N-VPFS

N-VPFS 1 d103340dnvpfs.htm N-VPFS N-VPFS

Annual Financial Information

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF DIRECTORS OF RIVERSOURCE LIFE INSURANCE COMPANY AND

CONTRACT OWNERS OF RIVERSOURCE VARIABLE ACCOUNT 10

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities of each of the divisions of RiverSource Variable Account 10, as indicated in Note 1, offered through RiverSource^® Retirement Advisor Advantage Variable Annuity – Band 3 sponsored by RiverSource Life Insurance Company, as of December 31, 2020, and the related statements of operations and of changes in net assets for each of the periods indicated in Note 1, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the divisions of RiverSource Variable Account 10 as of December 31, 2020, and the results of each of their operations and the changes in each of their net assets for each of the periods indicated in Note 1, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the RiverSource Life Insurance Company management. Our responsibility is to express an opinion on the financial statements of each of the divisions of the RiverSource Variable Account 10 based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the divisions of the RiverSource Variable Account 10 in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of investments owned as of December 31, 2020 by correspondence with the transfer agent and investee mutual funds. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Minneapolis, Minnesota

April 21, 2021

We have served as the auditor of one or more of the divisions of RiverSource Variable Account 10 since 2010.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			1

Statement of Assets and Liabilities


December 31, 2020	AB VPS Dyn Asset Alloc, Cl B		AB VPS Global Thematic Gro, Cl B		AB VPS Gro & Inc, Cl B		AB VPS Intl Val, Cl B		ALPS Alerian Engy Infr, Class III
Assets
Investments, at fair value^(1),(2)	$	10,461,123	$	10,373,650	$	73,637,954	$	83,458,737	$	22,313,815
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		281		1,583		3,097		69,529		787
Receivable for share redemptions		9,657		10,369		114,380		95,012		34,382
Total assets		10,471,061		10,385,602		73,755,431		83,623,278		22,348,984

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		9,608		8,199		54,660		62,575		19,597
Contract terminations		49		2,170		59,720		32,437		14,785
Payable for investments purchased		281		1,583		3,097		69,529		787
Total liabilities		9,938		11,952		117,477		164,541		35,169
Net assets applicable to contracts in accumulation period		10,460,364		10,373,650		73,398,377		83,307,486		22,262,598
Net assets applicable to contracts in payment period		—		—		239,577		151,251		50,659
Net assets applicable to seed money		759		—		—		—		558
Total net assets	$	10,461,123	$	10,373,650	$	73,637,954	$	83,458,737	$	22,313,815
⁽¹⁾ Investment shares		758,052		255,887		2,590,150		5,819,996		3,417,123
⁽²⁾ Investments, at cost	$	9,312,388	$	7,188,130	$	64,156,425	$	89,054,573	$	30,953,561

December 31, 2020 (continued)	AC VP Intl, Cl II		AC VP Mid Cap Val, Cl II		AC VP Ultra, Cl II		AC VP Val, Cl II		BlackRock Global Alloc, Cl III
Assets
Investments, at fair value^(1),(2)	$	24,484,601	$	40,390,737	$	54,980,972	$	155,092,987	$	83,867,747
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		21,875		35,672		140,805		1,203		267,369
Receivable for share redemptions		42,839		60,957		84,227		293,530		177,895
Total assets		24,549,315		40,487,366		55,206,004		155,387,720		84,313,011

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		18,048		32,388		42,445		127,312		74,495
Contract terminations		24,791		28,569		41,782		166,218		103,400
Payable for investments purchased		21,875		35,672		140,805		1,203		267,369
Total liabilities		64,714		96,629		225,032		294,733		445,264
Net assets applicable to contracts in accumulation period		24,381,280		40,250,385		54,796,045		154,742,346		83,456,787
Net assets applicable to contracts in payment period		103,321		140,352		184,927		350,155		410,536
Net assets applicable to seed money		—		—		—		486		424
Total net assets	$	24,484,601	$	40,390,737	$	54,980,972	$	155,092,987	$	83,867,747
⁽¹⁾ Investment shares		1,740,199		1,963,575		2,055,363		13,859,963		5,148,419
⁽²⁾ Investments, at cost	$	15,396,534	$	35,425,902	$	33,446,688	$	113,486,029	$	75,516,689

See accompanying notes to financial statements.



2		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Assets and Liabilities


December 31, 2020 (continued)	Calvert VP SRI Bal, Cl I		Col VP Bal, Cl 3		Col VP Commodity Strategy, Cl 2		Col VP Contrarian Core, Cl 2		Col VP Disciplined Core, Cl 3
Assets
Investments, at fair value^(1),(2)	$	24,245,668	$	577,611,892	$	4,373,218	$	118,781,485	$	347,018,872
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		136,857		171,622		162		69,419		2,724
Receivable for share redemptions		17,208		727,497		3,913		133,382		437,993
Total assets		24,399,733		578,511,011		4,377,293		118,984,286		347,459,589

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		17,208		510,218		3,912		103,186		294,349
Contract terminations		—		217,279		1		30,196		143,644
Payable for investments purchased		136,857		171,622		162		69,419		2,724
Total liabilities		154,065		899,119		4,075		202,801		440,717
Net assets applicable to contracts in accumulation period		24,175,690		572,717,954		4,372,270		118,378,354		342,527,648
Net assets applicable to contracts in payment period		69,978		4,893,802		—		403,007		4,491,224
Net assets applicable to seed money		—		136		948		124		—
Total net assets	$	24,245,668	$	577,611,892	$	4,373,218	$	118,781,485	$	347,018,872
⁽¹⁾ Investment shares		9,621,297		15,851,040		1,021,780		3,706,131		5,269,038
⁽²⁾ Investments, at cost	$	19,336,762	$	340,742,608	$	5,463,375	$	68,731,406	$	126,177,207

