,808 49,747 57,095 67,224 72,033 74,819 49,764 5,084 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 117,605 123,150 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.29 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.36 $1.29 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,188 9,786 10,247 4,730 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $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) 148,793 126,637 127,559 90,541 67,609 43,199 6,885 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 $1.00 Accumulation unit value at end of period $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 86,628 89,309 92,705 84,704 79,035 64,273 37,760 28,348 5,220 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 286,121 258,492 193,996 187,100 203,753 255,251 243,870 171,785 65,522 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.71% and 3.78%, respectively. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.06 $1.03 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.06 $1.03 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 31,764 24,861 17,450 7,405 -- -- -- -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (09/15/1999) Accumulation unit value at beginning of period $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 599,680 511,100 332,677 221,377 188,939 154,530 83,968 30,783 7,186 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 99
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 560,416 585,144 408,559 255,776 134,486 86,442 43,328 12,124 3,149 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 204,316 169,931 130,135 82,347 51,936 31,133 16,572 8,968 1,552 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 147,400 161,490 91,038 2,274 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) Accumulation unit value at beginning of period $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 $1.00 Accumulation unit value at end of period $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 283,769 326,108 323,849 191,140 192,314 135,693 129,186 97,754 16,891 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 218,538 251,768 262,154 242,254 177,150 93,845 58,348 31,722 7,774 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.14 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.16 $1.14 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 116,516 109,316 29,477 1,052 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (09/15/1999) Accumulation unit value at beginning of period $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 383,078 450,207 263,828 130,790 69,981 52,124 26,327 24,003 5,333 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.33 $1.34 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,988 7,937 6,232 3,498 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 $1.00 -- -- Accumulation unit value at end of period $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) 50,337 62,826 47,283 53,376 42,780 16,388 2,489 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.49 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 71,709 101,239 6,605 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $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) 127,010 139,008 154,949 144,039 103,587 64,771 35,957 9,812 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 120,018 125,729 145,087 160,725 155,718 124,866 50,510 16,258 11,135 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (09/15/1999) Accumulation unit value at beginning of period $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 38,095 49,721 59,243 61,563 44,627 29,202 22,792 14,830 2,970 - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $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) 89,546 89,672 75,520 22,549 8,256 4,750 1,789 906 -- - ---------------------------------------------------------------------------------------------------------------------------------
100 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 75,421 80,961 77,787 51,446 23,614 20,012 15,821 13,967 2,575 - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.37 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.33 $1.37 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 224,730 258,223 203,272 36,974 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 51,109 51,499 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 14,940 37,273 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (09/15/1999) Accumulation unit value at beginning of period $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 $1.00 Accumulation unit value at end of period $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 164,570 186,862 170,230 104,567 66,022 43,554 27,818 18,245 1,234 *Effective June 1, 2008, the Fund will change its name to Wanger International. - --------------------------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (09/15/1999) Accumulation unit value at beginning of period $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 212,646 235,960 241,623 184,961 129,824 78,311 40,791 23,813 2,476 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $1.36 $1.22 $1.14 $0.97 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $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) 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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.11 $1.06 $0.98 $0.93 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 46,783 56,007 64,800 21,785 12,215 7,624 1,711 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.45 $1.26 $1.16 $1.02 $0.76 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 13,998 14,692 13,500 12,074 7,348 4,808 1,224 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.36 $1.18 $1.13 $1.05 $0.82 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 5,805 7,305 6,396 6,649 5,460 3,709 901 -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,964 15,226 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.38 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.57 $1.38 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,729 1,198 107 -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.79 $0.72 $0.71 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $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) 10,072 12,094 14,960 8,076 5,212 2,845 911 -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.35 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,415 5,609 801 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.42 $1.15 $1.03 $0.90 $0.73 $0.93 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 28,466 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,170 35,411 4,856 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.57 $1.34 $1.29 $1.14 $0.89 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 81,683 93,343 95,710 71,318 50,607 30,523 7,298 -- -- - --------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $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) 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 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.08 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,868 30,821 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,001 66,352 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.26 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,702 32,712 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,631 26,224 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 71,987 59,159 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.60 $1.31 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.82 $1.60 $1.31 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,475 12,674 9,815 2,086 -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 166,815 127,364 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.25 $1.12 $1.05 $1.00 $0.82 $1.00 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.04 $1.83 $1.57 $1.27 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.62 $1.39 $1.18 $1.05 $0.74 $0.94 $1.00 -- -- Accumulation unit value at end of period $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) 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 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 $1.00 Accumulation unit value at end of period $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 59,503 81,589 88,911 80,587 63,047 44,591 19,803 6,181 683 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 $1.00 Accumulation unit value at end of period $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 46,935 55,078 55,521 44,541 34,639 23,553 9,584 2,897 590 - --------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.50 $1.28 $1.17 $1.04 $0.84 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 96,413 112,452 117,932 84,473 65,106 47,539 24,711 10,265 2,023 - --------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 126,734 160,736 168,697 108,140 80,350 75,489 71,185 55,239 9,951 - --------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 72,177 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (09/15/1999) Accumulation unit value at beginning of period $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $1.35 $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 51,659 62,992 73,982 66,844 53,159 28,853 19,727 10,774 2,504 - --------------------------------------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I* (04/27/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.02 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 741 -- -- -- -- -- -- -- -- *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 $1.00 -- Accumulation unit value at end of period $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) 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 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $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) 31,915 38,120 48,503 60,214 61,988 53,383 36,822 15,060 -- - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (02/04/2004) Accumulation unit value at beginning of period $1.23 $1.11 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.26 $1.23 $1.11 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,523 23,114 20,473 6,922 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 30,611 26,517 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.51 $1.30 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.59 $1.51 $1.30 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,187 34,962 20,721 6,121 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.42 $1.25 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.39 $1.42 $1.25 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,107 22,606 12,037 4,085 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.15 $1.08 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.25 $1.15 $1.08 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 360,480 226,000 94,657 11,924 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 82,318 76,067 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.10 $1.08 $0.96 $0.91 $0.77 $0.98 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.61 $1.27 $1.15 $1.00 $0.78 $0.96 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 26,405 34,609 42,680 51,579 63,075 73,930 87,722 68,407 7,245 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.08 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.08 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 55,721 57,963 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.28 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.34 $1.28 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,203 5,724 5,777 2,540 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $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) 79,474 69,587 72,463 57,581 44,918 28,099 6,314 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 $1.00 Accumulation unit value at end of period $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 74,966 74,221 77,525 74,540 73,310 64,613 53,096 39,810 6,539 - ---------------------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 247,870 211,744 147,452 148,915 178,580 228,237 265,455 203,922 87,424 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.52% and 3.59%, respectively. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.03 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.10 $1.05 $1.03 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,701 22,501 15,300 4,962 -- -- -- -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (09/15/1999) Accumulation unit value at beginning of period $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 408,270 351,043 257,273 190,125 176,013 159,405 106,760 43,920 11,675 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 363,274 383,460 278,737 181,318 99,776 67,958 41,299 14,227 3,441 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 $1.00 Accumulation unit value at end of period $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 141,675 123,834 102,876 72,702 54,100 36,626 23,970 14,137 2,368 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 88,734 95,224 51,906 1,504 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) Accumulation unit value at beginning of period $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 $1.00 Accumulation unit value at end of period $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 186,447 216,237 212,229 135,373 147,485 118,986 130,764 106,410 13,813 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 186,775 221,767 237,711 236,566 197,358 122,784 88,813 52,655 10,137 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.14 $1.06 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.16 $1.14 $1.06 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 65,977 61,812 18,068 783 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (09/15/1999) Accumulation unit value at beginning of period $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 242,876 290,744 144,230 94,730 45,599 34,956 26,779 22,159 3,227 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.13 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.32 $1.34 $1.13 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,152 4,707 3,594 2,030 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 $1.00 -- -- Accumulation unit value at end of period $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) 35,043 43,939 31,419 35,498 29,450 12,145 2,238 -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.48 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 43,555 54,642 4,982 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $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) 92,416 104,302 122,070 117,372 91,398 65,011 40,575 14,084 -- - ---------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 105
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 104,637 108,222 121,249 130,386 135,202 116,147 56,966 24,654 12,796 - --------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (09/15/1999) Accumulation unit value at beginning of period $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 28,329 38,372 46,718 51,057 39,709 29,341 24,346 16,349 3,029 - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $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) 50,491 51,867 44,244 16,315 6,501 3,888 1,542 693 -- - --------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 58,762 64,541 61,793 40,351 21,462 19,189 18,664 15,670 2,173 - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.36 $1.18 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.32 $1.36 $1.18 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,380 130,395 96,755 18,714 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.22 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.22 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,814 27,318 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,199 17,529 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (09/15/1999) Accumulation unit value at beginning of period $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 $1.00 Accumulation unit value at end of period $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 108,613 122,718 114,381 79,981 56,466 42,309 30,297 21,844 1,343 *Effective June 1, 2008, the Fund will change its name to Wanger International. - --------------------------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (09/15/1999) Accumulation unit value at beginning of period $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 145,262 164,257 169,886 140,320 108,046 72,853 46,456 29,881 2,723 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - --------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $1.35 $1.21 $1.13 $0.97 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $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) 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 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $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) 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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.18 $1.13 $1.05 $1.00 $0.78 $1.00 Accumulation unit value at end of period $1.31 $1.18 $1.13 $1.05 $1.00 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 15,385 19,282 24,536 5,492 1,386 379 - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.53 $1.33 $1.23 $1.07 $0.80 $1.00 Accumulation unit value at end of period $1.67 $1.53 $1.33 $1.23 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 3,003 3,321 2,836 2,429 1,198 552 - -----------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.45 $1.26 $1.20 $1.11 $0.87 $1.00 Accumulation unit value at end of period $1.12 $1.45 $1.26 $1.20 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 1,004 1,342 1,322 1,122 925 526 - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 753 5,096 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $1.57 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,000 503 2 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $0.93 $0.85 $0.84 $0.81 $0.56 $1.00 Accumulation unit value at end of period $0.99 $0.93 $0.85 $0.84 $0.81 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 2,913 3,543 4,728 1,650 851 192 - ----------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.14 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $1.35 $1.14 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 664 2,023 333 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.40 $1.21 $1.16 $1.06 $0.81 $1.00 Accumulation unit value at end of period $1.45 $1.40 $1.21 $1.16 $1.06 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 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 $2.59 $1.94 $1.68 $1.36 $0.95 $1.00 Accumulation unit value at end of period $2.71 $2.59 $1.94 $1.68 $1.36 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.64 $1.33 $1.19 $1.05 $0.85 $1.00 Accumulation unit value at end of period $1.92 $1.64 $1.33 $1.19 $1.05 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,862 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,203 12,931 2,015 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.56 $1.33 $1.28 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.46 $1.56 $1.33 $1.28 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 20,382 24,433 25,428 16,423 8,977 2,837 - ----------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $1.26 $1.17 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $1.28 $1.26 $1.17 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.08 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 10,284 12,074 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.19 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 31,378 21,100 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.26 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,198 9,849 -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $1.13 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,423 9,239 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,211 18,826 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.59 $1.31 $1.14 $1.00 -- -- Accumulation unit value at end of period $1.81 $1.59 $1.31 $1.14 -- -- Number of accumulation units outstanding at end of period (000 omitted) 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 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.20 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 45,072 40,094 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.30 $1.16 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.44 $1.30 $1.16 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.97 $1.77 $1.52 $1.23 $0.90 $1.00 Accumulation unit value at end of period $2.25 $1.97 $1.77 $1.52 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.80 $1.55 $1.32 $1.17 $0.83 $1.00 Accumulation unit value at end of period $2.09 $1.80 $1.55 $1.32 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 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 $2.37 $1.99 $1.77 $1.36 $1.01 $1.00 Accumulation unit value at end of period $1.86 $2.37 $1.99 $1.77 $1.36 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.84 $1.59 $1.47 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.77 $1.84 $1.59 $1.47 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.58 $1.35 $1.23 $1.10 $0.89 $1.00 Accumulation unit value at end of period $1.62 $1.58 $1.35 $1.23 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.94 $1.69 $1.51 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.98 $1.94 $1.69 $1.51 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.38 $1.24 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $1.35 $1.38 $1.24 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 20,871 27,339 30,636 9,922 2,742 1,048 - ----------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,246 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $1.77 $1.46 $1.33 $1.17 $0.92 $1.00 Accumulation unit value at end of period $1.94 $1.77 $1.46 $1.33 $1.17 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 5,119 6,555 7,418 5,816 3,058 499 - -----------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I* (04/27/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 225 -- -- -- -- -- *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. - ----------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.09 $1.03 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $1.20 $1.09 $1.03 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.17 $1.04 $1.00 $0.96 $0.72 $1.00 Accumulation unit value at end of period $1.18 $1.17 $1.04 $1.00 $0.96 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 3,692 5,363 6,257 6,311 5,191 2,112 - ----------------------------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (02/04/2004) Accumulation unit value at beginning of period $1.23 $1.11 $1.09 $1.00 -- -- Accumulation unit value at end of period $1.26 $1.23 $1.11 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,796 12,057 10,940 3,567 -- -- - ----------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $2.20 $1.70 $1.47 $1.14 $0.85 $1.00 Accumulation unit value at end of period $2.78 $2.20 $1.70 $1.47 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.07 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 10,350 9,305 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.51 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.59 $1.51 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,884 14,402 11,208 4,318 -- -- - ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.42 $1.25 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.38 $1.42 $1.25 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,606 10,328 6,924 2,998 -- -- - ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.15 $1.08 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.24 $1.15 $1.08 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 92,164 64,615 34,899 7,003 -- -- - ----------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,066 26,857 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.14 $1.12 $1.00 $0.94 $0.81 $1.00 Accumulation unit value at end of period $1.12 $1.14 $1.12 $1.00 $0.94 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.77 $1.40 $1.26 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.90 $1.77 $1.40 $1.26 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.31 $1.25 $1.13 $0.96 $0.73 $1.00 Accumulation unit value at end of period $1.35 $1.31 $1.25 $1.13 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 771 986 736 559 614 267 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.28 $1.12 $1.12 $1.00 -- -- Accumulation unit value at end of period $1.34 $1.28 $1.12 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,469 1,490 1,493 840 -- -- - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.79 $1.50 $1.43 $1.21 $0.88 $1.00 Accumulation unit value at end of period $1.68 $1.79 $1.50 $1.43 $1.21 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 23,547 19,283 20,683 11,379 7,181 3,316 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (02/13/2002) Accumulation unit value at beginning of period $1.35 $1.19 $1.16 $1.07 $0.90 $1.00 Accumulation unit value at end of period $1.36 $1.35 $1.19 $1.16 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 5,018 4,466 3,385 2,471 1,608 531 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (02/13/2002) Accumulation unit value at beginning of period $1.04 $1.01 $0.99 $1.00 $1.00 $1.00 Accumulation unit value at end of period $1.08 $1.04 $1.01 $0.99 $1.00 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 39,420 37,806 22,067 19,507 13,022 12,452 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.46% and 3.52%, respectively. - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.02 $1.02 $1.00 -- -- Accumulation unit value at end of period $1.10 $1.05 $1.02 $1.02 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,804 4,756 3,994 1,612 -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (02/13/2002) Accumulation unit value at beginning of period $1.16 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.21 $1.16 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 103,330 87,923 50,746 22,751 13,984 6,481 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (02/13/2002) Accumulation unit value at beginning of period $1.82 $1.53 $1.36 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.94 $1.82 $1.53 $1.36 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 69,629 75,610 47,282 24,579 8,342 3,101 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.38 $1.31 $1.39 $1.28 $1.14 $1.00 Accumulation unit value at end of period $1.47 $1.38 $1.31 $1.39 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 31,193 26,716 18,771 8,568 3,885 1,060 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.05 $1.05 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.12 $1.05 $1.05 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,608 31,048 20,279 653 -- -- - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.17 $1.06 $0.99 $0.92 $0.77 $1.00 Accumulation unit value at end of period $1.19 $1.17 $1.06 $0.99 $0.92 $0.77 Number of accumulation units outstanding at end of period (000 omitted) 20,603 24,725 23,296 7,403 5,647 973 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.44 $1.32 $1.28 $1.16 $0.94 $1.00 Accumulation unit value at end of period $1.46 $1.44 $1.32 $1.28 $1.16 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 20,960 27,180 28,189 24,305 16,280 3,957 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.14 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.15 $1.14 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,632 21,052 7,061 300 -- -- - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.20 $1.05 $1.00 $0.95 $0.75 $1.00 Accumulation unit value at end of period $1.22 $1.20 $1.05 $1.00 $0.95 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 23,697 27,942 27,550 4,862 1,779 291 - -----------------------------------------------------------------------------------------------------------------------
110 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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $1.31 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 925 1,124 921 450 -- -- - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.24 $1.26 $1.15 $1.07 $0.88 $1.00 Accumulation unit value at end of period $1.40 $1.24 $1.26 $1.15 $1.07 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 2,984 4,676 5,505 5,961 4,649 1,153 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.36 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $1.48 $1.36 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,445 15,321 622 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (02/13/2002) Accumulation unit value at beginning of period $1.30 $1.14 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $1.35 $1.30 $1.14 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 10,644 13,132 14,184 11,269 6,544 1,889 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (02/13/2002) Accumulation unit value at beginning of period $1.08 $1.05 $1.04 $1.05 $1.04 $1.00 Accumulation unit value at end of period $1.13 $1.08 $1.05 $1.04 $1.05 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 12,583 16,153 18,707 17,403 14,902 6,107 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (02/13/2002) Accumulation unit value at beginning of period $1.68 $1.52 $1.46 $1.25 $0.85 $1.00 Accumulation unit value at end of period $1.59 $1.68 $1.52 $1.46 $1.25 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,378 4,827 5,744 5,617 2,920 900 - ----------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.70 $2.04 $1.54 $1.25 $0.90 $1.00 Accumulation unit value at end of period $3.70 $2.70 $2.04 $1.54 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 9,394 9,829 8,412 1,983 492 220 - ----------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.74 $1.42 $1.26 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.94 $1.74 $1.42 $1.26 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 5,324 5,986 5,133 2,551 340 55 - ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.36 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.31 $1.36 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 51,531 60,771 53,896 12,916 -- -- - ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,916 8,886 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $1.20 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,519 6,372 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (02/13/2002) Accumulation unit value at beginning of period $2.71 $1.99 $1.66 $1.28 $0.87 $1.00 Accumulation unit value at end of period $3.12 $2.71 $1.99 $1.66 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 18,491 21,367 19,260 9,273 4,376 1,523 *Effective June 1, 2008, the Fund will change its name to Wanger International. - ----------------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (02/13/2002) Accumulation unit value at beginning of period $1.66 $1.56 $1.41 $1.21 $0.85 $1.00 Accumulation unit value at end of period $1.73 $1.66 $1.56 $1.41 $1.21 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 36,469 42,372 41,455 26,304 13,657 3,732 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - ----------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.40 $1.26 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $1.48 $1.40 $1.26 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 4,587 6,324 7,621 6,990 5,557 2,340 - -----------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 111
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.35 $1.11 $1.06 $0.94 $0.67 $1.00 Accumulation unit value at end of period $1.52 $1.35 $1.11 $1.06 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.17 $1.12 $1.04 $0.99 $0.78 $1.00 Accumulation unit value at end of period $1.29 $1.17 $1.12 $1.04 $0.99 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 7,314 10,002 11,202 2,736 978 447 - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.51 $1.32 $1.22 $1.07 $0.80 $1.00 Accumulation unit value at end of period $1.65 $1.51 $1.32 $1.22 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,796 2,051 1,835 1,591 774 463 - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.43 $1.25 $1.19 $1.11 $0.87 $1.00 Accumulation unit value at end of period $1.10 $1.43 $1.25 $1.19 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 586 904 832 915 731 446 - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 456 2,466 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $1.56 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,140 267 5 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $0.92 $0.84 $0.83 $0.80 $0.56 $1.00 Accumulation unit value at end of period $0.98 $0.92 $0.84 $0.83 $0.80 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 1,544 1,896 2,168 923 573 157 - ----------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.13 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $1.34 $1.13 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 264 846 148 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.38 $1.20 $1.16 $1.05 $0.81 $1.00 Accumulation unit value at end of period $1.43 $1.38 $1.20 $1.16 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 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 $2.57 $1.92 $1.67 $1.35 $0.95 $1.00 Accumulation unit value at end of period $2.68 $2.57 $1.92 $1.67 $1.35 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.63 $1.32 $1.18 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.90 $1.63 $1.32 $1.18 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,266 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,445 6,545 1,015 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.54 $1.32 $1.27 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.45 $1.54 $1.32 $1.27 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 12,429 15,592 16,716 10,779 5,922 2,396 - -----------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $1.24 $1.16 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $1.26 $1.24 $1.16 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.07 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,595 9,164 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.18 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,689 10,663 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- Accumulation unit value at end of period $1.26 $1.06 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,426 5,251 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $1.12 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,728 4,962 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,146 12,200 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.59 $1.31 $1.14 $1.00 -- -- Accumulation unit value at end of period $1.80 $1.59 $1.31 $1.14 -- -- Number of accumulation units outstanding at end of period (000 omitted) 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 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.19 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,069 20,348 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.28 $1.15 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.42 $1.28 $1.15 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.95 $1.76 $1.51 $1.23 $0.90 $1.00 Accumulation unit value at end of period $2.23 $1.95 $1.76 $1.51 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.79 $1.53 $1.31 $1.17 $0.83 $1.00 Accumulation unit value at end of period $2.07 $1.79 $1.53 $1.31 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 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 $2.35 $1.97 $1.76 $1.35 $1.01 $1.00 Accumulation unit value at end of period $1.84 $2.35 $1.97 $1.76 $1.35 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.82 $1.57 $1.46 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.75 $1.82 $1.57 $1.46 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.56 $1.34 $1.22 $1.10 $0.89 $1.00 Accumulation unit value at end of period $1.60 $1.56 $1.34 $1.22 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.92 $1.68 $1.50 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.96 $1.92 $1.68 $1.50 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 15,654 19,762 20,011 10,047 5,836 2,777 - -----------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.37 $1.23 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $1.33 $1.37 $1.23 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 11,550 15,324 16,269 6,220 2,770 1,483 - ----------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,686 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $1.75 $1.45 $1.33 $1.17 $0.92 $1.00 Accumulation unit value at end of period $1.92 $1.75 $1.45 $1.33 $1.17 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 3,267 4,513 4,983 4,090 2,091 566 - ----------------------------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I* (04/27/2007) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 97 -- -- -- -- -- *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. - ----------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.08 $1.02 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $1.18 $1.08 $1.02 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 3,135 4,033 4,710 3,047 2,246 712 - ----------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.16 $1.04 $1.00 $0.95 $0.72 $1.00 Accumulation unit value at end of period $1.17 $1.16 $1.04 $1.00 $0.95 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 2,675 3,472 4,247 4,567 3,912 1,784 - ----------------------------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (02/04/2004) Accumulation unit value at beginning of period $1.22 $1.10 $1.09 $1.00 -- -- Accumulation unit value at end of period $1.25 $1.22 $1.10 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,820 9,805 8,946 3,545 -- -- - ----------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $2.18 $1.68 $1.46 $1.14 $0.85 $1.00 Accumulation unit value at end of period $2.74 $2.18 $1.68 $1.46 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.06 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,922 4,471 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.50 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.58 $1.50 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,986 8,796 5,927 2,391 -- -- - ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.41 $1.24 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.37 $1.41 $1.24 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,773 5,725 3,700 1,477 -- -- - ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.14 $1.08 $1.06 $1.00 -- -- Accumulation unit value at end of period $1.23 $1.14 $1.08 $1.06 -- -- Number of accumulation units outstanding at end of period (000 omitted) 62,902 46,387 23,303 4,223 -- -- - ----------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 14,755 14,860 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.13 $1.11 $1.00 $0.94 $0.80 $1.00 Accumulation unit value at end of period $1.11 $1.13 $1.11 $1.00 $0.94 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,630 2,416 2,388 1,649 1,108 583 - -----------------------------------------------------------------------------------------------------------------------
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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.75 $1.39 $1.25 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.87 $1.75 $1.39 $1.25 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.30 $1.24 $1.12 $0.96 $0.73 $1.00 Accumulation unit value at end of period $1.33 $1.30 $1.24 $1.12 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 448 706 598 413 417 192 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,646 10,682 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.27 $1.11 $1.12 $1.00 -- -- Accumulation unit value at end of period $1.33 $1.27 $1.11 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 980 1,141 1,193 732 -- -- - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.77 $1.49 $1.42 $1.20 $0.88 $1.00 Accumulation unit value at end of period $1.66 $1.77 $1.49 $1.42 $1.20 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 12,216 10,437 11,559 7,783 5,093 2,665 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (02/13/2002) Accumulation unit value at beginning of period $1.34 $1.18 $1.15 $1.07 $0.90 $1.00 Accumulation unit value at end of period $1.35 $1.34 $1.18 $1.15 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 4,008 3,764 3,085 2,273 1,117 462 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (02/13/2002) Accumulation unit value at beginning of period $1.03 $1.00 $0.99 $0.99 $1.00 $1.00 Accumulation unit value at end of period $1.07 $1.03 $1.00 $0.99 $0.99 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 33,791 33,401 18,979 15,014 12,047 12,148 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.25% and 3.31%, respectively. - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (02/04/2004) Accumulation unit value at beginning of period $1.05 $1.02 $1.02 $1.00 -- -- Accumulation unit value at end of period $1.09 $1.05 $1.02 $1.02 -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,252 4,585 3,473 1,734 -- -- *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (02/13/2002) Accumulation unit value at beginning of period $1.15 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.20 $1.15 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 68,622 60,502 37,023 19,654 12,452 5,971 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (02/13/2002) Accumulation unit value at beginning of period $1.79 $1.51 $1.35 $1.15 $0.83 $1.00 Accumulation unit value at end of period $1.91 $1.79 $1.51 $1.35 $1.15 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 43,798 50,646 33,232 17,932 5,976 2,058 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.37 $1.30 $1.38 $1.27 $1.14 $1.00 Accumulation unit value at end of period $1.46 $1.37 $1.30 $1.38 $1.27 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 22,272 19,781 15,541 8,857 4,839 1,529 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.04 $1.04 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.11 $1.04 $1.04 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,958 20,730 13,014 516 -- -- - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.16 $1.05 $0.98 $0.92 $0.76 $1.00 Accumulation unit value at end of period $1.18 $1.16 $1.05 $0.98 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 10,992 13,741 13,519 4,079 2,868 392 - -----------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 115
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.43 $1.31 $1.27 $1.15 $0.93 $1.00 Accumulation unit value at end of period $1.44 $1.43 $1.31 $1.27 $1.15 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 19,687 25,271 27,474 25,456 15,576 4,269 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.13 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.15 $1.13 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,716 13,255 4,187 271 -- -- - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.29 $1.13 $1.08 $1.03 $0.81 $1.00 Accumulation unit value at end of period $1.31 $1.29 $1.13 $1.08 $1.03 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 10,299 12,875 11,604 2,482 744 96 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $1.30 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 789 734 632 499 -- -- - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.23 $1.25 $1.15 $1.06 $0.88 $1.00 Accumulation unit value at end of period $1.38 $1.23 $1.25 $1.15 $1.06 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,887 2,741 2,961 3,400 2,602 889 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.35 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $1.47 $1.35 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,225 7,878 393 -- -- -- - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (02/13/2002) Accumulation unit value at beginning of period $1.29 $1.13 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $1.34 $1.29 $1.13 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 8,187 9,874 10,825 9,241 5,428 1,648 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (02/13/2002) Accumulation unit value at beginning of period $1.07 $1.04 $1.04 $1.04 $1.04 $1.00 Accumulation unit value at end of period $1.11 $1.07 $1.04 $1.04 $1.04 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 12,745 15,464 16,802 16,700 13,079 7,646 - ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (02/13/2002) Accumulation unit value at beginning of period $1.66 $1.51 $1.45 $1.24 $0.85 $1.00 Accumulation unit value at end of period $1.57 $1.66 $1.51 $1.45 $1.24 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 2,098 3,358 3,917 3,802 2,139 516 - ----------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $2.68 $2.02 $1.53 $1.25 $0.90 $1.00 Accumulation unit value at end of period $3.65 $2.68 $2.02 $1.53 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 5,242 5,716 4,677 1,199 318 121 - ----------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (02/13/2002) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.73 $1.41 $1.25 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.92 $1.73 $1.41 $1.25 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,162 3,800 3,647 2,172 496 105 - ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.35 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.30 $1.35 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,381 32,887 26,831 6,418 -- -- - ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $1.10 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,961 4,670 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $1.19 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,490 3,111 -- -- -- -- - -----------------------------------------------------------------------------------------------------------------------
116 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, 2007 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (02/13/2002) Accumulation unit value at beginning of period $2.68 $1.98 $1.65 $1.28 $0.87 $1.00 Accumulation unit value at end of period $3.08 $2.68 $1.98 $1.65 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 10,565 12,918 11,470 5,817 2,667 1,055 *Effective June 1, 2008, the Fund will change its name to Wanger International. - ----------------------------------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (02/13/2002) Accumulation unit value at beginning of period $1.64 $1.54 $1.40 $1.20 $0.85 $1.00 Accumulation unit value at end of period $1.71 $1.64 $1.54 $1.40 $1.20 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 19,504 23,503 23,080 15,408 8,442 3,131 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - ----------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.39 $1.25 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $1.47 $1.39 $1.25 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 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 $1.34 $1.10 $1.05 $0.94 $0.67 $1.00 Accumulation unit value at end of period $1.51 $1.34 $1.10 $1.05 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 1,799 1,527 1,557 1,643 1,441 387 - -----------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 117 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts..................... p. 3 Rating Agencies................................. p. 4 Revenues Received During Calendar Year 2007..... p. 4 Principal Underwriter........................... p. 5 Independent Registered Public Accounting Firm... p. 5 Financial Statements
118 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 119 (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 (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 RiverSource Life Insurance Company. All rights reserved. S-6273 L (5/08) PROSPECTUS MAY 1, 2008 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: - AIM Variable Insurance Funds - 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) - 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) formerly known as RiverSource Variable Portfolio Funds - 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). 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 1 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............................. 14 FINANCIAL STATEMENTS........................................ 14 THE VARIABLE ACCOUNT AND THE FUNDS.......................... 14 GUARANTEE PERIOD ACCOUNTS (GPAS)............................ 17 THE FIXED ACCOUNT........................................... 18 BUYING YOUR CONTRACT........................................ 19 CHARGES..................................................... 23 VALUING YOUR INVESTMENT..................................... 29 MAKING THE MOST OF YOUR CONTRACT............................ 31 SURRENDERS.................................................. 40 TSA -- SPECIAL PROVISIONS................................... 41 CHANGING OWNERSHIP.......................................... 42 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT......... 42 OPTIONAL BENEFITS........................................... 44 THE ANNUITY PAYOUT PERIOD................................... 74 TAXES....................................................... 76 VOTING RIGHTS............................................... 79 SUBSTITUTION OF INVESTMENTS................................. 79 ABOUT THE SERVICE PROVIDERS................................. 80 ADDITIONAL INFORMATION...................................... 81 APPENDIX A: THE FUNDS....................................... 83 APPENDIX B: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA)........ 96 APPENDIX C: EXAMPLE -- SURRENDER CHARGES.................... 98 APPENDIX D: EXAMPLE -- OPTIONAL DEATH BENEFITS.............. 102 APPENDIX E: EXAMPLE -- OPTIONAL LIVING BENEFITS............. 106 APPENDIX F: ADDITIONAL RMD DISCLOSURE....................... 113 APPENDIX G: CONDENSED FINANCIAL INFORMATION (UNAUDITED)..... 115 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION............................................... 145
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 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. 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 Asset Allocation 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 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 3 the right to take limited withdrawals in each contract year until death. This rider requires participation in the Portfolio Navigator Asset Allocation 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 ASSET ALLOCATION PROGRAM (PN PROGRAM): This is an asset allocation program in which you are required to participate 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. 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) under Section 408(b) of the Code - - 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 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(SM) 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 contract year until death. These riders require participation in the Portfolio Navigator Asset Allocation program. These riders are not available for RAVA 4 Access. SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. 4 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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) 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 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 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. 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 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? 6 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - 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? - - 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. (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; 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 (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; 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 features that are available for additional charges if you meet certain criteria. Optional benefits may require the use of a PN model portfolio 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 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 certain states 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. 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. 8 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS SURRENDER CHARGE FOR RAVA 4 ACCESS: 0% SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take 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.") 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 ACCUMULATION BENEFIT RIDER FEE Maximum: 2.50% Current: 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.) 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 Maximum: 1.50% Current: 0.65% SECURESOURCE - JOINT LIFE RIDER FEE Maximum: 1.75% Current: 0.85%
(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.) 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, 2007, 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 0.52% 2.09%
(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 AIM V.I. Capital Appreciation Fund, 0.61% 0.25% 0.27% --% 1.13% Series II Shares AIM V.I. Capital Development Fund, 0.75 0.25 0.31 -- 1.31(1) Series II Shares AIM V.I. Financial Services Fund, 0.75 0.25 0.36 -- 1.36 Series II Shares AIM V.I. Global Health Care Fund, 0.75 0.25 0.32 0.01 1.33(1) Series II Shares AIM V.I. International Growth Fund, 0.71 0.25 0.36 0.01 1.33(1) Series II Shares AllianceBernstein VPS Global 0.75 0.25 0.17 -- 1.17 Technology Portfolio (Class B) AllianceBernstein VPS Growth and 0.55 0.25 0.04 -- 0.84 Income Portfolio (Class B) AllianceBernstein VPS International 0.75 0.25 0.06 -- 1.06 Value Portfolio (Class B) AllianceBernstein VPS Large Cap 0.75 0.25 0.07 -- 1.07 Growth Portfolio (Class B) American Century VP Mid Cap Value, 0.90 0.25 0.01 -- 1.16 Class II American Century VP Ultra(R), Class 0.90 0.25 0.01 -- 1.16 II American Century VP Value, Class II 0.83 0.25 0.01 -- 1.09 Columbia High Yield Fund, Variable 0.78 0.25 0.12 -- 1.15(2) Series, Class B Columbia Marsico Growth Fund, 0.97 -- 0.02 -- 0.99 Variable Series, Class A Columbia Marsico International 1.02 0.25 0.12 -- 1.39 Opportunities Fund, Variable Series, Class B Credit Suisse Trust - Commodity 0.50 0.25 0.28 -- 1.03(3) Return Strategy Portfolio Dreyfus Variable Investment Fund 0.75 0.25 0.28 -- 1.28 International Equity Portfolio, Service Shares Dreyfus Variable Investment Fund 1.00 0.25 0.19 -- 1.44 International Value Portfolio, Service Shares Eaton Vance VT Floating-Rate Income 0.57 0.25 0.32 -- 1.14 Fund Evergreen VA Fundamental Large Cap 0.58 0.25 0.17 -- 1.00 Fund - Class 2 Evergreen VA International Equity 0.39 0.25 0.24 -- 0.88 Fund - Class 2 Fidelity(R) VIP Contrafund(R) 0.56 0.25 0.09 -- 0.90 Portfolio Service Class 2 Fidelity(R) VIP Mid Cap Portfolio 0.56 0.25 0.10 -- 0.91 Service Class 2 Fidelity(R) VIP Overseas Portfolio 0.71 0.25 0.14 -- 1.10 Service Class 2 FTVIPT Franklin Global Real Estate 0.75 0.25 0.31 -- 1.31(4) Securities Fund - Class 2 FTVIPT Franklin Small Cap Value 0.51 0.25 0.15 0.02 0.93(5) Securities Fund - Class 2 FTVIPT Mutual Shares Securities 0.59 0.25 0.13 -- 0.97 Fund - Class 2 Goldman Sachs VIT Structured U.S. 0.65 -- 0.07 -- 0.72(6) Equity Fund - Institutional Shares Janus Aspen Series Large Cap Growth 0.64 0.25 0.02 0.01 0.92 Portfolio: Service Shares Legg Mason Partners Variable Small 0.75 -- 0.35 -- 1.10(7) Cap Growth Portfolio, Class I
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 MFS(R) Investors Growth Stock 0.75% 0.25% 0.11% --% 1.11% Series - Service Class MFS(R) Total Return Series - Service 0.75 0.25 0.08 -- 1.08(8) Class MFS(R) Utilities Series - Service 0.75 0.25 0.10 -- 1.10(8) Class Neuberger Berman Advisers Management 1.14 0.25 0.17 -- 1.56(9) Trust International Portfolio (Class S) Neuberger Berman Advisers Management 0.84 0.25 0.08 -- 1.17 Trust Socially Responsive Portfolio (Class S) Oppenheimer Global Securities 0.62 0.25 0.02 -- 0.89 Fund/VA, Service Shares Oppenheimer Main Street Small Cap 0.70 0.25 0.02 -- 0.97 Fund/VA, Service Shares Oppenheimer Strategic Bond Fund/VA, 0.57 0.25 0.02 0.02 0.86(10) Service Shares Oppenheimer Value Fund/VA, Service 0.75 0.25 0.63 -- 1.63(10) Shares PIMCO VIT All Asset Portfolio, 0.18 0.25 0.25 0.69 1.37(11) Advisor Share Class RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.76 1.31(12) Portfolios - Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.64 1.19(12) Portfolios - Conservative RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.70 1.25(12) Portfolios - Moderate RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.73 1.28(12) Portfolios - Moderately Aggressive RVST Disciplined Asset Allocation(SM) -- 0.25 0.30 0.67 1.22(12) Portfolios - Moderately Conservative RVST RiverSource(R) Partners Variable 0.70 0.13 0.16 -- 0.99(13) Portfolio - Fundamental Value Fund (previously RiverSource(R) Variable Portfolio - Fundamental Value Fund) RVST RiverSource(R) Partners Variable 0.83 0.13 1.13 -- 2.09(13) Portfolio - Select Value Fund (previously RiverSource(R) Variable Portfolio - Select Value Fund) RVST RiverSource(R) Partners Variable 0.97 0.13 0.18 -- 1.28(13) Portfolio - Small Cap Value Fund (previously RiverSource(R) Variable Portfolio - Small Cap Value Fund) RVST RiverSource(R) Variable 0.53 0.13 0.14 -- 0.80 Portfolio - Balanced Fund RVST RiverSource(R) Variable 0.33 0.13 0.14 -- 0.60 Portfolio - Cash Management Fund RVST RiverSource(R) Variable 0.45 0.13 0.16 -- 0.74 Portfolio - Diversified Bond Fund RVST RiverSource(R) Variable 0.59 0.13 0.14 -- 0.86 Portfolio - Diversified Equity Income Fund RVST RiverSource(R) Variable 0.68 0.13 0.19 -- 1.00(13) Portfolio - Global Bond Fund RVST RiverSource(R) Variable 0.44 0.13 0.17 -- 0.74(13) Portfolio - Global Inflation Protected Securities Fund RVST RiverSource(R) Variable 0.60 0.13 0.16 -- 0.89 Portfolio - Growth Fund RVST RiverSource(R) Variable 0.59 0.13 0.15 -- 0.87 Portfolio - High Yield Bond Fund RVST RiverSource(R) Variable 0.61 0.13 0.17 -- 0.91 Portfolio - Income Opportunities Fund RVST RiverSource(R) Variable 0.58 0.13 0.15 -- 0.86 Portfolio - Large Cap Equity Fund RVST RiverSource(R) Variable 0.59 0.13 0.36 -- 1.08(13) Portfolio - Large Cap Value Fund RVST RiverSource(R) Variable 0.58 0.13 0.15 -- 0.86 Portfolio - Mid Cap Growth Fund RVST RiverSource(R) Variable 0.73 0.13 0.17 -- 1.03(13) Portfolio - Mid Cap Value Fund RVST RiverSource(R) Variable 0.22 0.13 0.17 -- 0.52(13) Portfolio - S&P 500 Index Fund RVST RiverSource(R) Variable 0.48 0.13 0.18 -- 0.79 Portfolio - Short Duration U.S. Government Fund RVST RiverSource(R) Variable 0.68 0.13 0.20 -- 1.01(13) Portfolio - Small Cap Advantage Fund RVST Threadneedle(R) Variable 1.11 0.13 0.26 -- 1.50 Portfolio - Emerging Markets Fund (previously RiverSource(R) Variable Portfolio - Emerging Markets Fund) RVST Threadneedle(R) Variable 0.69 0.13 0.19 -- 1.01 Portfolio - International Opportunity Fund (previously RiverSource(R) Variable Portfolio - International Opportunity Fund) Van Kampen Life Investment Trust 0.56 0.25 0.03 -- 0.84 Comstock Portfolio, Class II Shares Van Kampen UIF Global Real Estate 0.85 0.35 0.38 -- 1.58(14) Portfolio, Class II Shares Van Kampen UIF Mid Cap Growth 0.75 0.35 0.35 -- 1.45(14) Portfolio, Class II Shares Wanger International Small Cap 0.88 -- 0.11 -- 0.99 (effective June 1, 2008, the Fund will change its name to Wanger International)
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 Wanger U.S. Smaller Companies 0.90% --% 0.05% --% 0.95% (effective June 1, 2008, the Fund will change its name to Wanger USA) Wells Fargo Advantage VT Opportunity 0.73 0.25 0.20 -- 1.18(15) Fund Wells Fargo Advantage VT Small Cap 0.75 0.25 0.23 -- 1.23(15) Growth Fund
* 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 Fund's advisor has contractually agreed to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) of Series II shares to 1.45% of average daily net assets. In addition, effective July 1, 2007, AIM contractually agreed to waive 100% of the advisory fee AIM receives from affiliated money market funds on investments by the Fund in such affiliated money market funds. These waiver agreements are in effect through at least April 30, 2009. After fee waivers and expense reimbursements net expenses would be 1.30% for AIM V.I. Capital Development Fund, Series II Shares, 1.32% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. (2) The Fund's investment adviser has contractually agreed to waive 0.19% of the distribution (12b-1) fees until April 30, 2009. In addition, the Fund's investment adviser has contractually agreed to waive advisory fees and reimburse the Fund for certain expenses so that the total annual Fund operating expenses (exclusive of distribution fees, brokerage commissions, interest, taxes and extraordinary expenses, (if any)) do not exceed 0.60% annually through April 30, 2009. If these waivers were reflected in the above table, net expenses would be 0.66%. There is no guarantee that these waivers and/or limitations will continue after April 30, 2009. (3) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements net expenses would be 0.95% for Credit Suisse Trust - Commodity Return Strategy Portfolio. (4) 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 waivers net expenses would be 0.89% for FTVIPT Franklin Global Real Estate Securities Fund - Class 2. (5) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent that the Fund's fees and expenses are due to those of the acquired 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 0.91% for FTVIPT Franklin Small Cap Value Securities Fund - Class 2. (6) The Investment Adviser has voluntarily agreed to reduce or limit "Other expenses" (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be terminated at any time at the option of the Investment Adviser. After expense reductions net expenses would be 0.71% for Goldman Sachs VIT Structured U.S. Equity Fund - Institutional Shares. (7) Because of voluntary waivers and/or reimbursements, actual total operating expenses are not expected to exceed 1.00%. These voluntary fee waivers and reimbursements do not cover brokerage, taxes, interest and extraordinary expenses and may be reduced or terminated at any time. After fee waivers and expense reimbursements net expenses would be 1.00%. (8) MFS has agreed in writing to reduce its management fee to 0.65% for MFS Total Return Series annually on average daily net assets in excess of $3 billion and 0.70% for MFS Utilities Series annually on average daily net assets in excess of $1 billion. After fee reductions net expenses would be 1.05% for MFS Total Return Series - Service Class and 1.07% for MFS Utilities Series - Service Class. This written agreement will remain in effect until modified by the Fund's Board of Trustees. (9) Neuberger Berman Management Inc. ("NBMI") has undertaken through Dec. 31, 2011, to waive fees and/or reimburse certain operating expenses, including the compensation of NBMI 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. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBMI 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 1.53% for Neuberger Berman Advisers Management Trust International Portfolio (Class S). (10) The "Other expenses" in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2007, the transfer agent fees did not exceed this expense limitation. In addition, for Oppenheimer Strategic Bond Fund/VA, Service Shares, the Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund and OFI Master Loan Fund LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82% for Oppenheimer Strategic Bond Fund/VA, Service Shares. In addition, for Oppenheimer Value Fund/VA, Service Shares, effective Jan. 1, 2007, the Manager has voluntarily agreed to an expense waiver of any total expenses over 1.50% of average annual net assets. After fee waivers and expense reimbursements, the net expenses would be 1.50% for Oppenheimer Value Fund/VA, Service Shares. (11) PIMCO has contractually agreed through Dec. 31, 2008, to reduce its advisory fee to the extent that the "Acquired fund fees and expenses" attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.35%. (12) The Fund's expense figures are based on estimated expenses, before fee waivers and expense reimbursements. RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Aggressive, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Conservative, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderate, 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Aggressive and 0.41% for RVST Disciplined Asset Allocation(SM) Portfolios - Moderately Conservative. (13) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2008, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.98% for RVST RiverSource(R) Partners Variable Portfolio - Fundamental Value Fund, 1.03% for RVST RiverSource(R) Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource(R) Partners Variable Portfolio - Small Cap Value Fund, 0.98% for RVST RiverSource(R) Variable Portfolio - Global Bond Fund, 0.72% for RVST RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund, 1.05% for 12 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS RVST RiverSource(R) Variable Portfolio - Large Cap Value Fund, 1.05% for RVST RiverSource(R) Variable Portfolio - Mid Cap Value Fund, 0.51% for RVST RiverSource(R) Variable Portfolio - S&P 500 Index Fund and 1.13% for RVST RiverSource(R) Variable Portfolio - Small Cap Advantage Fund. (14) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursement, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.16% for Van Kampen UIF Mid Cap Growth Portfolio. (15) The adviser has contractually agreed through April 30, 2009 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After fee waivers and expense reimbursements, net expenses would be 1.07% for Wells Fargo Advantage VT Opportunity Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. 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(1), 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 Accumulation Benefit(2), if available. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(3) $1,457 $2,739 $3,882 $6,323 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 1,357 2,639 3,682 6,123 RAVA 4 SELECT 1,383 2,713 3,294 6,296 RAVA 4 SELECT - TEXAS 1,483 2,613 3,294 6,296 RAVA 4 ACCESS 443 1,337 2,241 4,547 IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(3) $657 $1,939 $3,182 $6,123 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 657 1,939 3,182 6,123 RAVA 4 SELECT 683 2,013 3,294 6,296 RAVA 4 SELECT - TEXAS 683 2,013 3,294 6,296 RAVA 4 ACCESS 443 1,337 2,241 4,547
IF YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(3) $1,436 $2,683 $3,796 $6,186 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 1,336 2,583 3,596 5,986 RAVA 4 SELECT 1,363 2,656 3,208 6,163 RAVA 4 SELECT- TEXAS 1,463 2,556 3,208 6,163 RAVA 4 ACCESS 423 1,278 2,146 4,377 IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(3) $636 $1,883 $3,096 $5,986 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 636 1,883 3,096 5,986 RAVA 4 SELECT 663 1,956 3,208 6,163 RAVA 4 SELECT- TEXAS 663 1,956 3,208 6,163 RAVA 4 ACCESS 423 1,278 2,146 4,377
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 13 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 SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $963 $1,305 $1,570 $2,097 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 863 1,205 1,370 1,897 RAVA 4 SELECT 889 1,286 1,007 2,181 RAVA 4 SELECT - TEXAS 989 1,186 1,007 2,181 RAVA 4 ACCESS 205 635 1,089 2,349 IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $163 $505 $ 870 $1,897 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 163 505 870 1,897 RAVA 4 SELECT 189 586 1,007 2,181 RAVA 4 SELECT - TEXAS 189 586 1,007 2,181 RAVA 4 ACCESS 205 635 1,089 2,349
IF YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $942 $1,242 $1,464 $1,874 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 842 1,142 1,264 1,674 RAVA 4 SELECT 869 1,223 902 1,963 RAVA 4 SELECT - TEXAS 969 1,123 902 1,963 RAVA 4 ACCESS 185 572 985 2,135 IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $142 $442 $764 $1,674 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 142 442 764 1,674 RAVA 4 SELECT 169 523 902 1,963 RAVA 4 SELECT - TEXAS 169 523 902 1,963 RAVA 4 ACCESS 185 572 985 2,135
(1) In these examples, the contract administrative charge is approximated as a .017% charge for RAVA 4 Advantage, a .027% charge for RAVA 4 Select, a .027% for RAVA 4 Select - Texas, and .034% for RAVA 4 Access. These percentages were determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to each contract by the total average net assets that are attributable to that contract. (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 certain states, your expenses would be slightly lower due to the modified ten-year surrender charge schedule. CONDENSED FINANCIAL INFORMATION You can find unaudited condensed financial information for the subaccounts in Appendix G. 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 subaccounts with history in the SAI. The SAI does not include audited financial statements for subaccounts 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 14 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 and policies, 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. - - 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 Asset Allocation 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 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 15 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, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. 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 2007. 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. - 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. 16 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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, Accumulation Benefit, or PN program 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. (Exception: if a model portfolio includes one or more GPAs, the required minimum does not apply.) 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 we have established under the Minnesota Insurance Code. 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. 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 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 17 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 GWB for Life rider, SecureSource 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: - - 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; - - automatic rebalancing under any PN program model portfolio we offer which includes one or more GPAs. However, an MVA may apply if you transfer to a new PN program model portfolio; - - amounts applied to an annuity payout plan while a PN program model portfolio including one or more GPAs is in effect; - - reallocation of your contract value according to an updated PN program model portfolio; - - 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 The fixed account is our general 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. 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. 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 18 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS (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 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(1), the regular fixed account(2), subaccounts and/or the Special DCA fixed account 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)(3); - - the optional PN program; - - one of the following optional death benefits: - ROPP Death Benefit(4); - MAV Death Benefit(4); - 5-Year MAV Death Benefit(4); - EEB Death Benefit(4); - EEP Death Benefit(4); 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(5); or - SecureSource rider(5). (1) GPAs are not available if the GWB for Life, SecureSource, or Accumulation Benefit riders are selected. (2) For RAVA 4 Access contracts, you cannot select the regular fixed account unless it is included in a PN program model portfolio you selected. (3) In certain states, 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. (4) 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. (5) You may select either the Accumulation Benefit or SecureSource rider. The Accumulation Benefit and SecureSource - Single Life riders are only available if you are 80 or younger at the rider effective date. SecureSource - Joint Life rider is available if both covered spouses are 80 or younger. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 19 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 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. When we process your application, we will establish the settlement date as the maximum age (or contract anniversary, if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities. You can also select a date within the maximum limits. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - - no earlier than the 60th day after the contract's effective date; and - - no later than the annuitant's 90th birthday or the tenth contract anniversary, if purchased after age 80, or a date that has been otherwise agreed to by us. FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - - for IRAs, by April 1 of the year following the calendar year when you reach age 70 1/2; or - - for all other qualified annuities, by April 1 of the year following the calendar year when you reach age 70 1/2, or, if later, retire (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 90th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs or TSAs, and in that case, may delay the annuity payout start date 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. 20 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS PURCHASE PAYMENTS(*) MINIMUM ALLOWABLE PURCHASE PAYMENTS(**) If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month
RAVA 4 ADVANTAGE RAVA 4 SELECT RAVA 4 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 ADVANTAGE RAVA 4 SELECT RAVA 4 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 also reserve the right to restrict cumulative purchase payments for contracts with the GWB for Life or SecureSource rider, subject to state restrictions. Additional purchase payments are restricted during the waiting period after the first 180 days immediately following the effective date and each elective step up of the Accumulation Benefit rider. Purchase payment amounts and purchase payment timing may vary by state and may be limited under the terms of your contract. Subject to state law limitations, 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 21 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. 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. 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.* The amount we pay to you under these circumstances will always equal or exceed your surrender value. 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. 22 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 law limitations, 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 23 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. 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 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 certain states 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. Surrender charges may vary by state based on your age at contract issue. 24 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. 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 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 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; - - required minimum distributions from a qualified annuity provided the amount is 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*; RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 25 - - 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 the prior 60 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. 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 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 fee is only deducted from any Special DCA fixed account if insufficient amounts are available in the regular 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 fee 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 fee. Currently, the Accumulation Benefit rider charge does not vary with the model portfolio selected; however, we reserve the right to increase this charge and/or charge a separate rider fee for each model portfolio. The Accumulation Benefit rider fee will not exceed a maximum charge of 2.50%. We will not change the Accumulation Benefit rider charge after the rider effective date unless: (a) you choose the annual Elective Step Up after we have exercised our rights to increase the rider charge; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you change your model portfolio after we have exercised our rights to increase the rider charge; (d) you change your model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. If you elect to change your model portfolio 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, the increase in fees we charge for this rider will become effective on the contract anniversary following your change of model portfolio. Any model portfolio changes on the contract anniversary will have the new charge effective on that contract anniversary. Also, in the event you change your model portfolio twice in the same contract year (see "Portfolio Navigator Asset Allocation Program"), the fee we charge for this rider will be the greatest fee applicable to any model portfolio 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 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 model portfolio. For Elective Step Ups and 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 select a model portfolio with this rider (see "Portfolio Navigator Asset Allocation Program"). Not available with GWB for Life or SecureSource riders. 26 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS GWB FOR LIFE RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.65% of the greater of the contract anniversary value or the remaining benefit amount (RBA). We prorate this fee 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 fee 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 fee will only be deducted from the subaccounts in Washington. We will modify this prorated approach to comply with state regulations where necessary. (1) The GWB for Life rider is no longer available for sale. 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 charge does not vary with the PN program model portfolio selected; however, we reserve the right to increase this charge and/or charge a separate rider charge for each model portfolio. The GWB for Life rider charge will not exceed a maximum charge of 1.50%. We will not change the GWB for Life rider charge after the rider effective date unless: (a) you choose the annual elective step up after we have exercised our rights to increase the rider charge; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you elect to change your PN program model portfolio after we have exercised our rights to increase the rider charge; (d) you elect to change your PN program model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. If you chose the elective spousal continuation step up or change your model portfolio 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, 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 more than once in the same contract year (see "Portfolio Navigator Asset Allocation Program"), the fee we charge for this rider will be the greatest fee applicable to any model portfolio 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 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 fee does not apply after annuity payouts begin. SECURESOURCE RIDER FEE We charge an annual fee 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, 0.65%; - - SecureSource -- Joint Life rider, 0.85%. We deduct the fee from your contract value on your contract anniversary. We prorate this fee 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 fee 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 fee 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. Currently the SecureSource rider charge does not vary with the Portfolio Navigator model portfolio selected; however, we reserve the right to increase this charge and/or charge a separate rider charge for each model portfolio. The SecureSource -- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 27 Single Life rider charge will not exceed a maximum charge of 1.50%. The SecureSource -- Joint Life rider charge will not exceed a maximum charge of 1.75%. We will not change the SecureSource rider charge after the rider effective date unless: (a) you choose the annual elective step up after we have exercised our rights to increase the rider charge. However, if you choose to exercise the annual elective step up before the end of the waiting period, the SecureSource rider charge will not change until the end of the waiting period. The charge will be based on the charge 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 Portfolio Navigator model portfolio; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you elect to change your Portfolio Navigator model portfolio after we have exercised our rights to increase the rider charge; (d) you elect to change your Portfolio Navigator model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. If you choose the elective step up, the elective spousal continuation step up, or change your Portfolio Navigator model portfolio 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 Portfolio Navigator model portfolio. On the next contract anniversary, we will calculate an average rider charge, for the preceding contract year only, that reflects the various different charges that were in effect that year, adjusted for the number of calendar days each charge was in effect. The fee 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 select a model portfolio with this rider (see "Portfolio Navigator Asset Allocation Program"). Not available with the Accumulation Benefit rider. ROPP RIDER FEE We charge a fee for this optional feature only if you select it.(3) If selected, we deduct an annual fee of 0.20% 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 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 fee 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 at that time, adjusted for the number of calendar days coverage was in effect during the year. (3) 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.(4) If selected, we deduct an annual fee of 0.25% 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 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 fee 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 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 the 5-Year MAV. 5-YEAR MAV RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.10% 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 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 fee 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%. 28 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS If the contract is terminated for any reason, we will deduct the charge 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 charge a fee for this optional feature only if you select it.(2) 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 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 fee 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 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 EEP. May not be available in all states. EEP RIDER FEE We charge a fee for this optional feature only if you select it.(3) If selected, we deduct an annual fee 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 fee 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 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 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; - - 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; - - plus or minus any applicable MVA; 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 29 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; - - 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 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. 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; 30 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - transfers into or out of the subaccounts; - - partial surrenders; - - surrender charges; and a deduction of a prorated portion of: - - the contract administrative charge; - - the ROPP rider fee (if selected); - - the MAV rider fee (if selected); - - the 5-Year MAV rider fee (if selected); - - the EEB rider fee (if selected); - - the EEP rider fee (if selected); - - the Accumulation Benefit rider fee (if selected); - - the GWB for Life rider fee (if selected); and/or - - the SecureSource rider fee (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. HOW DOLLAR-COST AVERAGING WORKS
By investing an equal number NUMBER of dollars each month AMOUNT ACCUMULATION OF UNITS .... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy more units when the per unit market price is low... Mar 100 17 5.88 Apr 100 15 6.67 May 100 16 6.25 June 100 18 5.56 July 100 17 5.88 and fewer units when the per unit market price is high. Aug 100 19 5.26 Sept 100 21 4.76 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 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 31 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 you select. - - 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 a 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. - - 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. - - Fundings from multiple sources are 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 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 a PN program is in effect when you elect to end your participation in the Special DCA program, and the asset allocation program does not end at the same time, we will transfer the remaining balance to the model portfolio which is in effect). - - 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 32 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 Asset Allocation Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) The PN program is available for nonqualified annuities and for qualified annuities, except under 401(a) plans. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include certain GPAs and/or the regular fixed account (if available under the PN program) that represent various asset classes (allocation options). The PN program also allows you to periodically update your model portfolio or transfer to a new model portfolio. 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. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, an affiliate of ours, serves as non-discretionary investment adviser for the PN program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides 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 Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at or before the time they enroll in the PN program. Currently, the PN program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. 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, 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 identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates 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 conflict 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 CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 33 As an affiliate of RiverSource Investments, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options 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, recommend certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may include but not be limited to a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's 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 influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we 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 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 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 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. PARTICIPATING IN THE PN PROGRAM. If you choose or are required to participate in the PN program, you are responsible for determining which model portfolio is best for you. 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 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 asset mix reflected in the model portfolio you select after completing the investor questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts, any GPAs and/or the regular fixed account that make up that model portfolio. By participating in the PN program, you instruct us to invest your contract value in the subaccounts, the regular fixed account and/or any GPAs (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN program, 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 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 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 model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. Model portfolios also may be evaluated in connection with the liquidation, substitution or merger of an 34 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS underlying fund, a change in the investment objective of an underlying fund or when an underlying fund stops selling its shares to the variable account. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value, less amounts allocated to the Special DCA fixed account, is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value, less amounts allocated to the Special DCA fixed account, according to the updated model portfolio. If you do not want your contract value, less amounts allocated to the Special DCA fixed account, to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. If your contract includes an optional Accumulation Benefit, GWB for Life rider or SecureSource rider and you make such a change (other than a scheduled periodic reallocation), we may charge you a higher fee for your rider. If your contract includes Secure Source rider, we reserve the right to limit the number of model portfolio 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 model portfolios 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 models 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 current 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. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN program, we would either have to find a replacement investment adviser or terminate the PN program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). 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 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. 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 and periodic updating 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 or periodic updating 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 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 35 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. 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 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 participate in 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 model portfolios for the life of the contract. Subject to state restrictions, we reserve the right to limit the number of 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 participate in 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. You may cancel your participation in the PN program at any time by giving us written notice. Upon cancellation, automated rebalancing associated with the PN program will end. You will also cancel the PN program if you initiate transfers other than transfers to one of the current model portfolios or transfers from a Special DCA fixed account (see "Special Dollar-Cost Averaging (Special DCA) Program") or an excluded account. Partial surrenders do not cancel the PN program. Your participation in the PN program will terminate on the date you make a full surrender from your contract or on your settlement date. TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while a PN model portfolio 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 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 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 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 law limitations. 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 36 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 elect 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. - - 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 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 37 - - 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. 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 38 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. 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 a PN program is in effect, you are not allowed to set up automated transfers except in connection with a Special DCA fixed account. MINIMUM AMOUNT Transfers or surrenders: $50 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 39 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the regular fixed account) 3 BY TELEPHONE Call between 7 a.m. and 7 p.m. Central time: (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 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 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 GWB for Life rider or SecureSource(SM) 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"). 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 request specifically surrender 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. 40 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. 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 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. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. 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; - effective Jan. 1, 2009, the distribution is due to plan termination; or - effective Jan. 1, 2009, 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 41 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 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. 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 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 a pro rata portion of rider fees; 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 a pro rata portion of rider fees. 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. 42 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS 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 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. NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner. 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 a pro rata portion of rider fees; 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 a pro rata portion of rider fees. 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 -- 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 43 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 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 a pro rata portion of rider fees; 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 a pro rata portion of rider fees. 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 -- 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: - 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, the optional SecureSource rider, if selected, will terminate. - - 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. OPTIONAL BENEFITS 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 a pro rata portion of rider fees; 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. 44 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS For an example, see Appendix D. IF YOUR SPOUSE IS THE SOLE BENEFICIARY AND 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. 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, 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 a pro rata portion of rider fees; 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, on the date 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 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 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 45 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 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, 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 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 a pro rata portion of rider fees; 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, on the date 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 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. 46 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 - - 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 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." RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 47 - - 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 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 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 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 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 RIDER 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 40% x (earnings at death + 25% of 15% x (earnings at death + 25% of exchange 3 & 4 exchange purchase payment*) purchase payment*) 40% x (earnings at death + 50% of 15% x (earnings at death + 50% of exchange 5+ 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. 48 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. 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 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(1): - - 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. (1) 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 49 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). 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 50 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS "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 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 ASSET ALLOCATION PROGRAM REQUIRED: You must elect one of the model portfolios of the Portfolio Navigator. This requirement limits your choice of subaccounts, regular fixed account and GPAs (if available) to those that are in the model portfolio you select. 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 Asset Allocation 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 you have chosen. You may make two elective model portfolio changes per contract year; we reserve the right to limit elective model portfolio changes if required to comply with the written instructions of a fund (see "Market Timing"). RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 51 You can allocate your contract value to any available model portfolio 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 to any available model portfolio. Immediately following a withdrawal your contract value will be reallocated to the target model portfolio as shown in your contract if your current model portfolio is more aggressive than the target model portfolio. 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 model portfolio is currently the Moderate model. We reserve the right to change the target model portfolio to a model portfolio that is more aggressive than the current target model portfolio 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 to the target model portfolio or any model portfolio that is more conservative than the target model portfolio without a benefit reset as described below. If you are in a withdrawal phase and you choose to allocate your contract value to a model portfolio that is more aggressive than the target model portfolio, 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. You may request to change your model portfolio 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. - - 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. 52 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 before age 59 1/2 may incur a 10% IRS early withdrawal penalty and may be considered taxable income. 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. 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 53 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. 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 54 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. - - 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 55 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. - - 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. 56 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - - 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). 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 57 - - 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 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 58 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 59 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. CONTRACT OWNERSHIP CHANGE: SINGLE LIFE: If the contract changes ownership (see "Changing Ownership"), the GBA, RBA, GBP, RBP values will remain unchanged. If the covered person changes due to the ownership change, the ALP and RALP will be reset as follows: - - 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 60 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. 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. 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 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 61 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 elect one of the model portfolios. This requirement limits your choice of subaccounts, regular fixed account and GPAs (if available) to those that are in the model portfolio you select. 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 you have chosen. (See "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation 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 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 model portfolio 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. 62 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 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 E. 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 (1): - - 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. (1) The GWB for Life rider is not available under an inherited qualified annuity. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 63 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; - - 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). 64 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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, 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 ASSET ALLOCATION PROGRAM IS REQUIRED: You must elect one of the model portfolios of the PN program. This requirement limits your choice of subaccounts, regular fixed account and GPAs (if available) to those that are in the model portfolio you select. 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 you have chosen. 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 Asset Allocation Program".) Subject to state restrictions, we reserve the right to limit the number of model portfolios 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. - - 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 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 65 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 before age 59 1/2 may incur a 10% IRS early withdrawal penalty and may be considered taxable income. 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"), so the rider may be of limited value to you. 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. 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. - - 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. 66 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 67 - - 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. 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. 68 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 69 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. (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 70 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 71 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: - - 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 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 72 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. For an example, see Appendix E. 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, plus or minus any applicable MVA on GPAs 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; - - your 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 73 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 your age and, when applicable, your 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 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, 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 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 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 74 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 - - 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 the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum 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 federal income tax until there is a distribution from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a 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. 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, 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 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 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 75 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. 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. 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. 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 to you like a surrender 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 are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. In addition, a new tax regulation, effective for RMDs calculated in 2006 and after, may cause the RMDs for some contracts with certain death benefits and optional riders to increase. RMDs may reduce the value of certain death benefits and optional benefits. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. 76 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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; In the below situations, the distribution is subject to an optional 10% 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. Payments made to a surviving spouse instead of being directly rolled over to an IRA are subject to mandatory 20% income tax withholding. 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. 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 RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 77 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 taxed to us, and therefore no charge is made against the subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. 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. 78 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. We agree to pay 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. - - 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"); RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 79 - - 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. 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 for the year ended Dec. 31, 2007 that we 80 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 81 APPENDIX A: THE FUNDS 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 AIM V.I. Capital Growth of capital. Invests principally in common Invesco Aim Advisors, Inc. adviser, Appreciation Fund, Series II stocks of companies likely to benefit from new advisory entities affiliated with Shares or innovative products, services or processes as Invesco Aim Advisors, Inc., well as those with above-average long-term subadvisers. growth and excellent prospects for future growth. The Fund can invest up to 25% of its total assets in foreign securities that involve risks not associated with investing solely in the United States. AIM V.I. Capital Development Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Fund, Series II Shares in securities (including common stocks, advisory entities affiliated with convertible securities and bonds) of small- and Invesco Aim Advisors, Inc., medium-sized companies. The Fund may invest up subadvisers. to 25% of its total assets in foreign securities. AIM V.I. Financial Services Capital Growth Actively managed. The Fund Invesco Aim Advisors, Inc. adviser, Fund, Series II Shares normally invests at least 80% of its net assets advisory entities affiliated with in the equity securities and equity related Invesco Aim Advisors, Inc., instruments of companies involved in the subadvisers. financial services sector. These companies include, but are not limited to, banks, insurance companies, investment and miscellaneous industries, and Suppliers to financial services companies. The Fund may invest up to 25% of its assets in securities of non-US issuers. Securities of Canadian issuers and American Depositary Receipts are not subject to this 25% limitation. AIM V.I. Global Health Care Capital Growth The Fund seeks to meet its Invesco Aim Advisors, Inc. adviser, Fund, Series II Shares objective by investing, normally, at least 80% advisory entities affiliated with of its assets in securities of health care Invesco Aim Advisors, Inc., industry companies. The Fund may invest up to subadvisers. 20% of its total assets in companies located in developing countries, i.e., those countries that are in the initial stages of their industrial cycles. The Fund may also invest up to 5% of its total assets in lower-quality debt securities, i.e., junk bonds. AIM V.I. International Long-term growth of capital. Invests primarily Invesco Aim Advisors, Inc. adviser, Growth Fund, Series II in a diversified portfolio of international advisory entities affiliated with Shares equity securities, whose issuers are considered Invesco Aim Advisors, Inc., to have strong earnings momentum. The Fund may subadvisers. invest up to 20% of its total assets in security issuers located in developing countries and in securities exchangeable for or convertible into equity securities of foreign companies. AllianceBernstein VPS Global Long-term growth of capital. The Fund invests at AllianceBernstein L.P. Technology Portfolio (Class least 80% of its net assets in securities of B) companies that use technology extensively in the development of new or improved products or processes. Invests in a global portfolio of securities of U.S. and foreign companies selected for their growth potential. AllianceBernstein VPS Growth Long-term growth of capital. Invests primarily AllianceBernstein L.P. and Income Portfolio (Class in the equity securities of domestic companies B) that the Advisor deems to be undervalued.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER AllianceBernstein VPS Long-term growth of capital. Invests primarily AllianceBernstein L.P. International Value in a diversified portfolio of equity securities Portfolio (Class B) of established companies selected from more than 40 industries and from more than 40 developed and emerging market countries. AllianceBernstein VPS Large Long-term growth of capital. Invests primarily AllianceBernstein L.P. Cap Growth Portfolio (Class in equity securities of U.S. companies. Unlike B) most equity funds, the Portfolio focuses on a relatively small number of intensively researched companies. American Century VP Mid Cap Long-term capital growth with income as a American Century Investment Management, Value, Class II secondary objective. Long-term capital growth Inc. with income as secondary objective. Invests primarily in stocks of companies that management believes are undervalued at the time of purchase. The fund will invest at least 80% of its assets in securities of companies whose market capitalization at the time of purchase is within the capitalization range of the Russell 3000 Index, excluding the largest 100 such companies. American Century VP Long-term capital growth. Analytical research American Century Investment Management, Ultra(R), Class II tools and techniques are used to identify the Inc. stocks of larger-sized companies that appear to have the best opportunity of sustaining long-term above average growth. American Century VP Value, Long-term capital growth, with income as a American Century Investment Management, Class II secondary objective. Invests primarily in stocks Inc. of companies that management believes to be undervalued at the time of purchase. Columbia High Yield Fund, Total return, consisting of a high level of Columbia Management Advisors, LLC, Variable Series, Class B income and capital appreciation. Under normal advisor; MacKay Shields LLC, circumstances, the Fund invests at least 80% of subadviser. net assets in domestic and foreign corporate below investment grade debt securities. These securities generally will be, at the time of purchase, rated BB or below by Standard & Poor's Corporation (S&P) or Fitch, rated "Ba" or below by Moody's, or unrated but determined by the Advisor to be of comparable quality. The Fund invests primarily in domestic corporate below investment grade securities (including private placements), U.S. dollar-denominated foreign corporate below investment grade securities (including private placements), zero-coupon bonds and U.S. Government obligations. The Fund may invest up to 20% of net assets in equity securities that may include convertible securities. The Fund is not managed to a specific duration. Columbia Marsico Growth Long-term growth of capital. Under normal Columbia Management Advisors, LLC, Fund, Variable Series, Class circumstances, the Fund invests primarily in adviser; Marsico Capital Management, A equity securities of large-capitalization LLC, sub-adviser. companies that have market capitalizations of $5 billion or more at the time of purchase. The Fund generally holds a core position of between 35 and 50 common stocks. It may hold up to 25% of total assets in foreign securities, including in emerging market securities.