December 31, 2020 (continued)	Col VP Divd Opp, Cl 3		Col VP Emerg Mkts Bond, Cl 2		Col VP Emer Mkts, Cl 3		Col VP Global Strategic Inc, Cl 3		Col VP Govt Money Mkt, Cl 3
Assets
Investments, at fair value^(1),(2)	$	395,050,772	$	14,139,515	$	139,658,114	$	64,307,847	$	135,582,588
Dividends receivable		—		—		—		—		37
Accounts receivable from RiverSource Life for contract purchase payments		64,577		126		—		35,806		270,267
Receivable for share redemptions		462,569		12,741		276,177		89,364		167,136
Total assets		395,577,918		14,152,382		139,934,291		64,433,017		136,020,028

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		310,952		11,681		116,088		50,924		108,570
Contract terminations		151,617		1,060		160,089		38,440		58,566
Payable for investments purchased		64,577		126		—		35,806		270,267
Total liabilities		527,146		12,867		276,177		125,170		437,403
Net assets applicable to contracts in accumulation period		391,965,209		14,129,793		139,213,841		63,876,506		135,045,744
Net assets applicable to contracts in payment period		3,085,563		9,215		444,273		431,341		536,881
Net assets applicable to seed money		—		507		—		—		—
Total net assets	$	395,050,772	$	14,139,515	$	139,658,114	$	64,307,847	$	135,582,625
⁽¹⁾ Investment shares		13,382,479		1,419,630		6,406,336		7,185,234		135,582,588
⁽²⁾ Investments, at cost	$	168,269,855	$	13,673,122	$	90,782,132	$	74,172,004	$	135,579,102

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			3

Statement of Assets and Liabilities


December 31, 2020 (continued)	Col VP Hi Yield Bond, Cl 3		Col VP Inc Opp, Cl 3		Col VP Inter Bond, Cl 3		Col VP Lg Cap Gro, Cl 3		Col VP Lg Cap Index, Cl 3
Assets
Investments, at fair value^(1),(2)	$	163,849,224	$	101,998,697	$	342,522,574	$	152,397,074	$	479,899,896
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		68,146		33,274		19,077		3,966		5,954
Receivable for share redemptions		211,875		165,956		351,741		223,983		724,923
Total assets		164,129,245		102,197,927		342,893,392		152,625,023		480,630,773

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		130,349		79,167		270,480		110,916		413,289
Contract terminations		81,526		86,789		81,261		113,067		311,634
Payable for investments purchased		68,146		33,274		19,077		3,966		5,954
Total liabilities		280,021		199,230		370,818		227,949		730,877
Net assets applicable to contracts in accumulation period		162,384,935		101,538,000		340,169,055		151,694,612		478,047,878
Net assets applicable to contracts in payment period		1,464,289		460,697		2,353,519		702,462		1,851,927
Net assets applicable to seed money		—		—		—		—		91
Total net assets	$	163,849,224	$	101,998,697	$	342,522,574	$	152,397,074	$	479,899,896
⁽¹⁾ Investment shares		23,919,595		13,161,122		29,681,332		5,233,416		15,874,955
⁽²⁾ Investments, at cost	$	159,294,194	$	111,028,143	$	313,429,722	$	50,035,047	$	253,110,981

December 31, 2020 (continued)	Col VP Limited Duration Cr, Cl 2		Col VP Long Govt/Cr Bond, Cl 2		Col VP Mid Cap Gro, Cl 3		Col VP Overseas Core, Cl 3		Col VP Select Lg Cap Val, Cl 3
Assets
Investments, at fair value^(1),(2)	$	62,924,400	$	27,008,491	$	92,334,853	$	64,166,474	$	31,992,998
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		225,527		8,514		103		14,660		—
Receivable for share redemptions		58,427		27,287		129,513		74,149		134,178
Total assets		63,208,354		27,044,292		92,464,469		64,255,283		32,127,176

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		53,005		23,324		78,256		55,553		24,501
Contract terminations		5,422		3,963		51,257		18,596		109,677
Payable for investments purchased		225,527		8,514		103		14,660		—
Total liabilities		283,954		35,801		129,616		88,809		134,178
Net assets applicable to contracts in accumulation period		62,898,803		26,875,220		91,430,721		63,332,019		31,932,783
Net assets applicable to contracts in payment period		25,215		132,543		904,132		834,455		60,215
Net assets applicable to seed money		382		728		—		—		—
Total net assets	$	62,924,400	$	27,008,491	$	92,334,853	$	64,166,474	$	31,992,998
⁽¹⁾ Investment shares		6,286,154		2,188,695		2,081,020		4,534,733		1,094,901
⁽²⁾ Investments, at cost	$	60,610,375	$	24,461,576	$	30,236,233	$	54,823,417	$	19,913,483

See accompanying notes to financial statements.



4		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Assets and Liabilities


December 31, 2020 (continued)	Col VP Select Mid Cap Val, Cl 3		Col VP Select Sm Cap Val, Cl 3		Col VP US Govt Mtge, Cl 3		CS Commodity Return		CTIVP BR Gl Infl Prot Sec, Cl 3
Assets
Investments, at fair value^(1),(2)	$	43,097,531	$	30,098,657	$	61,785,566	$	10,127,662	$	67,369,034
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		3,816		27,153		23,594		5,774		25,588
Receivable for share redemptions		74,087		30,138		90,202		17,176		51,976
Total assets		43,175,434		30,155,948		61,899,362		10,150,612		67,446,598

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		33,449		22,242		47,868		7,885		51,967
Contract terminations		40,638		7,896		42,334		9,291		9
Payable for investments purchased		3,816		27,153		23,594		5,774		25,588
Total liabilities		77,903		57,291		113,796		22,950		77,564
Net assets applicable to contracts in accumulation period		43,007,077		30,054,526		61,451,245		10,125,783		67,175,523
Net assets applicable to contracts in payment period		90,454		44,131		334,321		1,879		193,511
Net assets applicable to seed money		—		—		—		—		—
Total net assets	$	43,097,531	$	30,098,657	$	61,785,566	$	10,127,662	$	67,369,034
⁽¹⁾ Investment shares		1,564,907		1,115,591		5,705,038		2,996,350		11,228,172
⁽²⁾ Investments, at cost	$	20,060,791	$	15,490,576	$	59,290,696	$	19,460,527	$	76,168,658

December 31, 2020 (continued)	CTIVP Lazard Intl Eq Adv, Cl 2		CTIVP Loomis Sayles Gro, Cl 1		CTIVP Vty Sycamore Estb Val, Cl 3		CTIVP WF Short Duration Govt, Cl 2		DWS Alt Asset Alloc VIP, Cl B
Assets
Investments, at fair value^(1),(2)	$	21,585,691	$	143,801,141	$	34,991,576	$	55,042,692	$	12,104,333
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		381		202,363		1,375		—		2,359
Receivable for share redemptions		23,184		134,025		83,273		66,871		11,564
Total assets		21,609,256		144,137,529		35,076,224		55,109,563		12,118,256

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		19,097		110,821		27,384		47,581		10,248
Contract terminations		4,087		23,204		55,889		19,290		1,316
Payable for investments purchased		381		202,363		1,375		—		2,359
Total liabilities		23,565		336,388		84,648		66,871		13,923
Net assets applicable to contracts in accumulation period		21,544,040		143,483,444		34,819,221		55,042,381		12,084,664
Net assets applicable to contracts in payment period		40,947		317,697		172,355		—		19,331
Net assets applicable to seed money		704		—		—		311		338
Total net assets	$	21,585,691	$	143,801,141	$	34,991,576	$	55,042,692	$	12,104,333
⁽¹⁾ Investment shares		1,875,386		2,902,728		1,081,656		5,359,561		884,820
⁽²⁾ Investments, at cost	$	19,939,145	$	64,276,817	$	22,027,572	$	54,972,603	$	11,784,688

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			5

Statement of Assets and Liabilities


December 31, 2020 (continued)	EV VT Floating-Rate Inc, Init Cl		Fid VIP Contrafund, Serv Cl 2		Fid VIP Gro & Inc, Serv Cl 2		Fid VIP Mid Cap, Serv Cl 2		Fid VIP Overseas, Serv Cl 2
Assets
Investments, at fair value^(1),(2)	$	78,847,717	$	534,239,456	$	86,752,324	$	364,896,085	$	50,424,137
Dividends receivable		198,111		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		61,277		1,868		1,410		27,880		38,486
Receivable for share redemptions		95,224		1,210,765		97,573		635,654		76,376
Total assets		79,202,329		535,452,089		86,851,307		365,559,619		50,538,999

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		62,405		448,439		62,906		288,441		38,387
Contract terminations		32,819		762,326		34,667		347,213		37,989
Payable for investments purchased		259,388		1,868		1,410		27,880		38,486
Total liabilities		354,612		1,212,633		98,983		663,534		114,862
Net assets applicable to contracts in accumulation period		78,508,131		533,358,632		85,750,850		363,583,105		50,193,932
Net assets applicable to contracts in payment period		339,586		880,636		1,001,474		1,312,619		230,205
Net assets applicable to seed money		—		188		—		361		—
Total net assets	$	78,847,717	$	534,239,456	$	86,752,324	$	364,896,085	$	50,424,137
⁽¹⁾ Investment shares		8,731,752		11,432,473		3,994,122		9,785,360		1,920,919
⁽²⁾ Investments, at cost	$	80,845,423	$	343,161,679	$	61,554,076	$	290,252,811	$	35,321,695

December 31, 2020 (continued)	Fid VIP Strategic Inc, Serv Cl 2		Frank Global Real Est, Cl 2		Frank Inc, Cl 2		Frank Mutual Shares, Cl 2		Frank Sm Cap Val, Cl 2
Assets
Investments, at fair value^(1),(2)	$	159,417,632	$	64,477,036	$	52,300,809	$	69,793,269	$	115,452,300
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		48,859		71,389		58,479		70,166		44,011
Receivable for share redemptions		267,937		57,105		62,216		68,587		199,449
Total assets		159,734,428		64,605,530		52,421,504		69,932,022		115,695,760

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		135,758		48,339		47,954		56,483		93,280
Contract terminations		132,179		8,766		14,262		12,104		106,169
Payable for investments purchased		48,859		71,389		58,479		70,166		44,011
Total liabilities		316,796		128,494		120,695		138,753		243,460
Net assets applicable to contracts in accumulation period		158,982,226		64,353,386		52,221,470		69,711,992		115,196,406
Net assets applicable to contracts in payment period		435,141		123,650		78,941		80,553		255,474
Net assets applicable to seed money		265		—		398		724		420
Total net assets	$	159,417,632	$	64,477,036	$	52,300,809	$	69,793,269	$	115,452,300
⁽¹⁾ Investment shares		13,648,770		4,537,441		3,477,447		4,206,948		7,962,228
⁽²⁾ Investments, at cost	$	155,231,613	$	78,113,199	$	53,662,795	$	74,848,566	$	122,084,836

See accompanying notes to financial statements.