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 83
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Columbia Marsico Long-term growth of capital. Under normal Columbia Management Advisors, LLC, International Opportunities circumstances, the Fund invests at least 65% of adviser; Marsico Capital Management, Fund, Variable Series, Class total assets in common stocks of foreign LLC, sub-adviser. B companies. The Fund may invest in companies of any size throughout the world that are selected for their long-term growth potential. The Fund normally invests in issuers from at least three different countries not including the United States. The Fund may invest in common stocks of companies operating in or economically tied to emerging markets countries. Some issuers or securities in the Fund's portfolio may be based in or economically tied to the United States. Credit Suisse Trust - Total Return. Invests in commodity-linked Credit Suisse Asset Management, LLC Commodity Return Strategy derivative instruments backed and fixed-income Portfolio securities. The portfolio invests in commodity-linked derivative instruments, such as commodity-linked notes, swap agreements, commodity options, futures and options on futures that provide exposure to the investment returns of the commodities markets without investing directly in physical commodities. The portfolio invests all of its assets in commodity-linked derivative instruments, such as structured notes and swaps, and fixed-income securities, subject to applicable IRS limits. The portfolio may also gain exposure to commodity markets by investing in the Credit Suisse Cayman Commodity Fund II, a wholly owned subsidiary of the Portfolio formed in the Cayman Island. Dreyfus Variable Investment Capital growth. To pursue this goal, the The Dreyfus Corporation Fund International Equity portfolio primarily invests in growth stocks of Portfolio, Service Shares foreign companies. Normally, the portfolio invests at least 80% of its assets in stocks, including common stocks, preferred stocks and convertible securities, including those purchased in initial public offering. Dreyfus Variable Investment Long-term capital growth. To pursue this goal, The Dreyfus Corporation Fund International Value the portfolio normally invests at least 80% of Portfolio, Service Shares its assets in stocks. The portfolio ordinarily invests most of its assets in securities of foreign companies which Dreyfus considers to be value companies. The portfolio's stock investments may include common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings or shortly thereafter. The portfolio may invest in companies of any size. The portfolio may also invest in companies located in emerging markets.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Eaton Vance VT Floating- High level of current income. The Fund invests Eaton Vance Management Rate Income Fund primarily in senior floating rate loans ("Senior Loans"). Senior Loans typically are of below investment grade quality and have below investment grade credit ratings, which ratings are associated with securities having high risk, speculative characteristics. The Fund invests at least 80% of its net assets in income producing floating rate loans and other floating rate debt securities. The Fund may also purchase investment grade fixed income debt securities and money market instruments. The Fund may invest up to 25% of its total assets in foreign securities and may engage in certain hedging transactions. The Fund may purchase derivative instruments, such as futures contracts and options thereon, interest rate and credit default swaps, credit linked notes and currency hedging derivatives. Evergreen VA Fundamental Capital growth with the potential for current Evergreen Investment Management Large Cap Fund - Class 2 income. Invests primarily in common stocks of Company, LLC large U.S. companies whose market capitalizations measured at time of purchase fall within the market capitalization range of the companies tracked by the Russell 1000(R) Index. Evergreen VA International Long-term capital growth, with modest income as Evergreen Investment Management Equity Fund - Class 2 a secondary objective. The Fund seeks to achieve Company, LLC its goal by investing primarily in equity securities issued by established, quality non-U.S. companies located in countries with developed markets and may purchase securities across all market capitalizations. The Fund may also invest in emerging markets. Fidelity(R) VIP Long-term capital appreciation. Normally invests Fidelity Management & Research Company Contrafund(R) Portfolio primarily in common stocks. Invests in (FMR), investment manager; FMR U.K. and Service Class 2 securities of companies whose value it believes FMR Far East, sub- advisers. is not fully recognized by the public. Invests in either "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. Fidelity(R) VIP Mid Cap Long-term growth of capital. Normally invests Fidelity Management & Research Company Portfolio Service Class 2 primarily in common stocks. Normally invests at (FMR), investment manager; FMR U.K., least 80% of assets in securities of companies FMR Far East, sub- advisers. 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 Long-term growth of capital. Normally invests Fidelity Management & Research Company Portfolio Service Class 2 primarily in common stocks of foreign (FMR), investment manager; FMR U.K., securities. Normally invests at least 80% of FMR Far East, Fidelity International assets in non-U.S. securities. Investment Advisors (FIIA) and FIIA U.K., sub-advisers. FTVIPT Franklin Global Real High total return. The Fund normally invests at Franklin Templeton Institutional, LLC Estate Securities least 80% of its net assets in investments of Fund - Class 2 companies located anywhere in the world that operate in the real estate sector and normally invests predominantly in equity securities.
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 85
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER FTVIPT Franklin Small Cap Long-term total return. The Fund normally Franklin Advisory Services, LLC Value Securities invests at least 80% of its net assets in Fund - Class 2 investments of small capitalization companies, and normally invests predominantly in equity securities. The Fund invests mainly in equity securities of companies that the manager believes are undervalued. FTVIPT Mutual Shares Capital appreciation, with income as a secondary Franklin Mutual Advisers, LLC Securities Fund - Class 2 goal. The Fund normally invests primarily in equity securities of companies that the manager believes are undervalued. The Fund also invests, to a lesser extent in risk arbitrage securities and distressed companies. Goldman Sachs VIT Structured Long-term growth of capital and dividend income. Goldman Sachs Asset Management, L.P. U.S. Equity The Fund invests, under normal circumstances, at Fund - Institutional Shares least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) ("Net Assets") in a diversified portfolio of equity investments in U.S. issuers, including foreign companies that are traded in the United States. However, it is currently anticipated that, under normal circumstances, the Fund will invest at least 95% of its Net Assets in such equity investments. The Fund's investments are selected using a variety of quantitative techniques, derived from fundamental research including but not limited to valuation, momentum, profitability and earnings quality, in seeking to maximize the Fund's expected returns. The Fund maintains risk, style, capitalization and industry characteristics similar to the S&P 500 Index. The S&P 500 Index is an index of large-cap stocks designed to reflect a broad representation of the U.S. economy. The Fund seeks to maximize expected return while maintaining these and other characteristics similar to the benchmark. The Fund is not required to limit its investments to securities in the S&P 500 Index. Janus Aspen Series Large Cap Long-term growth of capital in a manner Janus Capital Management LLC Growth Portfolio: Service consistent with the preservation of capital. Shares Invests under normal circumstances at least 80% of its net assets in common stocks of large-sized companies. Large-sized companies are those whose market capitalization falls within the range of companies in the Russell 1000(R) Index at the time of purchase. Legg Mason Partners Variable Long-term growth of capital. Under normal Legg Mason Partners Fund Advisor, LLC, Small Cap Growth Portfolio, circumstances, the fund invests at least 80% of adviser; ClearBridge Advisors, LLC, Class I its net assets in equity securities of companies sub-adviser. with small market capitalizations and related investments. MFS(R) Investors Growth Capital appreciation. Normally invests at least MFS Investment Management(R) Stock Series - Service Class 80% of the fund's net assets in equity securities of companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). Growth companies tend to have stock prices that are high relative to their earnings, dividends, book value, or other financial measures. The Fund generally focuses on companies with large capitalizations.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER MFS(R) Total Return Total return. Invests primarily in equity and MFS Investment Management(R) Series - Service Class fixed income securities. MFS invests between 40% and 75% of the fund's net assets in equity securities and at least 25% of the fund's total assets in fixed-income senior securities. MFS(R) Utilities Series - Total return. Normally invests at least 80% of MFS Investment Management(R) Service Class the fund's net assets in securities of issuers in the utilities industry. The Fund's assets may be invested in companies of any size. Neuberger Berman Advisers Long-term growth of capital. The Fund invests Neuberger Berman Management Inc. Management Trust mainly in foreign companies of any size, International Portfolio including companies in developed and emerging (Class S) industrialized markets. The Fund defines a foreign company as one that is organized outside of the United States and conducts the majority of its business abroad. The Fund seeks to reduce risk by diversifying among many industries. Although it has the flexibility to invest a significant portion of its assets in one country or region, it generally intends to remain well- diversified across countries and geographical regions. Neuberger Berman Advisers Long-term growth of capital. The Fund normally Neuberger Berman Management Inc. Management Trust Socially invests at least 80% of its respective net Responsive Portfolio (Class assets, plus the amount of any borrowing for S) investment purposes in equity securities selected in accordance with the Fund's social policy. The Fund invests mainly in common stocks of mid- to large-capitalization companies. The Fund seeks to reduce risk by investing across many different industries. The Portfolio Managers employ a research driven and valuation sensitive approach to stock selection. They seek to identify stocks in well-positioned businesses that they believe are undervalued in the market. They look for solid balance sheets, strong management teams with a track record of success, good cash flow, the prospect for above average earnings growth and other valuation related factors. Oppenheimer Global Long-term capital appreciation. Invests mainly OppenheimerFunds, Inc. Securities Fund/VA, Service in common stocks of U.S. and foreign issuers Shares that are "growth-type" companies, cyclical industries and special situations that are considered to have appreciation possibilities. Oppenheimer Main Street Capital appreciation. Invests mainly in common OppenheimerFunds, Inc. Small Cap Fund/VA, Service stocks of small-capitalization U.S. companies Shares that the fund's investment manager believes have favorable business trends or prospects. Oppenheimer Strategic Bond High level of current income principally derived OppenheimerFunds, Inc. Fund/VA, Service Shares from interest on debt securities. Invests mainly in three market sectors: debt securities of foreign governments and companies, U.S. government securities and lower-rated high yield securities of U.S. and foreign companies. Oppenheimer Value Fund/ VA, Long-term growth of capital with realization of OppenheimerFunds, Inc. Service Shares current income as a secondary consideration. Invests mainly in common stocks of different capitalization ranges.
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 87
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER PIMCO VIT All Asset Maximum real return consistent with preservation Pacific Investment Management Company Portfolio, Advisor Share of real capital and prudent investment LLC Class management period. The Portfolio seeks to achieve its investment objective by investing under normal circumstances substantially all of its assets in Institutional Class shares of the PIMCO Funds, an affiliated open-end investment company, except the All Asset and All Asset All Authority Funds ("Underlying Funds"). Though it is anticipated that the Portfolio will not currently invest in the European StocksPLUS(R) TR Strategy, Far East (ex-Japan) StocksPLUS(R) TR Strategy, Japanese StocksPLUS(R) TR Strategy, StocksPLUS(R) Municipal-Backed and StocksPLUS(R) TR Short Strategy Funds, the Portfolio may invest in these Funds in the future, without shareholder approval, at the discretion of the Portfolio's asset allocation sub-adviser. RVST Disciplined Asset High level of total return that is consistent RiverSource Investments, LLC Allocation Portfolios - with an aggressive level of risk. The Fund Aggressive invests primarily in equity securities and also invests a small amount in fixed income securities. The Fund may be most appropriate for investors with a longer term investment horizon. The Fund is intended for investors who have an objective of achieving a high level of total return, but prefer to have investment decisions managed by professional money managers. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a conservative level of risk. Conservative The Fund invests primarily in fixed income securities and may be most appropriate for investors with a shorter term investment horizon. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate level of risk. The Moderate Fund invests in a balance of fixed income and equity securities and may be most appropriate for investors with an intermediate term investment horizon. 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.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST Disciplined Asset The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate aggressive level of Moderately Aggressive risk. The Fund invests primarily in equity securities and also invests a moderate amount in fixed income securities. The Fund may be most appropriate for investors with an intermediate-to-long term investment horizon. 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 The high level of total return that is RiverSource Investments, LLC Allocation Portfolios - consistent with a moderate conservative level of Moderately Conservative risk. The Fund invests primarily in fixed income securities and also invests a moderate amount in equity securities. The Fund may be most appropriate for investors with a short-to-intermediate term investment horizon. 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 RiverSource Partners Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Variable primarily invested in equity securities of U.S. Davis Selected Advisers, L.P., Portfolio - Fundamental companies. Under normal market conditions, the subadviser. Value Fund Fund's assets will be invested primarily in (previously RiverSource companies with market capitalizations of at Variable Portfolio - least $5 billion at the time of the Fund's Fundamental Value Fund) investment. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Partners Long-term growth of capital. Invests primarily RiverSource Investments, LLC, adviser; Variable Portfolio - Select in equity securities of mid cap companies as Systematic Financial Management, L.P. Value Fund well as companies with larger and smaller market and WEDGE Capital Management L.L.P., (previously RiverSource capitalizations. The Fund considers mid-cap sub- advisers. Variable Portfolio - Select companies to be either those with a market Value Fund) capitalization of up to $15 billion or those whose market capitalization falls within range of the Russell Midcap(R) Value Index. RVST RiverSource Partners Long-term capital appreciation. Under normal RiverSource Investments, LLC, adviser; Variable Portfolio - Small market conditions, at least 80% of the Fund's River Road Asset Management, LLC, Cap Value Fund net assets will be invested in small cap Donald Smith & Co., Inc., Franklin (previously RiverSource companies with market capitalization, at the Portfolio Associates LLC, Barrow, Variable Portfolio - Small time of investment, of up to $2.5 billion or Hanley, Mewhinney & Strauss, Inc. and Cap Value Fund) that fall within the range of the Russell Denver Investment Advisors LLC, 2000(R) Value Index. The Fund may invest up to subadvisers. 25% of its net assets in foreign investments.
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 89
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable Maximum total investment return through a RiverSource Investments, LLC Portfolio - Balanced Fund combination of capital growth and current income. Invests primarily in a combination of common and preferred stocks, bonds and other debt securities. Under normal market conditions, at least 50% of the Fund's total assets are invested in common stocks and no less than 25% of the Fund's total assets are invested in debt securities. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Maximum current income consistent with liquidity RiverSource Investments, LLC Portfolio - Cash Management and stability of principal. Invests primarily in Fund money market instruments, such as marketable debt obligations issued by corporations or the U.S. government or its agencies, bank certificates of deposit, bankers' acceptances, letters of credit, and commercial paper, including asset-backed commercial paper. RVST RiverSource Variable High level of current income while attempting to RiverSource Investments, LLC Portfolio - Diversified Bond conserve the value of the investment for the Fund longest period of time. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and other debt securities. At least 50% of the Fund's net assets will be invested in securities like those included in the Lehman Brothers Aggregate Bond Index (Index), which are investment grade and denominated in U.S. dollars. The Index includes securities issued by the U.S. government, corporate bonds, and mortgage- and asset-backed securities. Although the Fund emphasizes high- and medium-quality debt securities, it will assume some credit risk to achieve higher yield and/or capital appreciation by buying lower-quality (junk) bonds. The Fund may invest up to 25% of its net assets in foreign investments, which may include instruments in emerging markets. RVST RiverSource Variable High level of current income and, as a secondary RiverSource Investments, LLC Portfolio - Diversified goal, steady growth of capital. Under normal Equity Income Fund market conditions, the Fund invests at least 80% of its net assets in dividend- paying common and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable High total return through income and growth of RiverSource Investments, LLC Portfolio - Global Bond Fund capital. Non-diversified mutual fund that invests primarily in debt obligations of U.S. and foreign issuers. Under normal market conditions, the Fund invests at least 80% of its net assets in investment-grade corporate or government debt obligations including money market instruments of issuers located in at least three different countries. RVST RiverSource Variable Total return that exceeds the rate of inflation RiverSource Investments, LLC Portfolio - Global Inflation over the long-term. Non-diversified mutual fund Protected Securities Fund that, under normal market conditions, invests at least 80% of its net assets in inflation-protected debt securities. These securities include inflation-indexed bonds of varying maturities issued by U.S. and foreign governments, their agencies or instrumentalities, and corporations.
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INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable Long-term capital growth. Invests primarily in RiverSource Investments, LLC Portfolio - Growth Fund common stocks and securities convertible into common stocks that appear to offer growth opportunities. These growth opportunities could result from new management, market developments, or technological superiority. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable High current income, with capital growth as a RiverSource Investments, LLC Portfolio - High Yield Bond secondary objective. Under normal market Fund conditions, the Fund invests at least 80% of its net assets in high-yield debt instruments (commonly referred to as "junk") including corporate debt securities as well as bank loans rated below investment grade by a nationally recognized statistical rating organization, or if unrated, determined to be of comparable quality. Up to 25% of the Fund may be invested in high yield debt instruments of foreign issuers. RVST RiverSource Variable High total return through current income and RiverSource Investments, LLC Portfolio - Income capital appreciation. Under normal market Opportunities Fund conditions, the Fund invests primarily in income-producing debt securities with an emphasis on the higher rated segment of the high-yield (junk bond) market. These income-producing debt securities include corporate debt securities as well as bank loans. The Fund will purchase only securities rated B or above, or unrated securities believed to be of the same quality. If a security falls below a B rating, the Fund may continue to hold the security. Up to 25% of the Fund may be in foreign investments. RVST RiverSource Variable Capital appreciation. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Equity conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with market capitalization greater than $5 billion at the time of purchase. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Long-term growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Value conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with a market capitalization greater than $5 billion. The Fund may also invest in income-producing equity securities and preferred stocks. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Mid Cap Growth conditions, the Fund invests at least 80% of its Fund net assets at the time of purchase in equity securities of mid capitalization companies. The investment manager defines mid-cap companies as those whose market capitalization (number of shares outstanding multiplied by the share price) falls within the range of the Russell Midcap(R) Growth Index.
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 91
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RVST RiverSource Variable Long-term growth of capital. Under normal RiverSource Investments, LLC Portfolio - Mid Cap Value circumstances, the Fund invests at least 80% of Fund its net assets (including the amount of any borrowings for investment purposes) in equity securities of medium-sized companies. Medium-sized companies are those whose market capitalizations at the time of purchase fall within the range of the Russell Midcap(R) Value Index. The Fund may invest up to 25% of its net assets in foreign investments. RVST RiverSource Variable Long-term capital appreciation. The Fund seeks RiverSource Investments, LLC Portfolio - S&P 500 Index to provide investment results that correspond to Fund the total return (the combination of appreciation and income) of large-capitalization stocks of U.S. companies. The Fund invests in common stocks included in the Standard & Poor's 500 Composite Stock Price Index (S&P 500). The S&P 500 is made up primarily of large-capitalization companies that represent a broad spectrum of the U.S. economy. RVST RiverSource Variable High level of current income and safety of RiverSource Investments, LLC Portfolio - Short Duration principal consistent with investment in U.S. U.S. Government Fund government and government agency securities. Under normal market conditions, at least 80% of the Fund's net assets are invested in securities issued or guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities. RVST RiverSource Variable Long-term capital growth. Under normal market RiverSource Investments, LLC, adviser; Portfolio - Small Cap conditions, at least 80% of the Fund's net Kenwood Capital Management LLC, Advantage Fund assets are invested in equity securities of sub-adviser. companies with market capitalization of up to $2 billion or that fall within the range of the Russell 2000(R) Index at the time of investment. RVST Threadneedle Variable Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Portfolio - Emerging Markets primarily invested in equity securities of Threadneedle International Limited, an Fund emerging market companies. Under normal market indirect wholly-owned subsidiary of (previously RiverSource conditions, at least 80% of the Fund's net Ameriprise Financial, sub-adviser. Variable Portfolio - assets will be invested in securities of Emerging Markets Fund) companies that are located in emerging market countries, or that earn 50% or more of their total revenues from goods and services produced in emerging market countries or from sales made in emerging market countries. RVST Threadneedle Variable Capital appreciation. Invests primarily in RiverSource Investments, LLC, adviser; Portfolio - International equity securities of foreign issuers that are Threadneedle International Limited, an Opportunity Fund believed to offer strong growth potential. The indirect wholly-owned subsidiary of (previously RiverSource Fund may invest in developed and in emerging Ameriprise Financial, sub-adviser. Variable Portfolio - markets. International Opportunity Fund)
92 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Van Kampen Life Investment Capital growth and income through investments in Van Kampen Asset Management Trust Comstock Portfolio, equity securities, including common stocks, Class II Shares preferred stocks and securities convertible into common and preferred stocks. The Portfolio emphasizes value style of investing seeking well-established, undervalued companies believed by the Portfolio's investment adviser to posses the potential for capital growth and income. Van Kampen UIF Global Real Current income and capital appreciation. Invests Morgan Stanley Investment Management Estate Portfolio, Class II primarily in equity securities of companies in Inc., doing business as Van Kampen, Shares the real estate industry located throughout the adviser; Morgan Stanley Investment world, including real estate operating Management Limited and Morgan Stanley companies, real estate investment trusts and Investment Management Company, similar entities established outside the U.S. sub-advisers. (foreign real estate companies). Van Kampen UIF Mid Cap Long-term capital growth. Invests primarily in Morgan Stanley Investment Management Growth Portfolio, Class II growth- oriented equity securities of U.S. mid Inc., doing business as Van Kampen. Shares cap companies and foreign companies, including emerging market securities. Wanger International Small Long-term growth of capital. Invests primarily Columbia Wanger Asset Management, L.P. Cap in stocks of companies based outside the U.S. with market capitalizations of less than $5 Effective June 1, 2008, the billion at time of initial purchase. Fund will change its name to Wanger International. Effective June 1, 2008: Long-term growth of capital. Under normal market circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion.
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 93
INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Wanger U.S. Smaller Long-term growth of capital. Invests primarily Columbia Wanger Asset Management, L.P. Companies in stocks of small- and medium-size U.S. companies with market capitalizations of less Effective June 1, 2008, the than $5 billion at time of initial purchase. Fund will change its name to Wanger USA. Effective June 1, 2008: Long-term growth of capital. Under normal market circumstances, the Fund invests a majority of its net assets in small- and mid-sized companies with market capitalizations under $5 billion at the time of investment. However, if the Fund's investments in such companies represent less than a majority of its net assets, the Fund may continue to hold and to make additional investments in an existing company in its portfolio even if that company's capitalization has grown to exceed $5 billion. Except as noted above, under normal market circumstances, the Fund may invest in other companies with market capitalizations above $5 billion, provided that immediately after that investment a majority of its net assets would be invested in companies with market capitalizations under $5 billion. Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Opportunity Fund principally in equity securities of adviser; Wells Capital Management medium-capitalization companies, defined as Incorporated, sub-adviser. those within the range of market capitalizations of companies in the Russell Midcap(R) Index. We reserve the right to hedge the portfolio's foreign currency exposure by purchasing or selling currency futures and foreign currency forward contracts. However, under normal circumstances, we will not engage in extensive foreign currency hedging. Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Small Cap Growth Fund principally in equity securities of adviser; Wells Capital Management small-capitalization companies that we believe Incorporated, sub-adviser. have above-average growth potential. We define small-capitalization companies as those with market capitalizations at the time of purchase of less than $2 billion.
94 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 95 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. 96 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 surrender: $120,000.00 $80,000.00 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 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 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 surrender): (30.00) (30.00) Net Full Surrender Proceeds: 112,970.00 73,565.00
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 97 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 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 partial surrender: $120,000.00 $80,000.00 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 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 = 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 Full Surrender Proceeds: 47,900.00 46,282.41
98 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 surrender: $120,000.00 $80,000.00 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 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 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 Value: 120,000.00 80,000.00 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
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 99 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 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 partial surrender: $120,000.00 $80,000.00 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 value: 11,500.00 8,500.00 ----------- ---------- 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 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) (3,717.00) Net Full Surrender Proceeds: 47,900.00 46,282.41
100 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 $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 RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 101 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 $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) 0.40 X 2.50 X ($55,000) = +55,000 -------- Total death benefit of: $255,000 ========
102 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS 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 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 103 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) --------------------- = $105,000 $57,619 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 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 $55,000 = +11,000 -------- Total death benefit of: $319,700 ========
104 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 - - The Accumulation Benefit rider fee is 0.60%.
ASSUMED NET PARTIAL SURRENDER ADJUSTED ACCUMULATION END OF CONTRACT 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
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 105 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.
HYPOTHETICAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT DURATION PURCHASE PARTIAL CONTRACT ----------------------------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 0.5 0 7,000 92,000 100,000 93,000 7,000 0 1 0 0 91,000 100,000 93,000 7,000 7,000 1.5 0 7,000 83,000 100,000 86,000 7,000 0 2 0 0 81,000 100,000 86,000 7,000 7,000 5 0 0 75,000 100,000 86,000 7,000 7,000 5.5 0 5,160 70,000 100,000 80,840 7,000 1,840 6 0 0 69,000 100,000 80,840 7,000 7,000 6.5 0 7,000 62,000 100,000 73,840 7,000 0 7 0 0 70,000 100,000 73,840 7,000 7,000 7.5 0 10,000 51,000 51,000(3) 51,000(3) 3,570 0 8 0 0 55,000 55,000 55,000 3,850 3,850 CONTRACT LIFETIME WITHDRAWAL BENEFIT DURATION --------------------------- IN YEARS ALP RALP At Issue $ N/A $ N/A 0.5 N/A N/A 1 N/A N/A 1.5 N/A N/A 2 N/A N/A 5 5,160(1) 5,160(1) 5.5 5,160 0 6 5,160 5,160 6.5 3,720(2) 0 7 4,200 4,200 7.5 3,060(3) 0 8 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. 106 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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 CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT DURATION PURCHASE PARTIAL CONTRACT ----------------------------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 4 0 0 115,000 115,000 115,000 8,050 8,050 4.5 0 8,050 116,000 115,000 106,950 8,050 0 5 0 0 120,000 120,000 120,000 8,400 8,400 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 6 0 0 125,000 125,000 125,000 8,750 8,750 CONTRACT LIFETIME WITHDRAWAL BENEFIT DURATION --------------------------- IN YEARS ALP RALP At Issue $6,000 $6,000 1 6,300 6,000(1) 2 6,600 6,000(1) 3 6,600 6,600(2) 3.5 6,600 0 4 6,900 6,900 4.5 6,900(3) 0 5 7,200 7,200 5.5 7,200(4) 0 6 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. (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 107 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 model portfolio at issue. On the 1st contract anniversary, you elect to change to the Moderately Aggressive model portfolio. The target model portfolio under the contract is the Moderate model portfolio.
HYPOTHETICAL BASIC WITHDRAWAL BENEFIT CONTRACT ASSUMED ----------------------------------------- DURATION PURCHASE PARTIAL CONTRACT IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 0.5 0 5,000 92,000 100,000 95,000 7,000 2,000 1 0 0 90,000 90,000(1) 90,000(1) 6,300 6,300 2 0 0 81,000 90,000 90,000 6,300 6,300 5 0 0 75,000 90,000 90,000 6,300 6,300 5.5 0 5,400 70,000 90,000 84,600 6,300 900 6 0 0 69,000 90,000 84,600 6,300 6,300 6.5 0 6,300 62,000 90,000 78,300 6,300 0 7 0 0 64,000 90,000 78,300 6,300 6,300 7.5 0 10,000 51,000 51,000(4) 51,000(4) 3,570 0 8 0 0 55,000 55,000 55,000 3,850 3,850 LIFETIME WITHDRAWAL BENEFIT CONTRACT --------------------------- DURATION IN YEARS ALP RALP At Issue $ N/A $ N/A 0.5 N/A N/A 1 N/A N/A 2 N/A N/A 5 5,400(2) 5,400(2) 5.5 5,400 0 6 5,400 5,400 6.5 3,720(3) 0 7 3,840 3,840 7.5 3,060(4) 0 8 3,300 3,300
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, spousal continuation, contract ownership change, or model portfolio 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 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. (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. 108 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 BASIC WITHDRAWAL BENEFIT CONTRACT ASSUMED ----------------------------------------- DURATION PURCHASE PARTIAL CONTRACT IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 4 0 0 115,000 115,000 115,000 8,050 8,050 4.5 0 8,050 116,000 115,000 106,950 8,050 0 5 0 0 120,000 120,000 120,000 8,400 8,400 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 6 0 0 125,000 125,000 125,000 8,750 8,750 6.5 0 0 110,000 125,000 125,000 8,750 8,750 7 0 0 105,000 125,000 125,000 8,750 8,750 LIFETIME WITHDRAWAL BENEFIT CONTRACT --------------------------- DURATION IN YEARS ALP RALP At Issue $6,000 $6,000 1 6,300 6,000(1) 2 6,600 6,000(1) 3 6,600 6,600(2) 3.5 6,600 0 4 6,900 6,900 4.5 6,900(3) 0 5 7,200 7,200 5.5 7,200(4) 0 6 7,500 7,500 6.5 6,600(5) 6,600(5) 7 6,600 6,600
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, contract ownership change, or model portfolio 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 109 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 model portfolio at issue. On the 1st contract anniversary, you elect to change to the Moderately Aggressive model portfolio. 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 BASIC WITHDRAWAL BENEFIT CONTRACT ASSUMED ----------------------------------------- DURATION PURCHASE PARTIAL CONTRACT IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 0.5 0 5,000 92,000 100,000 95,000 7,000 2,000 1 0 0 90,000 90,000(1) 90,000(1) 6,300 6,300 2 0 0 81,000 90,000 90,000 6,300 6,300 6 0 0 75,000 90,000 90,000 6,300 6,300 6.5 0 5,400 70,000 90,000 84,600 6,300 900 7 0 0 69,000 90,000 84,600 6,300 6,300 7.5 0 6,300 62,000 90,000 78,300 6,300 0 8 0 0 64,000 90,000 78,300 6,300 6,300 8.5 0 10,000 51,000 51,000(4) 51,000(4) 3,570 0 9 0 0 55,000 55,000 55,000 3,850 3,850 9.5 0 0 54,000 55,000 55,000 3,850 3,850 10 0 0 52,000 55,000 55,000 3,850 3,850 LIFETIME WITHDRAWAL BENEFIT CONTRACT --------------------------- DURATION IN YEARS ALP RALP At Issue $ N/A $ N/A 0.5 N/A N/A 1 N/A N/A 2 N/A N/A 6 5,400(2) 5,400(2) 6.5 5,400 0 7 5,400 5,400 7.5 3,720(3) 0 8 3,840 3,840 8.5 3,060(4) 0 9 3,300 3,300 9.5 3,300 3,300 10 3,300 3,300
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, or model portfolio 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 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 if you are invested more aggressively than the Moderate model portfolio. (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. 110 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 BASIC WITHDRAWAL BENEFIT CONTRACT ASSUMED ----------------------------------------- DURATION PURCHASE PARTIAL CONTRACT IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 4 0 0 115,000 115,000 115,000 8,050 8,050 4.5 0 8,050 116,000 115,000 106,950 8,050 0 5 0 0 120,000 120,000 120,000 8,400 8,400 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 6 0 0 125,000 125,000 125,000 8,750 8,750 6.5 0 0 110,000 125,000 125,000 8,750 8,750 7 0 0 105,000 125,000 125,000 8,750 8,750 LIFETIME WITHDRAWAL BENEFIT CONTRACT --------------------------- DURATION IN YEARS ALP RALP At Issue $6,000 $6,000 1 6,300 6,000(1) 2 6,600 6,000(1) 3 6,600 6,600(2) 3.5 6,600 0 4 6,900 6,900 4.5 6,900(3) 0 5 7,200 7,200 5.5 7,200(4) 0 6 7,500 7,500 6.5 7,500 7,500 7 7,500 7,500
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, or model portfolio 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 111 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 contract holders subject to annual RMD rules under the 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: (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, - 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 SecureSource(SM) 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, - 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. - Any withdrawals taken in a contract year will count first against and reduce the RALP for that contract year. - 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. 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; (3) based on recalculated life expectancy taken from the Uniform Lifetime Table under the Code (applicable only to SecureSource riders); and (4) 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. 112 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 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. The life expectancy required minimum distribution amount calculated by us will also equal 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 113 APPENDIX G: 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 price level is noted in parenthesis. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2007.
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 2,330 1,060 - ----------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 2,798 719 - ----------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,648 695 - ----------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 2,213 16,983 - ----------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.40 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 79,002 607 - ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.37 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,519 6,467 - ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 7,074 1,936 - ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.30 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 140,364 33,087 - ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.23 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,295 346 - ----------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.12 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 79,523 987 - ----------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.00 Accumulation unit value at end of period $1.25 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 2,725 36,949 - ----------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 11,609 3,143 - ----------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 8,110 2,469 - -----------------------------------------------------------------------------------
114 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, 2007 2006 - ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.28 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 205,091 48,403 - ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.00 Accumulation unit value at end of period $1.43 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 7,134 23,001 - ----------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 4,051 23,928 - ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.00 Accumulation unit value at end of period $1.37 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 2,094 733 - ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.19 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,318 693 - ----------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.03 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 112,633 46,638 - ----------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 1,105 403 - ----------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.34 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 4,214 1,467 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.28 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 246,455 94,738 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.25 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 127,339 36,125 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.35 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 8,721 2,653 - ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.22 $1.00 Accumulation unit value at end of period $0.95 $1.22 Number of accumulation units outstanding at end of period (000 omitted) 15,015 6,443 - ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.06 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 11,602 4,228 - ----------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.17 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 20,093 5,798 - ----------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 9,453 4,040 - -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 115
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 255,815 -- - ----------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I* (04/27/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 864 -- *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. - ----------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 650 320 - ----------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 7,011 2,045 - ----------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.57 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 16,501 4,446 - ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.20 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 86,117 26,194 - ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 629 164 - ----------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.23 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 6,835 2,542 - ----------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.08 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 7,765 3,088 - ----------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 316,103 64,310 - ----------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,833 138 - ----------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.15 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 235,995 82,883 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.15 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 173,483 64,829 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.16 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 780 107 - -----------------------------------------------------------------------------------------------
116 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, 2007 2006 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.06 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 185,435 24,338 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.14 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 3,274 829 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 60,832 34,337 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.64% and 3.70%, respectively. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 3,037 736 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.10 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 586,913 145,290 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.21 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 300,203 93,936 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 199,962 41,689 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.11 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 125,450 53,228 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 4,502 1,470 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 16,917 6,215 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.09 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 151,929 49,975 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.18 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,353 461 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.15 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 881 285 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.19 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 1,461 338 - -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 117
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 58,370 50,393 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.19 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 3,380 1,079 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.08 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 9,945 2,091 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,104 397 - ----------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $1.34 $1.00 Accumulation unit value at end of period $1.84 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 72,075 18,150 - ----------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.18 $1.00 Accumulation unit value at end of period $1.32 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 3,482 1,285 - ----------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 151,420 67,895 - ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.29 $1.00 Accumulation unit value at end of period $1.17 $1.29 Number of accumulation units outstanding at end of period (000 omitted) 42,226 21,964 - ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 4,591 17,766 - ----------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.43 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 56,104 23,903 *Effective June 1, 2008, the Fund will change its name to Wanger International. - ----------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.13 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 77,217 9,756 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.18 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 2,129 556 - ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.29 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 5,179 1,212 - -----------------------------------------------------------------------------------------------
118 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. YEAR ENDED DEC. 31, 2007 2006 - ---------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,961 1,047 - ---------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 2,258 575 - ---------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 982 377 - ---------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.20 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,489 7,279 - ---------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.40 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 36,588 566 - ---------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.37 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 826 2,366 - ---------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 3,809 815 - ---------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.30 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 71,496 17,586 - ---------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 839 170 - ---------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.12 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 39,420 1,124 - ---------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.00 Accumulation unit value at end of period $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 1,670 16,170 - ---------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 9,147 3,228 - ---------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 5,720 2,032 - ---------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 98,884 25,237 - ---------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.00 Accumulation unit value at end of period $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 5,334 11,268 - ----------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 119
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ---------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 2,404 11,513 - ---------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.00 Accumulation unit value at end of period $1.37 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 1,461 334 - ---------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.19 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 825 218 - ---------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.03 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 67,726 27,120 - ---------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 1,013 252 - ---------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,285 776 - ---------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 120,474 48,092 - ---------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 60,463 18,038 - ---------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 4,948 1,434 - ---------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.00 Accumulation unit value at end of period $0.95 $1.21 Number of accumulation units outstanding at end of period (000 omitted) 7,265 3,157 - ---------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 6,312 2,407 - ---------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.17 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 15,116 4,294 - ---------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 4,307 1,797 - ---------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 115,892 -- - ----------------------------------------------------------------------------------------------
120 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, 2007 2006 - ---------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I* (04/27/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 534 -- *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. - ---------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 641 321 - ---------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 5,665 1,087 - ---------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.57 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 10,760 2,967 - ---------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.20 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 38,901 12,041 - ---------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 433 124 - ---------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 5,428 2,158 - ---------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 5,501 2,177 - ---------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 182,029 37,454 - ---------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,705 113 - ---------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 117,365 42,994 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.15 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 80,555 31,988 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.16 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 661 84 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.06 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 85,865 10,682 - ----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 121
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 3,045 692 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 66,258 30,300 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.41% and 3.47%, respectively. - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.00 Accumulation unit value at end of period $1.09 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 3,495 1,313 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 332,535 82,281 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 139,948 47,849 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 111,551 23,263 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 68,621 29,756 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 3,731 1,229 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 11,949 4,619 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 75,951 28,107 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,147 275 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.15 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 624 255 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 867 201 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 28,850 23,159 - ----------------------------------------------------------------------------------------------
122 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, 2007 2006 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.19 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 2,723 808 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 5,824 1,511 - ---------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 671 344 - ---------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $1.34 $1.00 Accumulation unit value at end of period $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 31,794 8,077 - ---------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.18 $1.00 Accumulation unit value at end of period $1.31 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 3,183 1,483 - ---------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 68,660 32,553 - ---------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.28 $1.00 Accumulation unit value at end of period $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 20,119 11,119 - ---------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,863 8,501 - ---------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.43 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 29,049 11,710 *Effective June 1, 2008, the Fund will change its name to Wanger International. - ---------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.13 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 36,284 4,737 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - ---------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.18 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 959 327 - ---------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.29 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 3,245 854 - ----------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 376 159 - -----------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 123
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,126 320 - ----------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 278 92 - ----------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.20 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 730 3,445 - ----------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.40 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 18,933 98 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.37 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 365 1,142 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,556 507 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.30 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 38,356 8,397 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 158 111 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.12 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 20,594 250 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.00 Accumulation unit value at end of period $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 514 7,306 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 3,320 1,105 - ----------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,780 588 - ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 51,553 11,519 - ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.00 Accumulation unit value at end of period $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 2,855 5,330 - ----------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 1,797 5,526 - -----------------------------------------------------------------------------------------------
124 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, 2007 2006 - ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.00 Accumulation unit value at end of period $1.37 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 712 187 - ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.19 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 361 104 - ----------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.03 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 32,564 11,485 - ----------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 272 85 - ----------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,157 403 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 62,826 21,709 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 30,848 8,140 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,417 577 - ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.00 Accumulation unit value at end of period $0.95 $1.21 Number of accumulation units outstanding at end of period (000 omitted) 2,707 1,034 - ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 3,160 896 - ----------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.17 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 8,346 2,910 - ----------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 2,280 1,088 - ----------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 61,515 -- - -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 125
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I* (04/27/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 182 -- *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. - ----------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 314 77 - ----------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 3,141 980 - ----------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 4,728 1,198 - ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.20 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 20,665 5,540 - ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 467 131 - ----------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,223 890 - ----------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 3,313 1,148 - ----------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 88,028 15,783 - ----------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 739 14 - ----------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 60,132 18,644 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.15 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 42,507 14,138 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.16 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 225 61 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.06 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 45,243 4,783 - -----------------------------------------------------------------------------------------------
126 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, 2007 2006 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 1,380 306 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 21,785 9,715 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.36% and 3.42%, respectively. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.00 Accumulation unit value at end of period $1.09 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 783 238 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 163,183 34,539 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 71,512 20,717 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 54,634 9,735 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 33,414 12,575 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,382 367 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 3,380 1,111 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 38,612 11,996 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 461 129 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 168 24 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 239 160 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 13,681 10,320 - -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 127
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.19 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,015 235 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 1,592 369 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 187 54 - ----------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $1.34 $1.00 Accumulation unit value at end of period $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 16,836 3,634 - ----------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.18 $1.00 Accumulation unit value at end of period $1.31 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 1,210 490 - ----------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 36,823 14,779 - ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.28 $1.00 Accumulation unit value at end of period $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 11,264 5,010 - ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,241 3,807 - ----------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.43 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 14,103 5,176 *Effective June 1, 2008, the Fund will change its name to Wanger International. - ----------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 19,102 2,525 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 413 120 - ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.29 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,102 248 - -----------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 37 15 - -----------------------------------------------------------------------------------
128 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, 2007 2006 - ----------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 140 33 - ----------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 77 25 - ----------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 34 203 - ----------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.23 $1.00 Accumulation unit value at end of period $1.39 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 1,191 21 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 42 66 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.21 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 268 73 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.29 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 3,278 875 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 15 12 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.11 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,557 76 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.00 Accumulation unit value at end of period $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 54 508 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 423 118 - ----------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 388 166 - ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 3,534 1,110 - ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.00 Accumulation unit value at end of period $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 517 474 - ----------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 510 738 - -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 129
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.00 Accumulation unit value at end of period $1.36 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 123 66 - ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.19 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 76 61 - ----------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 3,491 1,613 - ----------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.19 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 26 3 - ----------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 111 62 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 4,856 1,983 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 2,609 824 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 336 120 - ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.00 Accumulation unit value at end of period $0.94 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 322 108 - ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 319 119 - ----------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 939 403 - ----------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 489 186 - ----------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 3,686 -- - ----------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I* (04/27/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 5 -- *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. - -----------------------------------------------------------------------------------------------