6		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Assets and Liabilities


December 31, 2020 (continued)	GS VIT Mid Cap Val, Inst		GS VIT Multi-Strategy Alt, Advisor		GS VIT U.S. Eq Insights, Inst		Inv Opp VI Dis Mid Cap Gro, Ser I		Invesco Opp VI Global, Ser II
Assets
Investments, at fair value^(1),(2)	$	116,601,769	$	7,104,398	$	109,200,750	$	24,154,944	$	158,216,377
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		10,078		926		7,154		12,021		254,127
Receivable for share redemptions		157,112		25,958		295,858		18,389		135,394
Total assets		116,768,959		7,131,282		109,503,762		24,185,354		158,605,898

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		84,262		6,239		81,035		17,279		130,945
Contract terminations		72,850		19,719		214,823		1,110		4,449
Payable for investments purchased		10,078		926		7,154		12,021		254,127
Total liabilities		167,190		26,884		303,012		30,410		389,521
Net assets applicable to contracts in accumulation period		115,787,105		7,099,767		108,255,525		24,034,493		157,861,907
Net assets applicable to contracts in payment period		814,664		4,028		945,225		120,451		353,558
Net assets applicable to seed money		—		603		—		—		912
Total net assets	$	116,601,769	$	7,104,398	$	109,200,750	$	24,154,944	$	158,216,377
⁽¹⁾ Investment shares		6,767,369		754,182		5,438,284		225,895		3,080,537
⁽²⁾ Investments, at cost	$	100,364,348	$	6,929,448	$	81,702,223	$	17,509,378	$	116,029,220

December 31, 2020 (continued)	Inves Opp VI Gbl Strat Inc, Ser II		Inves Opp VI Mn St Sm Cap, Ser II		Invesco VI Am Fran, Ser II		Invesco VI Bal Risk Alloc, Ser II		Invesco VI Comstock, Ser II
Assets
Investments, at fair value^(1),(2)	$	192,491,359	$	98,849,877	$	55,832,638	$	34,795,535	$	94,657,806
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		243,159		1,614		1,014		3,026		2,593
Receivable for share redemptions		181,912		201,237		294,761		48,095		246,558
Total assets		192,916,430		99,052,728		56,128,413		34,846,656		94,906,957

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		151,436		83,721		41,150		31,385		71,911
Contract terminations		30,476		117,516		253,611		16,710		174,647
Payable for investments purchased		243,159		1,614		1,014		3,026		2,593
Total liabilities		425,071		202,851		295,775		51,121		249,151
Net assets applicable to contracts in accumulation period		191,437,843		98,724,960		55,830,701		34,422,787		94,495,450
Net assets applicable to contracts in payment period		1,052,943		124,554		1,937		372,287		162,356
Net assets applicable to seed money		573		363		—		461		—
Total net assets	$	192,491,359	$	98,849,877	$	55,832,638	$	34,795,535	$	94,657,806
⁽¹⁾ Investment shares		38,498,272		3,673,351		662,230		3,381,490		5,890,343
⁽²⁾Investments, at cost	$	200,964,242	$	80,273,811	$	32,938,467	$	36,981,727	$	85,240,472

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			7

Statement of Assets and Liabilities


December 31, 2020 (continued)	Invesco VI Div Divd, Ser I		Invesco VI Hlth, Ser II		Invesco VI Intl Gro, Ser II		Invesco VI Tech, Ser I		Ivy VIP Asset Strategy, Cl II
Assets
Investments, at fair value^(1),(2)	$	19,755,222	$	46,552,979	$	53,196,915	$	34,514,533	$	15,965,029
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		126		14,648		31,069		922		3,477
Receivable for share redemptions		25,393		104,447		79,383		33,913		27,811
Total assets		19,780,741		46,672,074		53,307,367		34,549,368		15,996,317

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		14,667		36,086		40,550		24,834		14,202
Contract terminations		10,726		68,361		38,833		9,079		13,609
Payable for investments purchased		126		14,648		31,069		922		3,477
Total liabilities		25,519		119,095		110,452		34,835		31,288
Net assets applicable to contracts in accumulation period		19,612,685		46,382,401		53,049,545		34,449,454		15,754,067
Net assets applicable to contracts in payment period		142,537		170,578		147,370		65,079		210,127
Net assets applicable to seed money		—		—		—		—		835
Total net assets	$	19,755,222	$	46,552,979	$	53,196,915	$	34,514,533	$	15,965,029
⁽¹⁾ Investment shares		768,088		1,468,548		1,270,222		944,310		1,528,866
⁽²⁾ Investments, at cost	$	17,093,521	$	37,732,869	$	38,710,415	$	19,970,654	$	15,745,856

December 31, 2020 (continued)	Janus Henderson VIT Bal, Serv		Janus Henderson VIT Flex Bd, Serv		Janus Hend VIT Gbl Tech Innov, Srv		Janus Henderson VIT Overseas, Serv		Janus Henderson VIT Res, Serv
Assets
Investments, at fair value^(1),(2)	$	100,413,323	$	67,138,609	$	39,830,721	$	20,941,836	$	61,213,869
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		160,092		28,162		12,837		—		72,771
Receivable for share redemptions		176,178		92,474		42,969		43,496		115,827
Total assets		100,749,593		67,259,245		39,886,527		20,985,332		61,402,467

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		88,622		56,708		28,000		14,884		51,128
Contract terminations		87,556		35,766		14,969		28,612		64,699
Payable for investments purchased		160,092		28,162		12,837		—		72,771
Total liabilities		336,270		120,636		55,806		43,496		188,598
Net assets applicable to contracts in accumulation period		100,360,085		67,120,541		39,649,288		20,786,621		61,160,570
Net assets applicable to contracts in payment period		52,640		17,693		181,433		155,215		51,948
Net assets applicable to seed money		598		375		—		—		1,351
Total net assets	$	100,413,323	$	67,138,609	$	39,830,721	$	20,941,836	$	61,213,869
⁽¹⁾ Investment shares		2,178,163		4,802,476		1,942,962		572,494		1,281,161
⁽²⁾ Investments, at cost	$	85,968,325	$	63,090,348	$	17,982,928	$	19,387,080	$	40,282,924

See accompanying notes to financial statements.