130 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, 2007 2006 - ----------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 147 60 - ----------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 667 176 - ----------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 440 101 - ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.19 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,246 432 - ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 31 13 - ----------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.22 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 383 108 - ----------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 374 133 - ----------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 10,327 3,211 - ----------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 45 -- - ----------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 4,401 1,767 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.14 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 2,683 1,144 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.15 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 20 2 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.05 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 2,808 336 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 177 42 - -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 131
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.05 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 6,443 2,340 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.22% and 3.28%, respectively. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.00 Accumulation unit value at end of period $1.09 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 118 5 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 15,662 3,649 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 5,950 2,080 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 5,574 1,823 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 3,202 1,572 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.15 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 192 64 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 778 163 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 2,730 1,216 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 116 17 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 4 3 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 47 28 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,081 810 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.18 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 205 12 - -----------------------------------------------------------------------------------------------
132 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, 2007 2006 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 451 45 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 46 24 - ----------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $1.34 $1.00 Accumulation unit value at end of period $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 1,134 297 - ----------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.31 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 164 97 - ----------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 2,734 1,254 - ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.28 $1.00 Accumulation unit value at end of period $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 799 494 - ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 210 295 - ----------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.42 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 1,115 495 *Effective June 1, 2008, the Fund will change its name to Wanger International. - ----------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,447 279 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 29 7 - ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 186 65 - -----------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.20 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 388 257 - ----------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 879 252 - -----------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 133
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $0.89 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 155 60 - ----------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 362 1,832 - ----------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.23 $1.00 Accumulation unit value at end of period $1.39 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 11,042 102 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 300 564 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.21 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 801 293 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.29 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 24,195 5,843 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 102 23 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.11 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 12,685 267 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.00 Accumulation unit value at end of period $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 414 4,125 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.08 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 2,786 903 - ----------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,757 576 - ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 31,528 7,437 - ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.00 Accumulation unit value at end of period $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 2,052 3,503 - ----------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.01 $1.00 Accumulation unit value at end of period $1.18 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 1,007 3,433 - ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.00 Accumulation unit value at end of period $1.36 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 586 205 - -----------------------------------------------------------------------------------------------
134 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, 2007 2006 - ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.19 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 279 72 - ----------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 26,240 10,136 - ----------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.19 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 277 35 - ----------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 830 382 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 38,145 14,254 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 18,414 5,441 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,294 483 - ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.00 Accumulation unit value at end of period $0.95 $1.21 Number of accumulation units outstanding at end of period (000 omitted) 2,457 1,107 - ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 2,059 1,064 - ----------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 6,302 2,030 - ----------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 1,284 665 - ----------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 35,017 -- - ----------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I* (04/27/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.01 -- Number of accumulation units outstanding at end of period (000 omitted) 125 -- *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. - ----------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 325 80 - -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 135
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 2,788 793 - ----------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 3,235 1,005 - ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.19 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 11,632 3,205 - ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.20 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 142 29 - ----------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.22 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,649 663 - ----------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 2,045 715 - ----------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 69,486 12,934 - ----------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.11 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 420 98 - ----------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 38,718 12,825 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 24,777 8,957 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.15 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 181 32 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.05 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 26,141 2,786 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 930 225 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.05 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 25,294 9,800 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.16% and 3.21%, respectively. - -----------------------------------------------------------------------------------------------
136 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, 2007 2006 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.00 Accumulation unit value at end of period $1.08 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 800 178 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 119,779 26,100 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 42,436 14,023 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 39,217 7,409 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 23,879 9,303 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.15 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 868 220 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 3,520 1,205 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 24,436 8,700 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 536 207 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 73 20 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 191 44 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 8,621 6,289 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.18 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,259 361 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 2,324 623 - -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 137
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 147 51 - ----------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $1.34 $1.00 Accumulation unit value at end of period $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 9,418 2,130 - ----------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.31 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,247 266 - ----------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 21,804 9,512 - ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.28 $1.00 Accumulation unit value at end of period $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 6,278 3,387 - ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,013 2,328 - ----------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.42 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 9,249 3,490 *Effective June 1, 2008, the Fund will change its name to Wanger International. - ----------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 11,392 1,995 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 211 37 - ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 968 178 - -----------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 124 96 - ----------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 149 13 - ----------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $0.89 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 286 114 - -----------------------------------------------------------------------------------
138 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, 2007 2006 - ----------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 69 222 - ----------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.23 $1.00 Accumulation unit value at end of period $1.39 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 1,942 14 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 83 43 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.21 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 302 65 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.29 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 5,603 1,561 - ----------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.22 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 38 4 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.11 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 2,413 40 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.00 Accumulation unit value at end of period $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 152 530 - ----------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.08 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 802 213 - ----------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 885 286 - ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.26 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 5,811 1,493 - ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.00 Accumulation unit value at end of period $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 819 748 - ----------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.01 $1.00 Accumulation unit value at end of period $1.17 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 655 700 - ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.00 Accumulation unit value at end of period $1.36 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 164 35 - ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.18 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 72 18 - -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 139
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 9,232 4,655 - ----------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.19 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 34 32 - ----------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.32 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 198 79 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 8,451 3,216 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 4,186 1,152 - ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 609 234 - ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.00 Accumulation unit value at end of period $0.94 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 489 414 - ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 602 232 - ----------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,979 485 - ----------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 494 196 - ----------------------------------------------------------------------------------------------- JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 5,761 -- - ----------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I* (04/27/2007) Accumulation unit value at beginning of period $1.00 -- Accumulation unit value at end of period $1.01 -- Number of accumulation units outstanding at end of period (000 omitted) 33 -- *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. - ----------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 122 57 - ----------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.13 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 881 156 - -----------------------------------------------------------------------------------------------
140 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, 2007 2006 - ----------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 1,091 467 - ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.19 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,072 680 - ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.20 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 42 5 - ----------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.22 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 779 266 - ----------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 487 231 - ----------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.16 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 18,995 3,974 - ----------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.11 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 375 6 - ----------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 7,577 2,481 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 4,256 1,499 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $1.10 $1.00 Accumulation unit value at end of period $1.15 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 35 6 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.05 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 4,362 417 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 619 350 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.02 $1.00 Accumulation unit value at end of period $1.05 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 15,777 7,385 *The 7-day simple and compound yields for RVST RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2007 were 3.00% and 3.05%, respectively. - -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 141
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2007 2006 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.04 $1.00 Accumulation unit value at end of period $1.08 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 463 96 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND* (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 28,774 5,708 *At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.00 Accumulation unit value at end of period $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 9,098 3,489 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.11 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 9,331 1,982 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 5,715 2,119 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.15 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 237 69 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,856 514 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.00 Accumulation unit value at end of period $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 4,738 1,866 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.00 Accumulation unit value at end of period $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 136 38 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.00 Accumulation unit value at end of period $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 41 15 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.00 Accumulation unit value at end of period $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 89 16 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,681 1,085 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.18 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 499 10 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.00 Accumulation unit value at end of period $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 1,689 130 - -----------------------------------------------------------------------------------------------
142 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, 2007 2006 - ----------------------------------------------------------------------------------------------- RVST RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.00 Accumulation unit value at end of period $1.03 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 19 5 - ----------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND) Accumulation unit value at beginning of period $1.34 $1.00 Accumulation unit value at end of period $1.82 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 1,669 340 - ----------------------------------------------------------------------------------------------- RVST THREADNEEDLE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) (PREVIOUSLY RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND) Accumulation unit value at beginning of period $1.17 $1.00 Accumulation unit value at end of period $1.30 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 260 100 - ----------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.00 Accumulation unit value at end of period $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 4,556 1,999 - ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.28 $1.00 Accumulation unit value at end of period $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 1,085 624 - ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.30 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 387 397 - ----------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP* (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.00 Accumulation unit value at end of period $1.42 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 1,978 779 *Effective June 1, 2008, the Fund will change its name to Wanger International. - ----------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES* (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.00 Accumulation unit value at end of period $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,054 422 *Effective June 1, 2008, the Fund will change its name to Wanger USA. - ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.00 Accumulation unit value at end of period $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 86 9 - ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.00 Accumulation unit value at end of period $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 363 74 - -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 143 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts..................... p. 3 Rating Agencies................................. p. 4 Revenues Received During Calendar Year 2007..... p. 4 Principal Underwriter........................... p. 5 Independent Registered Public Accounting Firm... p. 5 Financial Statements
144 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 145 THIS PAGE LEFT BLANK INTENTIONALLY 146 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 147 THIS PAGE LEFT BLANK INTENTIONALLY 148 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 149 THIS PAGE LEFT BLANK INTENTIONALLY 150 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 151 (RIVERSOURCE ANNUITIES LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 (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 RiverSource Life Insurance Company. All rights reserved. S-6503 F (5/08) STATEMENT OF ADDITIONAL INFORMATION FOR RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY(R) RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY(R) - BAND 3 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR SELECT(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY - BAND 3 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) MAY 1, 2008 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 F (5/08) TABLE OF CONTENTS Calculating Annuity Payouts..................................................... p. 3 Rating Agencies ................................................................ p. 4 Revenues Received During Calendar Year 2007..................................... 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 2007 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 2007. 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 $17,462,401.41 Wanger Advisors Trust $11,509,856.38 Franklin(R) Templeton(R) Variable Insurance Products Trust $ 9,560,097.11 AllianceBernstein Variable Products Series Fund, Inc. $ 8,766,549.37 Oppenheimer Variable Account Funds $ 8,400,283.32 American Century(R) Variable Portfolios, Inc. $ 7,155,648.04 Goldman Sachs Variable Insurance Trust $ 6,741,110.56 Columbia Funds Variable Insurance Trust $ 4,291,538.97 Janus Aspen Series $ 3,627,203.09 AIM Variable Insurance Funds $ 3,595,282.87 Van Kampen Life Investment Trust $ 3,525,593.85 MFS(R) Variable Insurance Trust(SM) $ 3,488,140.95 PIMCO Variable Insurance Trust $ 3,146,446.19 Putnam Variable Trust $ 2,394,170.95 Eaton Vance Variable Trust $ 1,970,638.76 Wells Fargo Advantage Variable Trust Funds $ 1,936,347.23 The Universal Institutional Funds, Inc. $ 1,464,234.07 Credit Suisse Trust $ 1,327,427.86 Lazard Retirement Series, Inc. $ 1,129,901.36 Neuberger Berman Advisers Management Trust $ 1,018,249.18 Third Avenue Variable Series Trust $ 925,701.33 Evergreen Variable Annuity Trust $ 872,574.31 Royce Capital Fund $ 709,223.53 Pioneer Variable Contracts Trust $ 383,186.94 Dreyfus Investment Portfolios/Dreyfus Variable Investment Fund $ 212,278.47 Calvert Variable Series, Inc. $ 192,660.23 STI Classic Variable Trust $ 53,436.94 Legg Mason Partners Variable Portfolios $ 11,785.47 Premier VIT $ 8,122.39 Lincoln Variable Insurance Products Trust $ 4,827.25 J.P. Morgan Series Trust II $ 3,261.37 - --------------------------------------------------------------------------------------------
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) (previously RiverSource Variable Portfolio Funds) 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 Regulartory 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. Prior to Jan. 1, 2007, IDS Life Insurance Company (IDS Life) served as the principal underwriter for the contracts. The aggregate dollar amount of underwriting commissions paid to IDS Life for the variable account in 2006 was $290,026,122 and in 2005 was $197,139,903. IDS Life retained no underwriting commission from the sale of the contracts. Effective Jan. 1, 2007, RiverSource Distributors became the principal underwriter for the contracts. The aggregate dollar amount of underwriting commissions paid to RiverSource Distributors for the variable account 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, 2007 and 2006, and for each of the three years in the period ended Dec. 31, 2007, and the individual financial statements of the segregated asset subaccounts of the RiverSource Variable Account 10, at Dec. 31, 2007, 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 SAI 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 105 segregated asset subaccounts of RiverSource Variable Account 10, referred to in Note 1, as of December 31, 2007, and the related statements of operations and changes in net assets for the periods indicated therein. 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 an audit of RiverSource Variable Account 10'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 RiverSource Variable Account 10'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, 2007 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 105 segregated asset subaccounts of RiverSource Variable Account 10, referred to in Note 1, at December 31, 2007, and the individual results of their operations and the changes in their net assets for the periods indicated therein, in conformity with U.S. generally accepted accounting principles. (-s- ERNEST &YOUNG LLP) Minneapolis, Minnesota April 24, 2008 6 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, DEC. 31, 2007 SER I SER II SER I SER II SER I ASSETS Investments, at value(1),(2) $64,979,644 $206,589,315 $48,482,951 $76,866,150 $273,531,059 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 5,103 23,009 2,334 4,578 -- Receivable for share redemptions 66,297 228,483 35,483 101,036 710,688 Total assets 65,051,044 206,840,807 48,520,768 76,971,764 274,241,747 - ----------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 46,841 151,499 35,413 57,771 294,217 Contract terminations 19,456 76,984 70 43,264 416,471 Payable for investments purchased 5,103 23,009 2,334 4,578 -- - ----------------------------------------------------------------------------------------------------------------------- Total liabilities 71,400 251,492 37,817 105,613 710,688 - ----------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 64,801,267 206,550,425 48,479,808 76,841,301 271,197,699 Net assets applicable to contracts in payment period 178,377 38,890 3,143 24,850 2,333,360 Net assets applicable to seed money -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Total net assets $64,979,644 $206,589,315 $48,482,951 $76,866,151 $273,531,059 - ----------------------------------------------------------------------------------------------------------------------- (1) Investment shares 2,212,450 7,136,073 2,572,040 4,148,200 9,396,464 (2) Investments, at cost $68,842,556 $159,503,137 $34,812,978 $61,884,335 $200,755,380 - -----------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, DEC. 31, 2007 (CONTINUED) SER I SER I SER II CARE, SER II SER II ASSETS Investments, at value(1),(2) $15,340,630 $17,731,099 $3,080,689 $18,500,472 $342,380,926 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 17,886 20,543 51,971 428,879 Receivable for share redemptions 41,860 41,379 2,545 16,053 264,969 - ----------------------------------------------------------------------------------------------------------------------- Total assets 15,382,490 17,790,364 3,103,777 18,568,496 343,074,774 - ----------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 11,044 13,003 2,545 13,939 264,599 Contract terminations 30,816 28,376 -- 2,114 370 Payable for investments purchased -- 17,886 20,543 51,971 428,879 - ----------------------------------------------------------------------------------------------------------------------- Total liabilities 41,860 59,265 23,088 68,024 693,848 - ----------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 15,316,363 17,726,781 3,080,689 18,500,472 342,340,069 Net assets applicable to contracts in payment period 24,267 4,318 -- -- 40,857 Net assets applicable to seed money -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Total net assets $15,340,630 $17,731,099 $3,080,689 $18,500,472 $342,380,926 - ----------------------------------------------------------------------------------------------------------------------- (1) Investment shares 797,330 1,446,256 253,138 776,678 10,300,269 (2) Investments, at cost $ 9,185,165 $19,863,464 $4,027,688 $16,412,860 $343,731,984 - -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 7 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- AIM AB VPS AB VPS AB VPS AB VPS VI TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, DEC. 31, 2007 (CONTINUED) SER I CL B CL B CL B CL B ASSETS Investments, at value(1),(2) $31,644,112 $14,458,265 $309,273,711 $1,443,987,711 $3,013,625 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 2,981 19,699 78,540 577,336 20,074 Receivable for share redemptions 24,693 13,886 275,723 1,218,400 2,477 - ------------------------------------------------------------------------------------------------------------------------- Total assets 31,671,786 14,491,850 309,627,974 1,445,783,447 3,036,176 - ------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 22,906 10,654 228,161 1,090,461 2,415 Contract terminations 1,786 3,233 47,563 127,941 61 Payable for investments purchased 2,981 19,699 78,540 577,336 20,074 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities 27,673 33,586 354,264 1,795,738 22,550 - ------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 31,644,113 14,458,264 308,989,960 1,442,803,448 3,013,626 Net assets applicable to contracts in payment period -- -- 283,750 1,184,261 -- Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Total net assets $31,644,113 $14,458,264 $309,273,710 $1,443,987,709 $3,013,626 - ------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 2,095,637 711,879 11,648,727 58,038,091 100,588 (2) Investments, at cost $25,008,003 $12,703,340 $253,478,657 $1,147,843,086 $2,770,604 - ------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, DEC. 31, 2007 (CONTINUED) CL I CL II CL II CL II CL I ASSETS Investments, at value(1),(2) $67,914,504 $132,919,881 $266,953,735 $36,976,324 $390,597,235 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 16,666 340,969 148,500 25,830 Receivable for share redemptions 103,311 292,426 209,597 54,255 875,909 - ------------------------------------------------------------------------------------------------------------------------- Total assets 68,017,815 133,228,973 267,504,301 37,179,079 391,498,974 - ------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 49,390 97,523 209,333 27,102 372,307 Contract terminations 53,921 194,903 265 27,153 503,603 Payable for investments purchased -- 16,666 340,969 148,500 25,830 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities 103,311 309,092 550,567 202,755 901,740 - ------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 67,863,787 132,733,422 266,890,709 36,976,324 388,426,021 Net assets applicable to contracts in payment period 50,717 186,459 63,025 -- 2,171,213 Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Total net assets $67,914,504 $132,919,881 $266,953,734 $36,976,324 $390,597,234 - ------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 5,726,349 11,226,341 20,614,188 3,066,030 52,288,786 (2) Investments, at cost $50,371,822 $ 78,160,221 $295,734,000 $31,639,584 $369,029,061 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 8 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------- AC VP CALVERT VS COL HI YIELD, COL MARSICO COL MARSICO INTL VAL, SOCIAL VS CL GRO, VS OPP, VS DEC. 31, 2007 (CONTINUED) CL II BAL B CL A CL B ASSETS Investments, at value(1),(2) $377,642,537 $49,434,815 $114,849,846 $944,663,920 $105,483,446 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 147,062 24,144 114,564 1,232,939 128,036 Receivable for share redemptions 359,244 94,563 105,463 725,557 92,626 - ------------------------------------------------------------------------------------------------------------------ Total assets 378,148,843 49,553,522 115,069,873 946,622,416 105,704,108 - ------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 284,685 36,595 88,442 723,670 78,544 Contract terminations 74,559 57,968 17,021 1,887 14,083 Payable for investments purchased 147,062 24,144 114,564 1,232,939 128,036 - ------------------------------------------------------------------------------------------------------------------ Total liabilities 506,306 118,707 220,027 1,958,496 220,663 - ------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 377,031,191 49,295,945 114,756,460 944,393,106 105,430,335 Net assets applicable to contracts in payment period 611,346 138,870 93,386 270,814 53,110 Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ Total net assets $377,642,537 $49,434,815 $114,849,846 $944,663,920 $105,483,445 - ------------------------------------------------------------------------------------------------------------------ (1) Investment shares 50,622,324 25,774,147 10,318,944 42,399,637 4,180,874 (2) Investments, at cost $383,329,489 $47,217,056 $115,132,367 $827,393,374 $ 88,920,270 - ------------------------------------------------------------------------------------------------------------------ SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY MID-CAP SM CAP INTL EQ, INTL VAL, DEC. 31, 2007 (CONTINUED) RETURN CORE CORE I SERV SERV ASSETS Investments, at value(1),(2) $ 52,379,728 $22,003,858 $121,104,151 $ 7,027,188 $ 3,491,580 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 4,448 2,860 -- 4,983 1,055 Receivable for share redemptions 154,120 16,010 346,382 17,691 5,148 - ------------------------------------------------------------------------------------------------------------------ Total assets 52,538,296 22,022,728 121,450,533 7,049,862 3,497,783 - ------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 38,900 15,920 130,585 6,094 2,955 Contract terminations 115,220 90 215,798 11,596 2,194 Payable for investments purchased 4,448 2,860 -- 4,983 1,055 - ------------------------------------------------------------------------------------------------------------------ Total liabilities 158,568 18,870 346,383 22,673 6,204 - ------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 52,366,193 21,992,618 120,430,169 7,027,189 3,491,579 Net assets applicable to contracts in payment period 13,535 11,240 673,981 -- -- Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ Total net assets $ 52,379,728 $22,003,858 $121,104,150 $ 7,027,189 $ 3,491,579 - ------------------------------------------------------------------------------------------------------------------ (1) Investment shares 4,523,293 1,465,947 7,828,323 304,735 200,781 (2) Investments, at cost $ 48,503,963 $19,342,817 $124,597,350 $ 6,209,517 $ 3,615,475 - ------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 9 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, DEC. 31, 2007 (CONTINUED) INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ASSETS Investments, at value(1),(2) $485,908,376 $33,190,529 $79,458,166 $1,258,736,312 $196,235,488 Dividends receivable 2,652,793 -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 736,973 12,497 12,491 1,212,378 10,981 Receivable for share redemptions 387,365 43,225 103,840 1,062,941 212,699 - --------------------------------------------------------------------------------------------------------------------------- Total assets 489,685,507 33,246,251 79,574,497 1,261,011,631 196,459,168 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 385,254 24,602 61,320 961,760 141,834 Contract terminations 2,111 18,624 42,519 101,181 70,865 Payable for investments purchased 3,389,766 12,497 12,491 1,212,378 10,981 - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 3,777,131 55,723 116,330 2,275,319 223,680 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 485,653,911 33,121,096 79,439,744 1,258,021,663 195,972,169 Net assets applicable to contracts in payment period 254,465 69,432 18,423 714,649 263,319 Net assets applicable to seed money -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total net assets $485,908,376 $33,190,528 $79,458,167 $1,258,736,312 $196,235,488 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 50,721,124 1,724,183 4,738,114 45,838,904 11,611,567 (2) Investments, at cost $506,011,557 $29,527,386 $69,069,291 $1,429,301,768 $166,211,201 - --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, DEC. 31, 2007 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ASSETS Investments, at value(1),(2) $390,430,570 $395,275,416 $1,459,930,266 $103,079,397 $272,378,999 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 5,229 380,544 19,991 120,556 Receivable for share redemptions 416,730 407,151 1,808,392 91,944 299,576 - --------------------------------------------------------------------------------------------------------------------------- Total assets 390,847,300 395,687,796 1,462,119,202 103,191,332 272,799,131 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 285,495 285,037 1,093,207 74,475 201,753 Contract terminations 131,235 122,114 715,187 17,468 97,822 Payable for investments purchased -- 5,229 380,544 19,991 120,556 - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 416,730 412,380 2,188,938 111,934 420,131 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 389,617,929 393,968,139 1,458,718,834 102,626,823 271,908,416 Net assets applicable to contracts in payment period 812,641 1,307,277 1,211,430 452,575 470,584 Net assets applicable to seed money -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total net assets $390,430,570 $395,275,416 $1,459,930,264 $103,079,398 $272,379,000 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 23,295,380 10,985,976 40,974,748 4,087,208 10,843,113 (2) Investments, at cost $295,086,278 $244,258,888 $1,174,556,758 $75,692,542 $184,924,507 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 10 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL TEMP DEV TEMP FOR DEC. 31, 2007 (CONTINUED) REAL EST, CL 2 VAL, CL 2 SHARES SEC, CL 2 MKTS SEC, CL 1 SEC, CL 2 ASSETS Investments, at value(1),(2) $456,336,407 $329,243,517 $367,471,203 $197,631,940 $49,455,402 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 485,233 43,000 35,626 -- -- Receivable for share redemptions 345,672 319,209 370,287 493,713 48,711 - ---------------------------------------------------------------------------------------------------------------------------- Total assets 457,167,312 329,605,726 367,877,116 198,125,653 49,504,113 - ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 337,444 244,979 282,852 213,094 35,822 Contract terminations 8,229 74,230 87,434 280,619 12,889 Payable for investments purchased 485,233 43,000 35,626 -- -- - ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 830,906 362,209 405,912 493,713 48,711 - ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 455,725,831 328,924,993 366,950,979 196,984,453 49,281,588 Net assets applicable to contracts in payment period 610,575 318,524 520,225 647,487 173,814 Net assets applicable to seed money -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Total net assets $456,336,406 $329,243,517 $367,471,204 $197,631,940 $49,455,402 - ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 18,275,387 19,254,007 18,200,654 12,222,136 2,442,242 (2) Investments, at cost $452,789,781 $266,270,420 $316,514,215 $102,053,729 $31,812,328 - ---------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------- GS VIT GS VIT GS VIT JANUS JANUS MID CAP VAL, STRUCTD SM STRUCTD U.S. ASPEN GLOBAL ASPEN INTL DEC. 31, 2007 (CONTINUED) INST CAP EQ, INST EQ, INST TECH, SERV GRO, SERV ASSETS Investments, at value(1),(2) $726,483,476 $22,383,410 $420,470,514 $25,957,096 $252,914,192 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 95,164 703 105,145 12,016 268,097 Receivable for share redemptions 886,298 16,603 362,636 31,468 251,015 - ---------------------------------------------------------------------------------------------------------------------------- Total assets 727,464,938 22,400,716 420,938,295 26,000,580 253,433,304 - ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 533,695 16,543 311,872 18,484 180,784 Contract terminations 352,603 60 50,764 12,984 70,231 Payable for investments purchased 95,164 703 105,145 12,016 268,097 - ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 981,462 17,306 467,781 43,484 519,112 - ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 725,864,072 22,338,875 419,890,153 25,864,085 252,520,775 Net assets applicable to contracts in payment period 619,404 44,535 580,361 93,011 393,417 Net assets applicable to seed money -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Total net assets $726,483,476 $22,383,410 $420,470,514 $25,957,096 $252,914,192 - ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 51,817,652 2,089,954 31,950,647 5,011,022 3,920,542 (2) Investments, at cost $741,643,010 $24,060,164 $396,564,775 $28,504,297 $124,994,674 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 11 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN LAZARD LM PTNRS MFS INV LG CAP MID CAP RETIRE INTL VAR SM CAP GRO STOCK, DEC. 31, 2007 (CONTINUED) GRO, SERV GRO, SERV EQ, SERV GRO, CL I SERV CL ASSETS Investments, at value(1),(2) $791,865,502 $33,178,765 $183,797,330 $4,020,624 $120,723,574 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 916,765 7,050 -- 6,235 1,875 Receivable for share redemptions 614,481 24,498 282,750 30,306 159,787 - -------------------------------------------------------------------------------------------------------------------------- Total assets 793,396,748 33,210,313 184,080,080 4,057,165 120,885,236 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 613,468 23,386 134,999 3,061 88,784 Contract terminations 1,013 1,111 147,751 27,244 71,003 Payable for investments purchased 916,765 7,050 -- 6,235 1,875 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,531,246 31,547 282,750 36,540 161,662 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 791,865,502 33,102,969 183,393,186 4,020,625 120,608,346 Net assets applicable to contracts in payment period -- 75,797 404,144 -- 115,228 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total net assets $791,865,502 $33,178,766 $183,797,330 $4,020,625 $120,723,574 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 30,374,588 851,830 13,767,590 267,507 10,434,190 (2) Investments, at cost $775,154,674 $30,865,715 $151,792,014 $4,219,911 $103,373,217 - -------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- MFS MFS MFS NB AMT NB AMT NEW DIS, TOTAL RETURN, UTILITIES, INTL, SOC RESPONSIVE, DEC. 31, 2007 (CONTINUED) SERV CL SERV CL SERV CL CL S CL S ASSETS Investments, at value(1),(2) $82,088,384 $122,396,783 $389,227,693 $313,048,610 $2,109,252 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 3,860 56,842 362,513 330,638 496 Receivable for share redemptions 81,340 126,352 352,033 247,317 1,839 - -------------------------------------------------------------------------------------------------------------------------- Total assets 82,173,584 122,579,977 389,942,239 313,626,565 2,111,587 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 60,179 96,196 289,028 241,974 1,839 Contract terminations 21,160 30,156 63,005 5,343 -- Payable for investments purchased 3,860 56,842 362,513 330,638 496 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 85,199 183,194 714,546 577,955 2,335 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 81,971,614 122,315,523 388,817,726 313,022,629 2,109,252 Net assets applicable to contracts in payment period 116,771 81,260 409,967 25,981 -- Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total net assets $82,088,385 $122,396,783 $389,227,693 $313,048,610 $2,109,252 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 5,033,009 5,708,805 11,410,956 23,001,367 118,099 (2) Investments, at cost $72,323,603 $117,734,273 $273,360,783 $319,145,937 $2,047,474 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 12 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- OPPEN GLOBAL OPPEN MAIN ST OPPEN STRATEGIC OPPEN PIMCO VIT SEC VA, SM CAP VA, BOND VA, VAL VA, ALL ASSET, DEC. 31, 2007 (CONTINUED) SERV SERV SERV SERV ADVISOR CL ASSETS Investments, at value(1),(2) $181,570,895 $121,815,789 $2,131,138,444 $5,723,096 $855,249,980 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 41,946 94,126 1,614,013 29,459 840,971 Receivable for share redemptions 171,815 188,957 2,314,544 4,894 678,844 - ------------------------------------------------------------------------------------------------------------------------ Total assets 181,784,656 122,098,872 2,135,067,001 5,757,449 856,769,795 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 137,897 93,435 1,635,245 4,894 666,602 Contract terminations 33,920 95,523 679,299 -- 12,242 Payable for investments purchased 41,946 94,126 1,614,013 29,459 840,971 - ------------------------------------------------------------------------------------------------------------------------ Total liabilities 213,763 283,084 3,928,557 34,353 1,519,815 - ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 181,352,596 121,711,241 2,129,654,956 5,723,096 855,179,682 Net assets applicable to contracts in payment period 218,297 104,547 1,483,488 -- 70,298 Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Total net assets $181,570,893 $121,815,788 $2,131,138,444 $5,723,096 $855,249,980 - ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 5,006,090 6,756,283 377,192,645 487,072 72,849,232 (2) Investments, at cost $157,713,606 $115,965,303 $1,993,826,240 $6,187,359 $858,961,770 - ------------------------------------------------------------------------------------------------------------------------ SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- PIONEER PIONEER PUT VT PUT VT PUT VT EQ INC VCT, INTL VAL VCT, HLTH SCIENCES, INTL EQ, INTL NEW OPP, DEC. 31, 2007 (CONTINUED) CL II CL II CL IB CL IB CL IB ASSETS Investments, at value(1),(2) $62,832,100 $8,064,938 $39,463,522 $94,674,068 $89,099,543 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 9,990 -- 13,562 1,133 6,115 Receivable for share redemptions 54,509 20,280 46,632 166,357 74,728 - ------------------------------------------------------------------------------------------------------------------------ Total assets 62,896,599 8,085,218 39,523,716 94,841,558 89,180,386 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 46,583 5,872 29,059 69,321 64,069 Contract terminations 7,926 14,408 17,574 97,037 10,659 Payable for investments purchased 9,990 -- 13,562 1,133 6,115 - ------------------------------------------------------------------------------------------------------------------------ Total liabilities 64,499 20,280 60,195 167,491 80,843 - ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 62,667,215 8,064,853 39,407,092 94,614,673 89,099,543 Net assets applicable to contracts in payment period 164,885 -- 56,429 59,394 -- Net assets applicable to seed money -- 85 -- -- -- - ------------------------------------------------------------------------------------------------------------------------ Total net assets $62,832,100 $8,064,938 $39,463,521 $94,674,067 $89,099,543 - ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 2,630,059 433,599 2,942,843 4,993,358 4,350,564 (2) Investments, at cost $50,068,987 $7,210,474 $34,720,644 $66,796,535 $74,764,106 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 13 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------- PUT VT PUT VT NEW OPP, VISTA, RVS VP RVS VP RVS VP DEC. 31, 2007 (CONTINUED) CL IA CL IB BAL CASH MGMT CORE BOND ASSETS Investments, at value(1),(2) $153,099,942 $67,450,004 $400,780,368 $1,009,249,093 $88,888,706 Dividends receivable -- -- -- 370,240 23,013 Accounts receivable from RiverSource Life for contract purchase payments -- 4,042 22,969 1,039,754 26,945 Receivable for share redemptions 194,810 56,904 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Total assets 153,294,752 67,510,950 400,803,337 1,010,659,087 88,938,664 - ------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 164,555 48,601 354,496 799,721 67,415 Contract terminations 30,255 8,303 460,509 694,141 8,998 Payable for investments purchased -- 4,042 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Total liabilities 194,810 60,946 815,005 1,493,862 76,413 - ------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 152,175,179 67,273,777 394,487,149 1,008,907,914 88,845,342 Net assets applicable to contracts in payment period 924,763 176,227 5,501,183 257,311 16,909 Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Total net assets $153,099,942 $67,450,004 $399,988,332 $1,009,165,225 $88,862,251 - ------------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 7,104,406 4,420,053 26,557,156 1,009,827,137 8,992,687 (2) Investments, at cost $162,307,191 $78,918,925 $426,385,658 $1,009,467,879 $88,530,232 - ------------------------------------------------------------------------------------------------------------------------------ SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------- RVS RVS RVS PTNRS VP RVS VP DIV VP DIV THDL VP FUNDAMENTAL VP GLOBAL DEC. 31, 2007 (CONTINUED) BOND EQ INC EMER MKTS VAL BOND ASSETS Investments, at value(1),(2) $3,133,497,027 $2,711,701,590 $695,893,876 $606,056,893 $1,133,223,797 Dividends receivable 876,169 -- -- -- 260,571 Accounts receivable from RiverSource Life for contract purchase payments 2,838,313 874,524 367,426 614,150 911,024 Receivable for share redemptions -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Total assets 3,137,211,509 2,712,576,114 696,261,302 606,671,043 1,134,395,392 - ------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 2,467,454 2,029,408 522,511 469,524 888,724 Contract terminations 412,335 202,022 249,430 642 158,435 Payable for investments purchased -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Total liabilities 2,879,789 2,231,430 771,941 470,166 1,047,159 - ------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 3,129,752,289 2,706,859,613 695,435,707 606,152,893 1,132,575,749 Net assets applicable to contracts in payment period 4,579,431 3,485,071 53,654 47,984 772,484 Net assets applicable to seed money -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Total net assets $3,134,331,720 $2,710,344,684 $695,489,361 $606,200,877 $1,133,348,233 - ------------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 298,325,917 166,928,937 30,946,898 54,096,864 100,111,323 (2) Investments, at cost $3,117,806,744 $2,303,077,331 $497,765,497 $577,894,363 $1,083,019,360 - ------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 14 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- RVS VP RVS VP GLOBAL INFLATION RVS VP HI YIELD RVS VP THDL VP DEC. 31, 2007 (CONTINUED) PROT SEC GRO BOND INC OPP INTL OPP ASSETS Investments, at value(1),(2) $605,733,639 $404,429,146 $763,804,706 $576,999,932 $371,390,747 Dividends receivable -- -- 424,882 274,521 -- Accounts receivable from RiverSource Life for contract purchase payments 542,043 18,667 22,922 599,514 7,554 Receivable for share redemptions -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total assets 606,275,682 404,447,813 764,252,510 577,873,967 371,398,301 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 468,942 296,175 605,047 449,037 331,814 Contract terminations 12,658 124,238 468,508 4,167 351,701 Payable for investments purchased -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 481,600 420,413 1,073,555 453,204 683,515 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 605,751,122 403,114,132 760,454,169 577,368,348 369,229,510 Net assets applicable to contracts in payment period 42,960 913,268 2,724,786 52,415 1,485,276 Net assets applicable to seed money -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total net assets $605,794,082 $404,027,400 $763,178,955 $577,420,763 $370,714,786 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 58,928,831 52,852,559 117,895,448 58,526,595 25,241,790 (2) Investments, at cost $583,581,202 $401,027,210 $801,868,676 $595,809,503 $276,287,740 - --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP LG CAP LG CAP MID CAP MID CAP RVS VP DEC. 31, 2007 (CONTINUED) EQ VAL GRO VAL S&P 500 ASSETS Investments, at value(1),(2) $1,045,398,907 $20,713,444 $190,721,061 $329,367,056 $265,612,998 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 131,538 2,482 25,580 346,852 10,643 Receivable for share redemptions -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total assets 1,045,530,445 20,715,926 190,746,641 329,713,908 265,623,641 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 888,900 15,419 159,676 250,050 195,893 Contract terminations 497,368 39,843 22,890 -- 76,402 Payable for investments purchased -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,386,268 55,262 182,566 250,050 272,295 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 1,035,206,012 20,466,862 189,562,320 329,371,613 264,415,307 Net assets applicable to contracts in payment period 8,938,165 16,369 1,001,755 92,245 936,039 Net assets applicable to seed money -- 177,433 -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total net assets $1,044,144,177 $20,660,664 $190,564,075 $329,463,858 $265,351,346 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 41,368,351 1,863,296 14,841,289 22,559,424 27,017,174 (2) Investments, at cost $953,088,047 $21,103,667 $169,176,790 $302,611,937 $211,249,501 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 15 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- RVS RVS RVS RVS PTNRS ROYCE PTNRS VP VP SHORT VP SM CAP VP SM CAP MICRO-CAP, DEC. 31, 2007 (CONTINUED) SELECT VAL DURATION ADV VAL INVEST CL ASSETS Investments, at value(1),(2) $25,388,472 $346,342,122 $122,559,427 $846,409,153 $116,412,325 Dividends receivable -- 90,206 -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 2,352 37,373 21,850 614,028 19,235 Receivable for share redemptions -- -- -- -- 125,508 - -------------------------------------------------------------------------------------------------------------------------- Total assets 25,390,824 346,469,701 122,581,277 847,023,181 116,557,068 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 19,119 257,312 89,815 644,413 84,146 Contract terminations 44,727 96,094 38,981 4,236 41,362 Payable for investments purchased -- -- -- -- 19,235 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 63,846 353,406 128,796 648,649 144,743 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 25,087,013 345,362,062 122,244,194 845,893,252 116,174,503 Net assets applicable to contracts in payment period 12,962 754,233 208,287 481,280 237,822 Net assets applicable to seed money 227,003 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total net assets $25,326,978 $346,116,295 $122,452,481 $846,374,532 $116,412,325 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 2,375,587 33,845,358 10,388,599 62,087,658 8,642,340 (2) Investments, at cost $26,562,686 $349,551,988 $125,912,344 $876,607,206 $82,840,036 - -------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF THIRD AVE COMSTOCK, GLOBAL REAL EST, MID CAP GRO, WANGER DEC. 31, 2007 (CONTINUED) VAL CL II CL II CL II INTL SM CAP ASSETS Investments, at value(1),(2) $148,093,084 $869,865,179 $203,382,069 $47,492,816 $970,136,739 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 641,773 289,327 279,872 188,437 Receivable for share redemptions 218,735 686,458 169,964 34,679 1,022,049 - -------------------------------------------------------------------------------------------------------------------------- Total assets 148,311,819 871,193,410 203,841,360 47,807,367 971,347,225 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 107,787 665,016 156,266 34,572 721,517 Contract terminations 110,948 21,442 13,698 107 300,531 Payable for investments purchased -- 641,773 289,327 279,872 188,437 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 218,735 1,328,231 459,291 314,551 1,210,485 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 147,691,590 869,735,721 203,243,563 47,492,816 969,690,888 Net assets applicable to contracts in payment period 401,494 129,458 138,506 -- 445,852 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total net assets $148,093,084 $869,865,179 $203,382,069 $47,492,816 $970,136,740 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 5,713,468 63,033,709 18,624,732 3,275,367 22,028,536 (2) Investments, at cost $104,736,956 $862,139,409 $212,825,666 $42,666,168 $639,244,198 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 16 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------- WF ADV WF ADV WF ADV WF ADV WANGER VT ASSET VT INTL VT VT SM CAP DEC. 31, 2007 (CONTINUED) U.S. SM CO ALLOC CORE OPP GRO ASSETS Investments, at value(1),(2) $973,831,285 $98,668,714 $19,885,705 $85,505,254 $100,983,953 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 469,979 61,309 1,540 234 82,227 Receivable for share redemptions 758,846 557,192 17,599 225,933 123,480 - ----------------------------------------------------------------------------------------------------------------------- Total assets 975,060,110 99,287,215 19,904,844 85,731,421 101,189,660 - ----------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 727,588 72,324 14,601 62,798 73,584 Contract terminations 31,257 484,868 2,998 163,135 49,896 Payable for investments purchased 469,979 61,309 1,540 234 82,227 - ----------------------------------------------------------------------------------------------------------------------- Total liabilities 1,228,824 618,501 19,139 226,167 205,707 - ----------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 973,094,951 98,384,238 19,841,249 85,476,818 100,962,276 Net assets applicable to contracts in payment period 736,335 284,476 44,456 28,436 21,677 Net assets applicable to seed money -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Total net assets $973,831,286 $98,668,714 $19,885,705 $85,505,254 $100,983,953 - ----------------------------------------------------------------------------------------------------------------------- (1) Investment shares 26,856,903 6,739,666 1,919,470 3,881,310 10,421,461 (2) Investments, at cost $788,637,523 $84,076,384 $15,083,460 $75,556,495 $90,244,834 - -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 17 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2007 SER I SER II SER I SER II SER I INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ -- $ 3,118,699 Variable account expenses 594,952 1,898,599 457,066 688,192 4,271,869 - ------------------------------------------------------------------------------------------------------------------------ Investment income (loss) -- net (594,952) (1,898,599) (457,066) (688,192) (1,153,170) - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 18,728,125 49,093,042 11,264,501 14,004,334 152,304,467 Cost of investments sold 20,824,495 39,270,191 7,254,124 9,822,199 112,225,443 - ------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments (2,096,370) 9,822,851 4,010,377 4,182,135 40,079,024 Distributions from capital gains -- -- 3,895,530 6,260,565 -- Net change in unrealized appreciation or depreciation of investments 10,179,768 14,833,321 (2,205,829) (2,956,650) (13,731,842) - ------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments 8,083,398 24,656,172 5,700,078 7,486,050 26,347,182 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ 7,488,446 $22,757,573 $ 5,243,012 $ 6,797,858 $ 25,194,012 - ------------------------------------------------------------------------------------------------------------------------ SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, YEAR ENDED DEC. 31, 2007 (CONTINUED) SER I SER I SER II CARE, SER II SER II INVESTMENT INCOME Dividend income $ -- $ 382,513 $ 61,376 $ -- $ 1,253,696 Variable account expenses 136,754 218,233 27,054 673,480 1,363,511 - ------------------------------------------------------------------------------------------------------------------------ Investment income (loss) -- net (136,754) 164,280 34,322 (673,480) (109,815) - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 3,503,074 9,431,976 1,442,665 126,253,198 1,769,214 Cost of investments sold 2,094,252 7,891,918 1,467,163 115,610,594 1,714,731 - ------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments 1,408,822 1,540,058 (24,498) 10,642,604 54,483 Distributions from capital gains -- 1,475,154 238,746 -- -- Net change in unrealized appreciation or depreciation of investments 478,894 (8,800,955) (1,008,489) (2,389,015) (2,137,277) - ------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments 1,887,716 (5,785,743) (794,241) 8,253,589 (2,082,794) - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ 1,750,962 $(5,621,463) $ (759,919) $ 7,580,109 $ (2,192,609) - ------------------------------------------------------------------------------------------------------------------------ SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, CL LG CAP GRO, YEAR ENDED DEC. 31, 2007 (CONTINUED) SER I CL B CL B B CL B INVESTMENT INCOME Dividend income $ -- $ -- $ 4,010,976 $ 12,899,041 $ -- Variable account expenses 294,133 293,329 2,870,639 11,586,802 17,934 - ------------------------------------------------------------------------------------------------------------------------ Investment income (loss) -- net (294,133) (293,329) 1,140,337 1,312,239 (17,934) - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 8,596,812 55,620,497 57,242,980 53,114,714 325,733 Cost of investments sold 6,762,126 47,048,793 45,596,315 37,494,378 309,789 - ------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments 1,834,686 8,571,704 11,646,665 15,620,336 15,944 Distributions from capital gains -- -- 16,498,882 48,347,518 -- Net change in unrealized appreciation or depreciation of investments 906,081 (701,638) (16,092,757) (23,186,794) 213,019 - ------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments 2,740,767 7,870,066 12,052,790 40,781,060 228,963 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ 2,446,634 $ 7,576,737 $ 13,193,127 $ 42,093,299 $ 211,029 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 18 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------- AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, YEAR ENDED DEC. 31, 2007 (CONTINUED) CL I CL II CL II CL II CL I INVESTMENT INCOME Dividend income $ 468,695 $ 701,602 $ 1,411,665 $ -- $ 9,389,864 Variable account expenses 587,307 1,127,722 1,070,387 1,445,659 5,977,307 - ----------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (118,612) (426,120) 341,278 (1,445,659) 3,412,557 - ----------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 11,671,186 18,631,471 642,785 289,703,318 222,742,380 Cost of investments sold 9,218,435 11,623,168 657,302 260,858,392 191,318,380 - ----------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 2,452,751 7,008,303 (14,517) 28,844,926 31,424,000 Distributions from capital gains -- -- 57,638 -- 48,692,959 Net change in unrealized appreciation or depreciation of investments 8,282,600 13,294,913 (28,848,480) 4,340,406 (106,252,864) - ----------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 10,735,351 20,303,216 (28,805,359) 33,185,332 (26,135,905) - ----------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 10,616,739 $19,877,096 $(28,464,081)$ 31,739,673 $ (22,723,348) - ----------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------- AC VP CALVERT VS COL HI YIELD, COL MARSICO COL MARSICO VAL, SOCIAL VS GRO, VS INTL OPP, VS YEAR ENDED DEC. 31, 2007 (CONTINUED) CL II BAL CL B CL A CL B INVESTMENT INCOME Dividend income $ 6,317,677 $ 1,216,732 $ 6,304,998 $ 457,017 $ 273,632 Variable account expenses 3,861,834 463,482 1,084,998 5,730,604 1,460,963 - ----------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 2,455,843 753,250 5,220,000 (5,273,587) (1,187,331) - ----------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 73,325,593 10,326,681 23,970,778 37,468,773 189,308,029 Cost of investments sold 68,949,714 9,054,915 23,603,781 32,779,304 166,951,258 - ----------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 4,375,879 1,271,766 366,997 4,689,469 22,356,771 Distributions from capital gains 36,100,295 2,784,426 -- -- 9,957,866 Net change in unrealized appreciation or depreciation of investments (68,283,955) (3,765,859) (4,811,226) 93,040,509 (760,292) - ----------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (27,807,781) 290,333 (4,444,229) 97,729,978 31,554,345 - ----------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(25,351,938)$ 1,043,583 $ 775,771 $ 92,456,391 $ 30,367,014 - ----------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY MID-CAP SM CAP INTL EQ, INTL VAL, YEAR ENDED DEC. 31, 2007 (CONTINUED) RETURN CORE CORE I SERV SERV INVESTMENT INCOME Dividend income $ 4,931,157 $ -- $ -- $ 52,538 $ 26,548 Variable account expenses 1,102,459 205,288 