8		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Assets and Liabilities


December 31, 2020 (continued)	Lazard Ret Global Dyn MA, Serv		MFS Mass Inv Gro Stock, Serv Cl		MFS New Dis, Serv Cl		MFS Utilities, Serv Cl		MS VIF Dis, Cl II
Assets
Investments, at fair value^(1),(2)	$	17,230,411	$	76,753,079	$	49,535,853	$	155,077,144	$	154,281,030
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		851		11,289		15,541		13,617		36,463
Receivable for share redemptions		26,312		147,695		58,518		152,504		246,936
Total assets		17,257,574		76,912,063		49,609,912		155,243,265		154,564,429

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		15,883		57,679		35,419		126,728		130,490
Contract terminations		10,429		90,016		23,099		25,776		116,446
Payable for investments purchased		851		11,289		15,541		13,617		36,463
Total liabilities		27,163		158,984		74,059		166,121		283,399
Net assets applicable to contracts in accumulation period		17,229,603		76,639,765		49,333,264		154,665,031		153,977,909
Net assets applicable to contracts in payment period		—		113,314		202,589		411,581		301,565
Net assets applicable to seed money		808		—		—		532		1,556
Total net assets	$	17,230,411	$	76,753,079	$	49,535,853	$	155,077,144	$	154,281,030
⁽¹⁾ Investment shares		1,273,497		3,111,191		2,098,088		4,470,370		5,432,431
⁽²⁾ Investments, at cost	$	16,144,271	$	58,382,867	$	34,043,676	$	123,678,142	$	77,289,428

December 31, 2020 (continued)	MS VIF Global Real Est, Cl II		NB AMT Intl Eq, Cl S		NB AMT US Eq Index PW Strat, Cl S		PIMCO VIT All Asset, Advisor Cl		PIMCO VIT Glb Man As Alloc, Adv Cl
Assets
Investments, at fair value^(1),(2)	$	18,245,689	$	10,622,748	$	4,769,072	$	58,127,758	$	5,746,716
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		1,313		854		345		2,074		173
Receivable for share redemptions		16,914		33,876		4,185		80,856		5,319
Total assets		18,263,916		10,657,478		4,773,602		58,210,688		5,752,208

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		14,392		8,434		4,185		47,377		5,319
Contract terminations		2,522		25,442		—		33,479		—
Payable for investments purchased		1,313		854		345		2,074		173
Total liabilities		18,227		34,730		4,530		82,930		5,492
Net assets applicable to contracts in accumulation period		18,190,641		10,621,044		4,768,258		57,598,016		5,742,248
Net assets applicable to contracts in payment period		55,048		1,704		—		529,171		3,456
Net assets applicable to seed money		—		—		814		571		1,012
Total net assets	$	18,245,689	$	10,622,748	$	4,769,072	$	58,127,758	$	5,746,716
⁽¹⁾ Investment shares		2,131,506		722,636		462,568		5,185,349		434,699
⁽²⁾ Investments, at cost	$	19,234,721	$	8,163,293	$	4,502,003	$	56,319,640	$	5,210,850

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			9

Statement of Assets and Liabilities


December 31, 2020 (continued)	PIMCO VIT Tot Return, Advisor Cl		Put VT Global Hlth Care, Cl IB		Put VT Intl Eq, Cl IB		Put VT Sus Leaders, Cl IB		Temp Global Bond, Cl 2
Assets
Investments, at fair value^(1),(2)	$	64,444,377	$	24,820,079	$	11,820,473	$	36,224,338	$	27,164,064
Dividends receivable		101,896		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		21,318		376		604		4,831		9,582
Receivable for share redemptions		55,799		40,189		10,169		78,709		23,698
Total assets		64,623,390		24,860,644		11,831,246		36,307,878		27,197,344

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		55,799		17,913		8,465		25,852		23,697
Contract terminations		—		22,276		1,704		52,857		1
Payable for investments purchased		123,214		376		604		4,831		9,582
Total liabilities		179,013		40,565		10,773		83,540		33,280
Net assets applicable to contracts in accumulation period		64,434,668		24,756,608		11,802,148		36,123,923		27,163,718
Net assets applicable to contracts in payment period		—		63,471		18,325		100,415		—
Net assets applicable to seed money		9,709		—		—		—		346
Total net assets	$	64,444,377	$	24,820,079	$	11,820,473	$	36,224,338	$	27,164,064
⁽¹⁾ Investment shares		5,560,343		1,437,179		717,262		818,074		1,965,562
⁽²⁾ Investments, at cost	$	61,646,039	$	21,336,416	$	9,573,283	$	22,308,979	$	32,471,702

December 31, 2020 (continued)	VanEck VIP Global Gold, Cl S		VP Aggr, Cl 2		VP Aggr, Cl 4		VP Conserv, Cl 2		VP Conserv, Cl 4
Assets
Investments, at fair value^(1),(2)	$	33,395,974	$	1,022,254,389	$	563,162,903	$	651,949,069	$	508,729,115
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		6,201		88,671		3,109		15,673		392,366
Receivable for share redemptions		65,226		1,365,802		480,657		700,127		434,625
Total assets		33,467,401		1,023,708,862		563,646,669		652,664,869		509,556,106

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		29,506		845,982		440,607		558,611		417,887
Contract terminations		35,720		519,820		40,050		141,516		16,738
Payable for investments purchased		6,201		88,671		3,109		15,673		392,366
Total liabilities		71,427		1,454,473		483,766		715,800		826,991
Net assets applicable to contracts in accumulation period		33,394,702		1,020,651,608		563,162,903		651,348,554		508,729,115
Net assets applicable to contracts in payment period		—		1,602,663		—		600,464		—
Net assets applicable to seed money		1,272		118		—		51		—
Total net assets	$	33,395,974	$	1,022,254,389	$	563,162,903	$	651,949,069	$	508,729,115
⁽¹⁾ Investment shares		2,859,244		40,373,396		22,206,739		39,923,397		31,172,127
⁽²⁾ Investments, at cost	$	24,215,242	$	554,700,549	$	245,921,460	$	536,152,714	$	383,587,377

See accompanying notes to financial statements.