2,078,712 49,908 26,679 - ----------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 3,828,698 (205,288) (2,078,712) 2,630 (131) - ----------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 180,060,252 6,475,955 89,004,426 887,635 781,231 Cost of investments sold 174,508,251 5,892,313 87,885,867 820,544 779,180 - ----------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 5,552,001 583,642 1,118,559 67,091 2,051 Distributions from capital gains -- -- -- -- 237,522 Net change in unrealized appreciation or depreciation of investments 6,400,670 2,153,018 728,447 677,532 (209,561) - ----------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 11,952,671 2,736,660 1,847,006 744,623 30,012 - ----------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 15,781,369 $ 2,531,372 $ (231,706)$ 747,253 $ 29,881 - -----------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 19 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------- EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, YEAR ENDED DEC. 31, 2007 (CONTINUED) INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL INVESTMENT INCOME Dividend income $ 27,213,484 $ 289,233 $ 1,720,051 $ 8,772,803 $ 3,401,904 Variable account expenses 4,034,196 288,919 701,351 9,017,484 1,742,951 - --------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 23,179,288 314 1,018,700 (244,681) 1,658,953 - --------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 123,298,652 7,396,370 15,932,108 194,642,323 36,887,986 Cost of investments sold 124,941,156 5,924,129 12,884,231 178,548,565 32,240,591 - --------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (1,642,504) 1,472,241 3,047,877 16,093,758 4,647,395 Distributions from capital gains -- 2,647,443 5,942,492 299,188,380 8,563,309 Net change in unrealized appreciation or depreciation of investments (20,258,229) (1,943,760) (332,182) (165,281,986) 6,664,383 - --------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (21,900,733) 2,175,924 8,658,187 150,000,152 19,875,087 - --------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 1,278,555 $ 2,176,238 $ 9,676,887 $ 149,755,471 $21,534,040 - --------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, YEAR ENDED DEC. 31, 2007 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 INVESTMENT INCOME Dividend income $ 5,687,786 $ 2,972,240 $ 6,723,663 $ 3,246,692 $ 7,680,616 Variable account expenses 3,519,338 3,522,954 12,053,066 892,705 2,324,230 - --------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 2,168,448 (550,714) (5,329,403) 2,353,987 5,356,386 - --------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 74,463,085 78,006,349 161,402,017 17,922,321 37,815,581 Cost of investments sold 58,143,304 49,920,730 128,714,069 13,540,677 26,077,181 - --------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 16,319,781 28,085,619 32,687,948 4,381,644 11,738,400 Distributions from capital gains 17,309,613 38,697,484 117,020,831 7,015,972 17,205,058 Net change in unrealized appreciation or depreciation of investments 6,576,299 (10,084,426) 29,464,027 1,847,817 4,259,131 - --------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 40,205,693 56,698,677 179,172,806 13,245,433 33,202,589 - --------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 42,374,141 $ 56,147,963 $173,843,403 $ 15,599,420 $38,558,975 - --------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------- FTVIPT FRANK FTVIPT FRANK FTVIPT MUTUAL FTVIPT TEMP FTVIPT TEMP GLOBAL REAL EST, SM CAP VAL, SHARES SEC, DEV MKTS SEC, FOR SEC, YEAR ENDED DEC. 31, 2007 (CONTINUED) CL 2 CL 2 CL 2 CL 1 CL 2 INVESTMENT INCOME Dividend income $ 16,015,522 $ 2,509,150 $ 5,265,246 $ 5,673,013 $ 1,011,059 Variable account expenses 5,599,791 3,344,323 3,281,403 2,822,915 437,703 - --------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 10,415,731 (835,173) 1,983,843 2,850,098 573,356 - --------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 198,782,178 66,465,001 27,974,116 110,305,239 10,859,691 Cost of investments sold 167,037,922 48,401,227 22,971,689 59,818,598 7,165,442 - --------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 31,744,256 18,063,774 5,002,427 50,486,641 3,694,249 Distributions from capital gains 46,760,526 25,801,301 12,891,012 17,011,914 2,306,102 Net change in unrealized appreciation or depreciation of investments (237,003,468) (53,272,213) (13,121,360) (17,251,556) 242,811 - --------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (158,498,686) (9,407,138) 4,772,079 50,246,999 6,243,162 - --------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(148,082,955) $(10,242,311) $ 6,755,922 $ 53,097,097 $ 6,816,518 - ---------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 20 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM CAP STRUCTD U.S. GLOBAL INTL YEAR ENDED DEC. 31, 2007 (CONTINUED) VAL, INST EQ, INST EQ, INST TECH, SERV GRO, SERV INVESTMENT INCOME Dividend income $ 5,865,540 $ 96,066 $ 4,702,563 $ 82,513 $ 989,152 Variable account expenses 7,160,118 263,457 4,306,381 207,798 1,902,502 - ------------------------------------------------------------------------------------------------------------------------ Investment income (loss) -- net (1,294,578) (167,391) 396,182 (125,285) (913,350) - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 142,168,174 10,293,505 116,672,369 4,933,365 14,827,668 Cost of investments sold 121,545,524 8,707,138 95,884,801 5,990,072 7,970,580 - ------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments 20,622,650 1,586,367 20,787,568 (1,056,707) 6,857,088 Distributions from capital gains 108,541,040 2,490,792 32,997,051 -- -- Net change in unrealized appreciation or depreciation of investments (106,244,792) (9,106,570) (63,764,197) 5,717,960 46,108,818 - ------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments 22,918,898 (5,029,411) (9,979,578) 4,661,253 52,965,906 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ 21,624,320 $(5,196,802) $ (9,583,396) $ 4,535,968 $52,052,556 - ------------------------------------------------------------------------------------------------------------------------ SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN LAZARD LM PTNRS MFS INV LG CAP MID CAP RETIRE INTL VAR SM CAP GRO STOCK, PERIOD ENDED DEC. 31, 2007 (CONTINUED) GRO, SERV(1) GRO, SERV EQ, SERV GRO, CL I(2) SERV CL INVESTMENT INCOME Dividend income $ 2,133,379 $ 21,722 $ 4,667,562 $ -- $ 111,716 Variable account expenses 3,006,120 267,954 1,698,670 21,417 1,120,880 - ------------------------------------------------------------------------------------------------------------------------ Investment income (loss) -- net (872,741) (246,232) 2,968,892 (21,417) (1,009,164) - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 9,525,352 5,682,815 44,982,463 576,959 32,556,229 Cost of investments sold 9,302,118 5,817,468 32,242,625 578,101 29,033,388 - ------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments 223,234 (134,653) 12,739,838 (1,142) 3,522,841 Distributions from capital gains -- 172,741 32,111,690 271,444 -- Net change in unrealized appreciation or depreciation of investments 16,710,828 6,139,996 (29,599,826) (199,287) 9,995,615 - ------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments 16,934,062 6,178,084 15,251,702 71,015 13,518,456 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ 16,061,321 $ 5,931,852 $ 18,220,594 $ 49,598 $12,509,292 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 21 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- NB MFS MFS MFS NB AMT SOC NEW DIS TOTAL RETURN, UTILITIES, AMT INTL, RESPONSIVE, YEAR ENDED DEC. 31, 2007 (CONTINUED) SERV CL SERV CL SERV CL CL S CL S INVESTMENT INCOME Dividend income $ -- $ 2,685,497 $ 2,484,331 $ 5,143,029 $ 364 Variable account expenses 816,971 1,090,215 2,908,253 2,215,855 14,103 - ------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (816,971) 1,595,282 (423,922) 2,927,174 (13,739) - ------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 21,077,367 14,282,593 22,103,669 18,261,058 378,442 Cost of investments sold 17,295,902 13,500,568 16,094,271 15,717,022 353,894 - ------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 3,781,465 782,025 6,009,398 2,544,036 24,548 Distributions from capital gains 6,963,838 2,799,310 21,330,336 18,145,524 6,423 Net change in unrealized appreciation or depreciation of investments (7,742,537) (2,036,457) 46,134,971 (23,905,479) 30,099 - ------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 3,002,766 1,544,878 73,474,705 (3,215,919) 61,070 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 2,185,795 $ 3,140,160 $ 73,050,783 $ (288,745) $ 47,331 - ------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- PIMCO OPPEN OPPEN OPPEN OPPEN VIT ALL GLOBAL SEC MAIN ST SM STRATEGIC VAL VA, ASSET, YEAR ENDED DEC. 31, 2007 (CONTINUED) VA, SERV CAP VA, SERV BOND VA, SERV SERV ADVISOR CL INVESTMENT INCOME Dividend income $ 2,146,837 $ 194,035 $ 37,062,334 $ 19,929 $ 56,327,035 Variable account expenses 1,663,565 1,138,485 13,711,553 31,344 6,350,865 - ------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 483,272 (944,450) 23,350,781 (11,415) 49,976,170 - ------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 26,853,631 14,828,963 15,119,846 571,979 131,832,695 Cost of investments sold 22,819,928 13,085,449 14,355,092 582,217 130,149,161 - ------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 4,033,703 1,743,514 764,754 (10,238) 1,683,534 Distributions from capital gains 8,978,114 4,196,479 -- 205,060 -- Net change in unrealized appreciation or depreciation of investments (4,242,025) (8,514,848) 101,680,367 (442,794) (3,095,183) - ------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 8,769,792 (2,574,855) 102,445,121 (247,972) (1,411,649) - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 9,253,064 $(3,519,305) $125,795,902 $ (259,387) $ 48,564,521 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 22 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------- PIONEER PUT VT PUT VT PIONEER INTL VAL HLTH PUT VT INTL NEW EQ INC VCT, VCT, SCIENCES, INTL EQ, OPP, YEAR ENDED DEC. 31, 2007 (CONTINUED) CL II CL II CL IB CL IB CL IB INVESTMENT INCOME Dividend income $ 1,617,445 $ 28,151 $ 395,566 $ 2,962,936 $ 836,648 Variable account expenses 619,758 73,483 407,856 886,042 812,725 - ----------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 997,687 (45,332) (12,290) 2,076,894 23,923 - ----------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 12,643,647 2,103,487 13,405,041 24,616,718 18,093,368 Cost of investments sold 9,363,799 1,953,157 11,341,429 16,329,152 15,558,644 - ----------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 3,279,848 150,330 2,063,612 8,287,566 2,534,724 Distributions from capital gains 2,272,719 97,257 -- 12,826,457 -- Net change in unrealized appreciation or depreciation of investments (6,605,884) 792,166 (2,314,359) (15,429,145) 8,651,239 - ----------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (1,053,317) 1,039,753 (250,747) 5,684,878 11,185,963 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ (55,630) $ 994,421 $ (263,037) $ 7,761,772 $11,209,886 - ----------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------- PUT VT PUT VT NEW OPP, VISTA, RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2007 (CONTINUED) CL IA CL IB BAL CASH MGMT CORE BOND INVESTMENT INCOME Dividend income $ 333,873 $ -- $ 12,625,727 $ 42,810,625 $ 3,405,880 Variable account expenses 2,372,765 658,697 4,699,417 8,451,863 686,401 - ----------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (2,038,892) (658,697) 7,926,310 34,358,762 2,719,479 - ----------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 82,160,902 21,238,072 107,790,844 317,168,773 9,707,655 Cost of investments sold 87,974,213 24,585,753 115,365,204 317,176,219 9,774,935 - ----------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (5,813,311) (3,347,681) (7,574,360) (7,446) (67,280) Distributions from capital gains -- -- 9,861,055 -- -- Net change in unrealized appreciation or depreciation of investments 18,027,177 6,764,206 (5,918,974) (209,319) 728,288 - ----------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 12,213,866 3,416,525 (3,632,279) (216,765) 661,008 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $10,174,974 $ 2,757,828 $ 4,294,031 $ 34,141,997 $ 3,380,487 - -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 23 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------- RVS VP RVS VP THDL VP RVS PTNRS VP RVS VP YEAR ENDED DEC. 31, 2007 (CONTINUED) DIV BOND DIV EQ INC EMER MKTS FUNDAMENTAL VAL GLOBAL BOND INVESTMENT INCOME Dividend income $117,050,609 $ 39,992,733 $ 3,052,450 $ 5,183,634 $ 31,988,291 Variable account expenses 23,015,666 22,437,185 4,659,478 4,705,504 8,110,448 - ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 94,034,943 17,555,548 (1,607,028) 478,130 23,877,843 - ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 114,256,924 189,080,249 76,918,884 138,867,823 57,208,604 Cost of investments sold 116,202,372 153,521,951 59,562,565 124,853,385 54,968,810 - ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (1,945,448) 35,558,298 17,356,319 14,014,438 2,239,794 Distributions from capital gains -- 31,748,234 22,687,947 1,157,874 -- Net change in unrealized appreciation or depreciation of investments 18,113,255 75,691,754 125,156,294 (45,015) 35,571,222 - ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 16,167,807 142,998,286 165,200,560 15,127,297 37,811,016 - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $110,202,750 $160,553,834 $163,593,532 $ 15,605,427 $ 61,688,859 - ---------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------- RVS VP GLOBAL INFLATION RVS VP RVS VP RVS VP THDL VP YEAR ENDED DEC. 31, 2007 (CONTINUED) PROT SEC GRO HI YIELD BOND INC OPP INTL OPP INVESTMENT INCOME Dividend income $ 12,883,040 $ 4,515,922 $ 64,311,471 $ 33,193,077 $ 3,997,790 Variable account expenses 4,988,876 3,829,785 8,121,414 4,440,681 4,341,764 - ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 7,894,164 686,137 56,190,057 28,752,396 (343,974) - ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 163,333,199 75,693,272 205,721,878 67,116,653 114,390,140 Cost of investments sold 164,858,165 72,830,097 216,475,730 68,125,415 94,219,907 - ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (1,524,966) 2,863,175 (10,753,852) (1,008,762) 20,170,233 Distributions from capital gains -- -- -- 1,029,658 -- Net change in unrealized appreciation or depreciation of investments 29,875,142 7,597,489 (36,391,923) (24,172,199) 24,613,294 - ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 28,350,176 10,460,664 (47,145,775) (24,151,303) 44,783,527 - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 36,244,340 $ 11,146,801 $ 9,044,282 $ 4,601,093 $ 44,439,553 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 24 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2007 (CONTINUED) LG CAP EQ LG CAP VAL MID CAP GRO MID CAP VAL S&P 500 INVESTMENT INCOME Dividend income $ 15,701,344 $ 339,837 $ 116,884 $ 2,899,805 $ 4,527,718 Variable account expenses 12,228,007 205,277 2,082,529 3,525,197 2,424,071 - ----------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 3,473,337 134,560 (1,965,645) (625,392) 2,103,647 - ----------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 335,008,045 9,545,212 64,636,204 279,136,586 42,817,334 Cost of investments sold 302,733,252 8,257,688 60,294,583 235,550,420 33,559,035 - ----------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 32,274,793 1,287,524 4,341,621 43,586,166 9,258,299 Distributions from capital gains 6,905,170 1,549,666 2,112,965 3,924,810 2,083,883 Net change in unrealized appreciation or depreciation of investments (12,221,817) (3,155,202) 21,247,085 4,876,358 (2,031,407) - ----------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 26,958,146 (318,012) 27,701,671 52,387,334 9,310,775 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 30,431,483 $ (183,452) $ 25,736,026 $ 51,761,942 $ 11,414,422 - ----------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- RVS PTNRS VP RVS VP SHORT RVS VP SM RVS PTNRS VP ROYCE MICRO-CAP, YEAR ENDED DEC. 31, 2007 (CONTINUED) SELECT VAL DURATION CAP ADV SM CAP VAL INVEST CL INVESTMENT INCOME Dividend income $ 305,268 $13,880,418 $ 238,447 $ 5,878,352 $ 1,744,022 Variable account expenses 249,004 2,913,673 1,305,857 5,853,120 1,117,776 - ----------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 56,264 10,966,745 (1,067,410) 25,232 626,246 - ----------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 10,152,410 52,115,821 46,247,682 49,392,910 26,507,920 Cost of investments sold 9,008,296 53,043,951 43,795,912 44,321,643 16,026,075 - ----------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 1,144,114 (928,130) 2,451,770 5,071,267 10,481,845 Distributions from capital gains 2,717,672 -- 8,379,599 15,919,708 9,937,870 Net change in unrealized appreciation or depreciation of investments (2,428,317) 4,283,352 (15,657,261) (90,463,298) (16,392,834) - ----------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 1,433,469 3,355,222 (4,825,892) (69,472,323) 4,026,881 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 1,489,733 $14,321,967 $ (5,893,302) $(69,447,091) $ 4,653,127 - -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 25 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF THIRD AVE COMSTOCK, GLOBAL REAL EST, MID CAP GRO, WANGER YEAR ENDED DEC. 31, 2007 (CONTINUED) VAL CL II CL II CL II INTL SM CAP INVESTMENT INCOME - -------------------------------------------------------------------------------------------------------------------------- Dividend income $ 3,841,937 $ 14,017,086 $ 2,768,960 $ -- $ 8,047,445 Variable account expenses 1,539,535 8,127,209 1,959,356 810,318 8,385,385 - -------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 2,302,402 5,889,877 809,604 (810,318) (337,940) - -------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 36,311,175 240,132,111 91,502,823 139,551,572 152,521,730 Cost of investments sold 21,981,161 221,132,216 86,118,125 122,762,066 101,645,764 - -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 14,330,014 18,999,895 5,384,698 16,789,506 50,875,966 Distributions from capital gains 11,072,723 19,453,460 667,347 7,437,818 72,464,160 Net change in unrealized appreciation or depreciation of investments (35,865,306) (69,536,273) (31,924,850) (3,109,983) 11,009,845 - -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (10,462,569) (31,082,918) (25,872,805) 21,117,341 134,349,971 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ (8,160,167) $(25,193,041) $(25,063,201) $ 20,307,023 $134,012,031 - -------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- WANGER WF ADV VT WF ADV VT WF ADV VT WF ADV VT YEAR ENDED DEC. 31, 2007 (CONTINUED) U.S. SM CO ASSET ALLOC INTL CORE OPP SM CAP GRO INVESTMENT INCOME Dividend income $ -- $ 2,199,202 $ 2,719 $ 550,485 $ -- Variable account expenses 8,332,746 845,020 179,231 799,296 699,645 - -------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (8,332,746) 1,354,182 (176,512) (248,811) (699,645) - -------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 159,500,413 16,861,953 4,208,813 20,549,018 7,193,071 Cost of investments sold 118,089,809 14,173,914 3,097,472 16,277,490 5,656,013 - -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 41,410,604 2,688,039 1,111,341 4,271,528 1,537,058 Distributions from capital gains 47,038,069 1,501,009 1,492,329 12,900,103 12,019,803 Net change in unrealized appreciation or depreciation of investments (47,372,483) 690,136 (144,481) (11,462,733) (4,910,640) - -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 41,076,190 4,879,184 2,459,189 5,708,898 8,646,221 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 32,743,444 $ 6,233,366 $ 2,282,677 $ 5,460,087 $ 7,946,576 - --------------------------------------------------------------------------------------------------------------------------
(1) For the period May 1, 2007 (commencement of operations) to Dec. 31, 2007. (2) For the period April 27, 2007 (commencement of operations) to Dec. 31, 2007. See accompanying notes to financial statements. 26 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2007 SER I SER II SER I SER II SER I OPERATIONS Investment income (loss) -- net $ (594,952) $ (1,898,599) $ (457,066) $ (688,192) $ (1,153,170) Net realized gain (loss) on sales of investments (2,096,370) 9,822,851 4,010,377 4,182,135 40,079,024 Distributions from capital gains -- -- 3,895,530 6,260,565 -- Net change in unrealized appreciation or depreciation of investments 10,179,768 14,833,321 (2,205,829) (2,956,650) (13,731,842) - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 7,488,446 22,757,573 5,243,012 6,797,858 25,194,012 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,555,650 9,745,494 811,347 7,448,612 5,641,816 Net transfers(1) (13,448,112) (38,456,740) (6,507,480) (2,680,157) (13,020,713) Transfers for policy loans 10,585 (17,705) 10,887 (42,418) 491,079 Adjustments to net assets allocated to contracts in payment period (10,629) (2,361) (10,687) (4,037) (225,139) Contract charges (28,813) (682,581) (17,136) (53,128) (238,071) Contract terminations: Surrender benefits (4,549,152) (9,398,226) (3,764,246) (3,965,775) (137,570,437) Death benefits (709,725) (1,068,092) (443,097) (466,526) (3,699,508) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (17,180,196) (39,880,211) (9,920,412) 236,571 (148,620,973) - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 74,671,394 223,711,953 53,160,351 69,831,722 396,958,020 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 64,979,644 $206,589,315 $48,482,951 $76,866,151 $ 273,531,059 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 72,809,092 198,365,517 28,272,232 48,025,875 199,590,592 Contract purchase payments 1,418,538 8,170,620 393,196 5,782,848 2,712,527 Net transfers(1) (12,404,737) (31,814,485) (3,131,789) (1,387,872) (6,305,193) Transfers for policy loans 10,955 (14,512) 5,413 (27,940) 238,748 Contract charges (26,394) (559,314) (8,349) (33,541) (114,180) Contract terminations: Surrender benefits (4,141,327) (7,708,565) (1,835,352) (2,454,496) (65,842,041) Death benefits (648,157) (893,491) (217,727) (297,564) (1,810,354) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 57,017,970 165,545,770 23,477,624 49,607,310 128,470,099 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 27 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH CARE, INTL GRO, YEAR ENDED DEC. 31, 2007 (CONTINUED) SER I SER I SER II SER II SER II OPERATIONS Investment income (loss) -- net $ (136,754) $ 164,280 $ 34,322 $ (673,480) $ (109,815) Net realized gain (loss) on sales of investments 1,408,822 1,540,058 (24,498) 10,642,604 54,483 Distributions from capital gains -- 1,475,154 238,746 -- -- Net change in unrealized appreciation or depreciation of investments 478,894 (8,800,955) (1,008,489) (2,389,015) (2,137,277) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,750,962 (5,621,463) (759,919) 7,580,109 (2,192,609) - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 351,354 735,360 2,360,754 37,133,985 97,199,022 Net transfers(1) (1,370,460) (5,356,452) 19,679 (116,132,891) 244,069,379 Transfers for policy loans (6,276) 1,332 (3,115) (18,944) (41,256) Adjustments to net assets allocated to contracts in payment period (2,204) (1,175) -- -- (175) Contract charges (12,917) (21,406) (1,037) (256,233) (486,884) Contract terminations: Surrender benefits (1,097,093) (1,928,192) (124,173) (1,216,958) (2,457,616) Death benefits (122,892) (178,441) (7,493) (270,330) (731,625) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (2,260,488) (6,748,974) 2,244,615 (80,761,371) 337,550,845 - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 15,850,156 30,101,536 1,595,993 91,681,734 7,022,690 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $15,340,630 $17,731,099 $ 3,080,689 $ 18,500,472 $342,380,926 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 12,476,898 21,798,120 1,364,020 87,789,464 5,225,792 Contract purchase payments 254,043 559,479 2,071,188 33,132,878 69,794,306 Net transfers(1) (980,604) (4,099,008) 114,121 (103,246,799) 161,555,158 Transfers for policy loans (4,502) 545 (2,690) (16,705) (29,221) Contract charges (9,315) (16,333) (997) (237,453) (333,749) Contract terminations: Surrender benefits (781,791) (1,449,971) (111,551) (1,111,611) (1,647,066) Death benefits (90,526) (136,272) (7,046) (244,289) (500,903) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 10,864,203 16,656,560 3,427,045 16,065,485 234,064,317 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 28 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, YEAR ENDED DEC. 31, 2007 (CONTINUED) SER I CL B CL B CL B CL B OPERATIONS Investment income (loss) -- net $ (294,133) $ (293,329) $ 1,140,337 $ 1,312,239 $ (17,934) Net realized gain (loss) on sales of investments 1,834,686 8,571,704 11,646,665 15,620,336 15,944 Distributions from capital gains -- -- 16,498,882 48,347,518 -- Net change in unrealized appreciation or depreciation of investments 906,081 (701,638) (16,092,757) (23,186,794) 213,019 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 2,446,634 7,576,737 13,193,127 42,093,299 211,029 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,077,715 14,879,292 19,119,413 257,161,881 1,442,238 Net transfers(1) (4,908,364) (45,843,841) (34,758,854) 151,573,881 676,132 Transfers for policy loans (5,807) (10,401) (45,536) (320,435) (796) Adjustments to net assets allocated to contracts in payment period -- -- (32,048) (85,962) -- Contract charges (103,267) (110,180) (235,059) (1,809,039) (760) Contract terminations: Surrender benefits (1,895,560) (686,368) (19,445,689) (55,109,620) (29,495) Death benefits (190,381) (95,309) (2,312,868) (6,703,222) (14,632) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (6,025,664) (31,866,807) (37,710,641) 344,707,484 2,072,687 - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 35,223,143 38,748,334 333,791,224 1,057,186,926 729,910 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $31,644,113 $ 14,458,264 $309,273,710 $1,443,987,709 $3,013,626 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 43,390,634 33,897,263 255,691,383 453,281,566 666,672 Contract purchase payments 1,247,395 12,581,164 15,057,871 185,482,868 1,257,074 Net transfers(1) (5,565,707) (35,092,837) (25,457,040) 77,763,017 561,478 Transfers for policy loans (7,041) (8,060) (34,243) (169,683) (685) Contract charges (118,984) (92,612) (173,825) (844,860) (621) Contract terminations: Surrender benefits (2,197,857) (555,732) (14,154,877) (21,708,416) (25,266) Death benefits (228,543) (78,802) (1,713,709) (2,954,331) (11,855) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 36,519,897 10,650,384 229,215,560 690,850,161 2,446,797 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 29 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, YEAR ENDED DEC. 31, 2007 (CONTINUED) CL I CL II CL II CL II CL I OPERATIONS Investment income (loss) -- net $ (118,612) $ (426,120) $ 341,278 $ (1,445,659) $ 3,412,557 Net realized gain (loss) on sales of investments 2,452,751 7,008,303 (14,517) 28,844,926 31,424,000 Distributions from capital gains -- -- 57,638 -- 48,692,959 Net change in unrealized appreciation or depreciation of investments 8,282,600 13,294,913 (28,848,480) 4,340,406 (106,252,864) - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 10,616,739 19,877,096 (28,464,081) 31,739,673 (22,723,348) - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,074,847 3,263,758 83,308,165 75,856,497 8,291,357 Net transfers(1) (4,776,373) (4,431,098) 211,888,708 (270,229,661) (28,649,567) Transfers for policy loans 11,469 (33,420) (37,769) (23,476) 284,116 Adjustments to net assets allocated to contracts in payment period (116,327) (14,111) (2,052) -- (263,010) Contract charges (18,342) (97,296) (397,843) (558,253) (223,224) Contract terminations: Surrender benefits (4,441,667) (8,124,207) (1,865,454) (2,967,686) (188,068,507) Death benefits (610,000) (912,572) (652,090) (725,595) (5,201,804) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (8,876,393) (10,348,946) 292,241,665 (198,648,174) (213,830,639) - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 66,174,158 123,391,731 3,176,150 203,884,825 627,151,221 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $67,914,504 $132,919,881 $266,953,734 $ 36,976,324 $ 390,597,234 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 51,286,353 84,428,917 2,742,969 202,330,807 258,017,796 Contract purchase payments 763,932 2,038,518 69,227,194 71,553,378 3,455,826 Net transfers(1) (3,433,643) (2,972,564) 189,104,478 (239,031,959) (12,989,231) Transfers for policy loans 8,321 (21,085) (30,858) (21,164) 100,915 Contract charges (13,090) (60,974) (367,001) (536,818) (87,798) Contract terminations: Surrender benefits (3,134,166) (4,912,901) (1,762,128) (2,765,655) (69,095,168) Death benefits (438,017) (581,450) (603,370) (674,237) (2,079,431) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 45,039,690 77,918,461 258,311,284 30,854,352 177,322,909 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 30 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ AC VP CALVERT COL HI COL MARSICO COL MARSICO VAL, VS SOCIAL YIELD, GRO, INTL OPP, YEAR ENDED DEC. 31, 2007 (CONTINUED) CL II BAL VS CL B VS CL A VS CL B OPERATIONS Investment income (loss) -- net $ 2,455,843 $ 753,250 $ 5,220,000 $ (5,273,587) $ (1,187,331) Net realized gain (loss) on sales of investments 4,375,879 1,271,766 366,997 4,689,469 22,356,771 Distributions from capital gains 36,100,295 2,784,426 -- -- 9,957,866 Net change in unrealized appreciation or depreciation of investments (68,283,955) (3,765,859) (4,811,226) 93,040,509 (760,292) - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (25,351,938) 1,043,583 775,771 92,456,391 30,367,014 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 32,680,586 1,812,022 16,044,941 323,221,073 61,020,145 Net transfers(1) (37,836,037) (5,526,840) (9,871,038) 216,285,064 (149,406,976) Transfers for policy loans (122,174) (10,898) (21,238) (155,684) (33,941) Adjustments to net assets allocated to contracts in payment period (46,942) (11,773) (2,823) (15,304) (2,551) Contract charges (328,079) (40,678) (166,893) (1,820,989) (374,708) Contract terminations: Surrender benefits (25,077,851) (3,644,157) (5,485,049) (14,057,933) (5,460,017) Death benefits (3,883,507) (328,308) (975,664) (3,002,895) (623,466) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (34,614,004) (7,750,632) (477,764) 520,453,332 (94,881,514) - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 437,608,479 56,141,864 114,551,839 331,754,197 169,997,945 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $377,642,537 $49,434,815 $114,849,846 $944,663,920 $ 105,483,445 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 279,304,114 49,740,729 106,859,135 317,945,827 153,626,994 Contract purchase payments 25,185,249 1,558,196 14,657,055 273,887,628 49,812,581 Net transfers(1) (23,958,638) (4,827,934) (9,292,183) 190,775,561 (117,006,196) Transfers for policy loans (75,793) (7,134) (19,522) (134,244) (28,271) Contract charges (206,215) (35,188) (153,666) (1,574,917) (332,939) Contract terminations: Surrender benefits (15,751,801) (3,106,179) (5,056,711) (12,323,275) (4,631,995) Death benefits (2,476,585) (284,129) (901,072) (2,563,904) (517,051) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 262,020,331 43,038,361 106,093,036 766,012,676 80,923,123 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 31 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------------- CS COMMODITY CS MID-CAP CS SM CAP DREY VIF INTL EQ, DREY VIF INTL VAL, YEAR ENDED DEC. 31, 2007 (CONTINUED) RETURN CORE CORE I SERV SERV OPERATIONS Investment income (loss) -- net $ 3,828,698 $ (205,288) $ (2,078,712) $ 2,630 $ (131) Net realized gain (loss) on sales of investments 5,552,001 583,642 1,118,559 67,091 2,051 Distributions from capital gains -- -- -- -- 237,522 Net change in unrealized appreciation or depreciation of investments 6,400,670 2,153,018 728,447 677,532 (209,561) - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 15,781,369 2,531,372 (231,706) 747,253 29,881 - ------------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 52,135,888 495,110 3,219,727 4,107,651 1,940,637 Net transfers(1) (148,861,631) (4,473,615) (15,777,760) 476,347 237,487 Transfers for policy loans (31,704) 5,782 233,837 (1,334) (96) Adjustments to net assets allocated to contracts in payment period (1,815) (4,359) (71,269) -- -- Contract charges (352,746) (11,065) (97,749) (2,021) (1,216) Contract terminations: Surrender benefits (3,079,613) (1,696,362) (72,755,733) (109,674) (64,475) Death benefits (427,888) (185,876) (1,676,767) (35,546) (1,648) - ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (100,619,509) (5,870,385) (86,925,714) 4,435,423 2,110,689 - ------------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 137,217,868 25,342,871 208,261,570 1,844,513 1,351,009 - ------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 52,379,728 $22,003,858 $121,104,150 $7,027,189 $3,491,579 - ------------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 139,242,701 19,842,603 148,637,832 1,559,767 1,166,615 Contract purchase payments 50,401,246 358,631 2,249,888 3,305,740 1,625,493 Net transfers(1) (139,924,665) (3,281,598) (11,023,565) 389,962 195,408 Transfers for policy loans (29,765) 4,295 171,993 (1,000) (123) Contract charges (350,170) (8,061) (68,362) (1,531) (1,007) Contract terminations: Surrender benefits (2,992,730) (1,223,317) (50,691,145) (84,441) (53,558) Death benefits (417,034) (134,939) (1,192,642) (28,762) (1,396) - ------------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 45,929,583 15,557,614 88,083,999 5,139,735 2,931,432 - ------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 32 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- EV VT EG VA EG VA FID VIP FID VIP FLOATING- FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, YEAR ENDED DEC. 31, 2007 (CONTINUED) RATE INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL OPERATIONS Investment income (loss) -- net $ 23,179,288 $ 314 $ 1,018,700 $ (244,681) $ 1,658,953 Net realized gain (loss) on sales of investments (1,642,504) 1,472,241 3,047,877 16,093,758 4,647,395 Distributions from capital gains -- 2,647,443 5,942,492 299,188,380 8,563,309 Net change in unrealized appreciation or depreciation of investments (20,258,229) (1,943,760) (332,182) (165,281,986) 6,664,383 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,278,555 2,176,238 9,676,887 149,755,471 21,534,040 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 219,615,249 2,399,208 7,689,286 467,633,246 3,644,825 Net transfers(1) (25,197,341) (1,611,646) (5,610,122) 16,587,806 (21,083,009) Transfers for policy loans (40,572) 3,616 (14,947) (218,630) (38,865) Adjustments to net assets allocated to contracts in payment period (18,785) (5,575) (2,873) (39,983) (170,233) Contract charges (1,130,178) (23,067) (70,550) (2,689,864) (66,539) Contract terminations: Surrender benefits (12,688,856) (2,185,550) (3,235,204) (22,340,871) (14,906,018) Death benefits (2,593,767) (182,975) (651,718) (4,562,157) (1,709,997) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 177,945,750 (1,605,989) (1,896,128) 454,369,547 (34,329,836) - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 306,684,071 32,620,279 71,677,408 654,611,294 209,031,284 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $485,908,376 $33,190,528 $79,458,167 $1,258,736,312 $196,235,488 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 298,230,334 28,846,070 45,619,068 622,501,286 182,343,013 Contract purchase payments 211,468,136 2,026,988 5,699,944 397,943,190 2,992,284 Net transfers(1) (24,426,595) (1,438,587) (2,967,782) 23,717,680 (17,370,272) Transfers for policy loans (39,005) 2,966 (9,526) (189,203) (31,188) Contract charges (1,085,312) (19,281) (41,778) (2,340,750) (54,538) Contract terminations: Surrender benefits (12,213,457) (1,802,486) (1,899,074) (19,485,086) (12,210,151) Death benefits (2,500,072) (152,180) (394,528) (3,897,793) (1,389,312) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 469,434,029 27,463,490 46,006,324 1,018,249,324 154,279,836 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 33 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, YEAR ENDED DEC. 31, 2007 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 OPERATIONS Investment income (loss) -- net $ 2,168,448 $ (550,714) $ (5,329,403) $ 2,353,987 $ 5,356,386 Net realized gain (loss) on sales of investments 16,319,781 28,085,619 32,687,948 4,381,644 11,738,400 Distributions from capital gains 17,309,613 38,697,484 117,020,831 7,015,972 17,205,058 Net change in unrealized appreciation or depreciation of investments 6,576,299 (10,084,426) 29,464,027 1,847,817 4,259,131 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 42,374,141 56,147,963 173,843,403 15,599,420 38,558,975 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 10,032,755 6,615,148 218,118,455 1,613,232 17,842,196 Net transfers(1) (49,054,737) (49,477,279) (64,783,266) (8,092,209) (15,529,794) Transfers for policy loans (96,876) (47,397) (321,122) (35,934) (67,347) Adjustments to net assets allocated to contracts in payment period (76,771) 15,639 (85,823) (28,078) (39,114) Contract charges (317,749) (122,344) (1,804,323) (27,253) (192,245) Contract terminations: Surrender benefits (26,852,829) (28,493,115) (66,103,807) (7,460,902) (14,755,246) Death benefits (2,732,546) (2,658,816) (7,780,135) (987,194) (1,516,912) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (69,098,753) (74,168,164) 77,239,979 (15,018,338) (14,258,462) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 417,155,182 413,295,617 1,208,846,882 102,498,316 248,078,487 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $390,430,570 $395,275,416 $1,459,930,264 $103,079,398 $272,379,000 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 329,941,813 131,593,810 624,914,428 76,349,456 151,362,060 Contract purchase payments 7,472,160 1,930,525 170,249,933 1,108,461 12,895,479 Net transfers(1) (36,806,779) (14,573,394) (20,429,167) (5,601,528) (8,145,928) Transfers for policy loans (73,105) (13,208) (176,909) (24,996) (41,215) Contract charges (236,106) (35,815) (943,220) (18,667) (107,986) Contract terminations: Surrender benefits (19,780,765) (8,271,564) (30,825,699) (5,091,040) (8,100,797) Death benefits (2,051,838) (780,913) (3,850,785) (666,260) (864,578) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 278,465,380 109,849,441 738,938,581 66,055,426 146,997,035 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 34 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------------- FTVIPT FRANK FTVIPT FTVIPT FTVIPT TEMP FTVIPT GLOBAL REAL EST, FRANK SM CAP VAL, MUTUAL SHARES DEV MKTS TEMP FOR YEAR ENDED DEC. 31, 2007 (CONTINUED) CL 2 CL 2 SEC CL 2 SEC, CL 1 SEC, CL 2 OPERATIONS Investment income (loss) -- net $ 10,415,731 $ (835,173) $ 1,983,843 $ 2,850,098 $ 573,356 Net realized gain (loss) on sales of investments 31,744,256 18,063,774 5,002,427 50,486,641 3,694,249 Distributions from capital gains 46,760,526 25,801,301 12,891,012 17,011,914 2,306,102 Net change in unrealized appreciation or depreciation of investments (237,003,468) (53,272,213) (13,121,360) (17,251,556) 242,811 - ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (148,082,955) (10,242,311) 6,755,922 53,097,097 6,816,518 - ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 37,161,931 25,176,885 46,597,131 2,870,542 749,904 Net transfers(1) (160,396,780) (43,204,319) 25,861,096 (10,615,358) (6,388,725) Transfers for policy loans (151,684) (6,738) (42,326) 161,161 (6,851) Adjustments to net assets allocated to contracts in payment period (83,587) (28,368) (66,147) (317,592) (16,748) Contract charges (444,881) (233,952) (238,053) (111,437) (12,619) Contract terminations: Surrender benefits (40,079,116) (20,726,840) (17,978,439) (97,723,802) (3,279,145) Death benefits (5,122,737) (2,368,968) (2,532,153) (1,986,204) (238,151) - ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (169,116,854) (41,392,300) 51,601,109 (107,722,690) (9,192,335) - ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 773,536,215 380,878,128 309,114,173 252,257,533 51,831,219 - ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 456,336,406 $329,243,517 $367,471,204 $ 197,631,940 $49,455,402 - ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 257,420,723 166,830,224 207,209,310 179,402,572 30,344,425 Contract purchase payments 24,378,587 18,354,586 37,080,758 1,843,724 413,508 Net transfers(1) (60,265,326) (17,629,892) 17,748,332 (6,883,607) (3,522,369) Transfers for policy loans (63,965) (7,293) (30,870) 107,084 (3,538) Contract charges (161,793) (100,216) (152,990) (71,438) (6,931) Contract terminations: Surrender benefits (14,815,846) (9,009,685) (11,328,002) (62,783,345) (1,791,663) Death benefits (1,832,717) (1,009,158) (1,659,759) (1,364,325) (129,256) - ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 204,659,663 157,428,566 248,866,779 110,250,665 25,304,176 - -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 35 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP VAL, STRUCTD SM STRUCTD U.S. GLOBAL INTL YEAR ENDED DEC. 31, 2007 (CONTINUED) INST CAP EQ, INST EQ, INST TECH, SERV GRO, SERV OPERATIONS Investment income (loss) -- net $ (1,294,578) $ (167,391) $ 396,182 $ (125,285) $ (913,350) Net realized gain (loss) on sales of investments 20,622,650 1,586,367 20,787,568 (1,056,707) 6,857,088 Distributions from capital gains 108,541,040 2,490,792 32,997,051 -- -- Net change in unrealized appreciation or depreciation of investments (106,244,792) (9,106,570) (63,764,197) 5,717,960 46,108,818 - ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 21,624,320 (5,196,802) (9,583,396) 4,535,968 52,052,556 - ----------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 19,785,963 475,528 25,532,105 715,950 3,640,650 Net transfers(1) (96,913,865) (7,600,007) (89,881,606) (1,117,889) 19,130,166 Transfers for policy loans (242,317) 497 (67,231) (5,684) (83,299) Adjustments to net assets allocated to contracts in payment period (79,953) (4,151) (56,763) (855) (26,076) Contract charges (697,942) (9,906) (707,863) (16,939) (100,900) Contract terminations: Surrender benefits (46,502,361) (2,280,442) (25,281,758) (1,602,360) (13,042,410) Death benefits (5,508,279) (273,454) (3,673,833) (194,806) (1,298,052) - ----------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (130,158,754) (9,691,935) (94,136,949) (2,222,583) 8,220,079 - ----------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 835,017,910 37,272,147 524,190,859 23,643,711 192,641,557 - ----------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 726,483,476 $22,383,410 $420,470,514 $25,957,096 $252,914,192 - ----------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 327,755,194 19,071,743 445,093,220 54,174,360 142,097,812 Contract purchase payments 7,583,395 254,027 21,654,426 1,488,571 2,369,349 Net transfers(1) (36,577,913) (4,127,116) (75,635,982) (2,853,435) 11,713,788 Transfers for policy loans (86,809) 851 (50,964) (7,601) (55,288) Contract charges (261,891) (5,321) (582,595) (33,684) (64,847) Contract terminations: Surrender benefits (18,110,101) (1,219,622) (20,652,593) (3,186,673) (8,089,522) Death benefits (2,078,442) (144,343) (3,100,020) (412,649) (841,160) - ----------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 278,223,433 13,830,219 366,725,492 49,168,889 147,130,132 - -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 36 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN LM PTNRS MFS INV LG CAP MID CAP LAZARD RETIRE INTL VAR SM CAP GRO STOCK, PERIOD ENDED DEC. 31, 2007 (CONTINUED) GRO, SERV(2) GRO, SERV EQ, SERV GRO, CL I(3) SERV CL OPERATIONS Investment income (loss) -- net $ (872,741) $ (246,232) $ 2,968,892 $ (21,417) $ (1,009,164) Net realized gain (loss) on sales of investments 223,234 (134,653) 12,739,838 (1,142) 3,522,841 Distributions from capital gains -- 172,741 32,111,690 271,444 -- Net change in unrealized appreciation or depreciation of investments 16,710,828 6,139,996 (29,599,826) (199,287) 9,995,615 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 16,061,321 5,931,852 18,220,594 49,598 12,509,292 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 222,372,127 812,592 3,768,454 554,669 4,613,275 Net transfers(1) 561,334,075 (1,757,656) (31,931,769) 3,468,770 (23,713,182) Transfers for policy loans (69,657) (9,310) (36,521) (1,071) (15,582) Adjustments to net assets allocated to contracts in payment period -- (2,534) (52,304) -- (117,342) Contract charges (1,224,152) (18,829) (114,320) (2,378) (84,342) Contract terminations: Surrender benefits (4,876,858) (1,764,583) (12,262,268) (48,963) (8,317,842) Death benefits (1,731,354) (270,893) (1,316,375) -- (969,709) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 775,804,181 (3,011,213) (41,945,103) 3,971,027 (28,604,724) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- 30,258,127 207,521,839 -- 136,819,006 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $791,865,502 $33,178,766 $183,797,330 $4,020,625 $120,723,574 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- 50,493,115 162,152,756 -- 187,890,017 Contract purchase payments 215,063,494 1,209,218 2,744,079 545,934 5,294,270 Net transfers(1) 540,413,694 (2,841,619) (24,068,024) 3,456,850 (30,931,822) Transfers for policy loans (67,510) (13,267) (26,378) (1,026) (20,895) Contract charges (1,176,537) (27,894) (84,640) (2,335) (108,675) Contract terminations: Surrender benefits (4,671,431) (2,639,239) (8,710,187) (48,525) (10,272,011) Death benefits (1,668,630) (413,263) (1,006,415) -- (1,290,903) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 747,893,080 45,767,051 131,001,191 3,950,898 150,559,981 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 37 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ MFS MFS MFS NB NB AMT SOC NEW DIS, TOTAL RETURN, UTILITIES, AMT INTL, RESPONSIVE, YEAR ENDED DEC. 31, 2007 (CONTINUED) SERV CL SERV CL SERV CL CL S CL S OPERATIONS Investment income (loss) -- net $ (816,971) $ 1,595,282 $ (423,922) $ 2,927,174 $ (13,739) Net realized gain (loss) on sales of investments 3,781,465 782,025 6,009,398 2,544,036 24,548 Distributions from capital gains 6,963,838 2,799,310 21,330,336 18,145,524 6,423 Net change in unrealized appreciation or depreciation of investments (7,742,537) (2,036,457) 46,134,971 (23,905,479) 30,099 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 2,185,795 3,140,160 73,050,783 (288,745) 47,331 - ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 2,398,138 18,974,234 38,073,314 144,906,858 1,450,575 Net transfers(1) (14,460,199) (630,858) 44,080,263 14,362,129 103,945 Transfers for policy loans (15,100) (6,097) (148,474) (54,210) (6,478) Adjustments to net assets allocated to contracts in payment period (9,306) (11,741) (22,176) (3,408) -- Contract charges (67,593) (92,954) (209,179) (873,742) (552) Contract terminations: Surrender benefits (6,161,920) (4,965,179) (17,522,799) (3,963,004) (15,920) Death benefits (683,513) (842,056) (2,118,050) (1,143,088) -- - ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (18,999,493) 12,425,349 62,132,899 153,231,535 1,531,570 - ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 98,902,083 106,831,274 254,044,011 160,105,820 530,351 - ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 82,088,385 $122,396,783 $389,227,693 $313,048,610 $2,109,252 - ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at beginning of year 98,385,704 87,236,603 142,815,798 147,410,563 465,988 Contract purchase payments 2,219,884 16,228,221 25,039,260 118,168,399 1,207,721 Net transfers(1) (13,562,486) (195,437) 22,818,350 12,916,009 89,446 Transfers for policy loans (14,282) (4,716) (78,591) (44,729) (5,200) Contract charges (63,282) (73,329) (102,835) (762,057) (454) Contract terminations: Surrender benefits (5,641,774) (3,936,343) (8,173,901) (3,467,170) (13,284) Death benefits (650,641) (667,566) (1,059,389) (975,581) -- - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 80,673,123 98,587,433 181,258,692 273,245,434 1,744,217 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 38 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- OPPEN OPPEN OPPEN OPPEN PIMCO GLOBAL SEC MAIN ST SM STRATEGIC VAL VIT ALL YEAR ENDED DEC. 31, 2007 (CONTINUED) VA, SERV CAP VA, SERV BOND VA, SERV VA, SERV ASSET, ADVISOR CL OPERATIONS Investment income (loss) -- net $ 483,272 $ (944,450) $ 23,350,781 $ (11,415) $ 49,976,170 Net realized gain (loss) on sales of investments 4,033,703 1,743,514 764,754 (10,238) 1,683,534 Distributions from capital gains 8,978,114 4,196,479 -- 205,060 -- Net change in unrealized appreciation or depreciation of investments (4,242,025) (8,514,848) 101,680,367 (442,794) (3,095,183) - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 9,253,064 (3,519,305) 125,795,902 (259,387) 48,564,521 - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 18,341,173 16,939,733 508,101,097 4,460,090 412,712,457 Net transfers(1) (10,981,688) 2,109,060 624,869,745 1,155,046 (48,873,968) Transfers for policy loans (51,422) (44,762) (268,583) (5,733) (125,195) Adjustments to net assets allocated to contracts in payment period (17,495) (8,531) (105,328) -- (9,828) Contract charges (123,363) (81,987) (2,875,269) (302) (2,465,268) Contract terminations: Surrender benefits (9,609,662) (6,338,756) (49,908,743) (22,236) (11,246,758) Death benefits (1,583,530) (731,559) (10,606,104) -- (3,538,653) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (4,025,987) 11,843,198 1,069,206,815 5,586,865 346,452,787 - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 176,343,816 113,491,895 936,135,727 395,618 460,232,672 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $181,570,893 $121,815,788 $2,131,138,444 $5,723,096 $855,249,980 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at beginning of year 117,611,822 81,385,064 820,584,798 369,750 437,681,840 Contract purchase payments 13,911,165 13,955,931 450,266,644 3,807,145 375,366,089 Net transfers(1) (6,714,206) 1,465,921 528,315,251 963,920 (43,048,486) Transfers for policy loans (34,144) (32,635) (234,910) (5,154) (113,411) Contract charges (78,340) (56,371) (2,438,151) (255) (2,262,829) Contract terminations: Surrender benefits (6,049,961) (4,302,203) (41,770,209) (19,125) (10,298,315) Death benefits (1,019,517) (504,974) (8,955,659) -- (3,228,839) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 117,626,819 91,910,733 1,745,767,764 5,116,281 754,096,049 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 39 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- PIONEER PIONEER PUT VT PUT VT PUT VT EQ INC VCT, INTL VAL VCT, HLTH SCIENCES, INTL EQ, INTL NEW OPP, YEAR ENDED DEC. 31, 2007 (CONTINUED) CL II CL II CL IB CL IB CL IB OPERATIONS Investment income (loss) -- net $ 997,687 $ (45,332) $ (12,290) $ 2,076,894 $ 23,923 Net realized gain (loss) on sales of investments 3,279,848 150,330 2,063,612 8,287,566 2,534,724 Distributions from capital gains 2,272,719 97,257 -- 12,826,457 -- Net change in unrealized appreciation or depreciation of investments (6,605,884) 792,166 (2,314,359) (15,429,145) 8,651,239 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (55,630) 994,421 (263,037) 7,761,772 11,209,886 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,167,042 89,823 1,412,436 1,999,730 1,892,906 Net transfers(1) (2,412,948) (1,107,037) (10,177,231) (11,080,575) (10,772,589) Transfers for policy loans (12,298) 2,811 583 (44,374) (36,857) Adjustments to net assets allocated to contracts in payment period (9,398) -- (3,695) (3,972) (13,023) Contract charges (40,445) (5,988) (41,313) (68,991) (48,161) Contract terminations: Surrender benefits (5,023,687) (529,168) (3,007,085) (6,009,199) (6,761,720) Death benefits (371,839) (47,516) (253,437) (499,843) (833,744) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (6,703,573) (1,597,075) (12,069,742) (15,707,224) (16,573,188) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 69,591,303 8,667,592 51,796,300 102,619,519 94,462,845 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $62,832,100 $ 8,064,938 $ 39,463,521 $ 94,674,067 $ 89,099,543 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at beginning of year 48,064,180 8,607,906 46,519,197 62,625,712 77,661,235 Contract purchase payments 773,396 82,625 1,226,423 1,134,721 1,424,087 Net transfers(1) (1,653,356) (1,022,015) (8,911,170) (6,271,356) (8,053,396) Transfers for policy loans (8,530) 2,645 499 (25,470) (27,384) Contract charges (26,998) (5,539) (36,081) (39,444) (36,312) Contract terminations: Surrender benefits (3,306,470) (490,678) (2,614,557) (3,369,391) (5,031,720) Death benefits (248,447) (41,375) (222,065) (284,441) (620,289) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 43,593,775 7,133,569 35,962,246 53,770,331 65,316,221 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 40 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- PUT VT PUT VT NEW OPP, VISTA, RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2007 (CONTINUED) CL IA CL IB BAL CASH MGMT CORE BOND OPERATIONS Investment income (loss) -- net $ (2,038,892) $ (658,697) $ 7,926,310 $ 34,358,762 $ 2,719,479 Net realized gain (loss) on sales of investments (5,813,311) (3,347,681) (7,574,360) (7,446) (67,280) Distributions from capital gains -- -- 9,861,055 -- -- Net change in unrealized appreciation or depreciation of investments 18,027,177 6,764,206 (5,918,974) (209,319) 728,288 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 10,174,974 2,757,828 4,294,031 34,141,997 3,380,487 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 4,060,835 2,347,972 15,798,997 410,371,982 7,823,539 Net transfers(1) (13,050,527) (16,339,376) 13,234,748 (50,046,622) 19,656,443 Transfers for policy loans 359,796 (31,159) 230,539 74,513 (12,903) Adjustments to net assets allocated to contracts in payment period (116,379) (9,530) (702,716) (326,067) (3,730) Contract charges (168,369) (55,248) (277,743) (456,300) (50,819) Contract terminations: Surrender benefits (69,708,303) (5,291,792) (95,214,075) (164,206,651) (3,716,423) Death benefits (1,498,830) (596,258) (8,265,344) (14,461,869) (987,064) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (80,121,777) (19,975,391) (75,195,594) 180,948,986 22,709,043 - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 223,046,745 84,667,567 470,889,895 794,074,242 62,772,721 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $153,099,942 $ 67,450,004 $399,988,332 $1,009,165,225 $88,862,251 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at beginning of year 149,235,834 79,536,775 308,698,503 701,788,024 59,404,642 Contract purchase payments 2,614,012 2,104,093 11,978,308 389,104,888 7,361,380 Net transfers(1) (8,463,422) (14,717,618) 9,687,695 (71,178,101) 18,275,461 Transfers for policy loans 235,934 (27,756) 109,128 59,038 (12,336) Contract charges (108,521) (49,817) (182,602) (395,087) (47,345) Contract terminations: Surrender benefits (44,854,451) (4,762,398) (53,014,265) (137,774,679) (3,454,786) Death benefits (980,071) (538,395) (5,378,922) (12,853,602) (920,524) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 97,679,315 61,544,884 271,897,845 868,750,481 80,606,492 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 41 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------------- RVS VP RVS VP THDL VP RVS PTNRS VP RVS VP YEAR ENDED DEC. 31, 2007 (CONTINUED) DIV BOND DIV EQ INC EMER MKTS FUNDAMENTAL VAL GLOBAL BOND OPERATIONS Investment income (loss) -- net $ 94,034,943 $ 17,555,548 $ (1,607,028) $ 478,130 $ 23,877,843 Net realized gain (loss) on sales of investments (1,945,448) 35,558,298 17,356,319 14,014,438 2,239,794 Distributions from capital gains -- 31,748,234 22,687,947 1,157,874 -- Net change in unrealized appreciation or depreciation of investments 18,113,255 75,691,754 125,156,294 (45,015) 35,571,222 - ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 110,202,750 160,553,834 163,593,532 15,605,427 61,688,859 - ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 940,882,549 521,748,445 149,565,186 307,805,205 303,778,804 Net transfers(1) 425,095,610 (34,403,827) 28,305,976 (75,923,739) 184,569,480 Transfers for policy loans (136,970) (586,578) (119,597) (93,482) (78,333) Adjustments to net assets allocated to contracts in payment period (656,135) (430,306) (8,178) (5,193) 94,272 Contract charges (5,969,428) (3,601,695) (1,169,521) (1,889,556) (1,940,464) Contract terminations: Surrender benefits (146,432,928) (114,516,729) (21,437,522) (8,099,090) (54,866,874) Death benefits (21,557,648) (17,590,429) (2,444,431) (2,470,198) (6,896,322) - ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 1,191,225,050 350,618,881 152,691,913 219,323,947 424,660,563 - ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,832,903,920 2,199,171,969 379,203,916 371,271,503 646,998,811 - ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $3,134,331,720 $2,710,344,684 $695,489,361 $606,200,877 $1,133,348,233 - ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY - ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at beginning of year 1,441,352,057 1,286,388,061 191,857,012 338,653,851 472,738,206 Contract purchase payments 874,503,949 418,446,949 93,816,615 268,318,192 278,616,914 Net transfers(1) 343,882,749 (15,444,471) 14,603,860 (62,427,902) 145,311,805 Transfers for policy loans (154,055) (368,381) (61,719) (81,630) (74,698) Contract charges (4,869,952) (2,158,608) (540,870) (1,667,880) (1,490,404) Contract terminations: Surrender benefits (107,446,718) (61,394,418) (8,934,651) (7,149,206) (37,283,785) Death benefits (16,969,282) (9,915,377) (1,149,085) (2,170,901) (5,095,663) - ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 2,530,298,748 1,615,553,755 289,591,162 533,474,524 852,722,375 - -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 42 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ RVS VP RVS VP GLOBAL INFLATION RVS VP HI YIELD RVS VP THDL VP YEAR ENDED DEC. 31, 2007 (CONTINUED) PROT SEC GRO BOND INC OPP INTL OPP OPERATIONS Investment income (loss) -- net $ 7,894,164 $ 686,137 $ 56,190,057 $ 28,752,396 $ (343,974) Net realized gain (loss) on sales of investments (1,524,966) 2,863,175 (10,753,852) (1,008,762) 20,170,233 Distributions from capital gains -- -- -- 1,029,658 -- Net change in unrealized appreciation or depreciation of investments 29,875,142 7,597,489 (36,391,923) (24,172,199) 24,613,294 - ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 36,244,340 11,146,801 9,044,282 4,601,093 44,439,553 - ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 242,088,105 20,320,578 42,735,508 256,091,266 14,140,061 Net transfers(1) (94,681,432) (49,776,475) (74,598,933) (15,106,352) (2,169,023) Transfers for policy loans (68,166) (7,110) (8,479) (66,333) 160,298 Adjustments to net assets allocated to contracts in payment period (4,349) (108,342) (224,878) (6,009) (350,000) Contract charges (1,871,592) (368,458) (471,920) (1,604,988) (233,640) Contract terminations: Surrender benefits (11,679,638) (23,254,154) (110,064,769) (9,448,375) (100,813,250) Death benefits (3,565,663) (3,079,780) (8,777,500) (2,749,143) (4,083,917) - ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 130,217,265 (56,273,741) (151,410,971) 227,110,066 (93,349,471) - ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 439,332,477 449,154,340 905,545,644 345,709,604 419,624,704 - ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $605,794,082 $404,027,400 $ 763,178,955 $577,420,763 $ 370,714,786 - ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 420,004,328 590,277,974 649,203,946 309,652,725 314,504,903 Contract purchase payments 231,258,949 21,784,829 35,636,225 234,566,479 10,770,806 Net transfers(1) (91,440,320) (63,203,972) (53,805,563) (15,171,516) (2,649,010) Transfers for policy loans (64,798) (5,089) (14,247) (60,265) 95,493 Contract charges (1,759,723) (456,519) (334,940) (1,411,993) (167,922) Contract terminations: Surrender benefits (10,947,999) (27,948,300) (73,884,901) (8,288,325) (64,210,854) Death benefits (3,355,451) (3,959,755) (6,176,015) (2,450,977) (2,919,513) - ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 543,694,986 516,489,168 550,624,505 516,836,128 255,423,903 - -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 43 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2007 (CONTINUED) LG CAP EQ LG CAP VAL MID CAP GRO MID CAP VAL S&P 500 OPERATIONS Investment income (loss) -- net $ 3,473,337 $ 134,560 $ (1,965,645) $ (625,392) $ 2,103,647 Net realized gain (loss) on sales of investments 32,274,793 1,287,524 4,341,621 43,586,166 9,258,299 Distributions from capital gains 6,905,170 1,549,666 2,112,965 3,924,810 2,083,883 Net change in unrealized appreciation or depreciation of investments (12,221,817) (3,155,202) 21,247,085 4,876,358 (2,031,407) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 30,431,483 (183,452) 25,736,026 51,761,942 11,414,422 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 33,709,944 1,747,027 7,436,207 158,520,090 12,369,920 Net transfers(1) (117,306,711) 309,196 (24,281,050) (214,934,955) (13,116,114) Transfers for policy loans 806,234 (8,898) 157,742 (100,478) (13,508) Adjustments to net assets allocated to contracts in payment period (1,446,539) (1,667) (142,518) (4,487) (40,019) Contract charges (1,700,452) (17,033) (168,693) (961,803) (186,013) Contract terminations: Surrender benefits (216,087,675) (5,441,280) (38,292,948) (10,339,597) (19,497,570) Death benefits (11,475,556) (198,790) (1,888,831) (2,009,877) (2,222,916) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (313,500,755) (3,611,445) (57,180,091) (69,831,107) (22,706,220) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,327,213,449 24,455,561 222,008,140 347,533,023 276,643,144 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,044,144,177 $20,660,664 $190,564,075 $ 329,463,858 $265,351,346 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,149,919,577 15,288,513 200,201,534 273,710,105 269,990,311 Contract purchase payments 29,354,807 1,406,406 6,213,205 133,771,150 11,019,652 Net transfers(1) (108,213,570) 231,762 (18,652,132) (154,414,427) (12,580,735) Transfers for policy loans 474,469 (6,761) 157,016 (78,441) (10,331) Contract charges (1,512,365) (12,445) (139,723) (677,427) (174,079) Contract terminations: Surrender benefits (151,465,569) (1,051,493) (34,774,557) (7,213,801) (17,744,335) Death benefits (9,816,505) (143,877) (1,587,595) (1,473,447) (2,140,670) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 908,740,844 15,712,105 151,417,748 243,623,712 248,359,813 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 44 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- RVS PTNRS RVS VP SHORT RVS VP RVS PTNRS VP ROYCE MICRO-CAP, YEAR ENDED DEC. 31, 2007 (CONTINUED) VP SELECT VAL DURATION SM CAP ADV SM CAP VAL INVEST CL OPERATIONS Investment income (loss) -- net $ 56,264 $ 10,966,745 $ (1,067,410) $ 25,232 $ 626,246 Net realized gain (loss) on sales of investments 1,144,114 (928,130) 2,451,770 5,071,267 10,481,845 Distributions from capital gains 2,717,672 -- 8,379,599 15,919,708 9,937,870 Net change in unrealized appreciation or depreciation of investments (2,428,317) 4,283,352 (15,657,261) (90,463,298) (16,392,834) - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,489,733 14,321,967 (5,893,302) (69,447,091) 4,653,127 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 2,295,325 24,013,269 4,725,165 228,819,923 2,195,536 Net transfers(1) (291,149) 3,803,004 (35,351,071) 236,442,494 (16,148,848) Transfers for policy loans (21,301) 28,595 (4,589) (158,343) (15,165) Adjustments to net assets allocated to contracts in payment period (2,258) (146,765) (115,375) (72,408) (17,718) Contract charges (24,299) (201,149) (103,663) (1,766,695) (32,641) Contract terminations: Surrender benefits (5,630,583) (22,536,679) (10,082,764) (24,061,079) (9,349,731) Death benefits (105,027) (5,157,031) (1,126,211) (3,467,703) (854,924) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (3,779,292) (196,756) (42,058,508) 435,736,189 (24,223,491) - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 27,616,537 331,991,084 170,404,291 480,085,434 135,982,689 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $25,326,978 $346,116,295 $122,452,481 $846,374,532 $116,412,325 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 18,509,821 270,830,576 97,485,723 271,780,693 40,616,644 Contract purchase payments 1,821,092 21,694,410 3,122,074 195,575,471 628,233 Net transfers(1) (190,717) 2,820,316 (19,919,235) 166,947,700 (4,587,258) Transfers for policy loans (16,997) 23,304 (2,175) (106,592) (4,312) Contract charges (17,595) (161,871) (58,695) (1,141,827) (9,324) Contract terminations: Surrender benefits (1,173,726) (18,452,530) (5,701,535) (13,479,928) (2,664,434) Death benefits (76,700) (4,128,636) (641,254) (2,205,173) (245,996) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 18,855,178 272,625,569 74,284,903 617,370,344 33,733,553 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 45 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ VANK LIT VANK UIF VANK UIF THIRD AVE COMSTOCK, GLOBAL REAL EST, MID CAP WANGER YEAR ENDED DEC. 31, 2007 (CONTINUED) VAL CL II CL II GRO, CL II INTL SM CAP OPERATIONS Investment income (loss) -- net $ 2,302,402 $ 5,889,877 $ 809,604 $ (810,318) $ (337,940) Net realized gain (loss) on sales of investments 14,330,014 18,999,895 5,384,698 16,789,506 50,875,966 Distributions from capital gains 11,072,723 19,453,460 667,347 7,437,818 72,464,160 Net change in unrealized appreciation or depreciation of investments (35,865,306) (69,536,273) (31,924,850) (3,109,983) 11,009,845 - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (8,160,167) (25,193,041) (25,063,201) 20,307,023 134,012,031 - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 2,759,771 304,655,163 101,608,023 41,384,136 133,045,113 Net transfers(1) (23,205,413) (187,203,632) (35,775,610) (112,141,196) (98,828,775) Transfers for policy loans (22,684) (183,851) (56,167) (18,610) (308,279) Adjustments to net assets allocated to contracts in payment period (47,025) (10,295) (9,848) -- (175,196) Contract charges (44,618) (2,681,323) (577,452) (264,787) (1,186,764) Contract terminations: Surrender benefits (11,699,073) (25,127,265) (5,496,872) (1,794,327) (48,074,860) Death benefits (1,054,091) (4,745,017) (867,941) (331,210) (5,662,515) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (33,313,133) 84,703,780 58,824,133 (73,165,994) (21,191,276) - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 189,566,384 810,354,440 169,621,137 100,351,787 857,315,985 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $148,093,084 $ 869,865,179 $203,382,069 $ 47,492,816 $970,136,740 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 57,364,981 615,159,689 136,442,482 98,447,751 392,888,045 Contract purchase payments 812,016 258,747,252 76,917,072 36,197,490 90,941,449 Net transfers(1) (6,922,226) (143,069,714) (28,757,609) (93,894,177) (45,110,753) Transfers for policy loans (6,372) (141,678) (43,459) (16,176) (141,043) Contract charges (13,156) (1,984,478) (455,890) (244,685) (518,169) Contract terminations: Surrender benefits (3,442,367) (18,458,368) (4,386,383) (1,600,684) (18,873,658) Death benefits (310,404) (3,595,164) (682,701) (296,803) (2,415,941) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 47,482,472 706,657,539 179,033,512 38,592,716 416,769,930 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 46 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- WANGER WF ADV VT ASSET WF ADV VT WF ADV WF ADV VT YEAR ENDED DEC. 31, 2007 (CONTINUED) U.S. SM CO ALLOC INTL CORE VT OPP SM CAP GRO See accompanying notes to financial statements. OPERATIONS Investment income (loss) -- net $ (8,332,746) $ 1,354,182 $ (176,512) $ (248,811) $ (699,645) Net realized gain (loss) on sales of investments 41,410,604 2,688,039 1,111,341 4,271,528 1,537,058 Distributions from capital gains 47,038,069 1,501,009 1,492,329 12,900,103 12,019,803 Net change in unrealized appreciation or depreciation of investments (47,372,483) 690,136 (144,481) (11,462,733) (4,910,640) - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 32,743,444 6,233,366 2,282,677 5,460,087 7,946,576 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 106,881,687 1,927,651 282,943 5,703,848 10,010,724 Net transfers(1) 1,989,558 2,112,194 (853,219) (12,698,054) 28,099,306 Transfers for policy loans (175,937) 2,151 (4,002) (12,992) (23,723) Adjustments to net assets allocated to contracts in payment period (62,704) (14,679) (3,052) (5,599) (1,984) Contract charges (1,036,750) (63,498) (13,200) (67,013) (50,917) Contract terminations: Surrender benefits (50,643,220) (7,975,454) (1,388,216) (5,719,120) (4,685,679) Death benefits (6,348,650) (943,114) (245,018) (648,900) (510,986) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 50,603,984 (4,954,749) (2,223,764) (13,447,830) 32,836,741 - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 890,483,858 97,390,097 19,826,792 93,492,997 60,200,636 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $973,831,286 $98,668,714 $19,885,705 $ 85,505,254 $100,983,953 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at beginning of year 489,658,854 76,000,244 15,404,286 68,746,422 50,565,632 Contract purchase payments 84,505,696 1,441,716 200,841 4,396,582 7,895,274 Net transfers(1) 21,685,099 1,478,320 (616,622) (8,656,959) 21,078,809 Transfers for policy loans (102,904) 1,912 (2,823) (9,411) (17,632) Contract charges (602,214) (47,620) (9,426) (46,354) (38,782) Contract terminations: Surrender benefits (26,715,811) (5,946,190) (974,467) (3,922,074) (3,466,633) Death benefits (3,391,905) (714,370) (173,474) (448,384) (397,695) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 565,036,815 72,214,012 13,828,315 60,059,822 75,618,973 - -------------------------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other subaccounts and transfers from (to) RiverSource Life's fixed account. (2) For the period May 1, 2007 (commencement of operations) to Dec. 31, 2007. (3) For the period April 27, 2007 (commencement of operations) to Dec. 31, 2007. See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 47 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2006 SER I SER II SER I SER II SER I OPERATIONS Investment income (loss) -- net $ (618,417) $ (2,177,607) $ (462,522) $ (544,867) $ (3,383,904) Net realized gain (loss) on sales of investments (2,932,477) 5,063,339 2,685,078 1,831,676 23,458,026 Distributions from capital gains -- -- 921,289 1,215,189 -- Net change in unrealized appreciation or depreciation of investments 7,423,354 5,067,183 4,633,445 6,160,090 41,412,446 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 3,872,460 7,952,915 7,777,290 8,662,088 61,486,568 - ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 2,248,337 28,612,888 1,029,153 9,167,741 8,389,893 Net transfers(1) (5,648,418) (58,692,779) (6,441,394) 524,065 (15,112,364) Transfers for policy loans 2,818 (26,777) (31,315) (41,778) 476,386 Adjustments to net assets allocated to contracts in payout period (10,085) (3,671) (7,805) (3,662) (205,350) Contract charges (35,072) (877,537) (19,713) (43,702) (304,264) Contract terminations: Surrender benefits (3,806,581) (6,238,418) (2,482,170) (2,385,358) (137,739,871) Death benefits (466,217) (1,040,608) (329,175) (390,071) (4,471,774) - ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (7,715,218) (38,266,902) (8,282,419) 6,827,235 (148,967,344) - ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 78,514,152 254,025,940 53,665,480 54,342,399 484,438,796 - ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $74,671,394 $223,711,953 $53,160,351 $69,831,722 $ 396,958,020 - ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 80,703,329 236,682,947 32,971,128 42,661,337 281,112,107 Contract purchase payments 2,260,313 26,128,653 580,649 7,030,861 4,617,151 Net transfers(1) (5,791,449) (56,928,808) (3,654,879) 387,268 (8,420,338) Transfers for policy loans 2,155 (25,381) (17,638) (29,530) 264,293 Contract charges (35,333) (812,497) (11,130) (31,547) (167,391) Contract terminations: Surrender benefits (3,858,435) (5,714,395) (1,408,767) (1,707,690) (75,297,723) Death benefits (471,488) (965,002) (187,131) (284,824) (2,517,507) - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 72,809,092 198,365,517 28,272,232 48,025,875 199,590,592 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 48 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH CARE, INTL GRO, PERIOD ENDED DEC. 31, 2006 (CONTINUED) SER I SER I SER II(2) SER II(3) SER II OPERATIONS Investment income (loss) -- net $ (138,649) $ 222,590 $ 16,519 $ (275,777) $ 30,705 Net realized gain (loss) on sales of investments 1,163,925 645,335 643 55,575 13,717 Distributions from capital gains -- 171,530 7,541 -- -- Net change in unrealized appreciation or depreciation of investments 1,242,939 2,782,884 61,490 4,476,627 777,708 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 2,268,215 3,822,339 86,193 4,256,425 822,130 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 558,944 3,476,924 1,291,734 49,623,217 3,487,557 Net transfers(1) (2,168,387) 1,322,213 225,904 38,319,015 2,547,727 Transfers for policy loans (9,730) (13,549) (101) (12,554) (804) Adjustments to net assets allocated to contracts in payout period 9,247 (1,155) -- -- -- Contract charges (13,136) (20,000) -- (60,748) (776) Contract terminations: Surrender benefits (988,965) (1,205,562) (7,737) (326,938) (62,857) Death benefits (216,491) (387,927) -- (116,683) (39,763) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (2,828,518) 3,170,944 1,509,800 87,425,309 5,931,084 - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 16,410,459 23,108,253 -- -- 269,476 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $15,850,156 $30,101,536 $1,595,993 $91,681,734 $7,022,690 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 14,869,025 19,310,798 -- -- 246,723 Contract purchase payments 467,450 2,794,889 1,167,926 48,280,972 2,991,936 Net transfers(1) (1,832,417) 977,741 202,630 40,014,930 2,067,627 Transfers for policy loans (8,524) (11,078) (99) (12,425) (679) Contract charges (11,018) (15,843) -- (60,049) (621) Contract terminations: Surrender benefits (824,303) (952,711) (6,437) (320,868) (48,282) Death benefits (183,315) (305,676) -- (113,096) (30,912) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 12,476,898 21,798,120 1,364,020 87,789,464 5,225,792 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 49 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, CL LG CAP GRO, PERIOD ENDED DEC. 31, 2006 (CONTINUED) SER I CL B CL B B CL B(2) OPERATIONS Investment income (loss) -- net $ (340,400) $ (176,585) $ 997,127 $ 2,901,382 $ (1,465) Net realized gain (loss) on sales of investments 842,953 (292,680) 6,874,922 7,706,249 138 Distributions from capital gains -- -- 16,938,384 13,889,637 -- Net change in unrealized appreciation or depreciation of investments 2,233,515 2,489,649 22,680,669 204,018,296 30,002 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 2,736,068 2,020,384 47,491,102 228,515,564 28,675 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,597,617 33,391,270 29,987,833 216,306,877 638,287 Net transfers(1) (9,647,163) (73,807) (41,489,132) 89,571,715 63,601 Transfers for policy loans (7,020) (6,341) (62,043) (302,940) -- Adjustments to net assets allocated to contracts in payout period -- -- (36,334) (50,422) -- Contract charges (131,543) (27,475) (238,783) (862,905) -- Contract terminations: Surrender benefits (1,366,812) (159,500) (12,436,887) (23,848,684) (653) Death benefits (218,535) (44,556) (2,223,919) (3,328,532) -- - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (7,773,456) 33,079,591 (26,499,265) 277,485,109 701,235 - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 40,260,531 3,648,359 312,799,387 551,186,253 -- - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 35,223,143 $38,748,334 $333,791,224 $1,057,186,926 $729,910 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 54,314,603 3,446,288 277,476,998 292,660,263 -- Contract purchase payments 4,581,320 31,036,918 25,823,442 131,375,660 608,215 Net transfers(1) (13,261,344) (367,131) (35,071,688) 42,136,618 58,569 Transfers for policy loans (9,222) (5,964) (51,855) (153,178) -- Contract charges (172,996) (25,107) (201,935) (393,251) -- Contract terminations: Surrender benefits (1,766,552) (147,472) (10,400,810) (10,811,781) (112) Death benefits (295,175) (40,269) (1,882,769) (1,532,765) -- - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 43,390,634 33,897,263 255,691,383 453,281,566 666,672 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 50 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ AC VP AC VP AC VP MID CAP VAL, AC VP AC VP PERIOD ENDED DEC. 31, 2006 (CONTINUED) INTL, CL I INTL, CL II CL II(2) ULTRA, CL II VAL, CL I OPERATIONS Investment income (loss) -- net $ 491,468 $ 591,360 $ 7,104 $ (941,132) $ 2,136,080 Net realized gain (loss) on sales of investments 402,347 2,865,474 1,636 (2,088,277) 27,623,353 Distributions from capital gains -- -- 70,091 -- 61,868,698 Net change in unrealized appreciation or depreciation of investments 12,668,327 20,073,367 68,215 1,267,269 11,778,471 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 13,562,142 23,530,201 147,046 (1,762,140) 103,406,602 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,319,901 10,308,745 2,560,037 181,553,196 11,265,277 Net transfers(1) (6,257,072) (2,999,924) 504,116 6,362,883 (19,503,872) Transfers for policy loans (9,920) (8,730) (552) (48,241) 281,029 Adjustments to net assets allocated to contracts in payout period (5,032) (12,337) -- -- (240,427) Contract charges (19,986) (85,178) -- (139,499) (280,136) Contract terminations: Surrender benefits (2,859,786) (4,109,921) (34,497) (970,785) (183,681,349) Death Benefits (615,734) (495,928) -- (350,917) (6,243,823) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (8,447,629) 2,596,727 3,029,104 186,406,637 (198,403,301) - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 61,059,645 97,264,803 -- 19,240,328 722,147,920 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $66,174,158 $123,391,731 $3,176,150 $203,884,825 $ 627,151,221 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 58,674,200 82,367,473 -- 18,578,384 341,955,531 Contract purchase payments 1,153,430 7,975,799 2,322,272 180,236,020 5,231,957 Net transfers(1) (5,456,692) (2,311,127) 450,963 5,053,553 (11,160,341) Transfers for policy loans (9,347) (3,125) (558) (48,725) 100,392 Contract charges (17,524) (65,393) -- (142,844) (123,095) Contract terminations: Surrender benefits (2,509,611) (3,143,508) (29,708) (992,432) (75,136,329) Death benefits (548,103) (391,202) -- (353,149) (2,850,319) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 51,286,353 84,428,917 2,742,969 202,330,807 258,017,796 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 51 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- COL MARSICO AC VP CALVERT VS COL HI YIELD, COL MARSICO GRO, INTL OPP, PERIOD ENDED DEC. 31, 2006 (CONTINUED) VAL, CL II SOCIAL BAL VS CL B(4) VS CL A(3) VS CL B(3) OPERATIONS Investment income (loss) -- net $ 1,320,279 $ 788,978 $ 2,016,382 $ (973,271) $ (195,126) Net realized gain (loss) on sales of investments 2,316,009 712,491 (51,649) 111,732 139,196 Distributions from capital gains 34,156,049 969,776 915,184 -- 3,095,765 Net change in unrealized appreciation or depreciation of investments 27,303,172 1,649,626 4,528,705 24,230,037 17,323,468 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 65,095,509 4,120,871 7,408,622 23,368,498 20,363,303 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 43,184,216 5,243,439 15,421,795 153,693,851 75,973,101 Net transfers(1) (30,825,328) (1,188,393) 94,431,341 157,097,140 74,700,911 Transfers for policy loans (114,458) (52,657) (31,511) (59,968) (21,145) Adjustments to net assets allocated to contracts in payout period (41,446) 27,641 (616) (255) (666) Contract charges (303,698) (39,897) (138,934) (168,686) (88,031) Contract terminations: Surrender benefits (16,017,980) (2,456,138) (2,050,011) (1,626,520) (718,941) Death benefits (2,194,480) (366,246) (488,847) (549,863) (210,587) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (6,313,174) 1,167,749 107,143,217 308,385,699 149,634,642 - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 378,826,144 50,853,244 -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $437,608,479 $56,141,864 $114,551,839 $331,754,197 $169,997,945 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 281,618,051 48,625,457 -- -- -- Contract purchase payments 32,479,747 4,878,520 15,120,428 152,896,946 73,522,995 Net transfers(1) (21,732,830) (1,102,782) 94,395,430 167,473,555 81,140,959 Transfers for policy loans (82,444) (49,774) (29,516) (61,634) (20,042) Contract charges (213,426) (37,091) (137,769) (171,330) (88,482) Contract terminations: Surrender benefits (11,206,914) (2,234,037) (2,007,246) (1,647,247) (724,925) Death benefits (1,558,070) (339,564) (482,192) (544,463) (203,511) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 279,304,114 49,740,729 106,859,135 317,945,827 153,626,994 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 52 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------------- CS COMMODITY CS MID-CAP CS SM CAP DREY VIF INTL EQ, DREY VIF INTL VAL, PERIOD ENDED DEC. 31, 2006 (CONTINUED) RETURN(3) CORE CORE I SERV(2) SERV(2) OPERATIONS Investment income (loss) -- net $ 1,671,353 $ (245,926) $ (3,365,553) $ (4,056) $ (2,697) Net realized gain (loss) on sales of investments (7,221) 74,140 (3,549,901) 2,119 1,620 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (2,524,905) 436,580 16,887,522 140,139 85,666 - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations (860,773) 264,794 9,972,068 138,202 84,589 - ------------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 71,171,765 696,925 5,083,881 1,509,206 1,018,822 Net transfers(1) 67,717,911 (5,340,300) (17,604,202) 201,985 252,467 Transfers for policy loans (13,093) (1,040) 237,145 -- -- Adjustments to net assets allocated to contracts in payout period -- (4,506) (77,503) -- -- Contract charges (82,527) (14,448) (143,988) -- -- Contract terminations: Surrender benefits (523,716) (1,891,723) (92,685,044) (4,880) (4,869) Death benefits (191,699) (247,476) (2,479,560) -- -- - ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 138,078,641 (6,802,568) (107,669,271) 1,706,311 1,266,420 - ------------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year -- 31,880,645 305,958,773 -- -- - ------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $137,217,868 $25,342,871 $ 208,261,570 $1,844,513 $1,351,009 - ------------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- 25,218,449 226,170,417 -- -- Contract purchase payments 70,754,248 543,447 3,627,333 1,380,863 937,989 Net transfers(1) 69,316,751 (4,223,722) (12,969,124) 182,877 232,608 Transfers for policy loans (13,253) (912) 171,686 -- -- Contract charges (84,644) (11,288) (103,412) -- -- Contract terminations: Surrender benefits (535,328) (1,486,059) (66,459,467) (3,973) (3,982) Death benefits (195,073) (197,312) (1,799,601) -- -- - ------------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 139,242,701 19,842,603 148,637,832 1,559,767 1,166,615 - ------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 53 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PERIOD ENDED DEC. 31, 2006 (CONTINUED) INC(3) LG CAP, CL 2 CL 2 SERV CL 2(3) SERV CL OPERATIONS Investment income (loss) -- net $ 5,727,968 $ 35,947 $ 1,683,062 $ 1,915,461 $ (9,714) Net realized gain (loss) on sales of investments (4,638) 1,123,141 851,217 166,925 1,785,556 Distributions from capital gains -- 526,934 3,340,955 46,191,640 5,650,037 Net change in unrealized appreciation or depreciation of investments 155,048 1,767,525 5,654,232 (5,283,470) 16,589,284 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 5,878,378 3,453,547 11,529,466 42,990,556 24,015,163 - ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 151,818,138 1,638,316 18,218,051 300,313,438 4,789,428 Net transfers(1) 152,709,975 (1,353,747) (597,242) 315,512,621 (28,992,257) Transfers for policy loans (67,344) 5,545 (19,395) (78,696) (27,318) Adjustments to net assets allocated to contracts in payout period -- (4,291) (2,520) (5,250) (36,862) Contract charges (150,183) (23,881) (57,156) (336,790) (78,574) Contract terminations: Surrender benefits (2,310,698) (1,591,569) (1,096,448) (2,872,968) (10,195,088) Death benefits (1,194,195) (148,679) (377,153) (911,617) (1,939,054) - ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 300,805,693 (1,478,306) 16,068,137 611,620,738 (36,479,725) - ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year -- 30,645,038 44,079,805 -- 221,495,846 - ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $306,684,071 $32,620,279 $71,677,408 $654,611,294 $209,031,284 - ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- 30,155,030 33,530,909 -- 216,583,346 Contract purchase payments 150,195,340 1,537,448 13,491,380 295,216,192 4,474,390 Net transfers(1) 151,677,623 (1,224,532) (329,398) 331,439,152 (27,230,152) Transfers for policy loans (66,759) 5,119 (14,225) (78,705) (27,506) Contract charges (147,349) (22,611) (39,648) (335,225) (73,456) Contract terminations: Surrender benefits (2,250,650) (1,465,455) (759,083) (2,843,942) (9,556,704) Death benefits (1,177,871) (138,929) (260,867) (896,186) (1,826,905) - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 298,230,334 28,846,070 45,619,068 622,501,286 182,343,013 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 54 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, YEAR ENDED DEC. 31, 2006 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 OPERATIONS Investment income (loss) -- net $ (659,394) $ (2,478,736) $ (7,787,379) $ (76,314) $ (490,552) Net realized gain (loss) on sales of investments 7,961,223 17,016,852 10,845,670 2,042,934 4,402,302 Distributions from capital gains 10,615,004 49,972,802 117,064,344 593,549 1,264,814 Net change in unrealized appreciation or depreciation of investments 28,207,129 (18,987,851) (10,787,068) 12,713,169 29,653,447 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 46,123,962 45,523,067 109,335,567 15,273,338 34,830,011 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 32,144,908 8,718,591 274,596,860 2,118,789 31,095,612 Net transfers(1) (44,768,825) (24,078,712) (38,663,896) (3,606,407) (1,207,783) Transfers for policy loans (134,978) (202,224) (391,826) (13,942) (125,334) Adjustments to net assets allocated to contracts in payout period (65,711) 106,378 (56,130) (23,897) (138,260) Contract charges (329,429) (143,415) (1,018,969) (28,749) (159,468) Contract terminations: Surrender benefits (17,896,277) (19,019,603) (37,444,907) (4,639,515) (8,793,270) Death benefits (2,528,924) (3,042,493) (6,028,921) (563,419) (1,018,834) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (33,579,236) (37,661,478) 190,992,211 (6,757,140) 19,652,663 - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 404,610,456 405,434,028 908,519,104 93,982,118 193,595,813 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $417,155,182 $413,295,617 $1,208,846,882 $102,498,316 $248,078,487 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 358,053,727 144,212,052 496,239,283 81,956,512 136,453,264 Contract purchase payments 27,427,965 2,893,097 171,131,473 1,739,943 22,156,469 Net transfers(1) (37,919,885) (8,045,712) (19,357,510) (3,048,444) (658,519) Transfers for policy loans (115,397) (66,395) (213,444) (11,515) (85,995) Contract charges (279,870) (47,739) (520,820) (23,673) (105,794) Contract terminations: Surrender benefits (15,083,899) (6,327,583) (19,232,660) (3,795,188) (5,718,072) Death benefits (2,140,828) (1,023,910) (3,131,894) (468,179) (679,293) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 329,941,813 131,593,810 624,914,428 76,349,456 151,362,060 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 55 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL SHARES TEMP DEV MKTS TEMP FOR REAL EST, VAL, SEC, SEC, SEC, YEAR ENDED DEC. 31, 2006 (CONTINUED) CL 2 CL 2 CL 2 CL 1 CL 2 OPERATIONS Investment income (loss) -- net $ 8,718,222 $ (827,755) $ 982,308 $ 615 $ 197,084 Net realized gain (loss) on sales of investments 22,367,043 7,079,328 1,290,052 35,460,704 2,908,832 Distributions from capital gains 58,260,359 12,775,854 8,131,098 -- -- Net change in unrealized appreciation or depreciation of investments 38,122,471 32,639,189 30,468,618 26,944,522 6,371,485 - ---------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 127,468,095 51,666,616 40,872,076 62,405,841 9,477,401 - ---------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 94,297,417 40,972,425 52,450,932 3,635,070 1,104,837 Net transfers(1) (99,046,104) (12,086,697) 30,179,187 (1,373,722) (7,740,052) Transfers for policy loans (260,424) (180,247) (147,664) 187,235 (8,363) Adjustments to net assets allocated to contracts in payout period (82,603) 215,301 (50,451) (77,052) 96,363 Contract charges (481,275) (219,910) (166,130) (135,120) (13,962) Contract terminations: Surrender benefits (32,985,650) (14,042,159) (8,987,882) (91,818,755) (2,117,122) Death benefits (5,377,506) (2,340,058) (1,143,323) (2,194,961) (463,280) - ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (43,936,145) 12,318,655 72,134,669 (91,777,305) (9,141,579) - ---------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 690,004,265 316,892,857 196,107,428 281,628,997 51,495,397 - ---------------------------------------------------------------------------------------------------------------------- Net assets at end of year $773,536,215 $380,878,128 $309,114,173 $252,257,533 $51,831,219 - ---------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 266,642,065 156,166,514 151,139,902 254,244,487 36,373,192 Contract purchase payments 41,698,228 22,965,387 41,311,091 2,971,419 723,135 Net transfers(1) (36,466,892) (4,610,951) 22,211,077 (1,350,030) (5,054,129) Transfers for policy loans (99,299) (82,746) (108,899) 153,820 (5,807) Contract charges (177,953) (99,861) (119,313) (110,849) (9,112) Contract terminations: Surrender benefits (12,192,911) (6,452,950) (6,403,417) (74,666,970) (1,383,218) Death benefits (1,982,515) (1,055,169) (821,131) (1,839,305) (299,636) - ---------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 257,420,723 166,830,224 207,209,310 179,402,572 30,344,425 - ----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 56 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- GS VIT GS VIT GS VIT JANUS JANUS MID CAP VAL, STRUCTD SM STRUCTD U.S. ASPEN GLOBAL ASPEN INTL YEAR ENDED DEC. 31, 2006 (CONTINUED) INST CAP EQ, INST EQ, INST TECH, SERV GRO, SERV OPERATIONS Investment income (loss) -- net $ 279,648 $ (102,804) $ 952,849 $ (201,495) $ 1,583,873 Net realized gain (loss) on sales of investments 19,877,626 2,178,202 7,642,394 (1,774,743) 3,661,985 Distributions from capital gains 83,453,220 2,628,099 -- -- -- Net change in unrealized appreciation or depreciation of investments 6,550,842 (508,399) 47,064,719 3,461,795 52,958,691 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 110,161,336 4,195,098 55,659,962 1,485,557 58,204,549 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 148,241,743 817,547 50,831,768 1,077,271 3,613,694 Net transfers(1) (152,560,015) (6,635,794) (55,335,687) (1,001,303) 13,909,019 Transfers for policy loans (191,288) (1,881) (105,692) (21,993) (80,607) Adjustments to net assets allocated to contracts in payout period 29,614 (4,365) (49,335) (767) (15,236) Contract charges (753,464) (13,339) (876,665) (18,241) (78,356) Contract terminations: Surrender benefits (30,741,872) (1,910,649) (15,844,670) (1,202,667) (7,431,203) Death benefits (4,662,427) (265,101) (2,725,276) (152,817) (1,059,787) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (40,637,709) (8,013,582) (24,105,557) (1,320,517) 8,857,524 - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 765,494,283 41,090,631 492,636,454 23,478,671 125,579,484 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 835,017,910 $37,272,147 $524,190,859 $23,643,711 $192,641,557 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 345,786,554 23,431,695 467,555,210 57,633,928 134,815,795 Contract purchase payments 65,106,135 438,602 46,170,183 2,582,256 3,144,141 Net transfers(1) (67,475,567) (3,616,754) (50,950,892) (2,913,554) 11,591,149 Transfers for policy loans (80,517) (863) (95,277) (49,618) (72,233) Contract charges (326,874) (7,141) (794,648) (43,282) (68,997) Contract terminations: Surrender benefits (13,274,549) (1,029,098) (14,284,412) (2,648,696) (6,343,474) Death benefits (1,979,988) (144,698) (2,506,944) (386,674) (968,569) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 327,755,194 19,071,743 445,093,220 54,174,360 142,097,812 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 57 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- JANUS ASPEN LAZARD MFS MFS MFS MID CAP RETIRE INTL EQ, INV GRO STOCK, NEW DIS, TOTAL RETURN, YEAR ENDED DEC. 31, 2006 (CONTINUED) GRO, SERV SERV SERV CL SERV CL SERV CL OPERATIONS Investment income (loss) -- net $ (258,514) $ 267,789 $ (1,237,579) $ (906,400) $ 1,142,350 Net realized gain (loss) on sales of investments (1,345,794) 9,851,445 41,487 3,028,247 68,485 Distributions from capital gains -- 8,479,311 -- 1,961,927 2,939,207 Net change in unrealized appreciation or depreciation of investments 5,159,841 20,762,035 9,478,142 7,418,304 5,748,655 - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 3,555,533 39,360,580 8,282,050 11,502,078 9,898,697 - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,182,844 10,519,520 10,661,572 5,746,183 22,717,555 Net transfers(1) (4,554,867) (31,137,768) (22,576,010) (22,519,676) (5,112,182) Transfers for policy loans (39,137) (34,467) 18,039 23,144 (51,029) Adjustments to net assets allocated to contracts in payout period (417) (47,704) (18,796) (6,997) (18,825) Contract charges (21,489) (121,690) (93,637) (77,409) (80,500) Contract terminations: Surrender benefits (1,441,410) (8,498,427) (5,774,401) (5,001,248) (2,694,518) Death benefits (137,771) (1,020,436) (651,087) (684,313) (723,263) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (5,012,247) (30,340,972) (18,434,320) (22,520,316) 14,037,238 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 31,714,841 198,502,231 146,971,276 109,920,321 82,895,339 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $30,258,127 $207,521,839 $136,819,006 $ 98,902,083 $106,831,274 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 59,483,000 188,675,039 216,007,351 122,560,119 74,458,675 Contract purchase payments 2,115,564 8,998,604 14,487,411 5,975,902 20,298,942 Net transfers(1) (8,184,835) (27,284,171) (33,330,896) (24,101,275) (4,440,284) Transfers for policy loans (66,586) (30,148) 29,098 25,310 (45,232) Contract charges (38,690) (104,142) (134,494) (82,057) (70,082) Contract terminations: Surrender benefits (2,566,775) (7,221,498) (8,202,168) (5,263,841) (2,334,588) Death benefits (248,563) (880,928) (966,285) (728,454) (630,828) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 50,493,115 162,152,756 187,890,017 98,385,704 87,236,603 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 58 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENT OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ NB AMT MFS SOC OPPEN OPPEN UTILITIES, NB AMT RESPONSIVE, GLOBAL SEC MAIN ST SM PERIOD ENDED DEC. 31, 2006 (CONTINUED) SERV CL INTL, CL S(3) CL S(2) VA, SERV CAP VA, SERV OPERATIONS Investment income (loss) -- net $ 1,995,633 $ 748,781 $ (1,235) $ (238,080) $ (742,516) Net realized gain (loss) on sales of investments 4,632,716 60,228 799 513,986 327,529 Distributions from capital gains 7,578,477 174,764 -- 6,193,209 1,919,670 Net change in unrealized appreciation or depreciation of investments 38,706,779 17,808,152 31,679 14,978,891 8,619,619 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 52,913,605 18,791,925 31,243 21,448,006 10,124,302 - ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 53,336,072 79,640,304 418,700 38,417,651 29,863,721 Net transfers(1) 11,301,685 62,524,308 82,877 26,653,017 23,626,757 Transfers for policy loans (92,391) (14,410) -- (97,499) (37,013) Adjustments to net assets allocated to contracts in payout period (16,191) -- -- (12,735) (6,218) Contract charges (124,397) (100,934) -- (88,579) (51,725) Contract terminations: Surrender benefits (7,274,065) (518,749) (2,469) (3,468,678) (2,009,834) Death benefits (1,619,667) (216,624) -- (1,094,308) (499,895) - ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 55,511,046 141,313,895 499,108 60,308,869 50,885,793 - ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 145,619,360 -- -- 94,586,941 52,481,800 - ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $254,044,011 $160,105,820 $530,351 $176,343,816 $113,491,895 - ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at beginning of year 103,680,834 -- -- 72,422,805 41,895,217 Contract purchase payments 37,874,127 78,388,881 389,299 29,079,012 23,679,055 Net transfers(1) 7,023,854 69,878,959 78,658 19,524,827 17,727,200 Transfers for policy loans (60,610) (14,606) -- (71,282) (29,338) Contract charges (79,368) (103,440) -- (63,789) (38,306) Contract terminations: Surrender benefits (4,565,727) (523,734) (1,969) (2,494,004) (1,484,304) Death benefits (1,057,312) (215,497) -- (785,747) (364,460) - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 142,815,798 147,410,563 465,988 117,611,822 81,385,064 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 59 STATEMENT OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- PIMCO OPPEN OPPEN VIT ALL PIONEER PIONEER STRATEGIC VAL VA, ASSET, ADVISOR EQ INC VCT, INTL VAL PERIOD ENDED DEC. 31, 2006 (CONTINUED) BOND VA, SERV SERV(5) CL(3) CL II VCT, CL II(6) OPERATIONS Investment income (loss) -- net $ 12,768,171 $ (668) $ 12,897,137 $ 949,433 $ (2,834) Net realized gain (loss) on sales of investments (1,425,673) 889 4,469 2,713,412 56 Distributions from capital gains -- 32,273 1,106,027 1,034,106 -- Net change in unrealized appreciation or depreciation of investments 31,751,609 (21,469) (616,607) 7,799,925 62,298 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 43,094,107 11,025 13,391,026 12,496,876 59,520 - ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 403,143,002 405,762 254,445,314 1,641,563 4,361 Net transfers(1) 176,103,087 (20,846) 194,981,368 (5,019,767) 8,639,405 Transfers for policy loans (194,493) -- (35,833) (16,624) 130 Adjustments to net assets allocated to contracts in payout period (45,302) -- -- (8,803) -- Contract charges (787,643) -- (300,493) (40,104) (464) Contract terminations: Surrender benefits (15,029,576) (323) (1,518,792) (2,974,198) (35,360) Death benefits (3,043,649) -- (729,918) (516,551) -- - ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 560,145,426 384,593 446,841,646 (6,934,484) 8,608,072 - ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 332,896,194 -- -- 64,028,911 -- - ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $936,135,727 $395,618 $460,232,672 $69,591,303 $8,667,592 - ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 306,977,307 -- -- 53,521,901 -- Contract purchase payments 372,973,288 390,976 245,693,310 1,245,128 4,288 Net transfers(1) 157,805,560 (21,222) 194,477,069 (4,022,615) 8,639,378 Transfers for policy loans (177,961) -- (34,804) (12,485) 130 Contract charges (710,982) -- (290,165) (30,774) (464) Contract terminations: Surrender benefits (13,535,480) (4) (1,463,311) (2,235,096) (35,426) Death benefits (2,746,934) -- (700,259) (401,879) -- - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 820,584,798 369,750 437,681,840 48,064,180 8,607,906 - ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 60 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- PUT VT PUT VT PUT VT PUT VT HLTH SCIENCES, INTL EQ, INTL NEW NEW OPP, PUT VT YEAR ENDED DEC. 31, 2006 (CONTINUED) CL IB CL IB OPP, CL IB CL IA VISTA, CL IB OPERATIONS Investment income (loss) -- net $ (314,306) $ (235,956) $ 440,200 $ (2,774,711) $ (778,387) Net realized gain (loss) on sales of investments 2,187,489 6,062,202 (778,110) (15,687,610) (4,577,321) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (1,655,620) 16,618,662 20,600,637 35,651,256 9,287,878 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 217,563 22,444,908 20,262,727 17,188,935 3,932,170 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 20,595,138 5,552,763 2,376,731 5,992,765 4,849,523 Net transfers(1) (19,660,915) (9,486,378) (10,216,656) (3,686,203) (14,139,921) Transfers for policy loans (29,922) (35,545) (44,437) 360,965 (8,023) Adjustments to net assets allocated to contracts in payout period (3,531) (2,630) (10,690) (114,870) (110,419) Contract charges (45,916) (64,046) (53,355) (223,692) (68,160) Contract terminations: Surrender benefits (1,989,176) (4,231,037) (5,249,268) (80,617,716) (4,632,906) Death benefits (551,041) (652,823) (743,944) (2,348,958) (883,719) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,685,363) (8,919,696) (13,941,619) (80,637,709) (14,993,625) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 53,264,100 89,094,307 88,141,737 286,495,519 95,729,022 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 51,796,300 $102,619,519 $ 94,462,845 $223,046,745 $ 84,667,567 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 48,772,992 68,853,621 90,632,480 206,197,208 94,134,024 Contract purchase payments 18,862,022 3,856,343 2,187,577 4,222,558 4,532,233 Net transfers(1) (18,717,413) (6,690,982) (9,544,535) (2,798,768) (13,749,271) Transfers for policy loans (27,762) (24,190) (41,908) 255,437 (7,920) Contract charges (42,206) (44,250) (49,331) (158,371) (65,340) Contract terminations: Surrender benefits (1,820,759) (2,871,610) (4,824,677) (56,785,148) (4,455,763) Death benefits (507,677) (453,220) (698,371) (1,697,082) (851,188) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 46,519,197 62,625,712 77,661,235 149,235,834 79,536,775 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 61 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- RVS RVS VP RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2006 (CONTINUED) VP BAL CASH MGMT CORE BOND DIV BOND DIV EQ INC OPERATIONS Investment income (loss) -- net $ 6,556,040 $ 22,385,658 $ 1,969,537 $ 48,193,312 $ 9,284,581 Net realized gain (loss) on sales of investments (11,035,585) (2,747) (523,260) (2,915,929) 4,266,363 Distributions from capital gains 25,904,304 -- -- -- 124,932,540 Net change in unrealized appreciation or depreciation of investments 37,072,062 3,492 290,377 10,476,300 147,419,041 - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 58,496,821 22,386,403 1,736,654 55,753,683 285,902,525 - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 21,645,374 601,535,679 10,611,795 639,685,786 555,298,098 Net transfers(1) (12,069,959) (214,166,209) 11,472,255 162,654,104 249,248,191 Transfers for policy loans 289,870 537,883 (9,140) (72,760) (607,263) Adjustments to net assets allocated to contracts in payout period (422,712) (101,045) (1,780) (206,337) 64,887 Contract charges (304,096) (341,262) (35,670) (1,634,527) (1,208,971) Contract terminations: Surrender benefits (90,386,268) (85,296,917) (18,863,537) (103,885,975) (54,295,521) Death benefits (7,395,138) (7,838,697) (511,920) (14,323,105) (10,936,826) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (88,642,929) 294,329,432 2,662,003 682,217,186 737,562,595 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 501,036,003 477,358,407 58,374,064 1,094,933,051 1,175,706,849 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $470,889,895 $ 794,074,242 $ 62,772,721 $1,832,903,920 $2,199,171,969 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 360,862,741 429,069,177 40,316,903 842,519,662 772,974,225 Contract purchase payments 17,765,116 558,378,343 10,314,547 559,930,796 400,237,515 Net transfers(1) (10,431,189) (205,605,800) 11,100,903 127,692,705 153,611,812 Transfers for policy loans 175,435 461,662 (8,899) (72,722) (390,299) Contract charges (214,148) (303,030) (34,505) (1,280,182) (719,623) Contract terminations: Surrender benefits (54,471,452) (73,198,623) (1,790,425) (76,520,200) (32,651,964) Death benefits (4,988,000) (7,013,705) (493,882) (10,918,002) (6,673,605) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 308,698,503 701,788,024 59,404,642 1,441,352,057 1,286,388,061 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 62 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------------- RVS VP THDL VP RVS PTNRS VP RVS VP GLOBAL INFLATION RVS PERIOD ENDED DEC. 31, 2006 (CONTINUED) EMER MKTS FUNDAMENTAL VAL(3) GLOBAL BOND PROT SEC VP GRO OPERATIONS Investment income (loss) -- net $ (1,521,150) $ 143,704 $ 12,524,256 $ 7,807,022 $ 345,115 Net realized gain (loss) on sales of investments 9,963,535 75,476 830,099 (880,389) (18,582,405) Distributions from capital gains 40,792,591 461,123 -- 15,773 -- Net change in unrealized appreciation or depreciation of investments 32,532,980 28,207,545 17,328,615 (4,836,947) 50,640,833 - ------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 81,767,956 28,887,848 30,682,970 2,105,459 32,403,543 - ------------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 128,314,137 199,977,843 199,252,325 267,420,181 130,610,650 Net transfers(1) (33,211,352) 146,350,197 11,372,124 (7,949,689) (94,081,010) Transfers for policy loans (103,728) (28,790) (13,632) (41,699) (227,211) Adjustments to net assets allocated to contracts in payout period (6,625) -- (55,185) 21,889 (31,221) Contract charges (465,722) (242,774) (548,795) (828,922) (386,922) Contract terminations: Surrender benefits (8,491,516) (3,135,870) (43,525,348) (5,882,398) (15,105,018) Death benefits (1,675,618) (536,951) (4,511,501) (1,602,293) (2,464,957) - ------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 84,359,576 342,383,655 161,969,988 251,137,069 18,314,311 - ------------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 213,076,384 -- 454,345,853 186,089,949 398,436,486 - ------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $379,203,916 $371,271,503 $646,998,811 $439,332,477 $ 449,154,340 - ------------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 134,343,097 -- 331,823,075 177,692,196 579,086,006 Contract purchase payments 83,429,887 191,294,485 165,927,605 258,394,125 178,530,553 Net transfers(1) (19,968,153) 149,209,701 8,715,549 (8,089,577) (141,979,990) Transfers for policy loans (60,376) (27,839) (14,592) (40,350) (313,487) Contract charges (259,010) (232,430) (395,161) (796,092) (537,829) Contract terminations: Surrender benefits (4,668,340) (1,080,102) (30,068,122) (5,625,588) (21,018,069) Death benefits (960,093) (509,964) (3,250,148) (1,530,386) (3,489,210) - ------------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 191,857,012 338,653,851 472,738,206 420,004,328 590,277,974 - -------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 63 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- RVS VP RVS VP THDL VP RVS VP RVS VP YEAR ENDED DEC. 31, 2006 (CONTINUED) HI YIELD BOND INC OPP INTL OPP LG CAP EQ LG CAP VAL OPERATIONS Investment income (loss) -- net $ 59,130,143 $ 9,910,078 $ 3,312,050 $ 1,796,202 $ 90,975 Net realized gain (loss) on sales of investments (14,722,725) 7,649 2,704,131 (5,429,301) 171,496 Distributions from capital gains -- 26,337 -- -- 1,127,493 Net change in unrealized appreciation or depreciation of investments 39,925,057 5,912,554 75,798,560 132,131,274 2,006,663 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 84,332,475 15,856,618 81,814,741 128,498,175 3,396,627 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 98,219,660 203,888,171 21,784,954 47,688,948 2,955,309 Net transfers(1) (89,543,028) 67,556,389 30,316,105 777,706,067 2,369,439 Transfers for policy loans (11,751) (63,205) 109,717 650,802 (8,563) Adjustments to net assets allocated to contracts in payout period (339,214) (2,786) (108,824) 6,795,174 (1,563) Contract charges (479,549) (337,309) (223,835) (1,998,460) (13,913) Contract terminations: Surrender benefits (96,512,296) (2,995,713) (81,287,988) (191,128,396) (629,671) Death benefits (9,241,532) (1,349,415) (3,424,803) (11,539,056) (74,372) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (97,907,710) 266,696,132 (32,834,674) 628,175,079 4,596,666 - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 919,120,879 63,156,854 370,644,637 570,540,195 16,462,268 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $905,545,644 $345,709,604 $419,624,704 $1,327,213,449 $24,455,561 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 715,854,421 59,284,871 335,839,115 587,040,441 11,470,243 Contract purchase payments 78,382,972 192,437,574 19,514,744 48,672,665 2,508,252 Net transfers(1) (68,631,596) 62,250,099 22,450,622 673,998,525 1,911,441 Transfers for policy loans (15,242) (58,646) 69,548 414,344 (7,218) Contract charges (363,843) (306,002) (186,441) (2,046,421) (11,507) Contract terminations: Surrender benefits (69,114,869) (2,723,357) (60,318,945) (147,413,690) (521,588) Death benefits (6,907,897) (1,231,814) (2,863,740) (10,746,287) (61,110) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 649,203,946 309,652,725 314,504,903 1,149,919,577 15,288,513 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 64 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS PTNRS RVS VP YEAR ENDED DEC. 31, 2006 (CONTINUED) MID CAP GRO MID CAP VAL S&P 500 VP SELECT VAL SHORT DURATION OPERATIONS Investment income (loss) -- net $ (1,584,611) $ 321,846 $ 1,566,761 $ 344,079 $ 10,438,323 Net realized gain (loss) on sales of investments 406,899 687,240 6,612,710 340,707 (2,520,836) Distributions from capital gains 11,709,771 3,195,427 1,207,804 2,550,253 -- Net change in unrealized appreciation or depreciation of investments (20,166,353) 20,882,338 26,477,557 372,147 2,149,031 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (9,634,294) 25,086,851 35,864,832 3,607,186 10,066,518 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 11,997,014 160,455,364 19,332,222 2,258,381 64,904,046 Net transfers(1) 141,591,497 150,448,005 (34,843,805) (1,833,189) (81,704,652) Transfers for policy loans 68,765 (65,718) (101,294) (13,059) 1,975 Adjustments to net assets allocated to contracts in payout period 907,388 7,403 (130,274) (2,056) (154,258) Contract charges (175,248) (183,261) (181,499) (23,517) (213,179) Contract terminations: Surrender benefits (28,931,491) (5,086,039) (13,166,955) (720,353) (19,113,919) Death benefits (1,537,890) (636,704) (2,143,933) (233,572) (3,212,370) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 123,920,035 304,939,050 (31,235,538) (567,365) (39,492,357) - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 107,722,399 17,507,122 272,013,850 24,576,716 361,416,923 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $222,008,140 $347,533,023 $276,643,144 $27,616,537 $331,991,084 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 87,823,904 12,716,573 304,081,529 18,945,737 302,533,509 Contract purchase payments 10,419,091 142,349,489 20,159,906 1,923,468 55,599,359 Net transfers(1) 132,899,649 121,326,229 (38,002,490) (1,530,035) (68,390,746) Transfers for policy loans 80,218 (54,673) (105,277) (11,243) 1,104 Contract charges (160,735) (139,052) (192,563) (19,578) (177,922) Contract terminations: Surrender benefits (29,403,199) (1,972,622) (13,647,983) (598,967) (16,052,632) Death benefits (1,457,394) (515,839) (2,302,811) (199,561) (2,682,096) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 200,201,534 273,710,105 269,990,311 18,509,821 270,830,576 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 65 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ RVS PTNRS ROYCE VANK LIT RVS VP VP SM CAP MICRO-CAP, THIRD COMSTOCK, YEAR ENDED DEC. 31, 2006 (CONTINUED) SM CAP ADV VAL INVEST CL AVE VAL CL II OPERATIONS Investment income (loss) -- net $ (1,495,283) $ (1,905,255) $ (926,269) $ 822,319 $ 1,451,831 Net realized gain (loss) on sales of investments 5,310,029 8,938,180 7,802,186 11,224,684 (147,763) Distributions from capital gains 21,962,756 46,473,683 7,096,865 8,335,527 31,916,381 Net change in unrealized appreciation or depreciation of investments (7,515,503) 18,565,369 10,460,000 5,579,074 56,791,325 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 18,261,999 72,071,977 24,432,782 25,961,604 90,011,774 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 9,916,790 133,226,807 2,519,338 3,598,686 356,742,795 Net transfers(1) (31,944,605) (78,559,152) (12,245,733) (16,491,629) (77,730,510) Transfers for policy loans (52,835) (106,611) (31,117) (95,635) (154,283) Adjustments to net assets allocated to contracts in payout period (142,846) (27,552) 85,268 (44,778) (5,839) Contract charges (122,531) (759,187) (38,201) (51,973) (1,519,463) Contract terminations: Surrender benefits (8,114,869) (14,352,741) (6,588,783) (8,537,212) (10,525,254) Death benefits (1,324,189) (2,335,275) (856,165) (1,404,043) (2,639,462) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (31,785,085) 37,086,289 (17,155,393) (23,026,584) 264,167,984 - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 183,927,377 370,927,168 128,705,300 186,631,364 456,174,682 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $170,404,291 $480,085,434 $135,982,689 $189,566,384 $810,354,440 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 116,135,726 234,332,659 46,205,214 64,866,100 384,396,091 Contract purchase payments 6,190,961 94,239,429 811,178 1,162,043 306,270,250 Net transfers(1) (19,125,022) (46,565,840) (3,967,305) (5,390,862) (63,655,060) Transfers for policy loans (32,715) (64,583) (9,639) (30,651) (125,874) Contract charges (73,023) (438,748) (12,364) (16,838) (1,213,840) Contract terminations: Surrender benefits (4,818,690) (8,342,044) (2,130,139) (2,766,291) (8,392,626) Death benefits (791,514) (1,380,180) (280,301) (458,520) (2,119,252) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 97,485,723 271,780,693 40,616,644 57,364,981 615,159,689 - -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 66 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- VANK UIF VANK UIF GLOBAL REAL EST, MID CAP WANGER WANGER WF ADV VT PERIOD ENDED DEC. 31, 2006 (CONTINUED) CL II(3) GRO, CL II(3) INTL SM CAP U.S. SM CO ASSET ALLOC OPERATIONS Investment income (loss) -- net $ 1,905,712 $ (298,646) $ (2,534,949) $ (5,757,292) $ 1,382,704 Net realized gain (loss) on sales of investments 596,282 38,179 18,852,292 24,865,501 1,808,662 Distributions from capital gains 685,750 771,121 -- 28,583,947 1,084,634 Net change in unrealized appreciation or depreciation of investments 22,481,253 7,936,631 194,651,715 5,289,397 5,847,171 - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 25,668,997 8,447,285 210,969,058 52,981,553 10,123,171 - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS - ---------------------------------------------------------------------------------------------------------------------------- Contract purchase payments 76,626,865 51,574,400 176,365,801 149,374,362 2,610,609 Net transfers(1) 68,409,166 40,938,734 (40,775,128) (100,772,290) (6,332,507) Transfers for policy loans (19,258) (15,867) (281,393) (274,509) (6,986) Adjustments to net assets allocated to contracts in payout period -- -- (30,046) (57,295) 47,307 Contract charges (89,556) (62,383) (728,738) (756,144) (65,310) Contract terminations: Surrender benefits (771,855) (369,448) (23,876,836) (33,372,599) (5,012,031) Death benefits (203,222) (160,934) (3,433,566) (5,006,173) (827,519) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 143,952,140 91,904,502 107,240,094 9,135,352 (9,586,437) - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- 539,106,833 828,366,953 96,853,363 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $169,621,137 $100,351,787 $857,315,985 $ 890,483,858 $97,390,097 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- -- 318,154,475 478,752,122 84,218,501 Contract purchase payments 69,842,574 52,495,294 108,965,130 91,334,705 2,182,742 Net transfers(1) 67,555,538 46,584,165 (20,035,596) (58,157,114) (5,453,046) Transfers for policy loans (17,771) (16,147) (149,530) (158,529) (5,414) Contract charges (79,356) (65,468) (362,665) (427,071) (54,916) Contract terminations: Surrender benefits (680,186) (385,483) (11,935,140) (18,855,273) (4,185,624) Death benefits (178,317) (164,610) (1,748,629) (2,829,986) (701,999) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 136,442,482 98,447,751 392,888,045 489,658,854 76,000,244 - ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 67 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------- WF ADV WF ADV WF ADV VT YEAR ENDED DEC. 31, 2006 (CONTINUED) VT INTL CORE VT OPP SM CAP GRO OPERATIONS Investment income (loss) -- net $ 143,682 $ (822,530) $ (412,063) Net realized gain (loss) on sales of investments 1,043,974 4,334,599 1,294,718 Distributions from capital gains 752,307 10,396,375 1,181,723 Net change in unrealized appreciation or depreciation of investments 1,556,090 (3,993,484) 7,006,886 - --------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 3,496,053 9,914,960 9,071,264 - --------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 383,694 7,493,408 7,895,239 Net transfers(1) (1,872,629) (14,650,331) 8,475,445 Transfers for policy loans (14,425) (16,189) (27,524) Adjustments to net assets allocated to contracts in payout period -- (7,788) (1,728) Contract charges (14,044) (72,028) (31,083) Contract terminations: Surrender benefits (1,006,718) (4,485,014) (2,369,514) Death benefits (58,559) (645,967) (282,396) - --------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (2,582,681) (12,383,909) 13,658,439 - --------------------------------------------------------------------------------------------------------- Net assets at beginning of year 18,913,420 95,961,946 37,470,933 - --------------------------------------------------------------------------------------------------------- Net assets at end of year $19,826,792 $ 93,492,997 $60,200,636 - --------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 17,548,520 78,279,948 38,139,345 Contract purchase payments 324,799 6,020,601 7,237,609 Net transfers(1) (1,570,929) (11,501,633) 7,625,562 Transfers for policy loans (12,067) (12,550) (25,065) Contract charges (11,832) (56,466) (28,371) Contract terminations: Surrender benefits (825,924) (3,475,413) (2,121,077) Death benefits (48,281) (508,065) (262,371) - --------------------------------------------------------------------------------------------------------- Units outstanding at end of year 15,404,286 68,746,422 50,565,632 - ---------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other subaccounts and transfers from (to) RiverSource Life's fixed account. (2) For the period June 26, 2006 (commencement of operations) to Dec. 31, 2006. (3) For the period May 1, 2006 (commencement of operations) to Dec. 31, 2006. (4) For the period April 28, 2006 (commencement of operations) to Dec. 31, 2006. (5) For the period Sept. 15, 2006 (commencement of operations) to Dec. 31, 2006. (6) For the period Dec. 15, 2006 (commencement of operations) to Dec. 31, 2006. See accompanying notes to financial statements. 68 RIVERSOURCE VARIABLE ACCOUNT 10 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) The Account is comprised of various subaccounts. Each subaccount 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 subaccount name are provided below.
SUBACCOUNT FUND - --------------------------------------------------------------------------------------------- AIM VI Cap Appr, Ser I AIM V.I. Capital Appreciation Fund, Series I Shares AIM VI Cap Appr, Ser II AIM V.I. Capital Appreciation Fund, Series II Shares AIM VI Cap Dev, Ser I AIM V.I. Capital Development Fund, Series I Shares AIM VI Cap Dev, Ser II AIM V.I. Capital Development Fund, Series II Shares AIM VI Core Eq, Ser I AIM V.I. Core Equity Fund, Series I Shares AIM VI Dyn, Ser I AIM V.I. Dynamics Fund, Series I Shares AIM VI Fin Serv, Ser I AIM V.I. Financial Services Fund, Series I Shares AIM VI Fin Serv, Ser II AIM V.I. Financial Services Fund, Series II Shares AIM VI Global Hlth Care, Ser II AIM V.I. Global Health Care Fund, Series II Shares AIM VI Intl Gro, Ser II AIM V.I. International Growth Fund, Series II Shares AIM VI Tech, Ser I AIM V.I. Technology Fund, Series I Shares AB VPS Global Tech, Cl B 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) 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 AC VP Val, Cl II American Century VP Value, Class II Calvert VS Social Bal Calvert Variable Series, Inc. 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 Mid-Cap Core Credit Suisse Trust - Mid-Cap Core Portfolio CS Sm Cap Core I Credit Suisse Trust - Small Cap Core I Portfolio Drey VIF Intl Eq, Serv Dreyfus Variable Investment Fund International Equity Portfolio, Service Shares Drey VIF Intl Val, Serv Dreyfus Variable Investment Fund International Value 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 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 - ---------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 69
SUBACCOUNT FUND - --------------------------------------------------------------------------------------------- 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 FTVIPT Temp Dev Mkts Sec, Cl 1 FTVIPT Templeton Developing Markets Securities Fund - Class 1 FTVIPT Temp For Sec, Cl 2 FTVIPT Templeton Foreign 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 Global Tech, Serv Janus Aspen Series Global Technology Portfolio: Service Shares Janus Aspen Intl Gro, Serv Janus Aspen Series International Growth Portfolio: Service Shares Janus Aspen Lg Cap Gro, Serv Janus Aspen Series Large Cap Growth Portfolio: Service Shares Janus Aspen Mid Cap Gro, Serv Janus Aspen Series Mid Cap Growth Portfolio: Service Shares Lazard Retire Intl Eq, Serv Lazard Retirement International Equity Portfolio - Service Shares LM Ptnrs Var Sm Cap Gro, Cl I Legg Mason Partners Variable Small Cap Growth Portfolio, Class I(1) 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 Total Return, Serv Cl MFS(R) Total Return 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 Strategic Bond VA, Serv 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 Pioneer Eq Inc VCT, Cl II Pioneer Equity Income VCT Portfolio - Class II Shares Pioneer Intl Val VCT, Cl II Pioneer International Value VCT Portfolio - Class II Shares(2) Put VT Hlth Sciences, Cl IB Putnam VT Health Sciences Fund - Class IB Shares Put VT Intl Eq, Cl IB Putnam VT International Equity Fund - Class IB Shares Put VT Intl New Opp, Cl IB Putnam VT International New Opportunities 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 RVS VP Bal RVST RiverSource(R) Variable Portfolio - Balanced Fund RVS VP Cash Mgmt RVST RiverSource(R) Variable Portfolio - Cash Management Fund RVS VP Core Bond RVST RiverSource(R) Variable Portfolio - Core Bond Fund(3) RVS VP Div Bond RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund(3) RVS VP Div Eq Inc RVST RiverSource(R) Variable Portfolio - Diversified Equity Income Fund THDL VP Emer Mkts RVST Threadneedle(R) Variable Portfolio - Emerging Markets Fund (previously RiverSource(R) Variable Portfolio - Emerging Markets Fund) RVS Ptnrs VP Fundamental Val RVST RiverSource(R) Partners Variable Portfolio - Fundamental Value Fund (previously RiverSource(R) Variable Portfolio - Fundamental Value Fund) RVS VP Global Bond RVST RiverSource(R) Variable Portfolio - Global Bond Fund RVS VP Global Inflation Prot Sec RVST RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund RVS VP Gro RVST RiverSource(R) Variable Portfolio - Growth Fund RVS VP Hi Yield Bond RVST RiverSource(R) Variable Portfolio - High Yield Bond Fund RVS VP Inc Opp RVST RiverSource(R) Variable Portfolio - Income Opportunities Fund THDL VP Intl Opp RVST Threadneedle(R) Variable Portfolio - International Opportunity Fund (previously RiverSource(R) Variable Portfolio - International Opportunity Fund) RVS VP Lg Cap Eq RVST RiverSource(R) Variable Portfolio - Large Cap Equity Fund RVS VP Lg Cap Val RVST RiverSource(R) Variable Portfolio - Large Cap Value Fund RVS VP Mid Cap Gro RVST RiverSource(R) Variable Portfolio - Mid Cap Growth Fund RVS VP Mid Cap Val RVST RiverSource(R) Variable Portfolio - Mid Cap Value Fund RVS VP S&P 500 RVST RiverSource(R) Variable Portfolio - S&P 500 Index Fund RVS Ptnrs VP Select Val RVST RiverSource(R) Partners Variable Portfolio - Select Value Fund (previously RiverSource(R) Variable Portfolio - Select Value Fund) RVS VP Short Duration RVST RiverSource(R) Variable Portfolio - Short Duration U.S. Government Fund RVS VP Sm Cap Adv RVST RiverSource(R) Variable Portfolio - Small Cap Advantage Fund RVS Ptnrs VP Sm Cap Val RVST RiverSource(R) Partners Variable Portfolio - Small Cap Value Fund (previously RiverSource(R) Variable Portfolio - Small Cap Value Fund) Royce Micro-Cap, Invest Cl Royce Capital Fund - Micro-Cap Portfolio, Investment Class 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 UIF Global Real Estate Portfolio, Class II Shares VanK UIF Mid Cap Gro, Cl II Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares Wanger Intl Sm Cap Wanger International Small Cap(4) - ---------------------------------------------------------------------------------------------
70 RIVERSOURCE VARIABLE ACCOUNT 10
SUBACCOUNT FUND - --------------------------------------------------------------------------------------------- Wanger U.S. Sm Co Wanger U.S. Smaller Companies(5) WF Adv VT Asset Alloc 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) Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. (2) Pioneer Europe VCT Portfolio - Class II Shares reorganized into Pioneer International Value VCT Portfolio - Class II Shares on Dec. 15, 2006. (3) At the close of business on March 7, 2008, RVST RiverSource(R) Variable Portfolio - Core Bond Fund merged into RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund. (4) Effective June 1, 2008, the Fund will change its name to Wanger International. (5) Effective June 1, 2008, the Fund will change its name to Wanger USA. The assets of each subaccount 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 Investments in shares of the Funds are stated at market value which is the net asset value per share as determined by the respective 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 subaccounts on the ex-dividend date. Unrealized appreciation or depreciation of investments in the accompanying financial statements represents the subaccounts' share of the Funds' undistributed net investment income, undistributed realized gain or loss and the unrealized appreciation or depreciation on their investment securities. 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. 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 reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increase and decrease in net assets from operations during the period. Actual results could differ from those estimates. RIVERSOURCE VARIABLE ACCOUNT 10 71 3. VARIABLE ACCOUNT EXPENSES RiverSource Life makes contractual assurances to the Account that possible future adverse changes in administrative expenses and mortality experience of the contract owners and annuitants will not affect the Account. 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. 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. 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. Charges by RiverSource Life for surrenders are not identified on an individual segregated asset account basis. Such charges are not treated as a separate expense of the subaccounts. They are ultimately deducted from contract surrender benefits paid by RiverSource Life. 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 following RiverSource Variable Series Trust (RVST) (previously RiverSource(R) Variable Portfolio Funds) funds shown in the table below. The Fund's Investment Management Services Agreement provides for a fee at a 72 RIVERSOURCE VARIABLE ACCOUNT 10 percentage of each Fund's average daily net assets that declines annually as each Fund's net assets increase. The annual percentage range for each Fund is as follows:
FUND PERCENTAGE RANGE - -------------------------------------------------------------------------------------------- RVST RiverSource(R) Variable Portfolio - Balanced Fund 0.530% to 0.350% RVST RiverSource(R) Variable Portfolio - Cash Management Fund 0.330% to 0.150% RVST RiverSource(R) Variable Portfolio - Core Bond Fund 0.480% to 0.290% RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund 0.480% to 0.290% RVST RiverSource(R) Variable Portfolio - Diversified Equity Income Fund 0.600% to 0.375% RVST Threadneedle(R) Variable Portfolio - Emerging Markets Fund 1.100% to 0.900% RVST RiverSource(R) Partners Variable Portfolio - Fundamental Value Fund 0.730% to 0.600% RVST RiverSource(R) Variable Portfolio - Global Bond Fund 0.720% to 0.520% RVST RiverSource(R) Variable Portfolio - Global Inflation Protected 0.440% to 0.250% Securities Fund RVST RiverSource(R) Variable Portfolio - Growth Fund 0.600% to 0.375% RVST RiverSource(R) Variable Portfolio - High Yield Bond Fund 0.590% to 0.360% RVST RiverSource(R) Variable Portfolio - Income Opportunities Fund 0.610% to 0.380% RVST Threadneedle(R) Variable Portfolio - International Opportunity Fund 0.800% to 0.570% RVST RiverSource(R) Variable Portfolio - Large Cap Equity Fund 0.600% to 0.375% RVST RiverSource(R) Variable Portfolio - Large Cap Value Fund 0.600% to 0.375% RVST RiverSource(R) Variable Portfolio - Mid Cap Growth Fund 0.700% to 0.475% RVST RiverSource(R) Variable Portfolio - Mid Cap Value Fund 0.700% to 0.475% RVST RiverSource(R) Variable Portfolio - S&P 500 Index Fund 0.220% to 0.120% RVST RiverSource(R) Partners Variable Portfolio - Select Value Fund 0.780% to 0.650% RVST RiverSource(R) Variable Portfolio - Short Duration U.S. Government 0.480% to 0.250% Fund RVST RiverSource(R) Variable Portfolio - Small Cap Advantage Fund 0.790% to 0.665% RVST RiverSource(R) Partners Variable Portfolio - Small Cap Value Fund 0.970% to 0.870% - --------------------------------------------------------------------------------------------
For the following Funds the fee may be adjusted upward or downward by a performance incentive adjustment. 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. The maximum performance incentive adjustment is 0.08% for RVST RiverSource(R) Variable Portfolio - Balanced Fund and is 0.12% for the following Funds: RVST RiverSource(R) Variable Portfolio - Diversified Equity Income Fund RVST Threadneedle(R) Variable Portfolio - Emerging Markets Fund RVST RiverSource(R) Partners Variable Portfolio - Fundamental Value Fund RVST RiverSource(R) Variable Portfolio - Growth Fund RVST Threadneedle(R) Variable Portfolio - International Opportunity Fund RVST RiverSource(R) Variable Portfolio - Large Cap Equity Fund RVST RiverSource(R) Variable Portfolio - Large Cap Value Fund RVST RiverSource(R) Variable Portfolio - Mid Cap Growth Fund RVST RiverSource(R) Variable Portfolio - Mid Cap Value Fund RVST RiverSource(R) Partners Variable Portfolio - Select Value Fund RVST RiverSource(R) Variable Portfolio - Small Cap Advantage Fund RVST RiverSource(R) Partners Variable Portfolio - Small Cap Value Fund The Funds have a Transfer Agency and Servicing Agreement with RiverSource Service Corporation. 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. The following RVST funds, as shown in the table below, have an Administrative Services Agreement with Ameriprise Financial, Inc. (Ameriprise Financial). Under this agreement, each Fund pays Ameriprise Financial a fee for administration RIVERSOURCE VARIABLE ACCOUNT 10 73 and accounting services at a percentage of each Fund's average daily net assets that declines annually as each Fund's net assets increase. The annual percentage range for each Fund is as follows:
FUND PERCENTAGE RANGE - -------------------------------------------------------------------------------------------- RVST RiverSource(R) Variable Portfolio - Balanced Fund 0.060% to 0.030% RVST RiverSource(R) Variable Portfolio - Cash Management Fund 0.060% to 0.030% RVST RiverSource(R) Variable Portfolio - Core Bond Fund 0.070% to 0.040% RVST RiverSource(R) Variable Portfolio - Diversified Bond Fund 0.070% to 0.040% RVST RiverSource(R) Variable Portfolio - Diversified Equity Income Fund 0.060% to 0.030% RVST Threadneedle(R) Variable Portfolio - Emerging Markets Fund 0.080% to 0.050% RVST RiverSource(R) Partners Variable Portfolio - Fundamental Value Fund 0.060% to 0.030% RVST RiverSource(R) Variable Portfolio - Global Bond Fund 0.080% to 0.050% RVST RiverSource(R) Variable Portfolio - Global Inflation Protected 0.070% to 0.040% Securities Fund RVST RiverSource(R) Variable Portfolio - Growth Fund 0.060% to 0.030% RVST RiverSource(R) Variable Portfolio - High Yield Bond Fund 0.070% to 0.040% RVST RiverSource(R) Variable Portfolio - Income Opportunities Fund 0.070% to 0.040% RVST Threadneedle(R) Variable Portfolio - International Opportunity Fund 0.080% to 0.050% RVST RiverSource(R) Variable Portfolio - Large Cap Equity Fund 0.060% to 0.030% RVST RiverSource(R) Variable Portfolio - Large Cap Value Fund 0.060% to 0.030% RVST RiverSource(R) Variable Portfolio - Mid Cap Growth Fund 0.060% to 0.030% RVST RiverSource(R) Variable Portfolio - Mid Cap Value Fund 0.060% to 0.030% RVST RiverSource(R) Variable Portfolio - S&P 500 Index Fund 0.060% to 0.030% RVST RiverSource(R) Partners Variable Portfolio - Select Value Fund 0.060% to 0.030% RVST RiverSource(R) Variable Portfolio - Short Duration U.S. Government 0.070% to 0.040% Fund RVST RiverSource(R) Variable Portfolio - Small Cap Advantage Fund 0.080% to 0.050% RVST RiverSource(R) Partners Variable Portfolio - Small Cap Value Fund 0.080% to 0.050% - --------------------------------------------------------------------------------------------
The RVST funds, as shown in the table above, pay custodian fees to Ameriprise Trust Company, an affiliate of RiverSource Life. 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 subaccounts' purchases of Funds' shares, including reinvestment of dividend distributions, for the period ended Dec. 31, 2007 were as follows:
SUBACCOUNT FUND PURCHASES - ---------------------------------------------------------------------------------------------------- AIM V.I. Capital Appreciation Fund, Series I AIM VI Cap Appr, Ser I Shares $ 952,977 AIM V.I. Capital Appreciation Fund, Series II AIM VI Cap Appr, Ser II Shares 7,314,232 AIM VI Cap Dev, Ser I AIM V.I. Capital Development Fund, Series I Shares 4,782,552 AIM V.I. Capital Development Fund, Series II AIM VI Cap Dev, Ser II Shares 19,813,277 AIM VI Core Eq, Ser I AIM V.I. Core Equity Fund, Series I Shares 2,530,324 AIM VI Dyn, Ser I AIM V.I. Dynamics Fund, Series I Shares 1,105,832 AIM VI Fin Serv, Ser I AIM V.I. Financial Services Fund, Series I Shares 4,322,435 AIM VI Fin Serv, Ser II AIM V.I. Financial Services Fund, Series II Shares 3,960,348 AIM VI Global Hlth Care, Ser II AIM V.I. Global Health Care Fund, Series II Shares 44,818,347 AIM V.I. International Growth Fund, Series II AIM VI Intl Gro, Ser II Shares 339,210,244 AIM VI Tech, Ser I AIM V.I. Technology Fund, Series I Shares 2,277,014 AllianceBernstein VPS Global Technology Portfolio AB VPS Global Tech, Cl B (Class B) 23,460,362 AllianceBernstein VPS Growth and Income Portfolio AB VPS Gro & Inc, Cl B (Class B) 37,171,558 AllianceBernstein VPS International Value AB VPS Intl Val, Cl B Portfolio (Class B) 447,481,957 AllianceBernstein VPS Large Cap Growth Portfolio AB VPS Lg Cap Gro, Cl B (Class B) 2,380,485 AC VP Intl, Cl I American Century VP International, Class I 2,676,181 AC VP Intl, Cl II American Century VP International, Class II 7,856,405 AC VP Mid Cap Val, Cl II American Century VP Mid Cap Value, Class II 293,283,367 AC VP Ultra, Cl II American Century VP Ultra(R), Class II 89,609,485 AC VP Val, Cl I American Century VP Value, Class I 61,017,258 AC VP Val, Cl II American Century VP Value, Class II 77,267,727 Calvert Variable Series, Inc. Social Balanced Calvert VS Social Bal Portfolio 6,113,725 Col Hi Yield, VS Cl B Columbia High Yield Fund, Variable Series, Class B 28,713,014 Columbia Marsico Growth Fund, Variable Series, Col Marsico Gro, VS Cl A Class A 552,648,517 Columbia Marsico International Opportunities Fund, Col Marsico Intl Opp, VS Cl B Variable Series, Class B 103,197,050 Credit Suisse Trust - Commodity Return Strategy CS Commodity Return Portfolio 83,269,441 - ----------------------------------------------------------------------------------------------------
74 RIVERSOURCE VARIABLE ACCOUNT 10
SUBACCOUNT FUND PURCHASES - ---------------------------------------------------------------------------------------------------- CS Mid-Cap Core Credit Suisse Trust - Mid-Cap Core Portfolio $ 400,282 CS Sm Cap Core I Credit Suisse Trust - Small Cap Core I Portfolio -- Dreyfus Variable Investment Fund International Drey VIF Intl Eq, Serv Equity Portfolio, Service Shares 5,325,687 Dreyfus Variable Investment Fund International Drey VIF Intl Val, Serv Value Portfolio, Service Shares 3,129,312 EV VT Floating-Rate Inc Eaton Vance VT Floating-Rate Income Fund 324,423,690 EG VA Fundamental Lg Cap, Cl 2 Evergreen VA Fundamental Large Cap Fund - Class 2 8,438,139 EG VA Intl Eq, Cl 2 Evergreen VA International Equity Fund - Class 2 20,997,171 Fidelity(R) VIP Contrafund(R) Portfolio Service Fid VIP Contrafund, Serv Cl 2 Class 2 947,955,569 Fidelity(R) VIP Growth & Income Portfolio Service Fid VIP Gro & Inc, Serv Cl Class 12,780,412 Fidelity(R) VIP Growth & Income Portfolio Service Fid VIP Gro & Inc, Serv Cl 2 Class 2 24,842,393 Fid VIP Mid Cap, Serv Cl Fidelity(R) VIP Mid Cap Portfolio Service Class 41,984,956 Fid VIP Mid Cap, Serv Cl 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 350,333,425 Fid VIP Overseas, Serv Cl Fidelity(R) VIP Overseas Portfolio Service Class 12,273,941 Fid VIP Overseas, Serv Cl 2 Fidelity(R) VIP Overseas Portfolio Service Class 2 46,118,563 FTVIPT Frank Global Real Est, FTVIPT Franklin Global Real Estate Securities Cl 2 Fund - Class 2 86,841,582 FTVIPT Franklin Small Cap Value Securities FTVIPT Frank Sm Cap Val, Cl 2 Fund - Class 2 50,038,829 FTVIPT Mutual Shares Sec, Cl 2 FTVIPT Mutual Shares Securities Fund - Class 2 94,450,080 FTVIPT Templeton Developing Markets Securities FTVIPT Temp Dev Mkts Sec, Cl 1 Fund - Class 1 22,444,561 FTVIPT Temp For Sec, Cl 2 FTVIPT Templeton Foreign Securities Fund - Class 2 4,546,814 Goldman Sachs VIT Mid Cap Value GS VIT Mid Cap Val, Inst Fund - Institutional Shares 119,255,883 Goldman Sachs VIT Structured Small Cap Equity GS VIT Structd Sm Cap Eq, Inst Fund - Institutional Shares 2,924,971 Goldman Sachs VIT Structured U.S. Equity GS VIT Structd U.S. Eq, Inst Fund - Institutional Shares 55,928,653 Janus Aspen Series Global Technology Portfolio: Janus Aspen Global Tech, Serv Service Shares 2,585,497 Janus Aspen Series International Growth Portfolio: Janus Aspen Intl Gro, Serv Service Shares 22,134,397 Janus Aspen Series Large Cap Growth Portfolio: Janus Aspen Lg Cap Gro, Serv Service Shares 784,456,792 Janus Aspen Series Mid Cap Growth Portfolio: Janus Aspen Mid Cap Gro, Serv Service Shares 2,598,110 Lazard Retirement International Equity Lazard Retire Intl Eq, Serv Portfolio - Service Shares 38,117,942 Legg Mason Partners Variable Small Cap Growth LM Ptnrs Var Sm Cap Gro, Cl I Portfolio, Class I 4,798,012 MFS(R) Investors Growth Stock Series - Service MFS Inv Gro Stock, Serv Cl Class 2,942,341 MFS New Dis, Serv Cl MFS(R) New Discovery Series - Service Class 8,224,740 MFS Total Return, Serv Cl MFS(R) Total Return Series - Service Class 31,102,534 MFS Utilities, Serv Cl MFS(R) Utilities Series - Service Class 105,142,981 Neuberger Berman Advisers Management Trust NB AMT Intl, Cl S International Portfolio (Class S) 192,565,291 Neuberger Berman Advisers Management Trust NB AMT Soc Responsive, Cl S Socially Responsive Portfolio (Class S) 1,902,695 Oppenheimer Global Securities Fund/VA, Service Oppen Global Sec VA, Serv Shares 32,289,032 Oppenheimer Main Street Small Cap Fund/VA, Service Oppen Main St Sm Cap VA, Serv Shares 29,924,190 Oppen Strategic Bond VA, Serv Oppenheimer Strategic Bond Fund/VA, Service Shares 1,107,677,442 Oppen Val VA, Serv Oppenheimer Value Fund/VA, Service Shares 6,352,489 PIMCO VIT All Asset, Advisor Cl PIMCO VIT All Asset Portfolio, Advisor Share Class 528,261,652 Pioneer Equity Income VCT Portfolio - Class II Pioneer Eq Inc VCT, Cl II Shares 9,210,480 Pioneer International Value VCT Portfolio - Class Pioneer Intl Val VCT, Cl II II Shares 558,337 Put VT Hlth Sciences, Cl IB Putnam VT Health Sciences Fund - Class IB Shares 1,323,009 Putnam VT International Equity Fund - Class IB Put VT Intl Eq, Cl IB Shares 23,812,845 Putnam VT International New Opportunities Put VT Intl New Opp, Cl IB Fund - Class IB Shares 1,544,103 Put VT New Opp, Cl IA Putnam VT New Opportunities Fund - Class IA Shares 233 Put VT Vista, Cl IB Putnam VT Vista Fund - Class IB Shares 603,983 RVST RiverSource(R) Variable Portfolio - Balanced RVS VP Bal Fund 50,776,690 RVST RiverSource(R) Variable Portfolio - Cash RVS VP Cash Mgmt Management Fund 535,354,162 RVST RiverSource(R) Variable Portfolio - Core Bond RVS VP Core Bond Fund 35,444,371 RVST RiverSource(R) Variable RVS VP Div Bond Portfolio - Diversified Bond Fund 1,406,696,079 RVST RiverSource(R) Variable RVS VP Div Eq Inc Portfolio - Diversified Equity Income Fund 589,893,545 RVST Threadneedle(R) Variable Portfolio - Emerging THDL VP Emer Mkts Markets Fund 250,803,106 RVST RiverSource(R) Partners Variable RVS Ptnrs VP Fundamental Val Portfolio - Fundamental Value Fund 360,427,123 RVST RiverSource(R) Variable Portfolio - Global RVS VP Global Bond Bond Fund 507,179,790 RVS VP Global Inflation Prot RVST RiverSource(R) Variable Portfolio - Global Sec Inflation Protected Securities Fund 302,111,788 RVST RiverSource(R) Variable Portfolio - Growth RVS VP Gro Fund 20,223,885 RVST RiverSource(R) Variable Portfolio - High RVS VP Hi Yield Bond Yield Bond Fund 116,629,307 RVST RiverSource(R) Variable Portfolio - Income RVS VP Inc Opp Opportunities Fund 326,119,627 RVST Threadneedle(R) Variable THDL VP Intl Opp Portfolio - International Opportunity Fund 20,654,469 RVST RiverSource(R) Variable Portfolio - Large Cap RVS VP Lg Cap Eq Equity Fund 30,598,714 RVST RiverSource(R) Variable Portfolio - Large Cap RVS VP Lg Cap Val Value Fund 7,742,984 RVST RiverSource(R) Variable Portfolio - Mid Cap RVS VP Mid Cap Gro Growth Fund 7,121,483 RVST RiverSource(R) Variable Portfolio - Mid Cap RVS VP Mid Cap Val Value Fund 213,174,743 RVST RiverSource(R) Variable Portfolio - S&P 500 RVS VP S&P 500 Index Fund 24,241,648 RVST RiverSource(R) Partners Variable RVS Ptnrs VP Select Val Portfolio - Select Value Fund 9,234,412 RVST RiverSource(R) Variable Portfolio - Short RVS VP Short Duration Duration U.S. Government Fund 64,277,709 - ----------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 75
SUBACCOUNT FUND PURCHASES - ---------------------------------------------------------------------------------------------------- RVST RiverSource(R) Variable Portfolio - Small Cap RVS VP Sm Cap Adv Advantage Fund $ 11,169,244 RVST RiverSource(R) Partners Variable RVS Ptnrs VP Sm Cap Val Portfolio - Small Cap Value Fund 500,976,648 Royce Capital Fund - Micro-Cap Portfolio, Royce Micro-Cap, Invest Cl Investment Class 12,848,545 Third Ave Val Third Avenue Value Portfolio 16,373,167 Van Kampen Life Investment Trust Comstock VanK LIT Comstock, Cl II Portfolio, Class II Shares 350,179,227 Van Kampen UIF Global Real Estate Portfolio, Class VanK UIF Global Real Est, Cl II II Shares 151,803,907 Van Kampen UIF Mid Cap Growth Portfolio, Class II VanK UIF Mid Cap Gro, Cl II Shares 73,013,078 Wanger Intl Sm Cap Wanger International Small Cap 203,456,675 Wanger U.S. Sm Co Wanger U.S. Smaller Companies 248,809,720 WF Adv VT Asset Alloc Wells Fargo Advantage VT Asset Allocation Fund 14,762,395 WF Adv VT Intl Core Wells Fargo Advantage VT International Core Fund 3,300,866 WF Adv VT Opp Wells Fargo Advantage VT Opportunity Fund 19,752,480 WF Adv VT Sm Cap Gro Wells Fargo Advantage VT Small Cap Growth Fund 51,349,970 - ----------------------------------------------------------------------------------------------------
76 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, 2007:
AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, PRICE LEVEL SER I SER II SER I SER II SER I ---------------------------------------------------------------------------------------- 0.55% $1.16 $1.26 $2.12 $1.63 $ -- 0.75% 1.15 1.25 2.08 1.61 -- 0.85% -- 1.20 -- 1.21 -- 0.95% 1.13 1.23 2.05 1.59 -- 1.00% -- 1.31 -- 1.67 -- 1.05% -- 1.20 -- 1.21 -- 1.10% -- 1.20 -- 1.20 -- 1.20% -- 1.29 -- 1.65 -- 1.25% -- -- -- -- -- 1.25% -- 1.20 -- 1.20 2.11 1.30% -- 1.20 -- 1.20 -- 1.45% -- 1.19 -- 1.20 -- - ----------------------------------------------------------------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, PRICE LEVEL SER I SER I SER II CARE, SER II SER II ---------------------------------------------------------------------------------------- 0.55% $1.43 $1.08 $ -- $1.14 $1.58 0.75% 1.41 1.06 -- 1.13 1.57 0.85% -- -- 0.90 1.20 1.40 0.95% 1.39 1.05 -- 1.13 1.57 1.00% 1.53 1.12 -- 1.13 1.57 1.05% -- -- 0.90 1.20 1.40 1.10% -- -- 0.90 1.20 1.40 1.20% 1.51 1.10 -- 1.13 1.56 1.25% -- -- -- -- -- 1.25% -- -- 0.90 1.19 1.39 1.30% -- -- 0.89 1.19 1.39 1.45% -- -- 0.89 1.19 1.39 - ----------------------------------------------------------------------------------------------------------------------------------- AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, PRICE LEVEL SER I CL B CL B CL B CL B ---------------------------------------------------------------------------------------- 0.55% $0.86 $1.36 $1.37 $2.68 $ -- 0.75% 0.85 1.36 1.35 2.64 -- 0.85% -- 1.37 1.22 1.30 1.23 0.95% 0.84 1.35 1.34 2.61 -- 1.00% 0.99 1.35 1.45 2.71 -- 1.05% -- 1.37 1.22 1.30 1.23 1.10% -- 1.37 1.22 1.30 1.23 1.20% 0.98 1.34 1.43 2.68 -- 1.25% -- -- -- -- -- 1.25% -- 1.36 1.21 1.29 1.23 1.30% -- 1.36 1.21 1.29 1.23 1.45% -- 1.36 1.21 1.29 1.22 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 77
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, PRICE LEVEL CL I CL II CL II CL II CL I ---------------------------------------------------------------------------------------- 0.55% $1.54 $1.70 $0.90 $1.20 $1.79 0.75% 1.52 1.68 0.90 1.19 1.76 0.85% -- -- 1.12 1.25 -- 0.95% 1.49 1.66 0.90 1.19 1.73 1.00% -- 1.92 0.90 1.18 -- 1.05% -- -- 1.12 1.24 -- 1.10% -- -- 1.12 1.24 -- 1.20% -- 1.90 0.90 1.18 -- 1.25% -- -- -- -- -- 1.25% -- -- 1.11 1.24 2.58 1.30% -- -- 1.11 1.24 -- 1.45% -- -- 1.11 1.24 -- - ----------------------------------------------------------------------------------------------------------------------------------- AC VP CALVERT COL COL MARSICO COL MARSICO VAL, VS HI YIELD, VS GRO, VS INTL OPP, VS PRICE LEVEL CL II SOCIAL BAL CL B CL A CL B ---------------------------------------------------------------------------------------- 0.55% $1.51 $1.16 $1.09 $1.20 $1.27 0.75% 1.49 1.14 1.08 1.19 1.27 0.85% 1.09 -- 1.09 1.28 1.43 0.95% 1.47 1.12 1.08 1.19 1.26 1.00% 1.46 1.28 1.08 1.19 1.26 1.05% 1.09 -- 1.09 1.27 1.42 1.10% 1.09 -- 1.09 1.27 1.42 1.20% 1.45 1.26 1.07 1.18 1.26 1.25% -- -- -- -- -- 1.25% 1.09 -- 1.09 1.27 1.42 1.30% 1.08 -- 1.09 1.27 1.42 1.45% 1.08 -- 1.08 1.26 1.42 - ----------------------------------------------------------------------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY MID-CAP SM CAP INTL EQ, INTL VAL, PRICE LEVEL RETURN CORE CORE I SERV SERV ---------------------------------------------------------------------------------------- 0.55% $1.13 $1.45 $ -- $ -- $ -- 0.75% 1.13 1.42 -- -- -- 0.85% 1.18 -- -- 1.37 1.19 0.95% 1.13 1.40 -- -- -- 1.00% 1.13 -- -- -- -- 1.05% 1.18 -- -- 1.37 1.19 1.10% 1.18 -- -- 1.37 1.19 1.20% 1.12 -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.18 -- 1.37 1.36 1.19 1.30% 1.18 -- -- 1.36 1.19 1.45% 1.17 -- -- 1.36 1.18 - -----------------------------------------------------------------------------------------------------------------------------------
78 RIVERSOURCE VARIABLE ACCOUNT 10
EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PRICE LEVEL INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ---------------------------------------------------------------------------------------- 0.55% $1.04 $1.22 $1.84 $1.21 $1.30 0.75% 1.04 1.20 1.83 1.20 1.28 0.85% 1.03 1.20 1.34 1.28 -- 0.95% 1.04 1.19 1.82 1.20 1.26 1.00% 1.03 1.32 1.81 1.20 -- 1.05% 1.03 1.20 1.33 1.27 -- 1.10% 1.03 1.20 1.33 1.27 -- 1.20% 1.03 1.30 1.80 1.19 -- 1.25% -- -- -- -- -- 1.25% 1.03 1.19 1.33 1.27 -- 1.30% 1.03 1.19 1.33 1.27 -- 1.45% 1.03 1.19 1.32 1.27 -- - ----------------------------------------------------------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, PRICE LEVEL SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ---------------------------------------------------------------------------------------- 0.55% $1.42 $3.68 $2.39 $1.59 $1.93 0.75% 1.40 3.61 2.36 1.57 1.91 0.85% -- -- 1.25 -- 1.35 0.95% 1.38 3.56 2.33 1.54 1.88 1.00% 1.44 -- 2.25 -- 2.09 1.05% -- -- 1.24 -- 1.34 1.10% -- -- 1.24 -- 1.34 1.20% 1.42 -- 2.23 -- 2.07 1.25% -- -- -- -- -- 1.25% -- -- 1.24 -- 1.34 1.30% -- -- 1.24 -- 1.34 1.45% -- -- 1.24 -- 1.34 - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL SHARES TEMP DEV MKTS TEMP FOR PRICE LEVEL REAL EST, CL 2 VAL, CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ---------------------------------------------------------------------------------------- 0.55% $2.58 $2.42 $1.57 $ -- $1.98 0.75% 2.53 2.38 1.55 -- 1.96 0.85% 0.95 1.06 1.17 -- -- 0.95% 2.49 2.34 1.53 -- 1.94 1.00% 1.86 1.77 1.62 -- -- 1.05% 0.95 1.05 1.17 -- -- 1.10% 0.95 1.05 1.17 -- -- 1.20% 1.84 1.75 1.60 -- -- 1.25% -- -- -- -- -- 1.25% 0.94 1.05 1.17 1.79 -- 1.30% 0.95 1.05 1.16 -- -- 1.45% 0.94 1.05 1.17 -- -- - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 79
GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP VAL, STRUCTD SM CAP STRUCTD U.S. GLOBAL TECH, INTL GRO, PRICE LEVEL INST EQ, INST EQ, INST SERV SERV ---------------------------------------------------------------------------------------- 0.55% $2.78 $1.66 $1.15 $0.53 $1.73 0.75% 2.73 1.63 1.14 0.52 1.71 0.85% -- -- 1.10 -- -- 0.95% 2.69 1.60 1.12 0.51 1.68 1.00% 1.98 -- 1.35 1.30 2.97 1.05% -- -- 1.10 -- -- 1.10% -- -- 1.10 -- -- 1.20% 1.96 -- 1.33 1.29 2.93 1.25% -- -- -- -- -- 1.25% -- -- 1.09 -- -- 1.30% -- -- 1.09 -- -- 1.45% -- -- 1.09 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN LAZARD RETIRE LM PTNRS MFS INV LG CAP MID CAP INTL EQ, VAR SM CAP GRO STOCK, PRICE LEVEL GRO, SERV GRO, SERV SERV GRO, CL I SERV CL ---------------------------------------------------------------------------------------- 0.55% $1.06 $0.74 $1.40 $1.02 $0.79 0.75% 1.06 0.73 1.37 1.02 0.77 0.85% 1.06 -- -- 1.02 1.21 0.95% 1.06 0.72 1.35 1.02 0.76 1.00% 1.06 -- 1.94 1.02 1.20 1.05% 1.06 -- -- 1.02 1.21 1.10% 1.06 -- -- 1.02 1.21 1.20% 1.06 -- 1.92 1.02 1.18 1.25% -- -- -- -- -- 1.25% 1.06 -- -- 1.02 1.20 1.30% 1.06 -- -- 1.01 1.20 1.45% 1.06 -- -- 1.01 1.20 - ----------------------------------------------------------------------------------------------------------------------------------- MFS MFS MFS NB AMT NB AMT SOC NEW DIS, TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, PRICE LEVEL SERV CL SERV CL SERV CL CL S CL S ---------------------------------------------------------------------------------------- 0.55% $1.02 $1.28 $2.28 $1.07 $ -- 0.75% 1.01 1.27 2.25 1.07 -- 0.85% -- 1.14 1.57 1.20 1.21 0.95% 0.99 1.26 2.22 1.07 -- 1.00% 1.18 1.26 2.78 1.07 -- 1.05% -- 1.14 1.57 1.20 1.21 1.10% -- 1.14 1.56 1.20 1.21 1.20% 1.17 1.25 2.74 1.06 -- 1.25% -- -- -- -- -- 1.25% -- 1.14 1.56 1.19 1.21 1.30% -- 1.14 1.56 1.19 1.20 1.45% -- 1.13 1.56 1.19 1.20 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 80
OPPEN OPPEN OPPEN OPPEN PIMCO VIT GLOBAL SEC MAIN ST SM STRATEGIC VAL VA, ALL ASSET, PRICE LEVEL VA, SERV CAP VA, SERV BOND VA, SERV SERV ADVISOR CL ---------------------------------------------------------------------------------------- 0.55% $1.62 $1.41 $1.27 $ -- $1.12 0.75% 1.60 1.40 1.26 -- 1.12 0.85% 1.23 1.08 1.17 1.12 1.15 0.95% 1.59 1.39 1.25 -- 1.12 1.00% 1.59 1.38 1.24 -- 1.11 1.05% 1.22 1.07 1.17 1.12 1.14 1.10% 1.22 1.07 1.17 1.12 1.14 1.20% 1.58 1.37 1.23 -- 1.11 1.25% -- -- -- -- -- 1.25% 1.22 1.07 1.17 1.12 1.14 1.30% 1.22 1.07 1.17 1.11 1.14 1.45% 1.22 1.07 1.16 1.11 1.14 - ----------------------------------------------------------------------------------------------------------------------------------- PIONEER PIONEER PUT VT PUT VT PUT VT EQ INC VCT, INTL VAL VCT, HLTH SCIENCES, INTL EQ, INTL NEW OPP, PRICE LEVEL CL II CL II CL IB CL IB CL IB ---------------------------------------------------------------------------------------- 0.55% $1.46 $1.13 $1.11 $1.78 $1.40 0.75% 1.44 1.13 1.10 1.75 1.37 0.85% -- -- -- -- -- 0.95% 1.42 1.13 1.08 1.73 1.35 1.00% 1.49 1.13 1.12 1.90 -- 1.05% -- -- -- -- -- 1.10% -- -- -- -- -- 1.20% 1.47 1.13 1.11 1.87 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.30% -- -- -- -- -- 1.45% -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- PUT VT PUT VT RVS VP RVS VP NEW OPP, VISTA, RVS VP CASH CORE PRICE LEVEL CL IA CL IB BAL MGMT BOND ---------------------------------------------------------------------------------------- 0.55% $ -- $1.11 $1.26 $1.22 $1.12 0.75% -- 1.10 1.24 1.20 1.11 0.85% -- -- 1.14 1.06 1.09 0.95% -- 1.08 1.22 1.18 1.10 1.00% -- 1.35 1.36 1.08 1.10 1.05% -- -- 1.13 1.06 1.09 1.10% -- -- 1.13 1.06 1.09 1.20% -- 1.33 1.35 1.07 1.09 1.25% -- -- 1.13(1) 1.05(1) -- 1.25% 1.56 -- 1.88(2) 1.31(2) 1.09 1.30% -- -- 1.13 1.05 1.08 1.45% -- -- 1.13 1.05 1.08 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 81
RVS RVS THDL RVS PTNRS VP RVS VP DIV VP DIV VP EMER FUNDAMENTAL VP GLOBAL PRICE LEVEL BOND EQ INC MKTS VAL BOND ---------------------------------------------------------------------------------------- 0.55% $1.43 $1.96 $2.90 $1.13 $1.56 0.75% 1.40 1.94 2.81 1.12 1.54 0.85% 1.10 1.21 1.84 1.15 1.12 0.95% 1.38 1.91 2.77 1.11 1.51 1.00% 1.21 1.94 3.70 1.11 1.47 1.05% 1.09 1.20 1.83 1.15 1.12 1.10% 1.09 1.20 1.83 1.15 1.12 1.20% 1.20 1.91 3.65 1.11 1.46 1.25% 1.09(1) -- -- -- 1.12(1) 1.25% 1.51(2) 1.20 1.83 1.14 1.63(2) 1.30% 1.09 1.20 1.83 1.14 1.12 1.45% 1.09 1.20 1.82 1.14 1.11 - ----------------------------------------------------------------------------------------------------------------------------------- RVS VP GLOBAL RVS VP THDL INFLATION RVS VP HI YIELD RVS VP VP INTL PRICE LEVEL PROT SEC GRO BOND INC OPP OPP ---------------------------------------------------------------------------------------- 0.55% $1.13 $0.75 $1.41 $1.17 $1.28 0.75% 1.13 0.75 1.39 1.16 1.26 0.85% 1.11 1.16 1.09 1.09 1.32 0.95% 1.12 0.74 1.37 1.16 1.24 1.00% 1.12 1.19 1.46 1.15 1.94 1.05% 1.10 1.16 1.09 1.08 1.31 1.10% 1.10 1.16 1.08 1.08 1.31 1.20% 1.11 1.18 1.44 1.15 1.92 1.25% -- -- 1.08(1) -- 1.31(1) 1.25% 1.10 1.15 1.53(2) 1.08 1.68(2) 1.30% 1.10 1.15 1.08 1.08 1.31 1.45% 1.10 1.15 1.08 1.08 1.30 - ----------------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP LG CAP LG CAP MID CAP MID CAP RVS VP PRICE LEVEL EQ VAL GRO VAL S&P 500 ---------------------------------------------------------------------------------------- 0.55% $0.99 $1.34 $1.41 $1.50 $1.05 0.75% 0.98 1.33 1.37 1.49 1.04 0.85% 1.18 1.15 1.19 1.20 1.19 0.95% 0.96 1.32 1.35 1.48 1.03 1.00% 1.22 1.31 1.40 1.48 1.35 1.05% 1.17 1.15 1.18 1.19 1.19 1.10% 1.17 1.14 1.18 1.19 1.19 1.20% 1.31 1.30 1.38 1.47 1.34 1.25% 1.17(1) -- 1.18(1) -- -- 1.25% 1.56(2) 1.14 1.08(2) 1.19 1.18 1.30% 1.17 1.14 1.18 1.19 1.18 1.45% 1.17 1.14 1.18 1.19 1.18 - -----------------------------------------------------------------------------------------------------------------------------------
82 RIVERSOURCE VARIABLE ACCOUNT 10
RVS RVS VP RVS VP RVS ROYCE PTNRS VP SHORT SM CAP PTNRS VP MICRO-CAP, PRICE LEVEL SELECT VAL DURATION ADV SM CAP VAL INVEST CL ---------------------------------------------------------------------------------------- 0.55% $1.37 $1.34 $1.70 $1.82 $3.53 0.75% 1.36 1.31 1.68 1.80 3.47 0.85% 1.16 1.08 1.04 1.06 -- 0.95% 1.34 1.29 1.65 1.78 3.41 1.00% 1.34 1.13 1.59 1.68 -- 1.05% 1.16 1.07 1.04 1.06 -- 1.10% 1.16 1.07 1.04 1.06 -- 1.20% 1.33 1.11 1.57 1.66 -- 1.25% -- -- -- -- -- 1.25% 1.15 1.07 1.04 1.05 -- 1.30% 1.15 1.07 1.04 1.05 -- 1.45% 1.15 1.07 1.03 1.05 -- - ----------------------------------------------------------------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF THIRD AVE COMSTOCK, GLOBAL REAL MID CAP WANGER PRICE LEVEL VAL CL II EST, CL II GRO, CL II INTL SM CAP ---------------------------------------------------------------------------------------- 0.55% $3.19 $1.34 $1.12 $1.21 $2.67 0.75% 3.14 1.33 1.11 1.20 2.62 0.85% -- 1.10 1.17 1.31 1.43 0.95% 3.08 1.32 1.11 1.20 2.58 1.00% -- 1.31 1.11 1.20 3.12 1.05% -- 1.10 1.16 1.31 1.43 1.10% -- 1.09 1.16 1.31 1.43 1.20% -- 1.30 1.10 1.19 3.08 1.25% -- -- -- -- -- 1.25% -- 1.09 1.16 1.31 1.42 1.30% -- 1.09 1.16 1.31 1.42 1.45% -- 1.09 1.16 1.30 1.42 - ----------------------------------------------------------------------------------------------------------------------------------- WF WF WF WF WANGER ADV VT ADV VT ADV ADV VT PRICE LEVEL U.S. SM CO ASSET ALLOC INTL CORE VT OPP SM CAP GRO ---------------------------------------------------------------------------------------- 0.55% $2.01 $1.38 $1.45 $1.46 $1.35 0.75% 1.98 1.37 1.43 1.44 1.34 0.85% 1.13 -- -- 1.18 1.29 0.95% 1.94 1.35 1.41 1.42 1.32 1.00% 1.73 1.42 1.65 1.48 1.52 1.05% 1.13 -- -- 1.18 1.29 1.10% 1.12 -- -- 1.17 1.29 1.20% 1.71 1.40 1.63 1.47 1.51 1.25% -- -- -- -- -- 1.25% 1.12 -- -- 1.17 1.28 1.30% 1.12 -- -- 1.17 1.28 1.45% 1.12 -- -- 1.17 1.28 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 83 The following is a summary of units outstanding at Dec. 31, 2007:
AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, PRICE LEVEL SER I SER II SER I SER II SER I ---------------------------------------------------------------------------------------- 0.55% 310,063 370,884 134,007 207,529 -- 0.75% 30,208,905 90,475,457 11,682,915 23,253,243 -- 0.85% -- 2,329,576 -- 2,798,193 -- 0.95% 26,499,002 46,783,395 11,660,702 13,997,622 -- 1.00% -- 15,385,425 -- 3,002,696 -- 1.05% -- 1,961,220 -- 2,258,394 -- 1.10% -- 376,142 -- 1,126,073 -- 1.20% -- 7,314,453 -- 1,796,113 -- 1.25% -- -- -- -- -- 1.25% -- 37,148 -- 139,859 128,470,099 1.30% -- 388,438 -- 878,959 -- 1.45% -- 123,632 -- 148,629 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 57,017,970 165,545,770 23,477,624 49,607,310 128,470,099 - ----------------------------------------------------------------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, PRICE LEVEL SER I SER I SER II CARE, SER II SER II ---------------------------------------------------------------------------------------- 0.55% 12,124 53,801 -- 114,551 1,478,541 0.75% 6,316,934 9,207,959 -- 5,880,742 48,018,157 0.85% -- -- 1,647,605 2,212,547 79,002,448 0.95% 3,799,852 5,804,674 -- 3,964,000 23,728,529 1.00% 478,537 1,003,638 -- 752,954 7,999,543 1.05% -- -- 982,129 1,488,515 36,587,610 1.10% -- -- 278,176 730,494 18,933,466 1.20% 256,756 586,488 -- 456,092 4,140,187 1.25% -- -- -- -- -- 1.25% -- -- 77,477 34,324 1,191,177 1.30% -- -- 155,173 361,854 11,042,317 1.45% -- -- 286,485 69,412 1,942,342 - ----------------------------------------------------------------------------------------------------------------------------------- Total 10,864,203 16,656,560 3,427,045 16,065,485 234,064,317 - ----------------------------------------------------------------------------------------------------------------------------------- AIM AB VPS AB VPS AB VPS AB VPS VI TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, PRICE LEVEL SER I CL B CL B CL B CL B ---------------------------------------------------------------------------------------- 0.55% 274,993 60,843 1,080,845 3,600,358 -- 0.75% 21,716,317 4,111,137 116,724,821 217,241,222 -- 0.85% -- 1,518,589 7,074,484 140,363,883 1,294,945 0.95% 10,071,530 2,415,491 74,245,977 135,634,039 -- 1.00% 2,912,893 664,294 14,240,221 32,185,624 -- 1.05% -- 825,677 3,809,354 71,496,116 838,796 1.10% -- 365,149 1,556,355 38,355,907 158,132 1.20% 1,544,164 263,884 9,111,538 18,897,084 -- 1.25% -- -- -- -- -- 1.25% -- 42,263 268,284 3,278,161 15,135 1.30% -- 300,447 801,433 24,194,706 101,909 1.45% -- 82,610 302,248 5,603,061 37,880 - ----------------------------------------------------------------------------------------------------------------------------------- Total 36,519,897 10,650,384 229,215,560 690,850,161 2,446,797 - -----------------------------------------------------------------------------------------------------------------------------------
84 RIVERSOURCE VARIABLE ACCOUNT 10
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP ULTRA, VAL, PRICE LEVEL CL I CL II VAL, CL II CL II CL I ---------------------------------------------------------------------------------------- 0.55% 154,931 388,742 1,710,497 186,641 577,810 0.75% 22,009,016 42,201,655 56,814,546 13,320,825 41,124,810 0.85% -- -- 79,523,175 2,724,901 -- 0.95% 22,875,743 25,059,490 28,466,270 8,169,925 40,862,411 1.00% -- 6,588,646 9,862,017 2,202,870 -- 1.05% -- -- 39,419,664 1,669,805 -- 1.10% -- -- 20,594,360 513,557 -- 1.20% -- 3,679,928 5,265,533 1,445,130 -- 1.25% -- -- -- -- -- 1.25% -- -- 1,557,292 53,832 94,757,878 1.30% -- -- 12,684,570 414,370 -- 1.45% -- -- 2,413,360 152,496 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 45,039,690 77,918,461 258,311,284 30,854,352 177,322,909 - ----------------------------------------------------------------------------------------------------------------------------------- AC VP CALVERT VS COL COL COL VAL, SOCIAL HI YIELD, VS MARSICO GRO, MARSICO INTL PRICE LEVEL CL II BAL CL B VS CL A OPP, VS CL B ---------------------------------------------------------------------------------------- 0.55% 848,295 20,577 788,404 5,466,153 772,462 0.75% 118,590,619 21,892,735 41,916,870 204,076,820 32,111,990 0.85% 11,608,979 -- 8,110,261 205,091,454 7,134,198 0.95% 81,683,154 17,034,351 26,868,283 113,001,096 22,702,153 1.00% 20,382,491 2,380,133 10,283,595 31,377,676 4,198,057 1.05% 9,146,626 -- 5,719,880 98,884,271 5,334,036 1.10% 3,320,165 -- 1,779,861 51,553,069 2,855,189 1.20% 12,428,947 1,710,565 7,595,304 15,689,110 2,426,373 1.25% -- -- -- -- -- 1.25% 422,857 -- 388,329 3,533,833 517,234 1.30% 2,786,063 -- 1,757,429 31,528,483 2,052,208 1.45% 802,135 -- 884,820 5,810,711 819,223 - ----------------------------------------------------------------------------------------------------------------------------------- Total 262,020,331 43,038,361 106,093,036 766,012,676 80,923,123 - ----------------------------------------------------------------------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY MID-CAP SM CAP INTL EQ, INTL VAL, PRICE LEVEL RETURN CORE CORE I SERV SERV ---------------------------------------------------------------------------------------- 0.55% 676,832 27,972 -- -- -- 0.75% 17,045,218 7,945,185 -- -- -- 0.85% 4,051,283 -- -- 2,094,413 1,317,832 0.95% 12,630,583 7,584,457 -- -- -- 1.00% 3,423,108 -- -- -- -- 1.05% 2,404,463 -- -- 1,460,982 825,290 1.10% 1,797,223 -- -- 711,969 360,969 1.20% 1,727,925 -- -- -- -- 1.25% -- -- -- -- -- 1.25% 510,441 -- 88,083,999 122,684 76,161 1.30% 1,007,169 -- -- 585,708 279,180 1.45% 655,338 -- -- 163,979 72,000 - ----------------------------------------------------------------------------------------------------------------------------------- Total 45,929,583 15,557,614 88,083,999 5,139,735 2,931,432 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 85
EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PRICE LEVEL INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ---------------------------------------------------------------------------------------- 0.55% 2,116,414 46,562 500,157 7,443,013 676,144 0.75% 111,086,435 13,704,091 16,521,038 294,642,827 78,090,278 0.85% 112,632,601 1,105,220 4,213,590 246,454,911 -- 0.95% 71,986,971 8,608,979 11,474,946 166,814,795 75,513,414 1.00% 19,211,242 1,422,316 5,244,703 45,072,261 -- 1.05% 67,726,369 1,013,072 2,284,779 120,473,738 -- 1.10% 32,563,604 272,415 1,157,252 62,826,444 -- 1.20% 13,146,357 953,827 3,470,466 23,069,277 -- 1.25% -- -- -- -- -- 1.25% 3,491,311 26,272 110,830 4,856,388 -- 1.30% 26,240,243 276,524 830,245 38,145,097 -- 1.45% 9,232,482 34,212 198,318 8,450,573 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 469,434,029 27,463,490 46,006,324 1,018,249,324 154,279,836 - ----------------------------------------------------------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, PRICE LEVEL SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ---------------------------------------------------------------------------------------- 0.55% 1,126,230 590,690 3,786,092 92,237 890,416 0.75% 148,742,748 56,322,978 264,422,866 33,656,434 66,434,330 0.85% -- -- 127,339,330 -- 8,720,859 0.95% 96,482,145 52,935,773 156,364,042 32,306,755 48,191,645 1.00% 20,111,097 -- 44,787,168 -- 8,255,235 1.05% -- -- 60,462,997 -- 4,947,752 1.10% -- -- 30,847,951 -- 1,417,242 1.20% 12,003,160 -- 25,719,617 -- 5,900,886 1.25% -- -- -- -- -- 1.25% -- -- 2,609,166 -- 335,680 1.30% -- -- 18,413,612 -- 1,293,632 1.45% -- -- 4,185,740 -- 609,358 - ----------------------------------------------------------------------------------------------------------------------------------- Total 278,465,380 109,849,441 738,938,581 66,055,426 146,997,035 - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL SHARES TEMP DEV MKTS TEMP FOR PRICE LEVEL REAL EST, CL 2 VAL, CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ---------------------------------------------------------------------------------------- 0.55% 687,788 575,730 761,462 -- 272,443 0.75% 93,099,869 66,945,911 94,998,158 -- 12,350,098 0.85% 15,014,683 11,602,463 20,093,160 -- -- 0.95% 59,503,237 46,935,331 65,657,794 -- 12,681,635 1.00% 14,262,707 11,861,909 21,836,798 -- -- 1.05% 7,264,613 6,312,332 15,116,358 -- -- 1.10% 2,707,133 3,160,279 8,345,666 -- -- 1.20% 8,852,222 7,055,538 12,837,099 -- -- 1.25% -- -- -- -- -- 1.25% 321,577 318,699 939,092 110,250,665 -- 1.30% 2,456,792 2,058,864 6,301,930 -- -- 1.45% 489,042 601,510 1,979,262 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 204,659,663 157,428,566 248,866,779 110,250,665 25,304,176 - -----------------------------------------------------------------------------------------------------------------------------------
86 RIVERSOURCE VARIABLE ACCOUNT 10
GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP VAL, STRUCTD SM CAP STRUCTD U.S. GLOBAL TECH, INTL GRO, PRICE LEVEL INST EQ, INST EQ, INST SERV SERV ---------------------------------------------------------------------------------------- 0.55% 2,007,690 12,167 1,678,309 36,833 271,739 0.75% 139,636,612 6,389,252 187,585,391 28,860,156 80,157,811 0.85% -- -- 9,452,523 -- -- 0.95% 96,412,835 7,428,800 126,733,928 19,559,197 64,174,422 1.00% 24,512,016 -- 20,870,755 507,101 1,484,357 1.05% -- -- 4,307,453 -- -- 1.10% -- -- 2,279,595 -- -- 1.20% 15,654,280 -- 11,550,149 205,602 1,041,803 1.25% -- -- -- -- -- 1.25% -- -- 489,357 -- -- 1.30% -- -- 1,284,009 -- -- 1.45% -- -- 494,023 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 278,223,433 13,830,219 366,725,492 49,168,889 147,130,132 - ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN LAZARD RETIRE LM PTNRS MFS INV LG CAP MID CAP INTL EQ, VAR SM CAP GRO STOCK, PRICE LEVEL GRO, SERV GRO, SERV SERV GRO, CL I SERV CL ---------------------------------------------------------------------------------------- 0.55% 5,447,622 51,291 1,071,849 64,730 317,078 0.75% 154,650,085 27,632,384 69,884,309 1,080,358 80,158,296 0.85% 255,815,478 -- -- 863,770 650,450 0.95% 72,177,111 18,083,376 51,658,807 741,154 58,818,566 1.00% 25,246,330 -- 5,119,326 225,041 5,931,650 1.05% 115,891,879 -- -- 533,993 640,671 1.10% 61,515,157 -- -- 182,323 313,804 1.20% 12,685,541 -- 3,266,900 96,781 3,135,358 1.25% -- -- -- -- -- 1.25% 3,685,539 -- -- 4,708 146,784 1.30% 35,017,047 -- -- 124,748 324,834 1.45% 5,761,291 -- -- 33,292 122,490 - ----------------------------------------------------------------------------------------------------------------------------------- Total 747,893,080 45,767,051 131,001,191 3,950,898 150,559,981 - ----------------------------------------------------------------------------------------------------------------------------------- MFS MFS MFS NB AMT NB AMT SOC NEW DIS, TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, PRICE LEVEL SERV CL SERV CL SERV CL CL S CL S ---------------------------------------------------------------------------------------- 0.55% 129,664 226,044 764,911 2,115,709 -- 0.75% 42,261,173 35,070,294 78,212,123 64,613,828 -- 0.85% -- 7,010,517 16,500,942 86,116,639 629,020 0.95% 31,914,847 22,523,253 51,479,292 30,611,373 -- 1.00% 3,692,277 11,795,817 7,678,285 10,349,600 -- 1.05% -- 5,665,397 10,759,943 38,901,447 432,646 1.10% -- 3,140,615 4,727,786 20,665,091 467,035 1.20% 2,675,162 8,819,604 6,369,628 4,921,962 -- 1.25% -- -- -- -- -- 1.25% -- 667,065 440,108 1,245,546 30,779 1.30% -- 2,787,632 3,234,516 11,632,162 142,278 1.45% -- 881,195 1,091,158 2,072,077 42,459 - ----------------------------------------------------------------------------------------------------------------------------------- Total 80,673,123 98,587,433 181,258,692 273,245,434 1,744,217 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 87
OPPEN OPPEN OPPEN OPPEN PIMCO VIT GLOBAL SEC MAIN ST SM STRATEGIC VAL VA, ALL ASSET, PRICE LEVEL VA, SERV CAP VA, SERV BOND VA, SERV SERV ADVISOR CL ---------------------------------------------------------------------------------------- 0.55% 1,098,901 675,575 9,222,748 -- 4,554,731 0.75% 48,173,483 34,264,776 536,032,488 -- 161,214,254 0.85% 6,835,230 7,764,728 316,102,594 1,832,955 235,995,037 0.95% 32,186,952 23,106,941 360,479,542 -- 82,317,690 1.00% 11,884,230 9,606,433 92,163,861 -- 27,065,979 1.05% 5,427,718 5,501,183 182,029,462 1,705,205 117,365,115 1.10% 2,223,458 3,313,345 88,027,546 738,541 60,131,881 1.20% 6,986,371 4,772,585 62,902,385 -- 14,754,782 1.25% -- -- -- -- -- 1.25% 383,314 373,532 10,326,765 44,561 4,401,270 1.30% 1,648,633 2,044,501 69,485,663 419,867 38,718,324 1.45% 778,529 487,134 18,994,710 375,152 7,576,986 - ----------------------------------------------------------------------------------------------------------------------------------- Total 117,626,819 91,910,733 1,745,767,764 5,116,281 754,096,049 - ----------------------------------------------------------------------------------------------------------------------------------- PIONEER PIONEER PUT V PUT VT PUT VT EQ INC VCT, INTL VAL VCT, HLTH SCIENCES, INTL EQ, INTL NEW OPP, PRICE LEVEL CL II CL II CL IB CL IB CL IB ---------------------------------------------------------------------------------------- 0.55% 53,357 1,732 66,740 69,143 99,272 0.75% 22,421,682 4,030,373 19,769,529 29,411,493 34,920,888 0.85% -- -- -- -- -- 0.95% 15,656,569 2,397,010 11,073,168 18,696,644 30,296,061 1.00% 3,618,251 404,222 3,422,944 3,409,243 -- 1.05% -- -- -- -- -- 1.10% -- -- -- -- -- 1.20% 1,843,916 300,232 1,629,865 2,183,808 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.30% -- -- -- -- -- 1.45% -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 43,593,775 7,133,569 35,962,246 53,770,331 65,316,221 - ----------------------------------------------------------------------------------------------------------------------------------- PUT VT PUT VT RVS VP RVS VP NEW OPP, VISTA, RVS VP CASH CORE PRICE LEVEL CL IA CL IB BAL MGMT BOND ---------------------------------------------------------------------------------------- 0.55% -- 370,126 371,547 11,779,182 390,632 0.75% -- 33,551,137 86,628,497 286,121,450 31,763,669 0.85% -- -- 3,273,748 60,831,627 3,037,204 0.95% -- 26,404,507 74,966,029 247,869,608 29,700,581 1.00% -- 771,137 5,018,057 39,419,894 4,803,553 1.05% -- -- 3,045,377 66,258,389 3,494,607 1.10% -- -- 1,380,493 21,785,184 783,328 1.20% -- 447,977 4,008,141 33,791,187 5,251,644 1.25% -- -- 176,759(1) 6,443,188(1) -- 1.25% 97,679,315 -- 91,480,547(2) 53,380,147(2) 118,466 1.30% -- -- 929,608 25,293,878 800,194 1.45% -- -- 619,042 15,776,747 462,614 - ----------------------------------------------------------------------------------------------------------------------------------- Total 97,679,315 61,544,884 271,897,845 868,750,481 80,606,492 - -----------------------------------------------------------------------------------------------------------------------------------
88 RIVERSOURCE VARIABLE ACCOUNT 10
RVS RVS THDL RVS PTNRS VP RVS VP VP DIV VP DIV VP EMER FUNDAMENTAL GLOBAL PRICE LEVEL BOND EQ INC MKTS VAL BOND ---------------------------------------------------------------------------------------- 0.55% 9,540,361 9,289,316 1,992,824 3,569,545 3,115,002 0.75% 599,680,309 560,416,389 89,546,217 117,604,620 204,315,575 0.85% 586,912,517 300,202,514 72,074,583 173,482,616 199,961,722 0.95% 408,270,237 363,274,067 50,490,999 55,720,714 141,674,784 1.00% 103,329,876 69,629,064 9,394,382 18,674,796 31,193,142 1.05% 332,534,807 139,948,244 31,794,180 80,554,679 111,551,383 1.10% 163,182,937 71,511,778 16,835,801 42,506,603 54,634,266 1.20% 68,621,587 43,798,497 5,241,698 9,645,521 22,272,222 1.25% 15,662,382(1) -- -- -- 5,574,227(1) 1.25% 94,010,574(2) 5,950,415 1,133,757 2,683,278 29,881,444(2) 1.30% 119,779,387 42,435,752 9,417,776 24,776,634 39,217,158 1.45% 28,773,774 9,097,719 1,668,945 4,255,518 9,331,450 - ----------------------------------------------------------------------------------------------------------------------------------- Total 2,530,298,748 1,615,553,755 289,591,162 533,474,524 852,722,375 - ----------------------------------------------------------------------------------------------------------------------------------- RVS VP GLOBAL RVS VP INFLATION RVS VP HI YIELD RVS VP THDL VP PRICE LEVEL PROT SEC GRO BOND INC OPP INTL OPP ---------------------------------------------------------------------------------------- 0.55% 2,712,718 3,767,710 1,604,799 2,598,798 1,306,998 0.75% 147,399,841 283,768,694 218,537,630 116,516,296 75,420,693 0.85% 125,450,424 4,501,840 16,916,641 151,928,845 3,482,351 0.95% 88,733,599 186,447,322 186,775,359 65,977,370 58,761,684 1.00% 26,608,485 20,602,501 20,959,703 20,631,549 5,323,931 1.05% 68,621,112 3,730,676 11,949,227 75,951,201 3,183,086 1.10% 33,414,014 1,382,127 3,379,886 38,611,822 1,209,776 1.20% 17,958,322 10,991,929 19,687,022 12,715,907 3,162,145 1.25% -- -- 778,136(1) -- 164,158(1) 1.25% 3,201,801 192,078 64,659,619(2) 2,730,448 101,902,101(2) 1.30% 23,879,464 867,626 3,520,499 24,436,316 1,247,208 1.45% 5,715,206 236,665 1,855,984 4,737,576 259,772 - ----------------------------------------------------------------------------------------------------------------------------------- Total 543,694,986 516,489,168 550,624,505 516,836,128 255,423,903 - ----------------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP LG CAP LG CAP MID CAP MID CAP RVS VP PRICE LEVEL EQ VAL GRO VAL S&P 500 ---------------------------------------------------------------------------------------- 0.55% 1,682,453 67,111 267,668 1,405,796 1,022,484 0.75% 383,078,107 7,988,250 50,337,335 71,708,924 127,009,750 0.85% 1,353,237 880,954 1,461,058 58,370,347 3,379,668 0.95% 242,875,710 4,151,907 35,043,074 43,554,546 92,416,270 1.00% 23,697,245 925,180 2,983,831 9,445,059 10,643,745 1.05% 1,146,745 623,928 866,932 28,849,825 2,723,073 1.10% 460,939 168,128 238,872 13,680,743 1,015,060 1.20% 10,298,891 788,585 1,887,258 5,225,399 8,187,142 1.25% 115,647(1) -- 46,519(1) -- -- 1.25% 243,359,068(2) 3,857 58,005,380(2) 1,080,613 204,785 1.30% 536,448 73,094 190,656 8,620,999 1,259,314 1.45% 136,354 41,111 89,165 1,681,461 498,522 - ----------------------------------------------------------------------------------------------------------------------------------- Total 908,740,844 15,712,105 151,417,748 243,623,712 248,359,813 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 89
RVS PTNRS RVS VP RVS VP RVS PTNRS ROYCE VP SELECT SHORT SM CAP VP SM CAP MICRO-CAP, PRICE LEVEL VAL DURATION ADV VAL INVEST CL ---------------------------------------------------------------------------------------- 0.55% 115,087 817,041 213,774 3,486,800 358,092 0.75% 9,188,230 120,017,551 38,094,524 148,792,509 16,841,945 0.85% 780,099 9,944,757 1,103,662 185,434,840 -- 0.95% 5,202,632 104,637,226 28,328,518 79,473,640 16,533,516 1.00% 1,468,731 12,583,053 3,377,688 23,547,468 -- 1.05% 660,547 5,824,286 670,966 85,864,522 -- 1.10% 224,985 1,592,034 186,550 45,242,971 -- 1.20% 979,573 12,745,424 2,097,833 12,215,670 -- 1.25% -- -- -- -- -- 1.25% 19,803 451,000 45,551 2,808,456 -- 1.30% 180,883 2,323,715 146,552 26,141,436 -- 1.45% 34,608 1,689,482 19,285 4,362,032 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 18,855,178 272,625,569 74,284,903 617,370,344 33,733,553 - ----------------------------------------------------------------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF THIRD AVE COMSTOCK, GLOBAL REAL MID CAP GRO, WANGER PRICE LEVEL VAL CL II EST, CL II CL II INTL SM CAP ---------------------------------------------------------------------------------------- 0.55% 174,792 3,639,463 1,463,292 139,803 2,932,098 0.75% 23,692,180 224,730,312 51,109,027 14,940,479 164,569,744 0.85% -- 151,419,995 42,226,112 4,590,742 56,104,302 0.95% 23,615,500 113,380,218 29,813,786 9,199,171 108,613,337 1.00% -- 51,530,672 9,915,671 2,519,064 18,490,604 1.05% -- 68,659,736 20,118,935 2,862,876 29,049,474 1.10% -- 36,822,736 11,264,389 1,240,882 14,102,628 1.20% -- 27,380,899 4,961,076 1,490,208 10,564,991 1.25% -- -- -- -- -- 1.25% -- 2,733,513 798,766 209,559 1,115,374 1.30% -- 21,804,142 6,277,550 1,013,078 9,249,479 1.45% -- 4,555,853 1,084,908 386,854 1,977,899 - ----------------------------------------------------------------------------------------------------------------------------------- Total 47,482,472 706,657,539 179,033,512 38,592,716 416,769,930 - ----------------------------------------------------------------------------------------------------------------------------------- WF ADV WF ADV WF ADV WANGER VT ASSET VT INTL WF ADV VT SM CAP PRICE LEVEL U.S. SM CO ALLOC CORE VT OPP GRO ---------------------------------------------------------------------------------------- 0.55% 3,658,527 6,880 4,990 330,838 231,070 0.75% 212,646,072 37,313,792 7,326,523 30,772,375 35,670,345 0.85% 77,217,463 -- -- 2,128,594 5,179,477 0.95% 145,261,970 28,980,581 5,537,770 18,130,584 23,652,563 1.00% 36,468,937 3,916,681 588,604 4,586,530 3,222,730 1.05% 36,284,453 -- -- 958,937 3,245,081 1.10% 19,101,831 -- -- 412,704 1,101,858 1.20% 19,504,077 1,996,078 370,428 2,413,939 1,798,604 1.25% -- -- -- -- -- 1.25% 1,447,201 -- -- 28,520 186,093 1.30% 11,391,897 -- -- 210,808 968,271 1.45% 2,054,387 -- -- 85,993 362,881 - ----------------------------------------------------------------------------------------------------------------------------------- Total 565,036,815 72,214,012 13,828,315 60,059,822 75,618,973 - -----------------------------------------------------------------------------------------------------------------------------------
90 RIVERSOURCE VARIABLE ACCOUNT 10 The following is a summary of net assets at Dec. 31, 2007:
AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, PRICE LEVEL SER I SER II SER I SER II SER I ---------------------------------------------------------------------------------------- 0.55% $ 361,021 $ 467,840 $ 283,999 $ 338,269 $ -- 0.75% 34,691,391 112,675,029 24,311,131 37,416,441 -- 0.85% -- 2,806,664 -- 3,382,166 -- 0.95% 29,927,232 57,543,678 23,887,821 22,262,520 -- 1.00% -- 20,152,536 -- 5,020,245 -- 1.05% -- 2,355,683 -- 2,721,408 -- 1.10% -- 451,468 -- 1,356,040 -- 1.20% -- 9,479,545 -- 2,967,745 -- 1.25% -- -- -- -- -- 1.25% -- 44,484 -- 168,035 273,531,059 1.30% -- 464,793 -- 1,055,254 -- 1.45% -- 147,595 -- 178,028 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total $64,979,644 $206,589,315 $ 48,482,951 $ 76,866,151 $273,531,059 - ----------------------------------------------------------------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, PRICE LEVEL SER I SER I SER II CARE, SER II SER II ---------------------------------------------------------------------------------------- 0.55% $ 17,290 $ 58,070 $ -- $ 130,290 $ 2,337,227 0.75% 8,910,988 9,802,018 -- 6,666,165 75,614,767 0.85% -- -- 1,484,452 2,654,340 110,859,209 0.95% 5,295,086 6,105,272 -- 4,478,629 37,188,515 1.00% 730,119 1,119,382 -- 849,953 12,522,957 1.05% -- -- 882,384 1,780,296 51,185,853 1.10% -- -- 249,727 873,025 26,467,459 1.20% 387,147 646,357 -- 513,202 6,453,367 1.25% -- -- -- -- -- 1.25% -- -- 69,401 40,925 1,661,394 1.30% -- -- 138,882 431,132 15,389,319 1.45% -- -- 255,843 82,515 2,700,859 - ----------------------------------------------------------------------------------------------------------------------------------- Total $15,340,630 $ 17,731,099 $ 3,080,689 $ 18,500,472 $342,380,926 - ----------------------------------------------------------------------------------------------------------------------------------- AIM AB VPS AB VPS AB VPS AB VPS VI TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, PRICE LEVEL SER I CL B CL B CL B CL B ---------------------------------------------------------------------------------------- 0.55% $ 237,763 $ 82,841 $ 1,480,414 $ 9,649,626 $ -- 0.75% 18,538,198 5,572,922 158,107,141 574,499,702 -- 0.85% -- 2,083,881 8,658,530 182,516,327 1,597,729 0.95% 8,488,293 3,260,500 99,122,534 354,422,071 -- 1.00% 2,874,135 895,706 20,654,391 87,170,722 -- 1.05% -- 1,129,598 4,635,120 92,726,938 1,031,782 1.10% -- 499,159 1,892,303 49,685,327 194,364 1.20% 1,505,724 354,197 13,060,854 50,613,923 -- 1.25% -- -- -- -- -- 1.25% -- 57,644 325,447 4,236,760 18,561 1.30% -- 409,482 971,443 31,246,523 124,878 1.45% -- 112,334 365,533 7,219,790 46,312 - ----------------------------------------------------------------------------------------------------------------------------------- Total $31,644,113 $ 14,458,264 $309,273,710 $1,443,987,709 $ 3,013,626 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 91
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, PRICE LEVEL CL I CL II CL II CL II CL I ---------------------------------------------------------------------------------------- 0.55% $ 239,353 $ 661,494 $ 1,546,182 $ 223,313 $ 1,032,918 0.75% 33,490,796 70,968,008 51,294,263 15,869,132 72,472,846 0.85% -- -- 89,162,465 3,396,868 -- 0.95% 34,184,355 41,674,515 25,718,632 9,691,075 70,926,686 1.00% -- 12,634,587 8,887,731 2,610,089 -- 1.05% -- -- 44,061,855 2,075,149 -- 1.10% -- -- 23,002,476 637,763 -- 1.20% -- 6,981,277 4,739,018 1,704,895 -- 1.25% -- -- -- -- -- 1.25% -- -- 1,735,403 66,698 246,164,784 1.30% -- -- 14,124,491 512,978 -- 1.45% -- -- 2,681,218 188,364 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total $ 67,914,504 $132,919,881 $266,953,734 $ 36,976,324 $390,597,234 - ----------------------------------------------------------------------------------------------------------------------------------- AC CALVERT COL COL MARSICO COL MARSICO VP VAL, VS SOCIAL HI YIELD, VS GRO, VS INTL OPP, VS PRICE LEVEL CL II BAL CL B CL A CL B ---------------------------------------------------------------------------------------- 0.55% $ 1,282,492 $ 23,817 $ 856,111 $ 6,538,229 $ 983,108 0.75% 177,152,503 24,999,112 45,361,407 243,304,710 40,777,453 0.85% 12,681,847 -- 8,862,032 261,545,858 10,191,834 0.95% 120,835,997 19,212,088 29,074,006 134,483,655 28,699,840 1.00% 29,804,136 3,040,436 11,082,984 37,249,822 5,302,648 1.05% 9,961,388 -- 6,230,989 125,733,916 7,597,124 1.10% 3,613,225 -- 1,937,483 65,492,513 4,063,328 1.20% 17,960,874 2,159,362 8,157,909 18,562,504 3,062,286 1.25% -- -- -- -- -- 1.25% 459,121 -- 421,751 4,479,110 734,410 1.30% 3,022,672 -- 1,907,153 39,931,054 2,911,721 1.45% 868,282 -- 958,021 7,342,549 1,159,693 - ----------------------------------------------------------------------------------------------------------------------------------- Total $377,642,537 $ 49,434,815 $114,849,846 $944,663,920 $105,483,445 - ----------------------------------------------------------------------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY MID-CAP SM CAP INTL EQ, INTL VAL, PRICE LEVEL RETURN CORE CORE I SERV SERV ---------------------------------------------------------------------------------------- 0.55% $ 767,742 $ 40,530 $ -- $ -- $ -- 0.75% 19,270,531 11,328,870 -- -- -- 0.85% 4,795,595 -- -- 2,870,987 1,573,344 0.95% 14,236,275 10,634,458 -- -- -- 1.00% 3,854,091 -- -- -- -- 1.05% 2,844,860 -- -- 1,996,665 982,318 1.10% 2,118,809 -- -- 972,257 429,323 1.20% 1,939,056 -- -- -- -- 1.25% -- -- -- -- -- 1.25% 600,432 -- 121,104,150 167,151 90,377 1.30% 1,183,784 -- -- 797,395 331,038 1.45% 768,553 -- -- 222,734 85,179 - ----------------------------------------------------------------------------------------------------------------------------------- Total $ 52,379,728 $ 22,003,858 $121,104,150 $ 7,027,189 $ 3,491,579 - -----------------------------------------------------------------------------------------------------------------------------------
92 RIVERSOURCE VARIABLE ACCOUNT 10
EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PRICE LEVEL INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ---------------------------------------------------------------------------------------- 0.55% $ 2,206,923 $ 56,658 $ 922,442 $ 8,980,328 $ 882,254 0.75% 115,528,121 16,467,873 30,230,337 354,555,104 100,080,757 0.85% 116,562,151 1,327,329 5,627,789 314,750,616 -- 0.95% 74,674,347 10,263,203 20,846,192 200,306,386 95,272,477 1.00% 19,896,365 1,872,819 9,501,222 54,012,336 -- 1.05% 69,886,291 1,213,047 3,042,491 153,429,630 -- 1.10% 33,570,029 325,916 1,539,844 79,929,673 -- 1.20% 13,557,496 1,261,779 6,236,900 27,532,034 -- 1.25% -- -- -- -- -- 1.25% 3,590,920 31,361 147,127 6,164,476 -- 1.30% 26,968,649 329,829 1,101,356 48,381,847 -- 1.45% 9,467,084 40,714 262,467 10,693,882 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total $485,908,376 $ 33,190,528 $ 79,458,167 $1,258,736,312 $196,235,488 - ----------------------------------------------------------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, PRICE LEVEL SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ---------------------------------------------------------------------------------------- 0.55% $ 1,599,367 $ 2,190,205 $ 9,043,266 $ 146,885 $ 1,720,064 0.75% 208,895,778 204,250,400 624,081,224 53,013,150 126,879,223 0.85% -- -- 158,952,143 -- 11,788,505 0.95% 134,009,183 188,834,811 364,709,519 49,919,363 90,991,833 1.00% 28,887,625 -- 100,960,134 -- 17,253,458 1.05% -- -- 75,283,761 -- 6,658,930 1.10% -- -- 38,360,166 -- 1,903,049 1.20% 17,038,617 -- 57,297,755 -- 12,188,624 1.25% -- -- -- -- -- 1.25% -- -- 3,237,149 -- 449,704 1.30% -- -- 22,827,816 -- 1,731,740 1.45% -- -- 5,177,331 -- 813,870 - ----------------------------------------------------------------------------------------------------------------------------------- Total $390,430,570 $395,275,416 $1,459,930,264 $ 103,079,398 $272,379,000 - ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL SHARES TEMP DEV TEMP FOR PRICE LEVEL REAL EST, CL 2 VAL, CL 2 SEC, CL 2 MKTS SEC, CL 1 SEC, CL 2 ---------------------------------------------------------------------------------------- 0.55% $ 1,776,574 $ 1,390,685 $ 1,198,338 $ -- $ 539,919 0.75% 236,172,321 159,186,290 147,930,075 -- 24,341,356 0.85% 14,328,051 12,271,958 23,524,296 -- -- 0.95% 148,663,917 109,848,464 100,828,122 -- 24,574,127 1.00% 26,536,285 21,054,362 35,326,505 -- -- 1.05% 6,911,285 6,655,799 17,643,973 -- -- 1.10% 2,573,492 3,329,475 9,733,734 -- -- 1.20% 16,285,823 12,376,306 20,545,104 -- -- 1.25% -- -- -- -- -- 1.25% 302,159 335,676 1,100,586 197,631,940 -- 1.30% 2,328,391 2,162,687 7,327,805 -- -- 1.45% 458,108 631,815 2,312,666 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total $456,336,406 $329,243,517 $ 367,471,204 $ 197,631,940 $ 49,455,402 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 93
GS VIT GS VIT GS VIT JANUS JANUS MID CAP VAL, STRUCTD SM STRUCTD U.S. ASPEN GLOBAL ASPEN INTL PRICE LEVEL INST CAP EQ, INST EQ, INST TECH, SERV GRO, SERV ---------------------------------------------------------------------------------------- 0.55% $ 5,580,526 $ 20,161 $ 1,959,575 $ 19,369 $ 470,830 0.75% 382,005,328 10,415,859 213,216,522 14,950,070 136,865,909 0.85% -- -- 10,409,901 -- -- 0.95% 259,566,117 11,947,390 141,732,473 10,062,024 108,122,084 1.00% 48,629,624 -- 28,083,014 660,858 4,401,938 1.05% -- -- 4,729,276 -- -- 1.10% -- -- 2,500,923 -- -- 1.20% 30,701,881 -- 15,359,660 264,775 3,053,431 1.25% -- -- -- -- -- 1.25% -- -- 535,646 -- -- 1.30% -- -- 1,404,409 -- -- 1.45% -- -- 539,115 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total $726,483,476 $ 22,383,410 $420,470,514 $ 25,957,096 $252,914,192 - ----------------------------------------------------------------------------------------------------------------------------------- JANUS JANUS LAZARD LM PTNRS MFS INV ASPEN LG CAP ASPEN MID CAP RETIRE INTL VAR SM CAP GRO STOCK, PRICE LEVEL GRO, SERV GRO, SERV EQ, SERV GRO, CL I SERV CL ---------------------------------------------------------------------------------------- 0.55% $ 5,782,551 $ 37,898 $ 1,495,952 $ 66,040 $ 249,267 0.75% 163,936,885 20,109,542 96,015,195 1,100,631 62,114,964 0.85% 270,995,433 -- -- 879,387 786,804 0.95% 76,409,408 13,031,326 70,015,626 754,038 44,892,676 1.00% 26,717,625 -- 9,949,966 228,872 7,104,362 1.05% 122,604,481 -- -- 542,907 772,618 1.10% 65,056,628 -- -- 185,304 378,143 1.20% 13,406,858 -- 6,320,591 98,296 3,711,239 1.25% -- -- -- -- -- 1.25% 3,893,771 -- -- 4,780 176,465 1.30% 36,983,194 -- -- 126,615 390,218 1.45% 6,078,668 -- -- 33,755 146,818 - ----------------------------------------------------------------------------------------------------------------------------------- Total $791,865,502 $ 33,178,766 $183,797,330 $ 4,020,625 $120,723,574 - ----------------------------------------------------------------------------------------------------------------------------------- MFS MFS MFS NB AMT NB AMT SOC NEW DIS, TOTAL RETURN, UTILITIES, SERV INTL, RESPONSIVE, PRICE LEVEL SERV CL SERV CL CL CL S CL S ---------------------------------------------------------------------------------------- 0.55% $ 132,839 $ 290,162 $ 1,745,452 $ 2,270,614 $ -- 0.75% 42,675,424 44,734,291 176,514,366 69,113,192 -- 0.85% -- 8,026,253 25,903,829 103,536,187 762,660 0.95% 31,790,080 28,463,452 114,603,589 32,656,409 -- 1.00% 4,364,690 14,873,800 21,320,972 11,023,989 -- 1.05% -- 6,466,445 16,839,524 46,626,668 523,053 1.10% -- 3,581,930 7,393,357 24,750,204 564,111 1.20% 3,125,352 11,032,008 17,479,989 5,225,093 -- 1.25% -- -- -- -- -- 1.25% -- 759,058 686,672 1,488,369 37,091 1.30% -- 3,169,717 5,042,893 13,889,400 171,325 1.45% -- 999,667 1,697,050 2,468,485 51,012 - ----------------------------------------------------------------------------------------------------------------------------------- Total $ 82,088,385 $122,396,783 $389,227,693 $313,048,610 $ 2,109,252 - -----------------------------------------------------------------------------------------------------------------------------------
94 RIVERSOURCE VARIABLE ACCOUNT 10
OPPEN OPPEN OPPEN OPPEN PIMCO VIT GLOBAL SEC MAIN ST SM STRATEGIC VAL VA, ALL ASSET, PRICE LEVEL VA, SERV CAP VA, SERV BOND VA, SERV SERV ADVISOR CL ---------------------------------------------------------------------------------------- 0.55% $ 1,777,157 $ 952,228 $ 11,688,169 $ -- $ 5,114,810 0.75% 77,382,075 47,938,833 674,292,795 -- 180,427,956 0.85% 8,387,328 8,364,647 371,069,467 2,055,294 270,646,454 0.95% 51,355,240 32,133,695 450,480,494 -- 91,880,586 1.00% 18,877,700 13,299,934 114,810,084 -- 30,165,995 1.05% 6,640,172 5,908,122 213,056,617 1,907,157 134,198,652 1.10% 2,718,080 3,555,817 102,935,162 825,477 68,699,475 1.20% 11,009,814 6,555,126 77,668,550 -- 16,389,514 1.25% -- -- -- -- -- 1.25% 467,505 399,955 12,047,499 49,708 5,016,830 1.30% 2,009,191 2,187,432 80,998,080 468,057 44,099,268 1.45% 946,631 519,999 22,091,527 417,403 8,610,440 - ----------------------------------------------------------------------------------------------------------------------------------- Total $181,570,893 $121,815,788 $2,131,138,444 $ 5,723,096 $855,249,980 - ----------------------------------------------------------------------------------------------------------------------------------- PIONEER PIONEER PUT VT HLTH PUT VT PUT VT EQ INC VCT, INTL VAL SCIENCES, INTL EQ, INTL NEW OPP, PRICE LEVEL CL II VCT, CL II CL IB CL IB CL IB ---------------------------------------------------------------------------------------- 0.55% $ 77,736 $ 2,049 $ 74,148 $ 122,784 $ 138,779 0.75% 32,406,528 4,561,179 21,724,428 51,585,040 48,065,872 0.85% -- -- -- -- -- 0.95% 22,256,218 2,707,218 12,007,983 32,404,713 40,894,892 1.00% 5,381,325 456,291 3,846,844 6,467,471 -- 1.05% -- -- -- -- -- 1.10% -- -- -- -- -- 1.20% 2,710,293 338,201 1,810,118 4,094,059 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.30% -- -- -- -- -- 1.45% -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total $ 62,832,100 $ 8,064,938 $ 39,463,521 $ 94,674,067 $ 89,099,543 - ----------------------------------------------------------------------------------------------------------------------------------- PUT VT PUT VT RVS VP RVS VP NEW OPP, VISTA, RVS VP CASH CORE PRICE LEVEL CL IA CL IB BAL MGMT BOND ---------------------------------------------------------------------------------------- 0.55% $ -- $ 412,421 $ 469,099 $ 14,421,019 $ 437,304 0.75% -- 36,886,677 108,159,459 344,562,719 35,242,555 0.85% -- -- 3,726,611 64,449,806 3,317,440 0.95% -- 28,517,109 92,749,062 293,690,840 32,709,352 1.00% -- 1,037,896 6,858,151 42,694,128 5,276,947 1.05% -- -- 3,535,599 69,988,928 3,805,424 1.10% -- -- 1,565,482 22,994,264 852,347 1.20% -- 595,901 5,393,367 36,169,881 5,723,486 1.25% -- -- 199,992(1) 6,785,480(1) -- 1.25% 153,099,942 -- 175,582,218(2) 70,227,467(2) 128,606 1.30% -- -- 1,050,988 26,616,984 868,073 1.45% -- -- 698,304 16,563,709 500,717 - ----------------------------------------------------------------------------------------------------------------------------------- Total $153,099,942 $ 67,450,004 $ 399,988,332 $1,009,165,225 $ 88,862,251 - -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 95
RVS RVS THDL RVS PTNRS VP RVS VP VP DIV VP DIV VP EMER FUNDAMENTAL GLOBAL PRICE LEVEL BOND EQ INC MKTS VAL BOND ------------------------------------------------------------------------------ 0.55% $ 13,596,009 $ 18,276,552 $ 5,772,645 $ 4,034,869 $ 4,872,543 0.75% 842,142,271 1,090,461,337 251,812,349 131,532,803 314,761,669 0.85% 643,271,804 362,853,524 132,643,658 199,607,161 224,806,716 0.95% 563,983,825 696,129,128 139,833,945 62,158,825 214,665,410 1.00% 125,003,273 135,262,824 34,738,541 20,799,153 45,980,435 1.05% 363,369,069 168,630,705 58,337,258 92,404,700 125,055,954 1.10% 178,201,989 86,122,440 30,867,175 48,721,872 61,189,359 1.20% 82,101,483 83,625,545 19,151,483 10,706,845 32,456,042 1.25% 17,062,537(1) -- -- -- 6,229,048(1) 1.25% 143,955,430(2) 7,148,039 2,073,972 3,068,604 49,144,909(2) 1.30% 130,391,544 50,938,829 17,214,590 28,314,150 43,790,170 1.45% 31,252,486 10,895,761 3,043,745 4,851,895 10,395,978 - ------------------------------------------------------------------------------------------------------------------------- Total $3,134,331,720 $2,710,344,684 $695,489,361 $606,200,877 $1,133,348,233 - ------------------------------------------------------------------------------------------------------------------------- RVS VP GLOBAL RVS VP THDL INFLATION RVS VP HI YIELD RVS VP VP PRICE LEVEL PROT SEC GRO BOND INC OPP INTL OPP ------------------------------------------------------------------------------ 0.55% $ 3,075,054 $ 2,837,997 $ 2,265,189 $ 3,044,610 $ 1,670,984 0.75% 166,377,294 213,360,230 304,084,418 135,687,450 94,932,221 0.85% 138,679,949 5,228,537 18,416,263 165,296,563 4,580,506 0.95% 99,489,136 137,622,289 255,760,878 76,287,847 72,926,905 1.00% 29,781,682 24,574,695 30,549,314 23,815,720 10,345,995 1.05% 75,628,211 4,319,813 12,968,808 82,386,904 4,174,146 1.10% 36,797,756 1,619,677 3,680,254 41,851,339 1,585,275 1.20% 19,968,308 12,969,223 28,576,403 14,582,081 6,072,807 1.25% -- -- 841,929(1) -- 214,619(1) 1.25% 3,517,954 221,733 100,227,066(2) 2,952,790 172,243,378(2) 1.30% 26,218,168 1,000,830 3,806,333 26,407,249 1,629,356 1.45% 6,260,570 272,376 2,002,100 5,108,210 338,594 - ------------------------------------------------------------------------------------------------------------------------- Total $ 605,794,082 $ 404,027,400 $763,178,955 $577,420,763 $ 370,714,786 - ------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP LG CAP LG CAP MID CAP MID CAP RVS VP PRICE LEVEL EQ VAL GRO VAL S&P 500 ------------------------------------------------------------------------------ 0.55% $ 1,670,056 $ 267,165 $ 378,424 $ 2,115,415 $ 1,076,576 0.75% 375,337,203 10,608,162 69,305,282 106,959,860 132,855,603 0.85% 1,593,137 1,012,125 1,734,035 69,815,100 4,023,483 0.95% 234,844,310 5,486,323 47,592,275 64,645,681 95,302,304 1.00% 28,987,636 1,216,454 4,174,882 13,996,571 14,383,459 1.05% 1,345,959 714,670 1,025,783 34,413,204 3,252,147 1.10% 540,600 192,428 300,191 16,300,563 1,203,846 1.20% 13,525,635 1,028,633 2,638,693 7,699,141 10,934,486 1.25% 135,324(1) -- 54,877(1) -- -- 1.25% 385,377,990(2) 4,490 63,030,016(2) 1,284,525 242,328 1.30% 627,256 83,409 224,752 10,240,862 1,488,999 1.45% 159,071 46,805 104,865 1,992,936 588,115 - ------------------------------------------------------------------------------------------------------------------------- Total $1,044,144,177 $ 20,660,664 $190,564,075 $329,463,858 $ 265,351,346 - -------------------------------------------------------------------------------------------------------------------------
96 RIVERSOURCE VARIABLE ACCOUNT 10
RVS PTNRS RVS VP RVS VP RVS PTNRS ROYCE VP SELECT SHORT SM CAP VP SM CAP MICRO-CAP, PRICE LEVEL VAL DURATION ADV VAL INVEST CL ---------------------------------------------------------------------------------------- 0.55% $ 384,249 $ 1,094,343 $ 363,768 $ 6,344,216 $ 1,263,876 0.75% 12,456,265 157,921,048 64,269,683 268,332,330 58,463,430 0.85% 905,135 10,714,428 1,151,078 196,587,879 -- 0.95% 7,010,265 135,274,766 46,863,624 141,618,558 56,685,019 1.00% 1,971,417 14,172,838 5,379,685 39,580,010 -- 1.05% 764,104 6,255,901 697,668 90,751,010 -- 1.10% 260,059 1,708,742 193,829 47,782,806 -- 1.20% 1,304,409 14,201,094 3,314,188 20,310,825 -- 1.25% -- -- -- -- -- 1.25% 22,837 482,959 47,220 2,959,398 -- 1.30% 208,447 2,486,501 151,807 27,525,052 -- 1.45% 39,791 1,803,675 19,931 4,582,448 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total $ 25,326,978 $346,116,295 $122,452,481 $846,374,532 $116,412,325 - ----------------------------------------------------------------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF THIRD AVE COMSTOCK, GLOBAL REAL MID CAP WANGER PRICE LEVEL VAL CL II EST, CL II GRO, CL II INTL SM CAP ---------------------------------------------------------------------------------------- 0.55% $ 576,030 $ 4,871,367 $ 1,634,222 $ 168,811 $ 7,824,814 0.75% 74,555,820 298,478,974 56,922,851 17,980,380 432,150,726 0.85% -- 166,385,699 49,247,946 6,034,350 80,295,668 0.95% 72,961,234 149,397,974 33,162,188 11,033,775 280,619,338 1.00% -- 67,751,306 10,990,782 3,018,940 57,616,030 1.05% -- 75,205,922 23,404,430 3,751,685 41,449,460 1.10% -- 40,303,863 13,087,910 1,624,826 20,107,171 1.20% -- 35,732,595 5,480,493 1,779,896 32,534,658 1.25% -- -- -- -- -- 1.25% -- 2,985,048 925,938 273,778 1,586,606 1.30% -- 23,792,455 7,271,497 1,322,496 13,147,283 1.45% -- 4,959,976 1,253,812 503,879 2,804,986 - ----------------------------------------------------------------------------------------------------------------------------------- Total $148,093,084 $869,865,179 $203,382,069 $ 47,492,816 $970,136,740 - ----------------------------------------------------------------------------------------------------------------------------------- WF ADV WF ADV WF ADV WANGER VT ASSET VT INTL WF ADV VT SM PRICE LEVEL U.S. SM CO ALLOC CORE VT OPP CAP GRO ---------------------------------------------------------------------------------------- 0.55% $ 7,359,726 $ 9,523 $ 7,219 $ 482,972 $ 312,701 0.75% 420,669,697 51,110,924 10,482,158 44,364,505 47,628,829 0.85% 87,189,920 -- -- 2,509,871 6,693,704 0.95% 282,938,258 39,180,760 7,819,364 25,814,830 31,183,120 1.00% 63,198,785 5,564,872 972,279 6,802,119 4,911,175 1.05% 40,870,150 -- -- 1,127,298 4,180,887 1.10% 21,487,073 -- -- 484,854 1,418,555 1.20% 33,419,351 2,802,635 604,685 3,537,971 2,708,525 1.25% -- -- -- -- -- 1.25% 1,624,187 -- -- 33,431 239,032 1.30% 12,775,514 -- -- 246,911 1,242,742 1.45% 2,298,625 -- -- 100,492 464,683 - ----------------------------------------------------------------------------------------------------------------------------------- Total $973,831,286 $ 98,668,714 $ 19,885,705 $ 85,505,254 $100,983,953 - -----------------------------------------------------------------------------------------------------------------------------------
(1) Applicable to RAVA 4 Advantage, RAVA 4 Select and RAVA 4 Access products only. (2) Applicable to FPA product only. RIVERSOURCE VARIABLE ACCOUNT 10 97 9. FINANCIAL HIGHLIGHTS The following is a summary for each period in the five year period ended Dec. 31, 2007 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. Some of these subaccounts only offer one price level.