10		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Assets and Liabilities


December 31, 2020 (continued)	VP Man Risk, Cl 2		VP Man Risk US, Cl 2		VP Man Vol Conserv, Cl 2		VP Man Vol Conserv Gro, Cl 2		VP Man Vol Gro, Cl 2
Assets
Investments, at fair value^(1),(2)	$	220,499,737	$	263,829,471	$	826,131,293	$	1,535,497,817	$	11,679,062,825
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		51,798		160,361		315,817		980		1,004,164
Receivable for share redemptions		183,414		220,532		741,036		1,902,486		10,089,301
Total assets		220,734,949		264,210,364		827,188,146		1,537,401,283		11,690,156,290

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		183,414		217,316		710,634		1,323,267		9,732,500
Contract terminations		—		3,216		30,402		579,219		356,801
Payable for investments purchased		51,798		160,361		315,817		980		1,004,164
Total liabilities		235,212		380,893		1,056,853		1,903,466		11,093,465
Net assets applicable to contracts in accumulation period		220,499,537		263,508,640		826,131,164		1,534,765,397		11,677,538,578
Net assets applicable to contracts in payment period		—		320,623		—		732,340		1,524,165
Net assets applicable to seed money		200		208		129		80		82
Total net assets	$	220,499,737	$	263,829,471	$	826,131,293	$	1,535,497,817	$	11,679,062,825
⁽¹⁾ Investment shares		17,912,245		20,108,954		60,257,571		104,669,245		701,445,215
⁽²⁾ Investments, at cost	$	190,576,234	$	226,202,612	$	713,123,749	$	1,190,010,603	$	8,304,125,391

December 31, 2020 (continued)	VP Man Vol Mod Gro, Cl 2		VP Mod, Cl 2		VP Mod, Cl 4		VP Mod Aggr, Cl 2		VP Mod Aggr, Cl 4
Assets
Investments, at fair value^(1),(2)	$	14,491,910,943	$	7,493,231,563	$	6,870,098,261	$	3,180,301,273	$	1,890,515,398
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		292,291		232,802		1,717		195,874		10,115
Receivable for share redemptions		15,282,153		7,898,037		7,427,080		3,871,304		3,033,625
Total assets		14,507,485,387		7,501,362,402		6,877,527,058		3,184,368,451		1,893,559,138

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		12,342,523		6,322,102		5,486,964		2,652,045		1,488,545
Contract terminations		2,939,630		1,575,935		1,940,116		1,219,259		1,545,080
Payable for investments purchased		292,291		232,802		1,717		195,874		10,115
Total liabilities		15,574,444		8,130,839		7,428,797		4,067,178		3,043,740
Net assets applicable to contracts in accumulation period		14,491,432,527		7,487,720,988		6,870,098,261		3,178,464,471		1,890,515,398
Net assets applicable to contracts in payment period		478,306		5,510,518		—		1,836,748		—
Net assets applicable to seed money		110		57		—		54		—
Total net assets	$	14,491,910,943	$	7,493,231,563	$	6,870,098,261	$	3,180,301,273	$	1,890,515,398
⁽¹⁾ Investment shares		845,995,969		358,871,243		328,712,835		137,794,683		81,805,080
⁽²⁾ Investments, at cost	$	9,908,808,302	$	4,360,670,539	$	3,336,175,558	$	1,704,624,190	$	844,618,658

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			11

Statement of Assets and Liabilities


December 31, 2020 (continued)	VP Mod Conserv, Cl 2		VP Mod Conserv, Cl 4		VP Ptnrs Core Eq, Cl 3		VP Ptnrs Sm Cap Val, Cl 3		VP US Flex Conserv Gro, Cl 2
Assets
Investments, at fair value^(1),(2)	$	1,404,345,660	$	1,259,907,571	$	21,712,448	$	58,543,868	$	381,004,986
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		106,723		417		1,862		4,203		98,100
Receivable for share redemptions		1,898,855		1,188,724		82,030		137,714		334,475
Total assets		1,406,351,238		1,261,096,712		21,796,340		58,685,785		381,437,561

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		1,216,587		1,032,839		16,836		43,142		330,754
Contract terminations		682,268		155,885		65,194		94,572		3,721
Payable for investments purchased		106,723		417		1,862		4,203		98,100
Total liabilities		2,005,578		1,189,141		83,892		141,917		432,575
Net assets applicable to contracts in accumulation period		1,403,212,344		1,259,907,571		21,682,447		58,171,312		380,985,465
Net assets applicable to contracts in payment period		1,133,290		—		30,001		372,556		19,347
Net assets applicable to seed money		26		—		—		—		174
Total net assets	$	1,404,345,660	$	1,259,907,571	$	21,712,448	$	58,543,868	$	381,004,986
⁽¹⁾ Investment shares		76,075,063		68,139,944		788,397		1,961,269		28,561,093
⁽²⁾ Investments, at cost	$	969,563,930	$	735,082,442	$	8,431,401	$	28,366,704	$	335,994,942

December 31, 2020 (continued)	VP US Flex Gro, Cl 2		VP US Flex Mod Gro, Cl 2		Wanger Intl		Wanger USA		WF VT Index Asset Alloc, Cl 2
Assets
Investments, at fair value^(1),(2)	$	3,392,122,274	$	1,935,523,801	$	162,607,793	$	263,234,270	$	24,170,829
Dividends receivable		—		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		507,485		246,095		11,921		4,610		6,122
Receivable for share redemptions		2,834,700		1,643,045		205,533		426,956		17,434
Total assets		3,395,464,459		1,937,412,941		162,825,247		263,665,836		24,194,385