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) --------------------------------------------------------------------------------------------------------------- AIM VI CAP APPR, SER I 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% 2004 86,822 $0.91 to $0.89 $78,248 -- 0.55% to 0.95% 6.04% to 5.62% 2003 89,596 $0.86 to $0.85 $76,360 -- 0.55% to 0.95% 28.36% to 28.79% - --------------------------------------------------------------------------------------------------------------------------- AIM VI CAP APPR, SER II 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%(11) 2005 236,683 $1.08 to $1.12 $254,026 -- 0.55% to 1.20% 7.98% to 7.29% 2004 69,240 $1.00 to $1.04 $68,891 -- 0.55% to 1.20% 5.75% to 5.07% 2003 34,679 $0.94 to $0.99 $32,607 -- 0.55% to 1.20% 28.77% to 26.92% - --------------------------------------------------------------------------------------------------------------------------- AIM VI CAP DEV, SER I 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% 2004 38,648 $1.52 to $1.49 $57,869 -- 0.55% to 0.95% 14.87% to 14.41% 2003 41,077 $1.32 to $1.30 $53,706 -- 0.55% to 0.95% 34.69% to 34.02% - --------------------------------------------------------------------------------------------------------------------------- AIM VI CAP DEV, SER II 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%(11) 2005 42,661 $1.28 to $1.32 $54,342 -- 0.55% to 1.20% 8.67% to 7.97% 2004 36,244 $1.18 to $1.22 $42,616 -- 0.55% to 1.20% 14.64% to 13.89% 2003 20,527 $1.03 to $1.07 $21,116 -- 0.55% to 1.20% 33.77% to 33.75% - --------------------------------------------------------------------------------------------------------------------------- AIM VI CORE EQ, SER I 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% 2004 351,566 $1.65 to $1.65 $582,105 0.96% 1.25% to 1.25% 7.62% to 7.62% 2003 385,662 $1.53 to $1.53 $593,291 1.01% 1.25% to 1.25% 22.40% to 22.40% - --------------------------------------------------------------------------------------------------------------------------- AIM VI DYN, SER I 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% 2004 17,584 $1.01 to $1.08 $17,670 -- 0.55% to 1.20% 12.72% to 11.99% 2003 19,140 $0.89 to $0.97 $17,089 -- 0.55% to 1.20% 36.92% to 36.62% - --------------------------------------------------------------------------------------------------------------------------- AIM VI FIN SERV, SER I 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% 2004 19,444 $1.14 to $1.19 $22,147 0.80% 0.55% to 1.20% 8.08% to 7.38% 2003 15,907 $1.06 to $1.11 $16,818 0.64% 0.55% to 1.20% 29.27% to 27.59% - ---------------------------------------------------------------------------------------------------------------------------
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) --------------------------------------------------------------------------------------------------------------- AIM VI FIN SERV, SER II 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%(11) to 15.74%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- AIM VI GLOBAL HLTH CARE, SER II 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%(10) to 8.12%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- AIM VI INTL GRO, SER II 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%(11) 2005 247 $1.09 to $1.09 $269 4.53% 0.55% to 1.20% 8.28%(8) to 8.17%(8) 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- AIM VI TECH, SER I 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% 2004 25,352 $0.72 to $0.83 $18,466 -- 0.55% to 1.20% 4.06% to 3.38% 2003 14,615 $0.69 to $0.80 $10,252 -- 0.55% to 1.20% 43.75% to 42.86% - --------------------------------------------------------------------------------------------------------------------------- AB VPS GLOBAL TECH, CL B 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%(11) 2005 3,446 $1.06 to $1.06 $3,648 -- 0.55% to 1.20% 5.87%(8) to 5.76%(8) 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- AB VPS GRO & INC, CL B 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%(11) 2005 277,477 $1.13 to $1.20 $312,799 1.25% 0.55% to 1.20% 4.02% to 3.35% 2004 229,828 $1.09 to $1.16 $249,752 0.71% 0.55% to 1.20% 10.61% to 9.90% 2003 154,064 $0.98 to $1.05 $151,663 0.79% 0.55% to 1.20% 30.67% to 29.63% - --------------------------------------------------------------------------------------------------------------------------- AB VPS INTL VAL, CL B 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%(11) 2005 292,660 $1.90 to $1.92 $551,186 0.47% 0.55% to 1.20% 15.88% to 15.13% 2004 135,770 $1.64 to $1.67 $221,322 0.41% 0.55% to 1.20% 24.21% to 23.40% 2003 68,730 $1.32 to $1.35 $90,422 0.27% 0.55% to 1.20% 43.48% to 42.11% - --------------------------------------------------------------------------------------------------------------------------- AB VPS LG CAP GRO, CL B 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%(11) to 8.66%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
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) --------------------------------------------------------------------------------------------------------------- AC VP INTL, CL I 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% 2004 59,554 $0.94 to $0.92 $55,192 0.54% 0.55% to 0.95% 14.29% to 13.84% 2003 57,923 $0.82 to $0.81 $47,110 0.73% 0.55% to 0.95% 24.24% to 22.73% - --------------------------------------------------------------------------------------------------------------------------- AC VP INTL, CL II 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% 2004 63,756 $1.04 to $1.18 $66,949 0.34% 0.55% to 1.20% 14.14% to 13.41% 2003 40,971 $0.91 to $1.04 $37,680 0.48% 0.55% to 1.20% 22.97% to 22.35% - --------------------------------------------------------------------------------------------------------------------------- AC VP MID CAP VAL, CL II 2007 258,311 $0.90 to $1.11 $266,954 1.22% 0.55% to 1.45% (10.10%)(15)to (3.84%) 2006 2,743 $1.16 to $1.16 $3,176 2.31% 0.85% to 1.45% 15.32%(11) to 14.97%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- AC VP ULTRA, CL II 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%(11) 2005 18,578 $1.04 to $1.04 $19,240 -- 0.55% to 1.20% 3.73%(8) to 3.62%(8) 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- AC VP VAL, CL I 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% 2004 348,194 $1.54 to $2.27 $713,848 0.97% 0.55% to 1.25% 13.71% to 12.92% 2003 324,528 $1.35 to $2.01 $587,978 1.05% 0.55% to 1.25% 27.36% to 27.22% - --------------------------------------------------------------------------------------------------------------------------- AC VP VAL, CL II 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%(11) 2005 281,618 $1.36 to $1.32 $378,826 0.64% 0.55% to 1.20% 4.28% to 3.61% 2004 210,265 $1.31 to $1.27 $272,314 0.73% 0.55% to 1.20% 13.55% to 12.81% 2003 141,163 $1.15 to $1.13 $161,583 0.78% 0.55% to 1.20% 27.78% to 26.97% - --------------------------------------------------------------------------------------------------------------------------- CALVERT VS SOCIAL BAL 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% 2004 42,435 $1.00 to $1.11 $42,296 1.96% 0.55% to 1.20% 7.66% to 6.97% 2003 31,464 $0.93 to $1.04 $29,107 2.40% 0.55% to 1.20% 19.23% to 18.18% - --------------------------------------------------------------------------------------------------------------------------- COL HI YIELD, VS CL B 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%(9) to 8.13%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
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) --------------------------------------------------------------------------------------------------------------- COL MARSICO GRO, VS CL A 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%(10) to 8.65%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- COL MARSICO INTL OPP, VS CL B 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%(10) to 19.72%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- CS COMMODITY RETURN 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%)(10)to 0.65%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- CS MID-CAP CORE 2007 15,558 $1.45 to $1.40 $22,004 -- 0.55% to 0.95% 11.07% to 10.62% 2006 19,843 $1.30 to $1.27 $25,343 -- 0.55% to 0.95% 1.34% to 0.93% 2005 25,218 $1.29 to $1.26 $31,881 -- 0.55% to 0.95% 6.39% to 5.97% 2004 30,758 $1.21 to $1.18 $36,657 -- 0.55% to 0.95% 12.50% to 12.05% 2003 34,940 $1.08 to $1.06 $37,126 -- 0.55% to 0.95% 44.00% to 43.24% - --------------------------------------------------------------------------------------------------------------------------- CS SM CAP CORE I 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%) 2004 295,070 $1.40 to $1.40 $415,056 -- 1.25% to 1.25% 9.49% to 9.49% 2003 313,370 $1.28 to $1.28 $402,465 -- 1.25% to 1.25% 47.13% to 47.13% - --------------------------------------------------------------------------------------------------------------------------- DREY VIF INTL EQ, SERV 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%(11) 17.70%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- DREY VIF INTL VAL, SERV 2007 2,931 $1.19 to $1.18 $3,492 1.00% 0.85% to 1.45% 3.04% to 2.42% 2006 1,167 $1.16 to $1.16 $1,351 -- 0.85% to 1.45% 15.81%(11) 15.45%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EV VT FLOATING-RATE INC 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%(10) to 2.50%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
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) --------------------------------------------------------------------------------------------------------------- EG VA FUNDAMENTAL LG CAP, CL 2 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%(11) 2005 30,155 $1.01 to $1.10 $30,645 0.82% 0.55% to 1.20% 8.15% to 7.45% 2004 23,448 $0.94 to $1.02 $22,145 1.06% 0.55% to 1.20% 8.33% to 7.63% 2003 18,707 $0.86 to $0.95 $16,343 6.60% 0.55% to 1.20% 3.61%(4) to 4.40%(4) - --------------------------------------------------------------------------------------------------------------------------- EG VA INTL EQ, CL 2 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%(11) 2005 33,531 $1.32 to $1.31 $44,080 3.25% 0.55% to 1.20% 15.04% to 14.30% 2004 8,450 $1.15 to $1.14 $9,684 2.51% 0.55% to 1.20% 16.83%(5) to 16.14%(5) 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- FID VIP CONTRAFUND, SERV CL 2 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%(10) to 8.94%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- FID VIP GRO & INC, SERV CL 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% 2004 251,135 $0.97 to $0.95 $241,008 0.79% 0.55% to 0.95% 5.18% to 4.76% 2003 245,972 $0.92 to $0.91 $225,087 1.06% 0.55% to 0.95% 22.67% to 22.97% - --------------------------------------------------------------------------------------------------------------------------- FID VIP GRO & INC, SERV CL 2 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% 2004 353,479 $1.06 to $1.09 $375,117 0.64% 0.55% to 1.20% 4.95% to 4.27% 2003 228,596 $1.01 to $1.04 $231,686 0.66% 0.55% to 1.20% 21.69% to 22.35% - --------------------------------------------------------------------------------------------------------------------------- FID VIP MID CAP, SERV CL 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% 2004 147,113 $2.43 to $2.38 $352,910 -- 0.55% to 0.95% 24.09% to 23.59% 2003 138,655 $1.96 to $1.93 $268,769 0.31% 0.55% to 0.95% 38.03% to 37.86% - --------------------------------------------------------------------------------------------------------------------------- FID VIP MID CAP, SERV CL 2 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%(11) 2005 496,239 $1.86 to $1.76 $908,519 1.41% 0.55% to 1.20% 17.37% to 16.61% 2004 356,492 $1.59 to $1.51 $558,130 -- 0.55% to 1.20% 23.97% to 23.17% 2003 207,277 $1.28 to $1.23 $262,748 0.18% 0.55% to 1.20% 37.63% to 36.67% - --------------------------------------------------------------------------------------------------------------------------- FID VIP OVERSEAS, SERV CL 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% 2004 86,132 $0.98 to $0.96 $83,695 0.96% 0.55% to 0.95% 12.86% to 12.41% 2003 66,234 $0.87 to $0.86 $57,249 0.74% 0.55% to 0.95% 42.62% to 43.33% - ---------------------------------------------------------------------------------------------------------------------------
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) --------------------------------------------------------------------------------------------------------------- FID VIP OVERSEAS, SERV CL 2 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%(11) 2005 136,453 $1.42 to $1.53 $193,596 0.49% 0.55% to 1.20% 18.13% to 17.37% 2004 122,929 $1.20 to $1.31 $147,870 0.73% 0.55% to 1.20% 12.68% to 11.95% 2003 58,124 $1.06 to $1.17 $62,227 0.34% 0.55% to 1.20% 41.33% to 40.96% - --------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK GLOBAL REAL EST, CL 2 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%(11) 2005 266,642 $2.73 to $1.97 $690,004 1.39% 0.55% to 1.20% 12.85% to 12.12% 2004 230,881 $2.42 to $1.76 $533,004 1.86% 0.55% to 1.20% 31.08% to 30.23% 2003 166,493 $1.85 to $1.35 $296,754 2.44% 0.55% to 1.20% 35.04% to 33.66% - --------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK SM CAP VAL, CL 2 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%(11) 2005 156,167 $2.14 to $1.57 $316,893 0.75% 0.55% to 1.20% 8.17% to 7.47% 2004 118,566 $1.98 to $1.46 $224,252 0.18% 0.55% to 1.20% 23.07% to 22.27% 2003 87,363 $1.61 to $1.20 $135,426 0.21% 0.55% to 1.20% 31.97% to 30.43% - --------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SEC, CL 2 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%(11) 2005 151,140 $1.30 to $1.34 $196,107 0.87% 0.55% to 1.20% 9.95% to 9.24% 2004 99,871 $1.18 to $1.22 $118,373 0.76% 0.55% to 1.20% 12.02% to 11.29% 2003 58,929 $1.05 to $1.10 $62,601 0.96% 0.55% to 1.20% 23.53% to 23.60% - --------------------------------------------------------------------------------------------------------------------------- FTVIPT TEMP DEV MKTS SEC, CL 1 2007 110,251 $1.79 to $1.79 $197,632 2.56% 1.25% to 1.25% 27.47% to 27.47% 2006 179,403 $1.40 to $1.40 $252,258 1.27% 1.25% to 1.25% 26.84% to 26.84% 2005 254,244 $1.10 to $1.10 $281,629 1.43% 1.25% to 1.25% 26.18% to 26.18% 2004 274,586 $0.88 to $0.88 $240,781 1.92% 1.25% to 1.25% 23.28% to 23.28% 2003 272,504 $0.71 to $0.71 $193,809 1.36% 1.25% to 1.25% 51.06% to 51.06% - --------------------------------------------------------------------------------------------------------------------------- FTVIPT TEMP FOR SEC, CL 2 2007 25,304 $1.98 to $1.94 $49,455 1.98% 0.55% to 0.95% 14.82% to 14.36% 2006 30,344 $1.73 to $1.69 $51,831 1.25% 0.55% to 0.95% 20.78% to 20.30% 2005 36,373 $1.43 to $1.41 $51,495 1.18% 0.55% to 0.95% 9.57% to 9.13% 2004 31,651 $1.30 to $1.29 $41,042 1.04% 0.55% to 0.95% 17.88% to 17.41% 2003 24,004 $1.11 to $1.10 $26,415 1.67% 0.55% to 0.95% 32.14% to 30.95% - --------------------------------------------------------------------------------------------------------------------------- GS VIT MID CAP VAL, INST 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% 2004 226,018 $2.09 to $1.50 $451,843 0.70% 0.55% to 1.20% 25.19% to 24.38% 2003 162,339 $1.67 to $1.21 $261,988 1.08% 0.55% to 1.20% 27.48% to 27.37% - --------------------------------------------------------------------------------------------------------------------------- GS VIT STRUCTD SM CAP EQ, INST 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% 2004 26,859 $1.69 to $1.66 $44,779 0.19% 0.55% to 0.95% 15.69% to 15.23% 2003 29,916 $1.46 to $1.44 $43,240 0.24% 0.55% to 0.95% 44.55% to 44.00% - ---------------------------------------------------------------------------------------------------------------------------
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) --------------------------------------------------------------------------------------------------------------- GS VIT STRUCTD U.S. EQ, INST 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%(11) 2005 467,555 $1.05 to $1.23 $492,636 1.00% 0.55% to 1.20% 5.93% to 5.24% 2004 253,878 $0.99 to $1.17 $251,604 1.38% 0.55% to 1.20% 14.31% to 13.57% 2003 169,762 $0.87 to $1.03 $146,765 0.79% 0.55% to 1.20% 29.85% to 28.75% - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN GLOBAL TECH, SERV 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% 2004 65,787 $0.37 to $0.91 $24,174 -- 0.55% to 1.20% 0.02% to (0.63%) 2003 71,812 $0.37 to $0.92 $26,415 -- 0.55% to 1.20% 48.00% to 46.03% - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN INTL GRO, SERV 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% 2004 139,788 $0.71 to $1.23 $99,632 0.84% 0.55% to 1.20% 18.04% to 17.27% 2003 152,636 $0.60 to $1.05 $92,188 0.98% 0.55% to 1.20% 33.33% to 32.91% - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN LG CAP GRO, SERV 2007 747,893 $1.06 to $1.06 $791,866 0.66% 0.55% to 1.45% 6.28%(15) to 5.64%(15) 2006 -- -- to -- -- -- -- to -- -- to -- 2005 -- -- to -- -- -- -- to -- -- to -- 2004 -- -- to -- -- -- -- to -- -- to -- 2003 -- -- to -- -- -- -- to -- -- to -- - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN MID CAP GRO, SERV 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% 2004 71,059 $0.49 to $0.48 $34,099 -- 0.55% to 0.95% 19.82% to 19.34% 2003 85,736 $0.41 to $0.40 $34,434 -- 0.55% to 0.95% 36.67% to 33.33% - --------------------------------------------------------------------------------------------------------------------------- LAZARD RETIRE INTL EQ, SERV 2007 131,001 $1.40 to $1.92 $183,797 2.37% 0.55% to 1.20% 10.17% to 9.46% 2006 162,153 $1.27 to $1.75 $207,522 1.00% 0.55% to 1.20% 21.86% to 21.07% 2005 188,675 $1.04 to $1.45 $198,502 0.98% 0.55% to 1.20% 10.04% to 9.33% 2004 168,208 $0.94 to $1.33 $160,817 0.54% 0.55% to 1.20% 14.35% to 13.61% 2003 123,056 $0.83 to $1.17 $102,535 0.35% 0.55% to 1.20% 27.69% to 27.17% - --------------------------------------------------------------------------------------------------------------------------- LM PTNRS VAR SM CAP GRO, CL I 2007 3,951 $1.02 to $1.01 $4,021 -- 0.55% to 1.45% 2.02%(14) to 1.39%(14) 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- MFS INV GRO STOCK, SERV CL 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%(11) 2005 216,007 $0.67 to $1.02 $146,971 0.14% 0.55% to 1.20% 3.66% to 2.99% 2004 195,430 $0.64 to $0.99 $127,400 -- 0.55% to 1.20% 8.39% to 7.69% 2003 172,322 $0.59 to $0.92 $103,234 -- 0.55% to 1.20% 20.41% to 21.05% - ---------------------------------------------------------------------------------------------------------------------------
104 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) --------------------------------------------------------------------------------------------------------------- MFS NEW DIS, SERV CL 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% 2004 149,075 $0.86 to $1.00 $128,085 -- 0.55% to 1.20% 5.63% to 4.94% 2003 146,404 $0.81 to $0.95 $119,207 -- 0.55% to 1.20% 32.79% to 31.94% - --------------------------------------------------------------------------------------------------------------------------- MFS TOTAL RETURN, SERV CL 2007 98,587 $1.28 to $1.13 $122,397 2.26% 0.55% to 1.45% 3.36% to 2.43% 2006 87,237 $1.24 to $1.11 $106,831 2.09% 0.55% to 1.45% 11.01% to 10.48%(11) 2005 74,459 $1.12 to $1.10 $82,895 1.46% 0.55% to 1.20% 2.04% to 1.38% 2004 26,242 $1.10 to $1.09 $28,760 0.61% 0.55% to 1.20% 9.02%(5) to 8.38%(5) 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- MFS UTILITIES, SERV CL 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%(11) 2005 103,681 $1.38 to $1.68 $145,619 0.42% 0.55% to 1.20% 15.93% to 15.18% 2004 52,792 $1.19 to $1.46 $64,198 1.21% 0.55% to 1.20% 29.13% to 28.30% 2003 33,751 $0.92 to $1.14 $31,693 1.87% 0.55% to 1.20% 35.29% to 34.12% - --------------------------------------------------------------------------------------------------------------------------- NB AMT INTL, CL S 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%(10) to 16.75%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- NB AMT SOC RESPONSIVE, CL S 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%(11) to 13.09%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- OPPEN GLOBAL SEC VA, SERV 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%(11) 2005 72,423 $1.31 to $1.30 $94,587 0.57% 0.55% to 1.20% 13.44% to 12.70% 2004 24,526 $1.16 to $1.15 $28,389 0.15% 0.55% to 1.20% 15.92%(5) to 15.24%(5) 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- OPPEN MAIN ST SM CAP VA, SERV 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%(11) 2005 41,895 $1.26 to $1.24 $52,482 -- 0.55% to 1.20% 9.11% to 8.41% 2004 16,643 $1.16 to $1.15 $19,170 -- 0.55% to 1.20% 17.36%(5) to 16.67%(5) 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- OPPEN STRATEGIC BOND VA, SERV 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%(11) 2005 306,977 $1.09 to $1.08 $332,896 1.97% 0.55% to 1.20% 1.92% to 1.26% 2004 46,499 $1.07 to $1.06 $49,696 0.56% 0.55% to 1.20% 7.06%(5) to 6.43%(5) 2003 -- -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 105
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) --------------------------------------------------------------------------------------------------------------- OPPEN VAL VA, SERV 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%(12) to 6.81%(12) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET, ADVISOR CL 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%(10) to 6.59%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- PIONEER EQ INC VCT, CL II 2007 43,594 $1.46 to $1.47 $62,832 2.26% 0.55% to 1.20% (0.01%) to (0.66%) 2006 48,064 $1.46 to $1.48 $69,591 2.33% 0.55% to 1.20% 21.45% to 20.67% 2005 53,522 $1.20 to $1.23 $64,029 2.13% 0.55% to 1.20% 4.94% to 4.26% 2004 48,892 $1.14 to $1.18 $55,958 2.13% 0.55% to 1.20% 15.40% to 14.66% 2003 42,477 $0.99 to $1.03 $42,277 2.14% 0.55% to 1.20% 22.22% to 21.18% - --------------------------------------------------------------------------------------------------------------------------- PIONEER INTL VAL VCT, CL II 2007 7,134 $1.13 to $1.13 $8,065 0.33% 0.55% to 1.20% 12.62% to 11.89% 2006 8,608 $1.01 to $1.01 $8,668 -- 0.55% to 1.20% 0.70%(13) to 0.68%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- PUT VT HLTH SCIENCES, CL IB 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% 2004 37,011 $0.98 to $1.00 $35,996 0.17% 0.55% to 1.20% 6.54% to 5.85% 2003 30,753 $0.92 to $0.94 $28,128 0.46% 0.55% to 1.20% 17.95% to 17.50% - --------------------------------------------------------------------------------------------------------------------------- PUT VT INTL EQ, CL IB 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% 2004 72,649 $1.16 to $1.25 $84,438 1.45% 0.55% to 1.20% 15.56% to 14.81% 2003 70,062 $1.01 to $1.09 $70,669 0.71% 0.55% to 1.20% 27.85% to 26.74% - --------------------------------------------------------------------------------------------------------------------------- PUT VT INTL NEW OPP, CL IB 2007 65,316 $1.40 to $1.35 $89,100 0.88% 0.55% to 0.95% 12.59% to 12.14% 2006 77,661 $1.24 to $1.21 $94,463 1.35% 0.55% to 0.95% 25.44% to 24.94% 2005 90,632 $0.99 to $0.97 $88,142 0.68% 0.55% to 0.95% 17.72% to 17.25% 2004 107,334 $0.84 to $0.82 $88,924 1.02% 0.55% to 0.95% 12.73% to 12.28% 2003 128,360 $0.75 to $0.73 $94,570 0.31% 0.55% to 0.95% 33.93% to 30.36% - --------------------------------------------------------------------------------------------------------------------------- PUT VT NEW OPP, CL IA 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% 7.48% 2005 206,197 $1.38 to $1.38 $286,496 0.38% 1.25% to 1.25% 8.96% to 8.96% 2004 265,044 $1.27 to $1.27 $337,875 -- 1.25% to 1.25% 9.20% to 9.20% 2003 324,631 $1.16 to $1.16 $378,811 -- 1.25% to 1.25% 30.34% to 30.34% - ---------------------------------------------------------------------------------------------------------------------------
106 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) --------------------------------------------------------------------------------------------------------------- PUT VT VISTA, CL IB 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% 2004 110,020 $0.92 to $1.12 $100,428 -- 0.55% to 1.20% 17.96% to 17.19% 2003 131,762 $0.78 to $0.96 $102,200 -- 0.55% to 1.20% 32.20% to 31.51% - --------------------------------------------------------------------------------------------------------------------------- RVS VP BAL 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%(11) 2005 360,863 $1.10 to $1.66 $501,036 2.59% 0.55% to 1.25% 3.35% to 2.63% 2004 373,845 $1.06 to $1.61 $515,992 2.28% 0.55% to 1.25% 9.00% to 8.23% 2003 384,617 $0.97 to $1.49 $496,929 2.26% 0.55% to 1.25% 19.75% to 18.25% - --------------------------------------------------------------------------------------------------------------------------- RVS VP CASH MGMT 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%(11) 2005 429,069 $1.13 to $1.23 $477,358 2.58% 0.55% to 1.25% 2.05% to 1.34% 2004 426,212 $1.11 to $1.21 $468,695 0.73% 0.55% to 1.25% 0.19% to (0.51%) 2003 486,939 $1.11 to $1.22 $539,742 0.51% 0.55% to 1.25% 0.00% to (0.81%) - --------------------------------------------------------------------------------------------------------------------------- RVS VP CORE BOND 2007 80,606 $1.12 to $1.08 $88,862 4.47% 0.55% to 1.45% 4.76% to 3.82% 2006 59,405 $1.07 to $1.04 $62,773 4.17% 0.55% to 1.45% 3.24% to 4.36%(11) 2005 40,317 $1.04 to $1.02 $58,374 3.36% 0.55% to 1.20% 1.22% to 0.57% 2004 15,787 $1.02 to $1.02 $41,656 2.55% 0.55% to 1.20% 2.45%(5) to 1.85%(5) 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVS VP DIV BOND 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%(11) 2005 842,520 $1.31 to $1.41 $1,094,933 3.71% 0.55% to 1.25% 1.56% to 0.85% 2004 639,931 $1.29 to $1.40 $835,025 3.83% 0.55% to 1.25% 3.92% to 3.19% 2003 618,469 $1.24 to $1.36 $788,063 3.58% 0.55% to 1.25% 3.33% to 3.82% - --------------------------------------------------------------------------------------------------------------------------- RVS VP DIV EQ INC 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%(11) 2005 772,974 $1.53 to $1.51 $1,175,707 1.61% 0.55% to 1.20% 12.88% to 12.15% 2004 482,647 $1.36 to $1.35 $652,523 1.65% 0.55% to 1.20% 17.56% to 16.80% 2003 249,818 $1.16 to $1.15 $288,112 1.60% 0.55% to 1.20% 41.46% to 38.55% - --------------------------------------------------------------------------------------------------------------------------- THDL VP EMER MKTS 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%(11) 2005 134,343 $1.58 to $2.02 $213,076 0.20% 0.55% to 1.20% 33.07% to 32.21% 2004 42,521 $1.19 to $1.53 $50,449 3.09% 0.55% to 1.20% 23.47% to 22.67% 2003 15,683 $0.96 to $1.25 $19,823 1.73% 0.55% to 1.20% 39.13% to 38.89% - --------------------------------------------------------------------------------------------------------------------------- RVS PTNRS VP FUNDAMENTAL VAL 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%(10) to 10.70%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 107
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 GLOBAL BOND 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%(11) 2005 331,823 $1.38 to $1.46 $454,346 3.91% 0.55% to 1.25% (5.52%) to (6.17%) 2004 242,562 $1.46 to $1.55 $355,988 4.10% 0.55% to 1.25% 9.42% to 8.66% 2003 186,450 $1.33 to $1.43 $253,433 7.33% 0.55% to 1.25% 12.71% to 11.72% - --------------------------------------------------------------------------------------------------------------------------- RVS VP GLOBAL INFLATION PROT SEC 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%(11) 2005 177,692 $1.05 to $1.04 $186,090 7.05% 0.55% to 1.20% 2.24% to 1.59% 2004 9,951 $1.03 to $1.03 $10,223 3.47% 0.55% to 1.20% 2.67%(6) to 2.47%(6) 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVS VP GRO 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%(11) 2005 579,086 $0.67 to $1.05 $398,436 0.39% 0.55% to 1.20% 8.02% to 7.32% 2004 340,148 $0.62 to $0.98 $213,399 0.32% 0.55% to 1.20% 7.84% to 7.14% 2003 349,978 $0.57 to $0.92 $203,000 0.21% 0.55% to 1.20% 21.28% to 21.05% - --------------------------------------------------------------------------------------------------------------------------- RVS VP HI YIELD BOND 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%(11) 2005 715,854 $1.26 to $1.39 $919,121 6.46% 0.55% to 1.25% 3.45% to 2.73% 2004 730,172 $1.22 to $1.36 $914,940 6.99% 0.55% to 1.25% 10.78% to 10.01% 2003 622,128 $1.10 to $1.23 $712,392 7.63% 0.55% to 1.25% 23.60% to 23.00% - --------------------------------------------------------------------------------------------------------------------------- RVS VP INC OPP 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%(11) 2005 59,285 $1.07 to $1.06 $63,157 5.94% 0.55% to 1.20% 2.76% to 2.10% 2004 2,406 $1.04 to $1.04 $2,505 5.77% 0.55% to 1.20% 3.92%(6) to 3.72%(6) 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- THDL VP INTL OPP 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%(11) 2005 335,839 $0.92 to $1.23 $370,645 1.43% 0.55% to 1.25% 13.24% to 12.45% 2004 281,107 $0.82 to $1.09 $282,571 1.13% 0.55% to 1.25% 16.76% to 15.95% 2003 215,587 $0.70 to $0.94 $192,941 0.92% 0.55% to 1.25% 27.27% to 25.33% - --------------------------------------------------------------------------------------------------------------------------- RVS VP LG CAP EQ 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%(11) 2005 587,040 $0.85 to $1.35 $570,540 1.15% 0.55% to 1.25% 5.59% to 4.86% 2004 386,123 $0.80 to $1.28 $384,039 0.92% 0.55% to 1.25% 5.30% to 4.57% 2003 277,050 $0.76 to $1.23 $286,327 0.62% 0.55% to 1.25% 28.81% to 28.13% - --------------------------------------------------------------------------------------------------------------------------- RVS VP LG CAP VAL 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%(11) 2005 11,470 $1.14 to $1.13 $16,462 1.60% 0.55% to 1.20% 3.96% to 3.29% 2004 6,542 $1.10 to $1.09 $10,459 1.89% 0.55% to 1.20% 10.01%(5) to 9.37%(5) 2003 -- -- -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
108 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 MID CAP GRO 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%(11) 2005 87,824 $1.26 to $1.25 $107,722 -- 0.55% to 1.20% 9.52% to 8.81% 2004 98,758 $1.15 to $1.15 $110,889 -- 0.55% to 1.20% 8.50% to 7.80% 2003 80,060 $1.06 to $1.06 $83,083 -- 0.55% to 1.20% 21.84% to 20.45% - --------------------------------------------------------------------------------------------------------------------------- RVS VP MID CAP VAL 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%(11) 2005 12,717 $1.20 to $1.19 $17,507 1.13% 0.55% to 1.20% 17.78%(7) to 17.28%(7) 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVS VP S&P 500 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%(11) 2005 304,082 $0.88 to $1.13 $272,014 1.40% 0.55% to 1.20% 3.83% to 3.16% 2004 283,879 $0.85 to $1.10 $244,571 1.50% 0.55% to 1.20% 9.66% to 8.95% 2003 208,338 $0.77 to $1.01 $163,372 1.21% 0.55% to 1.20% 26.23% to 26.25% - --------------------------------------------------------------------------------------------------------------------------- RVS PTNRS VP SELECT VAL 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%(11) 2005 18,946 $1.13 to $1.11 $24,577 0.49% 0.55% to 1.20% (0.05%) to (0.69%) 2004 9,024 $1.13 to $1.12 $13,503 1.11% 0.55% to 1.20% 12.84%(5) to 12.18%(5) 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVS VP SHORT DURATION 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%(11) 2005 302,534 $1.24 to $1.04 $361,417 2.89% 0.55% to 1.20% 1.02% to 0.37% 2004 326,084 $1.23 to $1.04 $387,853 2.44% 0.55% to 1.20% 0.30% to (0.35%) 2003 319,998 $1.22 to $1.04 $381,318 2.30% 0.55% to 1.20% 0.83% to 0.00% - --------------------------------------------------------------------------------------------------------------------------- RVS VP SM CAP ADV 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%(11) 2005 116,136 $1.61 to $1.51 $183,927 -- 0.55% to 1.20% 4.25% to 3.58% 2004 122,818 $1.54 to $1.45 $187,181 -- 0.55% to 1.20% 17.89% to 17.13% 2003 90,054 $1.31 to $1.24 $116,896 -- 0.55% to 1.20% 47.19% to 45.88% - --------------------------------------------------------------------------------------------------------------------------- RVS PTNRS VP SM CAP VAL 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%(11) 2005 234,333 $1.61 to $1.49 $370,927 0.21% 0.55% to 1.20% 5.19% to 4.51% 2004 168,145 $1.53 to $1.42 $254,207 0.03% 0.55% to 1.20% 19.36% to 18.58% 2003 125,783 $1.28 to $1.20 $159,989 0.04% 0.55% to 1.20% 37.63% to 36.36% - --------------------------------------------------------------------------------------------------------------------------- ROYCE MICRO-CAP, INVEST CL 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% 2004 54,526 $2.55 to $2.50 $137,329 -- 0.55% to 0.95% 13.22% to 12.77% 2003 54,945 $2.26 to $2.22 $122,428 -- 0.55% to 0.95% 48.68% to 48.00% - ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 109
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 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% 2004 66,587 $2.57 to $2.51 $168,558 0.54% 0.55% to 0.95% 19.24% to 18.76% 2003 67,135 $2.15 to $2.12 $142,904 0.19% 0.55% to 0.95% 41.45% to 41.33% - --------------------------------------------------------------------------------------------------------------------------- VANK LIT COMSTOCK, CL II 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%(11) 2005 384,396 $1.19 to $1.18 $456,175 0.49% 0.55% to 1.20% 3.54% to 2.87% 2004 75,664 $1.15 to $1.15 $87,005 0.11% 0.55% to 1.20% 14.41%(5) to 13.74%(5) 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- VANK UIF GLOBAL REAL EST, CL II 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%(10) to 26.94%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- VANK UIF MID CAP GRO, CL II 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%)(10)to 7.27%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- WANGER INTL SM CAP 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%(11) 2005 318,154 $1.69 to $1.98 $539,107 0.86% 0.55% to 1.20% 20.86% to 20.08% 2004 201,340 $1.40 to $1.65 $282,034 0.59% 0.55% to 1.20% 29.56% to 28.72% 2003 130,668 $1.08 to $1.28 $141,172 0.27% 0.55% to 1.20% 47.95% to 47.13% - --------------------------------------------------------------------------------------------------------------------------- WANGER U.S. SM CO 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%(11) 2005 478,752 $1.79 to $1.54 $828,367 -- 0.55% to 1.20% 10.64% to 9.93% 2004 368,407 $1.62 to $1.40 $579,332 -- 0.55% to 1.20% 17.68% to 16.92% 2003 261,219 $1.37 to $1.20 $351,317 -- 0.55% to 1.20% 42.71% to 41.18% - --------------------------------------------------------------------------------------------------------------------------- WF ADV VT ASSET ALLOC 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% 2004 80,918 $1.11 to $1.15 $89,406 2.16% 0.55% to 1.20% 8.74% to 8.04% 2003 59,332 $1.02 to $1.06 $60,495 1.74% 0.55% to 1.20% 21.43% to 20.45% - --------------------------------------------------------------------------------------------------------------------------- WF ADV VT INTL CORE 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% 2004 19,728 $0.99 to $1.13 $19,596 0.23% 0.55% to 1.20% 9.03% to 8.32% 2003 14,684 $0.90 to $1.05 $13,353 0.33% 0.55% to 1.20% 30.43% to 29.63% - ---------------------------------------------------------------------------------------------------------------------------
110 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) --------------------------------------------------------------------------------------------------------------- WF ADV VT OPP 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%(11) 2005 78,280 $1.23 to $1.25 $95,962 -- 0.55% to 1.20% 7.22% to 6.52% 2004 80,225 $1.15 to $1.18 $91,972 -- 0.55% to 1.20% 17.43% to 16.67% 2003 73,209 $0.98 to $1.01 $71,663 0.01% 0.55% to 1.20% 36.11% to 34.67% - --------------------------------------------------------------------------------------------------------------------------- WF ADV VT SM CAP GRO 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%(11) 2005 38,139 $0.98 to $1.10 $37,471 -- 0.55% to 1.20% 5.66% to 4.98% 2004 42,675 $0.93 to $1.05 $39,748 -- 0.55% to 1.20% 13.15% to 12.41% 2003 36,312 $0.82 to $0.94 $29,921 -- 0.55% to 1.20% 41.38% to 40.30% - ---------------------------------------------------------------------------------------------------------------------------
(1) These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount 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 subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest. 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 maximum to minimum values, based on the price level representing the minimum and maximum expense ratio amounts, some individual price level total returns are not within the ranges presented due to the introduction of new price levels during the year and other market factors. (4) New price level operations commenced on Dec. 8, 2003. (5) New price level operations commenced on Feb. 4, 2004. (6) New price level operations commenced on Sept. 13, 2004. (7) New price level operations commenced on May 2, 2005. (8) New price level operations commenced on Nov. 1, 2005. (9) New price level operations commenced on April 28, 2006. (10) New price level operations commenced on May 1, 2006. (11) New price level operations commenced on June 26, 2006. (12) New price level operations commenced on Sept. 15, 2006. (13) New price level operations commenced on Dec. 15, 2006. (14) New price level operations commenced on April 27, 2007. (15) New price level operations commenced on May 1, 2007. RIVERSOURCE VARIABLE ACCOUNT 10 111 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, 2007 and 2006, 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, 2007. 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, 2007 and 2006, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2007, in conformity with U.S. generally accepted accounting principles. As discussed in Note 3 to the consolidated financial statements, in 2007 the Company adopted Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109, and American Institute of Certified Public Accountants Statement of Position 05-1, Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modification or Exchanges of Insurance Contracts. /s/ Ernst & Young LLP Minneapolis, Minnesota February 27, 2008 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS (IN MILLIONS, EXCEPT SHARE AMOUNTS)
DECEMBER 31, 2007 2006 ASSETS Investments: Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2007, $21,020; 2006, $25,289) $20,792 $24,995 Common and preferred stocks, at fair value (cost: 2007 and 2006, $30) 29 31 Commercial mortgage loans, at cost (less allowance for loan losses: 2007, $16; 2006, $37) 2,892 2,790 Policy loans 697 650 Trading securities and other investments 67 241 - ------------------------------------------------------------------------------------------------- Total investments 24,477 28,707 Cash and cash equivalents 973 160 Reinsurance recoverables 1,290 1,137 Amounts due from brokers 123 7 Other accounts receivable 118 90 Accrued investment income 252 301 Deferred acquisition costs 4,429 4,411 Deferred sales inducement costs 511 452 Other assets 539 320 Separate account assets 58,070 49,287 - ------------------------------------------------------------------------------------------------- Total assets $90,782 $84,872 ================================================================================================= LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities: Future policy benefits $26,977 $29,561 Policy claims and other policyholders' funds 91 89 Amounts due to brokers 361 132 Deferred income taxes, net 133 90 Other liabilities 430 443 Separate account liabilities 58,070 49,287 - ------------------------------------------------------------------------------------------------- Total liabilities 86,062 79,602 - ------------------------------------------------------------------------------------------------- Shareholder's equity: Common stock, $30 par value; 100,000 shares authorized, issued and outstanding 3 3 Additional paid-in capital 2,031 2,021 Retained earnings 2,842 3,455 Accumulated other comprehensive loss, net of tax: Net unrealized securities losses (116) (168) Net unrealized derivative losses (40) (41) - ------------------------------------------------------------------------------------------------- Total accumulated other comprehensive loss (156) (209) - ------------------------------------------------------------------------------------------------- Total shareholder's equity 4,720 5,270 - ------------------------------------------------------------------------------------------------- Total liabilities and shareholder's equity $90,782 $84,872 =================================================================================================
See Notes to Consolidated Financial Statements. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2007 2006 2005 REVENUES Premiums $ 485 $ 533 $ 521 Net investment income 1,555 1,657 1,786 Policy and contract charges 1,217 1,045 898 Other revenue 255 189 127 Net realized investment gain 61 51 48 - ------------------------------------------------------------------------------------------------------- Total revenues 3,573 3,475 3,380 - ------------------------------------------------------------------------------------------------------- BENEFITS AND EXPENSES Benefits, claims, losses and settlement expenses 855 705 697 Interest credited to fixed accounts 850 968 1,020 Amortization of deferred acquisition costs 470 356 316 Separation costs 97 131 121 Other insurance and operating expenses 781 637 585 - ------------------------------------------------------------------------------------------------------- Total benefits and expenses 3,053 2,797 2,739 - ------------------------------------------------------------------------------------------------------- Pretax income 520 678 641 Income tax provision 99 192 182 - ------------------------------------------------------------------------------------------------------- Net income $ 421 $ 486 $ 459 =======================================================================================================
See Notes to Consolidated Financial Statements. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2007 2006 2005 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 421 $ 486 $ 459 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred acquisition costs and deferred sales inducement costs 523 404 356 Capitalization of deferred acquisition costs and deferred sales inducement costs (828) (813) (727) Amortization of premium, net 70 75 83 Deferred income taxes 83 123 122 Contractholder and policyholder charges, non-cash (206) (220) (232) Net realized investment gains (61) (51) (48) Net realized gain on trading securities and equity method investments in hedge funds (1) (16) (24) Change in operating assets and liabilities: Trading securities and equity method investments in hedge funds, net 124 297 247 Future policy benefits for traditional life, disability income and long term care insurance 275 274 230 Policy claims and other policyholders' funds 2 3 19 Reinsurance recoverables (153) (154) (106) Other accounts receivable (28) (27) (11) Accrued investment income 49 21 23 Other assets and liabilities, net (32) (104) (31) - ------------------------------------------------------------------------------------------------------- NET CASH PROVIDED BY OPERATING ACTIVITIES 238 298 360 - ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Available-for-Sale securities: Proceeds from sales 3,020 1,897 3,124 Maturities, sinking fund payments and calls 1,908 2,014 2,242 Purchases (687) (1,433) (5,780) Other investments, excluding policy loans: Proceeds from sales, maturities, sinking fund payments and calls 473 519 653 Purchases (504) (441) (543) Change in policy loans, net (47) (36) (17) Change in amounts due to and from brokers, net 113 97 (128) Change in restricted cash -- -- 536 - ------------------------------------------------------------------------------------------------------- NET CASH PROVIDED BY INVESTING ACTIVITIES 4,276 2,617 87 - ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Activity related to investment contracts and universal life- type insurance: Considerations received 1,093 1,267 1,532 Net transfers to separate accounts (50) (307) (13) Surrenders and other benefits (3,838) (3,688) (2,126) Other (8) -- -- Tax adjustment of share-based incentive employee compensation plan 2 1 -- Capital contribution from Ameriprise Financial, Inc. -- -- 650 Cash dividend to Ameriprise Financial, Inc. (900) (300) (380) - ------------------------------------------------------------------------------------------------------- NET CASH USED IN FINANCING ACTIVITIES (3,701) (3,027) (337) - ------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 813 (112) 110 Cash and cash equivalents at beginning of year 160 272 162 - ------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF YEAR $ 973 $ 160 $ 272 ======================================================================================================= Supplemental disclosures: Income taxes paid (received), net $ (4) $ 64 $ 96 Interest paid on borrowings -- 1 --
See Notes to Consolidated Financial Statements. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY THREE YEARS ENDED DECEMBER 31, 2007 (IN MILLIONS)
ACCUMULATED ADDITIONAL OTHER COMMON PAID-IN RETAINED COMPREHENSIVE STOCK CAPITAL EARNINGS INCOME/(LOSS) TOTAL - --------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2004 $ 3 $1,370 $3,190 $ 341 $4,904 Other comprehensive loss: Net income -- -- 459 -- 459 Change in unrealized holding losses on securities, net -- -- -- (461) (461) Change in unrealized derivative losses, net -- -- -- (11) (11) ------------ Total other comprehensive loss -- -- -- -- (13) Capital contribution from Ameriprise Financial, Inc. -- 650 -- -- 650 Cash dividend to Ameriprise Financial, Inc. -- -- (380) -- (380) - --------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2005 $ 3 $2,020 $3,269 $(131) $5,161 Other comprehensive income: Net income -- -- 486 -- 486 Change in unrealized holding losses on securities, net -- -- -- (77) (77) Change in unrealized derivative losses, net -- -- -- (1) (1) ------------ Total other comprehensive income -- -- -- -- 408 Tax adjustment of share-based incentive employee compensation plan -- 1 -- -- 1 Cash dividend to Ameriprise Financial, Inc. -- -- (300) -- (300) - --------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2006 $ 3 $2,021 $3,455 $(209) $5,270 Change in accounting principles -- -- (134) -- (134) Other comprehensive income: Net income -- -- 421 -- 421 Change in unrealized holding losses on securities, net -- -- -- 52 52 Change in unrealized derivative losses, net -- -- -- 1 1 ------------ Total other comprehensive income -- -- -- -- 474 Cash dividends to Ameriprise Financial, Inc. -- -- (900) -- (900) Non-cash capital contribution from Ameriprise Financial, Inc. -- 8 -- -- 8 Tax adjustment of share-based incentive employee compensation plan -- 2 -- -- 2 - --------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2007 $ 3 $2,031 $2,842 $(156) $4,720 =====================================================================================================================
See Notes to Consolidated Financial Statements. 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. RiverSource Life Insurance Company and its subsidiary 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. RiverSource Life was allocated certain expenses incurred as a result of Ameriprise Financial becoming an independent company. The separation from American Express is now complete. 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 one type of 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 including whole life and term life and disability income ("DI") insurance. Universal life insurance is a form of permanent life insurance characterized by its flexible premiums, its flexible death benefit amounts and its unbundling of the 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. 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 subsidiary, RiverSource Life of NY. All significant intercompany accounts and transactions have been eliminated in consolidation. RECLASSIFICATIONS The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") which vary in certain respects from reporting practices prescribed or permitted by state insurance regulatory authorities as described in Note 11. Certain reclassifications of prior period amounts have been made to conform to the current presentation, including new income statement captions which are described in Note. 2. These reclassifications were made to enhance transparency and to better align the financial statement line captions with the key drivers of the business. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- RiverSource Life did not change its revenue and expense recognition policies and the reclassifications did not result in any changes to consolidated net income or shareholder's equity. The following is a summary of the reclassifications made: INCOME STATEMENT RECLASSIFICATIONS - - RiverSource Life reclassified the portion of 12b-1 fees identified as service fees on proprietary funds and marketing support type payments received from non-proprietary fund families for variable annuity and variable universal life products from other revenue to policy and contract charges to better align with industry standards. - - RiverSource Life reclassified premiums related to immediate annuities with life contingencies from interest credited to fixed accounts to premiums. - - RiverSource Life reclassified reinsurance premiums paid for universal life and variable universal life products from benefits, claims, losses and settlement expenses to policy and contract charges, where cost of insurance fees are reported. - - RiverSource Life reclassified benefit expenses related to immediate annuities with life contingencies from interest credited to fixed accounts to benefits, claims, losses and settlement expenses. - - RiverSource Life reclassified mortality and expense risk fees to policy and contract charges. - - RiverSource Life reclassified additional investment-related expenses from other insurance and operating expenses to net investment income. The following tables show the impact of the new captions and the reclassifications made to RiverSource Life's previously reported Consolidated Statements of Income.
(IN MILLIONS) DECEMBER 31, 2006 DECEMBER 31, 2005 - ------------------------------------------------------------------------------------------------------------- PREVIOUSLY PREVIOUSLY REPORTED RECLASSIFIED REPORTED RECLASSIFIED - ------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 394 $ 533 $ 370 $ 521 Net investment income 1,661 1,657 1,789 1,786 Policy and contract charges 637 1,045 577 898 Other revenue 636 189 489 127 Net realized investment gain 51 51 48 48 - ------------------------------------------------------------------------------------------------------------- Total revenues 3,379 3,475 3,273 3,380 ============================================================================================================= BENEFITS AND EXPENSES Benefits, claims, losses and settlement expenses 521 705 496 697 Interest credited to fixed accounts 1,052 968 1,111 1,020 Amortization of deferred acquisition costs 356 356 316 316 Separation costs 131 131 121 121 Other insurance and operating expenses 641 637 588 585 - ------------------------------------------------------------------------------------------------------------- Total benefits and expenses 2,701 2,797 2,632 2,739 ============================================================================================================= Pretax income 678 678 641 641 Income tax provision 192 192 182 182 - ------------------------------------------------------------------------------------------------------------- NET INCOME $ 486 $ 486 $ 459 $ 459 =============================================================================================================
STATEMENT OF CASH FLOWS RECLASSIFICATIONS RiverSource Life has reclassified certain prior year balances in the Consolidated Statements of Cash Flows. - - RiverSource Life previously classified transfers to and from the fixed account option within its variable annuity product as an operating activity in its Consolidated Statements of Cash Flows. RiverSource Life has reclassified these transfers as a financing activity in accordance with Statement of Financial Accounting Standards ("SFAS") No. 97, "Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments". - - RiverSource Life previously classified the net change in annuity policy loans as an operating activity and the net change in universal life policy loans as a financing activity. RiverSource Life has reclassified the net change in policy loans as an investing activity in accordance with the AICPA Audit and Accounting Guide: Life and Health Insurance Entities. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The effect of these reclassifications on prior year net cash flows related to operating, investing and financing activities is summarized below.
(IN MILLIONS) YEARS ENDED DECEMBER 31, - ------------------------------------------------------------------------------------------------- 2006 2005 - ------------------------------------------------------------------------------------------------- Net cash provided by operating activities, previous presentation $ 116 $ 437 Reclassification for annuity transfers 184 (68) Reclassification for policy loans 4 3 Other reclassifications (6) (12) - ------------------------------------------------------------------------------------------------- Net cash provided by operating activities, adjusted for these reclassifications $ 298 $ 360 ================================================================================================= Net cash provided by investing activities, previous presentation $ 2,654 $ 104 Reclassification for policy loans (36) (17) Other reclassifications (1) -- - ------------------------------------------------------------------------------------------------- Net cash provided by investing activities, adjusted for these reclassifications $ 2,617 $ 87 ================================================================================================= Net cash used in financing activities, previous presentation $(2,882) $(431) Reclassification for annuity transfers (184) 68 Reclassification for policy loans 32 14 Other reclassifications 7 12 - ------------------------------------------------------------------------------------------------- Net cash used in financing activities, adjusted for these reclassifications $(3,027) $(337) =================================================================================================
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 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 hedge funds in which RiverSource Life holds an interest that is less than 50% are accounted for under the equity method. All other investments are accounted for under the cost method where RiverSource Life owns less than a 20% voting interest and does not exercise significant influence, or as Available-for-Sale securities, as applicable. RiverSource Life also consolidates all VIEs for which it is considered to be the primary beneficiary. The determination as to whether an entity is a VIE is based on the amount and characteristics of the entity's equity. The determination as to whether RiverSource Life is considered to be the primary beneficiary is based on whether RiverSource Life will absorb a majority of the VIE's expected losses, receive a majority of the VIE's expected residual return, or both. RiverSource Life liquidated its interest in all consolidated VIEs during 2005. There were no consolidated VIEs as of December 31, 2007 and 2006. Qualifying Special Purpose Entities ("QSPEs") are not consolidated. Such QSPEs included a securitization trust containing a majority of RiverSource Life's rated collateralized debt obligations ("CDOs") for which RiverSource Life sold all of its retained interests in 2005. 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 financial instruments and hedging activities, 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. BALANCE SHEET 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 consolidated results of operations upon disposition of the securities. In addition, losses are also recognized when management determines that a decline in value is other- than-temporary, which requires judgment regarding the amount and timing of recovery. Indicators of other-than-temporary impairment for debt RiverSource Life Insurance Company - -------------------------------------------------------------------------------- securities include issuer downgrade, default or bankruptcy. RiverSource Life also considers the extent to which cost exceeds fair value, the duration of that difference and management's judgment about the issuer's current and prospective financial condition, as well as its ability and intent to hold until recovery. Other-than-temporary impairment charges are recorded in net realized gains (losses) on investments within the Consolidated Statements of Income. Fair value is generally obtained from third party pricing sources. Commercial Mortgage Loans, Net Commercial mortgage loans, net, reflect principal amounts outstanding less the allowance for loan losses. The allowance for loan losses is measured as the excess of the loan's recorded investment over the present value of its expected principal and interest payments discounted at the loan's effective interest rate, or the fair value of collateral. Additionally, the level of the allowance for loan losses considers other factors, including historical experience, economic conditions and geographic concentrations. 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 collectibility 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 in hedge funds and syndicated loans. Separate account and mutual fund seed money is carried at fair value with changes in value recognized within net investment income. The carrying value of equity method investments in hedge funds reflects RiverSource Life's original investment and its share of earnings or losses of the hedge funds subsequent to the date of investment and approximates fair value. Syndicated 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. REINSURANCE RiverSource Life reinsures a portion of the risks associated with its life, DI and long term care ("LTC") insurance products through reinsurance agreements with unaffiliated reinsurance companies. Reinsurance is used in order to limit losses, reduce exposure to large risks and provide additional capacity for future growth. To manage exposure to losses from reinsurer insolvencies, the financial condition of reinsurers is evaluated prior to entering into new reinsurance treaties and on a periodic basis during the terms of the treaties. RiverSource Life remains primarily liable as the direct insurer on all risks reinsured. Generally, RiverSource Life reinsures 90% of the death benefit liability related to individual fixed and variable universal life and term life insurance products. RiverSource Life began reinsuring risks at this level beginning in 2001 for term life insurance and 2002 for variable and universal life insurance. Policies issued prior to these dates are not subject to the same reinsurance levels. Generally, the maximum amount of life insurance risk retained by RiverSource Life is $750,000 on any policy insuring a single life and $1.5 million on any flexible premium survivorship variable life policy. For existing LTC policies, except those sold by RiverSource Life of NY prior to 1996, RiverSource Life retained 50% of the risk and ceded on a coinsurance basis the remaining 50% of the risk to affiliates of Genworth Financial, Inc. ("Genworth"). Reinsurance recoverable from Genworth related to RiverSource Life's LTC liabilities was $1.0 billion at December 31, 2007, while amounts recoverable from each other reinsurer were much smaller. Risk on variable life and universal life policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 is reinsured on a coinsurance basis. Generally, RiverSource Life retains at most $5,000 per month of risk per life on DI policy forms introduced in October 2007 in most states and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. RiverSource Life retains all risk on DI contracts sold on other policy forms. RiverSource Life also retains all risk of accidental death benefit claims and substantially all risk associated with waiver of premium provisions. DEFERRED ACQUISITION COSTS DAC represent the costs 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 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. DEFERRED SALES INDUCEMENT COSTS 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. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Derivative financial instruments are recorded at fair value. The fair value of RiverSource Life's derivative financial instruments is determined using either market quotes or valuation models that are based upon the net present value of estimated future cash flows and incorporate current market observable inputs to the extent available. In certain instances, the fair value includes structuring costs incurred at the inception of the transaction. The accounting for changes in the fair value of a derivative financial 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 (1) hedges of changes in the fair value of assets, liabilities, or firm commitments ("fair value hedges") or (2) 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"). For derivative financial instruments that do not qualify for hedge accounting or are not designated as hedges, changes in fair value are recognized in current period earnings, generally as a component of net investment income. For derivative financial instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as of 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 financial 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) may be 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. Derivative financial instruments that are entered into for hedging purposes are designated as such at the time RiverSource Life enters into the contract. For all derivative financial 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 the equity indexed annuity obligations are considered embedded derivatives. 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 changes in fair value of the equity indexed annuity embedded derivatives are 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. SEPARATE ACCOUNT ASSETS AND LIABILITIES Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable annuity and variable life insurance contractholders. RiverSource Life receives mortality and expense risk and other fees, guarantee fees and cost of insurance charges from the related accounts. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 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 with GMWB and GMAB provisions and, until May 2007, RiverSource Life offered contracts containing guaranteed minimum income benefit ("GMIB") provisions. In determining the liabilities for variable annuity death benefits, 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 will review, and where appropriate, adjust its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management will review and update these assumptions annually in the third quarter of each year. The variable annuity death benefit 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. GMAB and the non-life contingent benefits associated with GMWB provisions are considered embedded derivatives and are recorded at fair value. The fair value of these embedded derivatives is based on the present value of future benefits less applicable fees charged for the provision. The liability for the life contingent benefits associated with GMWB provisions are determined in the same way as the liability for variable annuity death benefits. 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 market 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, 2007, depending on year of issue, with an average rate of approximately 5.8%. 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. 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 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 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, 2007, with an average rate of 4.9%. Interest rates used with LTC claims ranged from 4.0% to 7.0% at December 31, 2007, with an average rate of 4.2%. 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, 2007, depending on policy form, issue year and policy duration. Anticipated interest rates for DI were 7.5% at policy issue grading to 5.0% over five years. Anticipated discount rates for LTC vary by plan and were 5.4% at December 31, 2007 grading up to 6.8% or 9.4% over 40 years. Where applicable, benefit amounts expected to be recoverable from other insurers who share in the risk are separately recorded as reinsurance recoverable within receivables. RiverSource Life issues only non-participating life and health insurance policies, which do not pay dividends to policyholders from realized policy margins. REVENUES AND EXPENSES RiverSource Life's principal sources of revenue include premium revenues, net investment income, policy and contract charges and other revenue. 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; mark-to-market adjustment on trading securities and certain derivatives, including derivatives hedging variable annuity living benefits; and pro-rata share of net income or loss of equity method investments in hedge funds. 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 are recognized as revenue when earned, whereas contract charges and surrender charges on annuities and universal and variable universal life insurance are recognized as revenue when collected. Other Revenue Other revenue includes marketing support and administrative fees which are generally computed as a contractual rate based on the underlying asset values and are generally received monthly. Net Realized Investment Gain Realized gains and losses are recognized using the specific identification method, on a trade date basis, and charges are recorded when securities are determined to be other-than-temporarily impaired. Benefits, Claims, Losses and Settlement Expenses Benefits, claims, losses and settlement expenses consist of amounts paid and changes in liabilities held for anticipated future benefit payments under insurance policies and annuity contracts, including benefits paid under optional variable annuity guaranteed benefit riders along with costs to process and pay such amounts. Amounts are net of benefit payments recovered or RiverSource Life Insurance Company - -------------------------------------------------------------------------------- expected to be recovered under reinsurance contracts. Benefits, claims, losses and settlement expenses also include amortization of DSIC. Interest Credited to Fixed Accounts Interest credited to fixed accounts represents amounts earned by contractholders and policyholders on fixed account values associated with fixed and variable universal life and annuity contracts and equity indexed annuities in accordance with contract provisions. Amortization of Deferred Acquisition Costs Direct sales commissions and other costs associated with the sale of annuity and insurance products are deferred as DAC and amortized over time. For annuity and universal life contracts, DAC are amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For annuity and universal life 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 are not recoverable or if premium rates charged for the contract are changed. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in RiverSource Life's consolidated results of operations. For annuity, life, DI and LTC insurance products, key assumptions underlying those long term projections include interest rates (both earning rates on invested assets and rates credited to 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 interest rates are the primary factor used to project interest margins, while assumptions about rates credited to policyholder accounts and equity 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 annuity and insurance business during the DAC amortization period. The client asset value growth rate is the rate at which variable annuity and variable universal life insurance contract values are assumed to appreciate in the future. The rate is net of asset fees and anticipates a blend of 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 uses a mean reversion method as a guideline in setting near- term client asset value growth rates based on a long term view of financial market performance as well as actual historical performance. In periods when market performance results in actual contract value growth at a rate that is different than that assumed, RiverSource Life reassesses the near-term rate in order to continue to project its best estimate of long term growth. The near- term growth rate is reviewed to ensure consistency with management's assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed near-term estimate will typically be less than in a period when growth rates fall short of near-term estimate. 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. Separation Costs Separation costs generally consist of allocated financial advisor and employee retention program costs, re-branding and marketing costs and costs to separate and reestablish technology platforms related to the Separation. The separation from American Express was completed in 2007. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Other Insurance and Operating Expenses Other insurance and operating expenses primarily includes expenses allocated to RiverSource Life from its parent, Ameriprise Financial, for RiverSource Life's share of compensation, professional and consultant fees, information technology and communications, facilities and equipment, advertising and promotion and legal and regulatory. 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. 3. RECENT ACCOUNTING PRONOUNCEMENTS In December 2007, the Financial Accounting Standards Board ("FASB") issued SFAS No. 141 (revised 2007) "Business Combinations" ("SFAS 141(R)"). SFAS 141(R) establishes principles and requirements for how an acquirer recognizes and measures the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in an acquiree, and goodwill acquired. SFAS 141(R) also requires an acquirer to disclose information about the financial effects of a business combination. SFAS 141(R) is effective prospectively for business combinations with an acquisition date on or after the beginning of the first annual reporting period beginning on or after December 15, 2008, with early adoption prohibited. RiverSource Life will apply the standard to any business combinations within the scope of SFAS 141(R) occurring after December 31, 2008. In December 2007, the FASB issued SFAS No. 160 "Noncontrolling Interests in Consolidated Financial Statements -- an amendment of ARB No. 51" ("SFAS 160"). SFAS 160 establishes the accounting and reporting for ownership interest in subsidiaries not attributable, directly or indirectly, to a parent. SFAS 160 requires that noncontrolling (minority) interests be classified as equity (instead of as a liability) within the Consolidated Balance Sheets, and net income attributable to both the parent and the noncontrolling interest be disclosed on the face of the Consolidated Statements of Income. SFAS 160 is effective for fiscal years beginning after December 15, 2008, and interim periods within those years with early adoption prohibited. The provisions of SFAS 160 are to be applied prospectively, except for the presentation and disclosure requirements which are to be applied retrospectively to all periods presented. RiverSource Life is currently evaluating the impact of SFAS 160 on its consolidated financial condition and results of operations. In June 2007, the American Institute of Certified Public Accountants ("AICPA") issued Statement of Position ("SOP") 07-1, "Clarification of the Scope of the Audit and Accounting Guide 'Investment Companies' and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies" ("SOP 07-1"). SOP 07-1 provided clarification on the definition of an investment company. In February 2008, the FASB decided to indefinitely defer the effective date of SOP 07-1. In May 2007, the FASB issued FASB Staff Position ("FSP") FASB Interpretation No. ("FIN") 46(R)-7, "Application of FIN 46(R) to Investment Companies" ("FSP 46(R)-7"). FSP 46(R)-7 is dependent upon clarification of the definition of an investment company as provided in SOP 07-1 and is effective upon the adoption of that SOP. With the deferral of SOP 07-1, RiverSource Life will defer the adoption of both SOP 07-1 and FSP 46(R)-7. In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities -- Including an amendment of FASB Statement No. 115" ("SFAS 159"). SFAS 159 gives entities the option to measure certain financial instruments and other items at fair value that are not currently permitted to be measured at fair value. The objective of SFAS 159 is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. SFAS 159 requires entities to report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. SFAS 159 also establishes presentation and disclosure requirements. SFAS 159 is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007. RiverSource Life did not adopt SFAS 159 for any of its existing eligible assets or liabilities and has no current plans to adopt SFAS 159 for any new financial instruments. In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" ("SFAS 157"). SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 applies under other accounting pronouncements that require or permit fair value measurements. Accordingly, SFAS 157 does not require any new fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Early adoption is permitted provided the entity has not issued financial statements for any period within the year of adoption. The provisions of SFAS 157 are required to be applied prospectively as of the beginning of the fiscal year in which SFAS 157 is initially applied, except for certain financial instruments as defined in RiverSource Life Insurance Company - -------------------------------------------------------------------------------- SFAS 157 which will require retrospective application of SFAS 157. Any retrospective application will be recognized as a cumulative effect adjustment to the opening balance of retained earnings for the fiscal year of adoption. RiverSource Life adopted SFAS 157 effective January 1, 2008. As a result of adopting SFAS 157, RiverSource Life will record a cumulative effect after-DAC, DSIC and tax reduction to retained earnings of approximately $35 million related to adjusting the fair value of structured derivatives RiverSource Life uses to hedge its exposure to GMWB provisions. RiverSource Life initially recorded these derivatives in accordance with Emerging Issues Task Force Issue No. 02-3 "Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities." SFAS 157 requires these derivatives to be marked to the price RiverSource Life would receive to sell the derivatives to a market participant (an exit price). On January 18, 2008, the FASB published for comment Proposed FSP FAS 157-c "Measuring Liabilities under FASB Statement No. 157" ("FSP 157-c"). FSP 157-c states that in the absence of a quoted price for the identical liability in an active market, a reporting entity may measure the fair value of its liability at the amount it would receive as proceeds if it were to issue that liability at the measurement date. FSP 157-c shall be applied on a prospective basis effective on the later of (a) the beginning of the period that includes the issuance date of the FSP or (b) the beginning of the period in which an entity initially applies SFAS 157. RiverSource Life is evaluating the impact that this proposed FSP will have on the valuation of its embedded derivatives. Any change to the valuation of RiverSource Life's embedded derivatives as a result of adopting SFAS 157 and FSP 157-c will be recorded in earnings as of the date of adoption. In accordance with FSP FAS 157-2, "Effective Date of FASB Statement No. 157" ("FSP 157-2"), RiverSource Life will defer the adoption of SFAS 157 for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis. In June 2006, the FASB issued FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes." FIN 48 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. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. RiverSource Life adopted FIN 48 as of January 1, 2007. The effect of adopting FIN 48 on RiverSource Life's consolidated financial condition and results of operations was not material. In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid Financial Instruments" ("SFAS 155"). SFAS 155 amends SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133") and SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities" ("SFAS 140"). SFAS 155: (i) permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation; (ii) clarifies which interest-only and principal-only strips are not subject to the requirements of SFAS 133; (iii) establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; (iv) clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and (v) amends SFAS 140 to eliminate the prohibition on a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. RiverSource Life adopted SFAS 155 as of January 1, 2007. The effect of adopting SFAS 155 on RiverSource Life's consolidated financial condition and results of operations was not material. In September 2005, the AICPA issued SOP 05-1, "Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts," ("SOP 05-1"). SOP 05-1 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 SOP 05-1 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 SOP 05-1, 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. The adoption of SOP 05-1, among other things, resulted in an increase to DAC and DSIC amortization in 2007. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 4. INVESTMENTS AVAILABLE-FOR-SALE SECURITIES The following is a summary of Available-for-Sale securities by type:
GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR DECEMBER 31, 2007 (IN MILLIONS) COST GAINS LOSSES VALUE - ------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $12,870 $112 $(307) $12,675 Mortgage and other asset-backed securities 7,637 33 (84) 7,586 U.S. government and agencies obligations 249 7 (1) 255 State and municipal obligations 165 3 (6) 162 Foreign government bonds and obligations 97 15 -- 112 Structured investments(a) 2 -- -- 2 - ------------------------------------------------------------------------------------------------------------- Total fixed maturities 21,020 170 (398) 20,792 Common and preferred stocks 30 -- (1) 29 - ------------------------------------------------------------------------------------------------------------- Total $21,050 $170 $(399) $20,821 =============================================================================================================
(a) Includes unconsolidated collateralized debt obligations.
GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR DECEMBER 31, 2006 (IN MILLIONS) COST GAINS LOSSES VALUE - ------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $15,312 $158 $(330) $15,140 Mortgage and other asset-backed securities 9,398 27 (175) 9,250 U.S. government and agencies obligations 295 13 (5) 303 State and municipal obligations 165 4 (4) 165 Foreign government bonds and obligations 117 18 -- 135 Structured investments(a) 2 -- -- 2 - ------------------------------------------------------------------------------------------------------------- Total fixed maturities 25,289 220 (514) 24,995 Common and preferred stocks 30 1 -- 31 - ------------------------------------------------------------------------------------------------------------- Total $25,319 $221 $(514) $25,026 =============================================================================================================
(a) Includes unconsolidated collateralized debt obligations. At December 31, 2007 and 2006, fixed maturity securities comprised approximately 85% and 87%, respectively, of RiverSource Life's total investments. These securities were rated by Moody's Investors Service, Inc. ("Moody's") and Standard & Poor's ("S&P"), except for approximately $1.3 billion and $1.2 billion of securities at December 31, 2007 and 2006, respectively, which were rated by RiverSource Investments, LLC's internal analysts using criteria similar to Moody's and S&P. Ratings on investment grade securities are presented using S&P's convention and, if the two agencies' ratings differ, the lower rating is used. A summary of fixed maturity securities by rating was as follows:
DECEMBER 31, 2007 DECEMBER 31, 2006 ---------------------------------------------------------------------------------- PERCENT OF PERCENT OF RATING (IN MILLIONS, EXCEPT AMORTIZED FAIR TOTAL FAIR AMORTIZED FAIR TOTAL FAIR PERCENTAGES) COST VALUE VALUE COST VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- AAA $ 7,854 $ 7,815 38% $ 9,638 $ 9,497 38% AA 2,046 2,029 10 2,229 2,197 9 A 3,973 3,938 19 4,893 4,832 19 BBB 5,586 5,514 26 6,831 6,782 27 Below investment grade 1,561 1,496 7 1,698 1,687 7 - -------------------------------------------------------------------------------------------------------------------------- Total fixed maturities $21,020 $20,792 100% $25,289 $24,995 100% ==========================================================================================================================
At December 31, 2007 and 2006, approximately 45% and 47%, 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. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following table provides 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 as of December 31, 2007:
(IN MILLIONS) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL - -------------------------------------------------------------------------------------------------------------------------- FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED DESCRIPTION OF SECURITIES: VALUE LOSSES VALUE LOSSES VALUE LOSSES - -------------------------------------------------------------------------------------------------------------------------- Corporate debt securities $1,477 $(45) $ 7,083 $(262) $ 8,560 $(307) Mortgage and other asset-backed securities 888 (15) 4,219 (69) 5,107 (84) U.S. government and agencies obligations -- -- 154 (1) 154 (1) State and municipal obligations 47 (4) 63 (2) 110 (6) Foreign government bonds and obligations -- -- 2 -- 2 -- Common and preferred stock 29 (1) -- -- 29 (1) - -------------------------------------------------------------------------------------------------------------------------- Total $2,441 $(65) $11,521 $(334) $13,962 $(399) ==========================================================================================================================
The following table provides 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 as of December 31, 2006:
(IN MILLIONS) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL - -------------------------------------------------------------------------------------------------------------------------- FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED DESCRIPTION OF SECURITIES: VALUE LOSSES VALUE LOSSES VALUE LOSSES - -------------------------------------------------------------------------------------------------------------------------- Corporate debt securities $1,362 $(19) $ 9,514 $(311) $10,876 $(330) Mortgage and other asset-backed securities 862 (5) 6,616 (170) 7,478 (175) U.S. government and agencies obligations 5 -- 214 (5) 219 (5) State and municipal obligations 3 -- 81 (4) 84 (4) Foreign government bonds and obligations -- -- 3 -- 3 -- - -------------------------------------------------------------------------------------------------------------------------- Total $2,232 $(24) $16,428 $(490) $18,660 $(514) ==========================================================================================================================
In evaluating potential other-than-temporary impairments, RiverSource Life considers the extent to which amortized costs exceeds fair value and the duration of that difference. A key metric in performing this evaluation is the ratio of fair value to amortized cost. The following table summarizes the unrealized losses by ratio of fair value to amortized cost as of December 31, 2007:
(IN MILLIONS, EXCEPT NUMBER OF SECURITIES) LESS THAN 12 MONTHS 12 MONTHS OR MORE - ---------------------------------------------------------------------------------------------------------- GROSS GROSS RATIO OF FAIR VALUE TO NUMBER OF FAIR UNREALIZED NUMBER OF FAIR UNREALIZED AMORTIZED COST SECURITIES VALUE LOSSES SECURITIES VALUE LOSSES - ---------------------------------------------------------------------------------------------------------- 95% -- 100% 164 $2,015 $(25) 486 $10,169 $(180) 90% -- 95% 31 305 (22) 48 811 (57) 80% -- 90% 4 121 (18) 32 461 (66) less than 80% 1 -- -- 10 80 (31) - ---------------------------------------------------------------------------------------------------------- Total 200 $2,441 $(65) 576 $11,521 $(334) ========================================================================================================== (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) TOTAL - ---------------------------------------------------------------- GROSS RATIO OF FAIR VALUE TO NUMBER OF FAIR UNREALIZED AMORTIZED COST SECURITIES VALUE LOSSES - ---------------------------------------------------------------- 95% -- 100% 650 $12,184 $(205) 90% -- 95% 79 1,116 (79) 80% -- 90% 36 582 (84) less than 80% 11 80 (31) - ---------------------------------------------------------------- Total 776 $13,962 $(399) ================================================================
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 interest rates and credit spreads across asset classes. As noted in the table above, a significant portion of the gross unrealized losses relates to securities that have a fair value to amortized cost ratio of 95% or above resulting in an overall 97% ratio of fair value to amortized cost for all securities with an unrealized loss. From an overall perspective, the gross unrealized losses were not concentrated in any individual industries or with any individual securities. The securities with a fair value to amortized cost ratio of 80%-90% primarily relate to the consumer products, financial and home building industries. The total gross unrealized loss related to the home building industry was $28 million. The securities with a fair value to cost of less than 80% primarily relate to the financial and home building industries. The largest unrealized loss associated with an individual issuer, excluding GNMA, FNMA and FHLMC mortgage-backed securities, was $14 million. The securities related to this issuer have a fair value to amortized cost ratio of 88% and have been in an unrealized loss position for more than 12 months. RiverSource Life believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value. In addition, RiverSource Life has the ability and intent to hold these securities until anticipated recovery which may not be until maturity. RiverSource Life monitors the investments and metrics described previously on a quarterly basis to identify and evaluate investments that have indications of possible other-than-temporary impairments. Additionally, RiverSource Life has the ability and intent to hold these securities for a time sufficient to recover its amortized cost and has, therefore, concluded that none had other-than- temporary impairment at December 31, 2007. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- RiverSource Life's total mortgage and asset backed exposure at December 31, 2007 was $7.6 billion which included $4.1 billion of residential mortgage backed securities and $2.7 billion of commercial mortgage backed securities. At December 31, 2007, residential mortgage backed securities included $3.5 billion of agency-backed securities, $0.4 billion of Alt-A securities, and $0.2 billion of prime, non-agency securities. With respect to the Alt-A securities, the vast majority are rated AAA. None of the structures are levered, and the majority of the AAA-rated holdings are "super senior" bonds, meaning they have more collateral support or credit enhancement than required to receive a AAA rating. While overall delinquencies in the market continue to deteriorate, most of these positions are performing in-line or better than their vintage. With regard to asset backed securities, RiverSource Life's exposure at December 31, 2007 was $0.8 billion, which included $115 million of securities backed by subprime collateral. These securities are predominantly AAA-rated bonds backed by seasoned, traditional, first lien collateral. Holdings include both floating rate and short-duration, fixed securities. RiverSource Life has no other structured or hedge fund investments with exposure to subprime residential mortgages. The change in net unrealized securities gains (losses) in other comprehensive income 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 (holding gains (losses)); (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales and other-than-temporary impairments of Available-for-Sale securities (reclassification of realized gains (losses)) and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC and annuity liabilities, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. The following table presents the components of the change in net unrealized securities gains (losses), net of tax, included in accumulated other comprehensive loss for the years ended December 31:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Holding (losses) gains, net of tax of $38, $63 and $261, respectively $ 70 $(116) $(485) Reclassification of realized gains, net of tax of $16, $17 and $17, respectively (28) (33) (32) DAC, net of tax of $5, $15 and $28, respectively (7) 29 53 DSIC, net of tax of nil, $2 and $5, respectively (1) 3 8 Fixed annuity liabilities, net of tax of $11, $22 and $3, respectively 18 40 (5) - ------------------------------------------------------------------------------------------------------- Net unrealized securities gains (losses) $ 52 $ (77) $(461) =======================================================================================================
Available-for-Sale securities by maturity at December 31, 2007 were as follows:
AMORTIZED FAIR (IN MILLIONS) COST VALUE - ------------------------------------------------------------------------------------------------- Due within one year $ 1,272 $ 1,277 Due after one year through five years 5,567 5,537 Due after five years through 10 years 5,339 5,186 Due after 10 years 1,203 1,204 - ------------------------------------------------------------------------------------------------- 13,381 13,204 Mortgage and other asset-backed securities 7,637 7,586 Structured investments 2 2 Common and preferred stocks 30 29 - ------------------------------------------------------------------------------------------------- Total $21,050 $20,821 =================================================================================================
The expected payments on mortgage and other asset-backed securities and structured investments may not coincide with their contractual maturities. As such, these securities, as well as common and preferred stocks, were not included in the maturities distribution. The table below includes sales, maturities, and purchases of investments classified as Available-for-Sale for the years ended December 31:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Sales $3,020 $ 1,897 $ 3,124 Maturities, sinking fund payments and calls 1,908 2,014 2,242 Purchases (687) (1,433) (5,780)
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, are noted in the following table for the years ended December 31:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Gross realized gains from sales $ 64 $ 60 $108 Gross realized losses from sales (20) (10) (39) Other-than-temporary impairments (4) -- (19)
RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The $4 million of other-than-temporary impairments in 2007 related to corporate debt securities in the publishing and home building industries which were downgraded in 2007. The $19 million of other-than-temporary impairments in 2005 primarily related to corporate debt securities within the auto industry which were downgraded in 2005 and subsequently deteriorated throughout the year in terms of their fair value to amortized cost ratio. During the second quarter of 2005, RiverSource Life sold all of its retained interest in a CDO securitization trust and realized a net pretax gain of $25 million. At December 31, 2007 and 2006, bonds carried at $7 million and $18 million, respectively, were on deposit with various states as required by law. COMMERCIAL MORTGAGE LOANS AND SYNDICATED LOANS, NET The following is a summary of commercial mortgage loans and syndicated loans at December 31:
(IN MILLIONS) 2007 2006 - ------------------------------------------------------------------------------------------------- Commercial mortgage loans $2,908 $2,827 Less: allowance for loan losses (16) (37) - ------------------------------------------------------------------------------------------------- Commercial mortgage loans, net $2,892 $2,790 ================================================================================================= Syndicated loans $ 62 $ 112 Less: allowance for loan losses (4) (4) - ------------------------------------------------------------------------------------------------- Net syndicated loans $ 58 $ 108 =================================================================================================
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. Syndicated 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. At December 31, 2007 and 2006, RiverSource Life had not recorded any investment in impaired commercial mortgage loans. RiverSource Life did not recognize any interest income related to impaired commercial mortgage loans for the years ended December 31, 2007, 2006 and 2005. The balances of and changes in the allowance for loan losses were as follows:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- BALANCE AT JANUARY 1 $ 37 $41 $45 Provision for loan losses (21) -- -- Foreclosures, write-offs and loan sales -- (4) (4) - ------------------------------------------------------------------------------------------------------- BALANCE AT DECEMBER 31 $ 16 $37 $41 =======================================================================================================
In 2007, RiverSource Life recorded a $21 million decrease to the allowance for loan losses on commercial mortgage loans. Concentrations of credit risk of commercial mortgage loans by region at December 31 were:
(IN MILLIONS) 2007 2006 - ------------------------------------------------------------------------------------------------------------- ON-BALANCE FUNDING ON-BALANCE FUNDING COMMERCIAL MORTGAGE LOANS BY U.S. REGION SHEET COMMITMENTS SHEET COMMITMENTS - ------------------------------------------------------------------------------------------------------------- Atlantic $ 922 $ 22 $ 859 $40 North Central 687 33 739 22 Pacific 461 21 397 15 Mountain 343 9 298 13 South Central 298 8 337 2 New England 197 8 197 2 - ------------------------------------------------------------------------------------------------------------- 2,908 101 2,827 94 Less: allowance for loan losses (16) -- (37) -- - ------------------------------------------------------------------------------------------------------------- Total $2,892 $101 $2,790 $94 =============================================================================================================
RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Concentrations of credit risk of commercial mortgage loans by property type at December 31 were:
(IN MILLIONS) 2007 2006 - ------------------------------------------------------------------------------------------------------------- ON-BALANCE FUNDING ON-BALANCE FUNDING COMMERCIAL MORTGAGE LOANS BY PROPERTY TYPE SHEET COMMITMENTS SHEET COMMITMENTS - ------------------------------------------------------------------------------------------------------------- Office buildings $ 874 $ 12 $ 962 $ 4 Shopping centers and retail 860 66 718 71 Apartments 419 8 470 2 Industrial buildings 510 9 458 12 Hotels and motels 78 -- 89 4 Medical buildings 42 -- 45 -- Mixed use 52 1 44 -- Other 73 5 41 1 - ------------------------------------------------------------------------------------------------------------- 2,908 101 2,827 94 Less: allowance for loan losses (16) -- (37) -- - ------------------------------------------------------------------------------------------------------------- Total $2,892 $101 $2,790 $94 =============================================================================================================
Commitments to fund commercial mortgages were made in the ordinary course of business. The funding commitments at December 31, 2007 and 2006 approximate fair value. SOURCES OF INVESTMENT INCOME AND NET REALIZED INVESTMENT GAIN Net investment income for the years ended December 31 is summarized as follows:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Income on fixed maturities $1,187 $1,409 $1,461 Income on commercial mortgage loans 173 181 197 Trading securities and other investments 213 86 156 - ------------------------------------------------------------------------------------------------------- 1,573 1,676 1,814 Less: investment expenses 18 19 28 - ------------------------------------------------------------------------------------------------------- Total $1,555 $1,657 $1,786 =======================================================================================================
Net realized investment gains for the years ended December 31 is summarized as follows:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Fixed maturities $40 $50 $50 Commercial mortgage loans -- 1 (2) Reduction in the allowance for loan losses 21 -- -- - ------------------------------------------------------------------------------------------------------- Total $61 $51 $48 =======================================================================================================
5. VARIABLE INTEREST ENTITIES During the year ended December 31, 2005, RiverSource Life consolidated two secured loan trusts ("SLTs") which provided returns to investors primarily based on the performance of an underlying portfolio of high-yield loans and which were managed by an affiliate. The SLTs were liquidated in 2005, resulting in a $14 million pretax gain for the year ended December 31, 2005. There is no remaining exposure to these SLTs as a result of their liquidations. RiverSource Life has other significant variable interests for which it is not considered the primary beneficiary and, therefore, does not consolidate. These interests are represented by carrying values of $2 million of CDO residual tranches managed by an affiliate where RiverSource Life is not the primary beneficiary. RiverSource Life's maximum exposure to loss as a result of its investment in the CDO residual tranches is represented by the carrying value. 6. DEFERRED ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS The balances of and changes in DAC were as follows:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Balance at January 1 $4,411 $4,036 $3,638 Impact of SOP 05-1 at adoption (204) -- -- Capitalization of acquisition costs 704 687 633 Amortization, excluding impact of annual third quarter changes in DAC-related assumptions (454) (394) (383) Amortization, impact of annual third quarter changes in DAC- related assumptions (16) 38 67 Impact of changes in net unrealized securities losses (gains) (12) 44 81 - ------------------------------------------------------------------------------------------------------- Balance at December 31 $4,429 $4,411 $4,036 =======================================================================================================
RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The balances of and changes in DSIC were as follows:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Balance at January 1 $452 $370 $303 Impact of SOP 05-1 at adoption (11) -- -- Capitalization of sales inducements 124 126 94 Amortization (53) (48) (40) Impact of changes in net unrealized securities losses (gains) (1) 4 13 - ------------------------------------------------------------------------------------------------------- Balance at December 31 $511 $452 $370 =======================================================================================================
7. LINES OF CREDIT 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 plus 28 basis points. There were no amounts outstanding on this line of credit at December 31, 2007 and 2006. Also, RiverSource Life has a collateral loan agreement with Ameriprise Financial aggregating up to $75 million. The interest rate for any borrowings is equal to the preceding month's effective new money rate for RiverSource Life's permanent investments. There were no amounts outstanding at December 31, 2007 and 2006. 8. VARIABLE ANNUITY 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. RiverSource Life has established additional liabilities for the variable annuity death benefits, GMIB provisions and for life contingent benefits associated with GMWB provisions. GMAB and non-life contingent benefits associated with GMWB provisions are considered embedded derivatives and are recorded at fair value. 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. The GMWB offered initially guarantees that the client can withdraw 7% per year until the amount withdrawn is equal to the guaranteed amount, regardless of the performance of the underlying funds. In 2006, RiverSource Life began offering an enhanced withdrawal benefit that gives policyholders a choice to withdraw 6% per year for the life of the policyholder or 7% per year until the amount withdrawn is equal to the guaranteed amount. In 2007, RiverSource Life added a new GMWB benefit design that is available in a joint version that promises 6% withdrawals while either contractholder remains alive. In addition, once withdrawals begin, the policyholder's funds are moved to one of the three less aggressive asset allocation models (of the five that are available prior to withdrawal). 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. The following table provides summary information related to all variable annuity guarantees for which RiverSource Life has established additional liabilities as of December 31:
- ---------------------------------------------------------------------------------------------------------------------------------- VARIABLE ANNUITY GUARANTEES BY BENEFIT TYPE(1) (IN MILLIONS, EXCEPT AGE) 2007 2006 - ---------------------------------------------------------------------------------------------------------------------------------- CONTRACTS WITH GMDB PROVIDING FOR RETURN OF PREMIUM: Total contract value $25,804 $17,418 Contract value in separate accounts $23,892 $15,859 Net amount at risk(2) $ 26 $ 13 Weighted average attained age 60 61 - ------------------------------------------------------------------------------------------------------------------------------------ CONTRACTS WITH GMDB PROVIDING FOR SIX-YEAR RESET: Total contract value $20,231 $23,544 Contract value in separate accounts $17,617 $20,058 Net amount at risk(2) $ 167 $ 227 Weighted average attained age 60 61 - ------------------------------------------------------------------------------------------------------------------------------------
RiverSource Life Insurance Company - --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------- VARIABLE ANNUITY GUARANTEES BY BENEFIT TYPE(1) (CONTINUED) (IN MILLIONS, EXCEPT AGE) 2007 2006 - ---------------------------------------------------------------------------------------------------------------------------------- CONTRACTS WITH GMDB PROVIDING FOR ONE-YEAR RATCHET: Total contract value $ 7,908 $ 6,729 Contract value in separate accounts $ 7,143 $ 5,902 Net amount at risk(2) $ 81 $ 26 Weighted average attained age 61 61 - ------------------------------------------------------------------------------------------------------------------------------------ CONTRACTS WITH GMDB PROVIDING FOR FIVE-YEAR RATCHET: Total contract value $ 1,211 $ 907 Contract value in separate accounts $ 1,163 $ 870 Net amount at risk(2) $ 1 $ -- Weighted average attained age 58 57 - ------------------------------------------------------------------------------------------------------------------------------------ CONTRACTS WITH OTHER GMDB: Total contract value $ 693 $ 586 Contract value in separate accounts $ 639 $ 530 Net amount at risk(2) $ 12 $ 11 Weighted average attained age 65 64 - ------------------------------------------------------------------------------------------------------------------------------------ CONTRACTS WITH GGU DEATH BENEFIT: Total contract value $ 950 $ 811 Contract value in separate accounts $ 873 $ 730 Net amount at risk(2) $ 80 $ 62 Weighted average attained age 62 62 - ------------------------------------------------------------------------------------------------------------------------------------ CONTRACTS WITH GMIB: Total contract value $ 927 $ 928 Contract value in separate accounts $ 859 $ 853 Net amount at risk(2) $ 18 $ 14 Weighted average attained age 62 61 - ------------------------------------------------------------------------------------------------------------------------------------ CONTRACTS WITH GMWB: Total contract value $ 5,104 $ 4,791 Contract value in separate accounts $ 4,980 $ 4,761 Benefit amount in excess of account value $ 22 $ -- Weighted average attained age 62 61 - ------------------------------------------------------------------------------------------------------------------------------------ CONTRACTS WITH GMWB FOR LIFE: Total contract value $ 7,958 $ 2,396 Contract value in separate accounts $ 7,685 $ 2,349 Benefit amount in excess of account value $ 33 $ -- Weighted average attained age 62 63 - ------------------------------------------------------------------------------------------------------------------------------------ CONTRACTS WITH GMAB: Total contract value $ 2,260 $ 1,350 Contract value in separate accounts $ 2,205 $ 1,340 Benefit amount in excess of account value $ 3 $ -- Weighted average attained age 55 55 - ------------------------------------------------------------------------------------------------------------------------------------
(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 always equals account value are not shown in this table. (2) Represents current death benefit less total contract value for GMDB, amount of gross up for GGU and accumulated guaranteed minimum benefit base less total contract value for GMIB and assumes the actuarially remote scenario that all claims become payable on the same day. For the year ended December 31, 2007, additional liabilities (assets) and incurred claims were:
(IN MILLIONS) GMDB & GGU GMIB GMWB GMAB - ------------------------------------------------------------------------------------------------------------- Liability (asset) balance at January 1 $26 $ 5 $(12) $(5) Reported claims 3 2 -- -- Liability balance at December 31 24 3 136 33 Incurred claims (sum of reported and change in liability (assets)) 1 -- 148 38
For the year ended December 31, 2006, additional liabilities (assets) and incurred claims (adjustments) were:
(IN MILLIONS) GMDB & GGU GMIB GMWB GMAB - ------------------------------------------------------------------------------------------------------------- Liability balance at January 1 $16 $ 4 $ 9 $ 1 Reported claims 8 -- -- -- Liability (asset) balance at December 31 26 5 (12) (5) Incurred claims (adjustments) (sum of reported and change in liability (assets)) 18 1 (21) (6) - ------------------------------------------------------------------------------------------------------------------------------------
RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The liabilities for guaranteed benefits are supported by general account assets. Changes in these liabilities are included in benefits, claims, losses and settlement expenses. Contract values in separate accounts were invested in various equity, bond and other funds as directed by the contractholder. No gains or losses were recognized on assets transferred to separate accounts for the periods presented. 9. FUTURE POLICY BENEFITS, POLICY CLAIMS AND OTHER POLICYHOLDERS' FUNDS AND SEPARATE ACCOUNT LIABILITIES Future policy benefits and policy claims and other policyholders' funds as of December 31, consisted of the following:
(IN MILLIONS) 2007 2006 - ------------------------------------------------------------------------------------------------- Fixed annuities $14,382 $16,841 Equity indexed annuities accumulated host values 253 267 Equity indexed annuities embedded derivative 53 50 Variable annuities fixed sub-accounts 5,419 5,975 GMWB variable annuity guarantees 136 (12) GMAB variable annuity guarantees 33 (5) Other variable annuity guarantees 27 31 - ------------------------------------------------------------------------------------------------- Total annuities 20,303 23,147 Variable universal life ("VUL")/universal life ("UL") insurance 2,568 2,562 Other life, DI and LTC insurance 4,106 3,852 - ------------------------------------------------------------------------------------------------- Total future policy benefits 26,977 29,561 Policy claims and other policyholders' funds 91 89 - ------------------------------------------------------------------------------------------------- Total future policy benefits and policy claims and other policyholders' funds $27,068 $29,650 =================================================================================================
Separate account liabilities as of December 31 consisted of the following:
(IN MILLIONS) 2007 2006 - ------------------------------------------------------------------------------------------------- Variable annuity variable sub-accounts $51,764 $43,515 VUL insurance variable sub-accounts 6,244 5,709 Other insurance variable sub-accounts 62 63 - ------------------------------------------------------------------------------------------------- Total separate account liabilities $58,070 $49,287 =================================================================================================
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. The interest rate risks under these obligations are partially hedged with derivative instruments. These derivatives were intended to be cash flow hedges of interest credited on forecasted sales rather than a hedge of inforce risk. These derivatives consisted of interest rate swaptions with a notional value of $0.8 billion and $1.2 billion at December 31, 2007 and 2006, respectively. Effective January 1, 2007, RiverSource Life removed the cash flow hedged designation from its swaptions because they were no longer considered highly effective. The fair value of these swaptions was $1 million and $2 million at December 31, 2007 and 2006, respectively. 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. The equity component of these annuities is considered an embedded derivative and is accounted for separately. The change in fair value of the embedded derivative reserve is reflected in interest credited to fixed accounts. As a means of economically hedging its obligation under the stock market return provision, RiverSource Life purchases and writes index options and enters into futures contracts. The changes in the fair value of these hedge derivatives are included in net investment income. The notional amounts and fair value assets (liabilities) of these options and futures as of December 31 were as follows:
2007 2006 - ------------------------------------------------------------------------------------------------------------- NOTIONAL FAIR NOTIONAL FAIR (IN MILLIONS) AMOUNT VALUE AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------- Purchased options and futures $237 $43 $271 $40 Written options and futures (58) (1) (67) (1)
RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 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. GMAB and non-life contingent benefits associated with GMWB provisions are considered embedded derivatives and are recorded at fair value. The changes in fair values of these embedded derivatives are reflected in benefits, claims, losses and settlement expenses. The negative fair values for GMWB and GMAB at December 31, 2006 reflected that under conditions and expectations at that time, RiverSource Life believed the applicable fees charged for the rider would more than offset the future benefits paid to policyholders under the rider provisions. RiverSource Life does not currently hedge its risk under the GMDB, GGU and GMIB provisions. The total value of variable annuity contracts with GMWB riders increased from $7.2 billion at December 31, 2006 to $13.1 billion at December 31, 2007. The total value of variable annuity contracts with GMAB riders increased from $1.4 billion at December 31, 2006 to $2.3 billion at December 31, 2007. As a means of economically hedging its obligations under GMWB and GMAB provisions, RiverSource Life purchases equity put and call options, enters into interest rate swaps and trades equity futures contracts. The changes in the fair value of these hedge derivatives are included in net investment income. The notional amounts and fair value assets (liabilities) of these options, swaps and futures as of December 31, were as follows:
2007 2006 - ------------------------------------------------------------------------------------------------------------- NOTIONAL FAIR NOTIONAL FAIR (IN MILLIONS) AMOUNT VALUE AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------- Purchased options and futures $6,318 $338 $1,410 $171 Interest rate swaps 202 2 359 (1) Sold equity futures (202) -- (111) --
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 contractholders. RiverSource Life also offers term and whole life insurance as well as disability products. RiverSource Life no longer offers LTC products but has inforce policies from prior years. Insurance liabilities include accumulation values, unpaid reported claims, incurred but not reported claims, and obligations for anticipated future claims. 10. 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. Provisions for income taxes were:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Current income tax: Federal $15 $ 66 $ 56 State 1 3 4 - ------------------------------------------------------------------------------------------------------- Total current income tax 16 69 60 Deferred federal income tax 83 123 122 - ------------------------------------------------------------------------------------------------------- Income tax provision $99 $192 $182 =======================================================================================================
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:
2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Tax at U.S. statutory rate 35.0% 35.0% 35.0% Changes in taxes resulting from: Tax-exempt interest and dividend income (10.3) (6.5) (9.4) State taxes, net of federal benefit 0.1 0.3 0.4 Foreign tax credit, net of addback (2.1) (0.7) (0.5) Taxes applicable to prior years (3.7) 0.1 2.8 Other, net -- 0.1 0.1 - ------------------------------------------------------------------------------------------------------- Income tax provision effective rate 19.0% 28.3% 28.4% =======================================================================================================
RiverSource Life Insurance Company - -------------------------------------------------------------------------------- RiverSource Life's effective tax rate was 19.0% and 28.3% for the years ended December 31, 2007 and 2006, respectively. The decrease in the effective tax rate primarily reflects lower pretax income as well as higher levels of tax advantaged items, including dividends received deduction and foreign tax credits, relative to pretax income for the year ended December 31, 2007 as well as a $7 million tax benefit related to the finalization of the prior year tax return. Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for U.S. GAAP reporting versus income tax return purposes. The significant components of RiverSource Life's deferred income tax assets and liabilities as of December 31 are reflected in the following table:
(IN MILLIONS) 2007 2006 - ------------------------------------------------------------------------------------------------- Deferred income tax assets: Liabilities for future policy benefits $1,212 $1,146 Investment related 29 75 Net unrealized losses on Available-for Sale securities and derivatives 87 115 Tax credit carryforwards 19 -- Other 44 45 - ------------------------------------------------------------------------------------------------- Gross deferred income tax assets 1,391 1,381 Deferred income tax liabilities: DAC 1,253 1,253 DSIC 179 158 Other 92 60 - ------------------------------------------------------------------------------------------------- Gross deferred income tax liabilities 1,524 1,471 - ------------------------------------------------------------------------------------------------- Net deferred income tax liabilities $ 133 $ 90 =================================================================================================
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. Additionally, RiverSource Life has $11.9 million in Alternative Minimum Tax (AMT) and $6.9 million foreign tax credit carryforwards included in the deferred tax assets as of December 31, 2007. The AMT carryforward has no expiration and the foreign tax credit carryforward expires on December 31, 2026. 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, 2007 and 2006. Effective January 1, 2007, RiverSource Life adopted the provisions of FIN 48. The amount RiverSource Life recognized as a result of the implementation of FIN 48 was not material. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(IN MILLIONS) 2007 - ------------------------------------------------------------------------------------------- Balance at January 1 $ 73 Additions based on tax positions related to the current year 34 Additions for tax positions of prior years 16 Reductions for tax positions of prior years (26) - ------------------------------------------------------------------------------------------- Balance at December 31 $ 97 ===========================================================================================
If recognized, approximately $27 million and $49 million, net of federal tax benefits, of the unrecognized tax benefits as of January 1, 2007 and December 31, 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 $11 million in interest and penalties for the year ended December 31, 2007. RiverSource Life had $10 million and ($1) million for the payment of interest and penalties accrued at January 1, 2007 and December 31, 2007, respectively. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of RiverSource Life, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $35 million to $40 million in the next 12 months. 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 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- examination of the American Express Company consolidated return, commenced an examination of the RiverSource Life's income tax returns for 1997 through 2002 in the third quarter of 2005. In the first quarter of 2007, the IRS expanded the period of the exam to include 2003 through 2004. RiverSource Life or certain of its subsidiaries' state income tax returns are currently under examination by various jurisdictions for years ranging from 1998 through 2005. 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 and has added the project to the 2007-2008 Priority Guidance Plan. 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. For the twelve months ended December 31, 2007, RiverSource Life recorded a benefit of approximately $46 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 loss in the Consolidated Statements of Shareholder's Equity are presented net of the following income tax benefit amounts:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Net unrealized securities gains (losses) $28 $(41) $(248) Net unrealized derivative gains (losses) -- (1) (6) - ------------------------------------------------------------------------------------------------------- Net income tax provision (benefit) $28 $(42) $(254) =======================================================================================================
11. 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 $0.8 billion and $1.2 billion as of December 31, 2007 and 2006, 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) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- (unaudited) Statutory net gain from operations $ 523 $ 469 $ 327 Statutory net income 555 514 339 Statutory capital and surplus 2,820 3,258 2,942 - -------------------------------------------------------------------------------------------------------
12. RELATED PARTY TRANSACTIONS Ameriprise Financial was the investment manager for the proprietary mutual funds used as investment options by RiverSource Life's variable annuity and variable life insurance contractholders through the third quarter of 2005. In the fourth quarter of 2005, RiverSource Investments, LLC replaced Ameriprise Financial as the investment manager. 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, 2007 and 2006, RiverSource Life received $97 million and $76 million, respectively, from RiverSource Investments, LLC for administrative services provided by RiverSource Life. For the year ended December 31, 2005, RiverSource Life received $56 million from Ameriprise Financial and $20 million from RiverSource Investments, LLC for services provided for the periods they each were investment managers. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 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 ERISA. RiverSource Life's share of the total net periodic pension cost was approximately $1 million for each of the years ended December 31, 2007, 2006 and 2005. 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 2007, $2 million in 2006 and $1 million in 2005. 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 in 2007, 2006 and 2005 were $3 million, $3 million and $2 million, 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 2007, 2006 and 2005 were $2 million, $1 million and $1 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 $909 million, $755 million and $725 million for 2007, 2006 and 2005, 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. During 2007, RiverSource Life Insurance Company paid $900 million of cash dividends to Ameriprise Financial, a portion of which is considered extraordinary. During 2006, RiverSource Life Insurance Company paid $300 million of dividends to Ameriprise Financial, a portion of which is considered extraordinary. Prior to the payment of the extraordinary cash dividends, RiverSource Life Insurance Company made the required advance notices to the Minnesota Department of Commerce, its primary state regulator, and received responses stating there were no objections to the payment of these dividends. The ordinary cash dividends did not require prior notification and response from the Minnesota Department of Commerce. In connection with the Separation, RiverSource Life received a capital contribution of $650 million from Ameriprise Financial during the third quarter of 2005 to support its current financial strength ratings and to cover the allocated separation costs. During the fourth quarter of 2005, RiverSource Life Insurance Company paid dividends to Ameriprise Financial of $380 million. During 2007, 2006 and 2005, RiverSource Life of NY paid cash dividends of $83 million, $25 million and $23 million, respectively, to RiverSource Life Insurance Company. A portion of the 2007 dividends was considered extraordinary and was paid only after making the required advance notice to the New York State Insurance Department, RiverSource Life of NY's primary state regulator. Included in other liabilities at December 31, 2007 and 2006 are nil and $1 million, respectively, payable to Ameriprise Financial for federal income taxes. 13. REINSURANCE At December 31, 2007, 2006 and 2005, traditional life and universal life insurance inforce aggregated $187.3 billion, $174.1 billion and $160.1 billion, respectively, of which $117.4 billion, $102.4 billion and $86.3 billion were reinsured at the respective year ends. Life insurance inforce 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 for the years ended December 31 is as follows:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Direct premiums $ 621 $ 645 $ 643 Reinsurance assumed 2 3 2 Reinsurance ceded (138) (115) (124) - ------------------------------------------------------------------------------------------------------- Net premiums $ 485 $ 533 $ 521 =======================================================================================================
Policy and contract charges are presented on the Consolidated Statements of Income net of $57 million, $55 million and $52 million of reinsurance ceded for the years ended December 31, 2007, 2006 and 2005, respectively. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Reinsurance recovered from reinsurers amounted to $126 million, $115 million and $106 million for the years ended December 31, 2007, 2006 and 2005, respectively. Reinsurance contracts do not relieve RiverSource Life from its primary obligation to policyholders. 14. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Derivative financial 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 does not engage in any derivative instrument trading activities. Credit risk associated with RiverSource Life's derivatives is limited to the risk that a derivative counterparty will not perform in accordance with the terms of the contract. To mitigate such risk, counterparties are all required to be preapproved. Additionally, RiverSource Life may, from time to time, enter into master netting agreements wherever practical. As of December 31, 2007 and 2006, the total net fair values, excluding accruals, of derivative assets were $385 million and $212 million, respectively, and derivative liabilities were $9 million and $7 million, respectively. The net notional amount of derivatives as of December 31, 2007 was $7.3 billion, consisting of $7.6 billion purchased and $0.3 billion written. Cash Flow Hedges RiverSource Life uses interest rate derivative products, primarily interest rate swaptions, to hedge the risk of increasing interest rates on forecasted fixed premium product sales. The following is a summary of net unrealized gains (losses) related to cash flow hedging activity, net of tax for the years ended December 31 as follows:
(IN MILLIONS) 2007 2006 2005 - ------------------------------------------------------------------------------------------------------- Holding gains (losses), net of tax of $1, $2 and $5, respectively $-- $(4) $(10) Reclassification of realized losses (gains), net of tax of $1, $1 and $1, respectively 1 3 (1) - ------------------------------------------------------------------------------------------------------- Net change in unrealized derivative gains (losses) $ 1 $(1) $(11) =======================================================================================================
At December 31, 2007, RiverSource Life expects to reclassify approximately $4 million of net pretax losses on derivative instruments from accumulated other comprehensive income (loss) to earnings during the next 12 months as a result of the amortization of deferred expense related to interest rate swaptions that will be recorded in 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) may be 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. Effective January 1, 2007, RiverSource Life removed the cash flow hedge designation from its swaptions because the swaptions were no longer highly effective. Accordingly, all changes in the fair value of the swaptions are recorded directly to earnings. The removal of the cash flow designation did not cause any amounts in accumulated other comprehensive income (loss) to be reclassified into earnings because the forecasted transactions being hedged are still likely to occur. There were no cash flow hedges for which hedge accounting was terminated for these reasons during 2006 or 2005. No hedge relationships were discontinued during the years ended December 31, 2007, 2006 and 2005 due to forecasted transactions no longer expected to occur according to the original hedge strategy. Currently, the longest period of time over which RiverSource Life is hedging exposure to the variability in future cash flows is 11 years and relates to forecasted fixed annuity sales. For the years ended December 31, 2007, 2006 and 2005, there were $2 million, $4 million and $2 million, respectively, in losses on derivative transactions or portions thereof that were ineffective as hedges excluded from the assessment of hedge effectiveness or reclassified into earnings as a result of the discontinuance of cash flow hedges. Derivatives Not Designated as Hedges RiverSource Life has economic hedges that either do not qualify or are not designated for hedge accounting treatment. The fair value assets (liabilities) of these purchased and written derivatives for the years ended December 31 were as follows:
2007 2006 - ------------------------------------------------------------------------------------------------------------- (IN MILLIONS) PURCHASED WRITTEN PURCHASED WRITTEN - ------------------------------------------------------------------------------------------------------------- Equity indexed annuities $ 43 $(1) $ 40 $(1) GMWB and GMAB 340 -- 170 -- - ------------------------------------------------------------------------------------------------------------- Total $383 $(1) $210 $(1) =============================================================================================================
Futures contracts are settled daily by exchanging cash with the counterparty and gains and losses are reported in earnings. Accordingly, there are no amounts on the Consolidated Balance Sheets related to these contracts. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Certain annuity products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the amount of expenses incurred by RiverSource Life related to equity indexed annuities will positively or negatively impact earnings. As a means of economically hedging its obligations under the provisions of these products, RiverSource Life writes and purchases index options and occasionally enters into futures contracts. Purchased options used in conjunction with these products are reported in other assets and written options are included in other liabilities. Additionally, certain annuity products 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 the GMWB and GMAB provisions using various equity futures, equity options and interest rate swaps. The premium associated with certain of these options is paid semi-annually over the life of the option contract. As of December 31, 2007, the remaining payments RiverSource Life is scheduled to make for these options total $313 million through December 31, 2022. RiverSource Life earns fees from the management of equity securities in variable annuities and variable insurance. The amount of fees is generally based on the value of the portfolios, and thus is subject to fluctuation with the general level of equity market values. To reduce the sensitivity of RiverSource Life's fee revenues to the general performance of equity markets, RiverSource Life from time to time enters into various combinations of financial instruments such as equity market put and collar options that mitigate the negative effect on fees that would result from a decline in the equity markets. Embedded Derivatives The equity component of the equity indexed annuity obligations are considered embedded derivatives. Additionally, certain annuities contain GMAB and non-life contingent GMWB provisions which are also considered embedded derivatives. The fair value of the embedded derivatives for annuity related products are included in future policy benefits. The changes in fair value of the equity indexed annuity embedded derivatives are reflected in interest credited to fixed accounts. The changes in fair value of the GMWB and GMAB embedded derivatives are reflected in benefits, claims, losses and settlement expenses. At December 31, 2007 and 2006, the total fair value of these instruments, excluding the host contract and a liability for life contingent GMWB benefits of $2 million and nil, respectively, was a net liability of $220 million and $33 million, respectively. 15. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair values of financial instruments are estimates based upon market conditions and perceived risks at December 31, 2007 and 2006, and require management judgment to estimate such values. These figures may not be indicative of future fair values. Additionally, management believes the value of excluded assets and liabilities is significant. The fair value of RiverSource Life, therefore, cannot be estimated by aggregating the amounts presented herein. The following table discloses carrying values and fair values of financial instruments at December 31:
2007 2006 - ------------------------------------------------------------------------------------------------------------- CARRYING FAIR CARRYING FAIR (IN MILLIONS) VALUE VALUE VALUE VALUE - ------------------------------------------------------------------------------------------------------------- FINANCIAL ASSETS Assets for which carrying values approximate fair values $80,946 $80,946 $75,336 $75,336 Commercial mortgage loans, net 2,892 2,868 2,790 2,875 Other investments 58 59 108 112 FINANCIAL LIABILITIES Net liabilities for which carrying values approximate fair values $ 177 $ 177 $ (10) $ (10) Fixed account reserves 18,622 18,077 21,626 20,981 Separate account liabilities 51,764 49,388 43,516 41,623 - -------------------------------------------------------------------------------------------------------------
FINANCIAL ASSETS Assets for which carrying values approximate fair values include cash and cash equivalents, Available-for-Sale securities, policy loans, trading securities, separate account assets and derivative financial instruments. Generally these assets are either short-term in duration, variable rate in nature or are recorded at fair value on the Consolidated Balance Sheets. The fair value of commercial mortgage loans, except those with significant credit deterioration, was estimated using discounted cash flow analysis, based on current interest rates for loans with similar terms to borrowers of similar credit quality. For loans with significant credit deterioration, fair values were based on estimates of future cash flows discounted at rates commensurate with the risk inherent in the revised cash flow projections, or for collateral dependent loans, on collateral values. Other investments include RiverSource Life's interest in syndicated loans, which are carried at amortized cost less allowance for losses. Fair values were based on quoted market prices. RiverSource Life Insurance Company - -------------------------------------------------------------------------------- FINANCIAL LIABILITIES Liabilities for which carrying values approximate fair values include certain other liabilities and derivative liabilities. Generally these liabilities are either short-term in duration, variable rate in nature or are recorded at fair value on the Consolidated Balance Sheets. Fair values of fixed annuities in deferral status were estimated as the accumulated value less applicable surrender charges. For annuities in payout status, fair value was estimated using discounted cash flows based on current interest rates. The fair value of these reserves excluded life insurance-related elements of $1.5 billion as of both December 31, 2007 and 2006. If the fair value of the fixed annuities were realized, the write-off of DAC and DSIC would be $308 million and $422 million as of December 31, 2007 and 2006, respectively. Fair values of separate account liabilities, excluding life insurance-related elements of $6.3 billion and $5.8 billion as of December 31, 2007 and 2006, respectively, were estimated as the accumulated value less applicable surrender charges. If the fair value of the separate account liabilities were realized, the surrender charges received would be offset by the write-off of the DAC and DSIC associated with separate account liabilities of $2.5 billion and $2.3 billion as of December 31, 2007 and 2006, respectively. 16. COMMITMENTS AND CONTINGENCIES At December 31, 2007 and 2006, RiverSource Life had no material commitments to purchase investments other than mortgage loan fundings (see Note 4). RiverSource Life's annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2007, 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. S-6325 F (5/08) 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 24, 2008. Statements of Assets and Liabilities for the year ended Dec. 31, 2007. Statements of Operations for the year ended Dec. 31, 2007. Statements of Changes and Net Assets for the years ended Dec. 31, 2007 and 2006. Notes to Financial Statements. The audited financial statements of the RiverSource Life Insurance Company including: Report of Independent Registered Public Accounting Firm dated April 24, 2008. Consolidated Balance Sheets as of Dec. 31, 2007 and 2006. Consolidated Statements of Income for the years ended Dec. 31, 2007, 2006 and 2005. Consolidated Statements of Cash Flows for the years ended Dec. 31, 2007, 2006 and 2005. Consolidated Statements of Stockholder's Equity for the three years ended Dec. 31, 2007, 2006 and 2005. 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 Variable Annuity - Band 3 is filed electronically herewith. 10.3 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor Advantage Variable Annuity/ Retirement Advisor Select Variable Annuity is filed electronically herewith. 10.4 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor Advantage Variable Annuity - Band 3 is filed electronically herewith. 10.5 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. 10.6 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 Aug. 30, 2007 filed electronically as Exhibit (r)(1) to Post-Effective Amendment No. 31 to Registration Statement No. 333- 69777is incorporated herein by reference. 14. Not applicable. Item 25. Item 25. Directors and Officers of the Depositor RiverSource Life Insurance Company
Position and Offices Name Principal Business Address* With Depositor - ---- --------------------------- ---------------------------- Gumer C. Alvero Director and Executive Vice President - Annuities Timothy V. Bechtold Director and President Kent M. Bergene Vice President - Affiliated Investments Walter S. Berman Vice President and Treasurer Richard N. Bush Senior Vice President - Corporate Tax Pat H. Carey Vice President-Fund Relations Charles R. Caswell Reinsurance Officer Jim Hamalainen Vice President - Investments Michelle M. Keeley Vice President - Investments Timothy J. Masek Vice President - Investments Brian J. McGrane Director, Executive Vice President and Chief Financial Officer Thomas W. Murphy Vice President - Investments Kevin E. Palmer Director, Vice President and Chief Actuary Bridget M. Sperl Director, Executive Vice President - Client Service David K. Stewart Vice President and Controller
* The business address is 70100 Amerprise Financial Center, Minneapolis, MN 55474. Item 26. Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant The following list includes the names of major subsidiaries of Ameriprise Financial, Inc.
Jurisdiction of Name of Subsidiary Incorporation - ------------------ --------------- Advisory Capital Strategies Group Inc. Minnesota AEXP Affordable Housing LLC Delaware American Enterprise Investment Services Inc. Minnesota American Express Property Casualty Insurance Agency of Kentucky,Inc. Kentucky American Express Property Casualty Insurance Agency of Maryland,Inc. Maryland American Express Property Casualty Insurance Agency of Mississippi,Inc. Mississippi American Express Property Casualty Insurance Agency of Pennsylvania,Inc. Pennsylvania Ameriprise Auto & Home Insurance Agency, Inc. Wisconsin Ameriprise Bank, FSB USA Ameriprise Capitive Insurance Company Vermont Ameriprise Capital Trust I Delaware Ameriprise Capital Trust II Delaware Ameriprise Capital Trust III Delaware Ameriprise Capital Trust IV Delaware Ameriprise Certificate Company Delaware Ameriprise Financial Services,Inc. Delaware Ameriprise India Private Ltd. India Ameriprise Insurance Company Wisconsin Ameriprise Trust Company Minnesota Boston Equity General Partner LLC Delaware IDS Capital Holdings Inc. Minnesota IDS Futures Corporation Minnesota IDS Management Corporation Minnesota IDS Property Casualty Insurance Company Wisconsin IDS REO 1, LLC Minnesota IDS REO 2, LLC Minnesota Investors Syndicate Development Corporation Nevada Kenwood Capital Management LLC (47.7% owned) Delaware Realty Assets, Inc. Nebraska RiverSource CDO Seed Investments, LLC Minnesota RiverSource Distributors,Inc. Delaware RiverSource Investments,LLC Minnesota RiverSource Life Insurance Company Minnesota RiverSource Life Insurance Co. of New York New York RiverSource Service Corporation Minnesota RiverSource Tax Advantaged Investments, Inc. Delaware Securities America Advisors,Inc. Nebraska Securities America Financial Corporation Nebraska Securities America, Inc. Nebraska Threadneedle Asset Management Holdings Ltd. England
Item 27. Number of Contract owners As of March 31, 2008 there were 388,226 non-qualified contract owners and 208,606 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 Underwriter RiverSource Distributors Inc. ITEM 29. PRINCIPAL UNDERWRITERS. (a) RiverSource Distributors Inc. acts as principal underwriter, depositor or sponsor for: RiverSource Variable Annuity Account ; RiverSource Account F; RiverSource Variable Annuity Fund A, RiverSource Variable Annuity Fund B, RiverSource Variable Account 10; RiverSource Account MGA; RiverSource MVA Account; RiverSource Variable Life Separate Account; RiverSource Variable Life Account; RiverSource Life Insurance Company; RiverSource of New York Variable Annuity Account ; RiverSource of New York Account 8; RiverSource of New York Variable Annuity Account; RiverSource Bond Series, Inc.; RiverSource California Tax-Exempt Trust; RiverSource Dimensions Series, Inc.; RiverSource Diversified Income Series, Inc.; RiverSource Equity Series, Inc.; RiverSource Global Series, Inc.; RiverSource Government Income Series, Inc.; RiverSource High Yield Income Series, Inc.; RiverSource Income Series, Inc.; RiverSource International Managers Series, Inc.; RiverSource International Series, Inc.; RiverSource Investment Series, Inc.; RiverSource Large Cap Series, Inc.; RiverSource Managers Series, Inc.; RiverSource Market Advantage Series, Inc.; RiverSource Money Market Series, Inc.; RiverSource Sector Series, Inc.; RiverSource Selected Series, Inc.; RiverSource Series Trust; RiverSource Short Term Investments Series, Inc.; RiverSource Special Tax-Exempt Series Trust; RiverSource Strategic Allocation Series; Inc., RiverSource Strategy Series, Inc.; RiverSource Tax-Exempt Income Series, Inc.; RiverSource Tax-Exempt Money Market Series, Inc.; RiverSource Tax-Exempt Series, Inc.; RiverSource Variable Series Trust. (b) As to each director, officer or partner of the principal underwriter:
Name and Principal Business Positions and Offices with Address* Underwriter - --------------------------- --------------------------------- Gumer C. Alvero Director and Vice President Patrick T. Bannigan Director and Senior Vice President-Asset Management, Products and Marketing Group Timothy V. Bechtold Director Paul J. Dolan Chief Operating Officer and Chief Administrative Officer Jeffrey P. Fox Chief Financial Officer Martin T. Griffin President-Outside Distribution Jeffrey L. McGregor, Sr. President-Inside Distribution Scott R. Plummer Chief Counsel Julie A. Ruether Chief Compliance Officer William F. "Ted" Truscott Chairman of the Board, CEO and President
* Business address is: 70100 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. $322,665,705 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 24th day of April, 2008. RIVERSOURCE VARIABLE ACCOUNT 10 (Registrant) By RiverSource Life Insurance Company (Sponsor) By /s/ Timothy V. Bechtold* ------------------------------------- Timothy V. Bechtold 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 24th day of April, 2008. /s/ Gumer C. Alvero* Director and Executive Vice President - -------------------------------------- - Annuities Gumer C. Alvero /s/ Timothy V. Bechtold* Director and President - -------------------------------------- (Chief executive officer) Timothy V. Bechtold /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* Executive Vice President - Client - -------------------------------------- Services Bridget M. Sperl
/s/ David K. Stewart* Vice President and Controller - -------------------------------------- (Principal Accounting Officer) David K. Stewart
* Signed pursuant to Power of Attorney dated Aug. 30, 2007 filed electronically as Exhibit (r)(1) to Post-Effective Amendment No. 31 to Registration Statement No. 333-69777, by: /s/ Elisabeth A. Dahl - -------------------------------------- Elisabeth A. Dahl Assistant General Counsel and Assistant Secretary CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 49 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 Variable Annuity - Band 3 RiverSource Retirement Advisor Advantage Variable Annuity RiverSource Retirement Advisor Select Variable Annuity RiverSource Retirement Advisor Advantage Variable Annuity - Band 3 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. Exhibit Index 9. Opinion of counsel and consent to its use as to the legality of the securities being registered. 10.1 - 10.6 Consents of Independent Registered Public Accounting Firm.
EX-9 2 c18311bexv9.txt OPINION OF COUNSEL AND CONSENT EXHIBIT 9 April 24, 2008 RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 Re: RiverSource Variable Account 10 RiverSource Retirement Advisor Variable Annuity RiverSource Retirement Advisor Variable Annuity - Band 3 RiverSource Retirement Advisor Advantage Variable Annuity RiverSource Retirement Advisor Select Variable Annuity RiverSource Retirement Advisor Advantage Variable Annuity - Band 3 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/ Elisabeth A. Dahl - ------------------------------------- Elisabeth A. Dahl Assistant General Counsel EX-10.1 3 c18311bexv10w1.txt CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM EXHIBIT 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 27, 2008 with respect to the consolidated financial statements of RiverSource Life Insurance Company and to the use of our report dated April 24, 2008 with respect to the financial statements of RiverSource Variable Account 10 in Post-Effective Amendment No. 49 to the Registration Statement (Form N-4, No. 333-79311) for the registration of the RiverSource Retirement Advisor Variable Annuity(SM) offered by RiverSource Life Insurance Company. /s/ Ernst & Young LLP Minneapolis, Minnesota April 24, 2008 EX-10.2 4 c18311bexv10w2.txt CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM EXHIBIT 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 27, 2008 with respect to the consolidated financial statements of RiverSource Life Insurance Company and to the use of our report dated April 24, 2008 with respect to the financial statements of RiverSource Variable Account 10 in Post-Effective Amendment No. 49 to the Registration Statement (Form N-4, No. 333-79311) for the registration of the RiverSource Retirement Advisor Variable Annuity(SM) - Band 3 offered by RiverSource Life Insurance Company. /s/ Ernst & Young LLP Minneapolis, Minnesota April 24, 2008 EX-10.3 5 c18311bexv10w3.txt CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM EXHIBIT 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 27, 2008 with respect to the consolidated financial statements of RiverSource Life Insurance Company and to the use of our report dated April 24, 2008 with respect to the financial statements of RiverSource Variable Account 10 in Post-Effective Amendment No. 49 to the Registration Statement (Form N-4, No. 333-79311) for the registration of the RiverSource Retirement Advisor Advantage(SM) Variable Annuity and RiverSource Retirement Advisor Select(SM) Variable Annuity offered by RiverSource Life Insurance Company. /s/ Ernst & Young LLP Minneapolis, Minnesota April 24, 2008 EX-10.4 6 c18311bexv10w4.txt CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM EXHIBIT 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 27, 2008 with respect to the consolidated financial statements of RiverSource Life Insurance Company and to the use of our report dated April 24, 2008 with respect to the financial statements of RiverSource Variable Account 10 in Post-Effective Amendment No. 49 to the Registration Statement (Form N-4, No. 333-79311) for the registration of the RiverSource Retirement Advisor Advantage(SM) Variable Annuity - Band 3 offered by RiverSource Life Insurance Company. /s/ Ernst & Young LLP Minneapolis, Minnesota April 24, 2008 EX-10.5 7 c18311bexv10w5.txt CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM EXHIBIT 10.5 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 27, 2008 with respect to the consolidated financial statements of RiverSource Life Insurance Company and to the use of our report dated April 24, 2008 with respect to the financial statements of RiverSource Variable Account 10 in Post-Effective Amendment No. 49 to the Registration Statement (Form N-4, No. 333-79311) for the registration of the RiverSource Retirement Advisor Advantage Plus(SM) Variable Annuity and RiverSource Retirement Advisor Select Plus(SM) Variable Annuity offered by RiverSource Life Insurance Company. /s/ Ernst & Young LLP Minneapolis, Minnesota April 24, 2008 EX-10.6 8 c18311bexv10w6.txt CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM EXHIBIT 10.6 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 27, 2008 with respect to the consolidated financial statements of RiverSource Life Insurance Company and to the use of our report dated April 24, 2008 with respect to the financial statements of RiverSource Variable Account 10 in Post-Effective Amendment No. 49 to the Registration Statement (Form N-4, No. 333-79311) for the registration of the RiverSource Retirement Advisor 4 Advantage(SM) Variable Annuity, RiverSource Retirement Advisor 4 Select(SM) Variable Annuity, and RiverSource Retirement Advisor 4 Access(SM) Variable Annuity offered by RiverSource Life Insurance Company. /s/ Ernst & Young LLP Minneapolis, Minnesota April 24, 2008 -----END PRIVACY-ENHANCED MESSAGE-----