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		2,829,580		1,628,585		122,397		196,338		17,316
Contract terminations		5,120		14,460		83,136		230,618		118
Payable for investments purchased		507,485		246,095		11,921		4,610		6,122
Total liabilities		3,342,185		1,889,140		217,454		431,566		23,556
Net assets applicable to contracts in accumulation period		3,392,122,192		1,935,126,152		162,139,597		262,065,044		23,548,545
Net assets applicable to contracts in payment period		—		397,569		468,196		1,169,226		622,153
Net assets applicable to seed money		82		80		—		—		131
Total net assets	$	3,392,122,274	$	1,935,523,801	$	162,607,793	$	263,234,270	$	24,170,829
⁽¹⁾ Investment shares		228,579,668		137,076,756		5,801,206		10,687,546		1,104,700
⁽²⁾ Investments, at cost	$	2,822,113,315	$	1,611,754,744	$	154,398,983	$	268,257,182	$	17,504,481

See accompanying notes to financial statements.



12		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Assets and Liabilities


December 31, 2020 (continued)	WF VT Intl Eq, Cl 2		WF VT Opp, Cl 2		WF VT Sm Cap Gro, Cl 2		WA Var Global Hi Yd Bond, Cl II
Assets
Investments, at fair value^(1),(2)	$	27,472,418	$	50,845,818	$	123,475,002	$	10,857,031
Dividends receivable		—		—		—		—
Accounts receivable from RiverSource Life for contract purchase payments		3,215		3,660		16,446		1,067
Receivable for share redemptions		32,623		52,342		180,848		87,491
Total assets		27,508,256		50,901,820		123,672,296		10,945,589

Liabilities
Payable to RiverSource Life for:
Mortality and expense risk fee		21,298		40,649		103,674		9,411
Contract terminations		11,325		11,693		77,174		78,080
Payable for investments purchased		3,215		3,660		16,446		1,067
Total liabilities		35,838		56,002		197,294		88,558
Net assets applicable to contracts in accumulation period		27,302,312		50,714,450		123,232,473		10,856,373
Net assets applicable to contracts in payment period		170,106		130,541		241,725		—
Net assets applicable to seed money		—		827		804		658
Total net assets	$	27,472,418	$	50,845,818	$	123,475,002	$	10,857,031
⁽¹⁾ Investment shares		14,308,551		1,716,025		8,388,247		1,413,676
⁽²⁾ Investments, at cost	$	42,272,285	$	38,009,672	$	81,463,716	$	10,652,316

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			13

Statement of Operations


Year ended December 31, 2020	AB VPS Dyn Asset Alloc, Cl B			AB VPS Global Thematic Gro, Cl B			AB VPS Gro & Inc, Cl B			AB VPS Intl Val, Cl B			ALPS Alerian Engy Infr, Class III
Investment income
Dividend income	$	159,917		$	30,400		$	923,483		$	1,165,177		$	633,316
Variable account expenses		114,178			68,419			598,602			663,249			231,149
Investment income (loss) — net		45,739			(38,019	)		324,881			501,928			402,167

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		2,482,420			2,593,796			12,634,582			13,125,463			7,400,912
Cost of investments sold		2,387,341			1,897,783			12,472,415			16,401,170			11,034,555
Net realized gain (loss) on sales of investments		95,079			696,013			162,167			(3,275,707	)		(3,633,643	)
Distributions from capital gains		—			639,784			3,793,095			—			—
Net change in unrealized appreciation or depreciation of investments		155,267			1,150,105			(4,358,410	)		2,656,270			(5,433,337	)
Net gain (loss) on investments		250,346			2,485,902			(403,148	)		(619,437	)		(9,066,980	)
Net increase (decrease) in net assets resulting from operations	$	296,085		$	2,447,883		$	(78,267	)	$	(117,509	)	$	(8,664,813	)

Year ended December 31, 2020 (continued)	AC VP Intl, Cl II			AC VP Mid Cap Val, Cl II			AC VP Ultra, Cl II			AC VP Val, Cl II			BlackRock Global Alloc, Cl III
Investment income
Dividend income	$	76,473		$	664,620		$	—		$	3,141,577		$	957,967
Variable account expenses		176,136			378,252			393,758			1,396,316			755,979
Investment income (loss) — net		(99,663	)		286,368			(393,758	)		1,745,261			201,988

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		2,836,389			12,517,484			8,726,805			33,579,086			11,011,695
Cost of investments sold		2,178,069			12,541,360			6,429,793			27,851,232			11,127,320
Net realized gain (loss) on sales of investments		658,320			(23,876	)		2,297,012			5,727,854			(115,625	)
Distributions from capital gains		294,894			—			3,708,546			3,984,862			4,622,595
Net change in unrealized appreciation or depreciation of investments		3,867,368			(1,764,089	)		11,595,525			(15,729,083	)		8,219,101
Net gain (loss) on investments		4,820,582			(1,787,965	)		17,601,083			(6,016,367	)		12,726,071
Net increase (decrease) in net assets resulting from operations	$	4,720,919		$	(1,501,597	)	$	17,207,325		$	(4,271,106	)	$	12,928,059

Year ended December 31, 2020 (continued)	Calvert VP SRI Bal, Cl I			Col VP Bal, Cl 3			Col VP Commodity Strategy, Cl 2			Col VP Contrarian Core, Cl 2			Col VP Disciplined Core, Cl 3
Investment income
Dividend income	$	332,104		$	—		$	777,350		$	—		$	—
Variable account expenses		185,898			5,246,991			40,701			1,037,186			3,186,188
Investment income (loss) — net		146,206			(5,246,991	)		736,649			(1,037,186	)		(3,186,188	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		2,911,106			52,526,176			955,083			14,813,578			43,453,955
Cost of investments sold		2,513,489			34,526,314			1,283,758			9,904,145			18,293,866
Net realized gain (loss) on sales of investments		397,617			17,999,862			(328,675	)		4,909,433			25,160,089
Distributions from capital gains		685,309			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		1,769,023			66,676,922			(575,959	)		16,750,074			16,774,507
Net gain (loss) on investments		2,851,949			84,676,784			(904,634	)		21,659,507			41,934,596
Net increase (decrease) in net assets resulting from operations	$	2,998,155		$	79,429,793		$	(167,985	)	$	20,622,321		$	38,748,408

See accompanying notes to financial statements.



14		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Operations


Year ended December 31, 2020 (continued)	Col VP Divd Opp, Cl 3			Col VP Emerg Mkts Bond, Cl 2			Col VP Emer Mkts, Cl 3			Col VP Global Strategic Inc, Cl 3			Col VP Govt Money Mkt, Cl 3
Investment income
Dividend income	$	—		$	431,364		$	649,758		$	3,364,393		$	233,567
Variable account expenses		3,515,857			131,296			1,135,333			601,381			1,192,932
Investment income (loss) — net		(3,515,857	)		300,068			(485,575	)		2,763,012			(959,365	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		62,981,708			3,413,269			23,988,659			11,481,228			56,029,159
Cost of investments sold		30,208,792			3,608,690			19,878,867			14,099,553			56,027,800
Net realized gain (loss) on sales of investments		32,772,916			(195,421	)		4,109,792			(2,618,325	)		1,359
Distributions from capital gains		—			—			14,172,088			—			54,857
Net change in unrealized appreciation or depreciation of investments		(34,931,203	)		555,802			16,028,175			1,882,229			(1,359	)
Net gain (loss) on investments		(2,158,287	)		360,381			34,310,055			(736,096	)		54,857
Net increase (decrease) in net assets resulting from operations	$	(5,674,144	)	$	660,449		$	33,824,480		$	2,026,916		$	(904,508	)

Year ended December 31, 2020 (continued)	Col VP Hi Yield Bond, Cl 3			Col VP Inc Opp, Cl 3			Col VP Inter Bond, Cl 3			Col VP Lg Cap Gro, Cl 3			Col VP Lg Cap Index, Cl 3
Investment income
Dividend income	$	9,279,392		$	4,708,499		$	8,817,962		$	—		$	—
Variable account expenses		1,543,803			939,166			2,992,957			1,148,547			4,210,806
Investment income (loss) — net		7,735,589			3,769,333			5,825,005			(1,148,547	)		(4,210,806	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		34,977,919			21,588,844			39,687,898			23,597,843			57,882,236
Cost of investments sold		36,027,334			24,981,505			37,880,400			9,446,537			34,503,472
Net realized gain (loss) on sales of investments		(1,049,415	)		(3,392,661	)		1,807,498			14,151,306			23,378,764
Distributions from capital gains		—			—			3,710,809			—			—
Net change in unrealized appreciation or depreciation of investments		734,120			3,570,911			23,018,128			26,435,845			50,381,983
Net gain (loss) on investments		(315,295	)		178,250			28,536,435			40,587,151			73,760,747
Net increase (decrease) in net assets resulting from operations	$	7,420,294		$	3,947,583		$	34,361,440		$	39,438,604		$	69,549,941

Year ended December 31, 2020 (continued)	Col VP Limited Duration Cr, Cl 2			Col VP Long Govt/Cr Bond, Cl 2			Col VP Mid Cap Gro, Cl 3			Col VP Overseas Core, Cl 3			Col VP Select Lg Cap Val, Cl 3
Investment income
Dividend income	$	1,323,799		$	563,601		$	—		$	928,439		$	—
Variable account expenses		535,683			228,669			773,444			598,776			271,941
Investment income (loss) — net		788,116			334,932			(773,444	)		329,663			(271,941	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		12,275,112			5,214,134			13,492,506			11,038,090			9,998,518
Cost of investments sold		12,031,594			4,686,010			5,672,341			10,975,153			7,362,817
Net realized gain (loss) on sales of investments		243,518			528,124			7,820,165			62,937			2,635,701
Distributions from capital gains		—			342,519			—			729,235			—
Net change in unrealized appreciation or depreciation of investments		1,293,397			1,504,079			16,418,609			2,689,849			(1,415,599	)
Net gain (loss) on investments		1,536,915			2,374,722			24,238,774			3,482,021			1,220,102
Net increase (decrease) in net assets resulting from operations	$	2,325,031		$	2,709,654		$	23,465,330		$	3,811,684		$	948,161

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			15

Statement of Operations


Year ended December 31, 2020 (continued)	Col VP Select Mid Cap Val, Cl 3			Col VP Select Sm Cap Val, Cl 3			Col VP US Govt Mtge, Cl 3			CS Commodity Return			CTIVP BR Gl Infl Prot Sec, Cl 3
Investment income
Dividend income	$	—		$	—		$	1,541,151		$	588,301		$	381,347
Variable account expenses		358,842			229,339			560,841			90,263			623,352
Investment income (loss) — net		(358,842	)		(229,339	)		980,310			498,038			(242,005	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		9,885,279			6,069,146			9,659,135			2,496,864			16,126,648
Cost of investments sold		5,573,399			4,162,832			9,292,550			5,545,815			19,004,366
Net realized gain (loss) on sales of investments		4,311,880			1,906,314			366,585			(3,048,951	)		(2,877,718	)
Distributions from capital gains		—			—			222,792			—			1,228,669
Net change in unrealized appreciation or depreciation of investments		(2,536,318	)		(481,560	)		853,755			2,036,750			7,141,870
Net gain (loss) on investments		1,775,562			1,424,754			1,443,132			(1,012,201	)		5,492,821
Net increase (decrease) in net assets resulting from operations	$	1,416,720		$	1,195,415		$	2,423,442		$	(514,163	)	$	5,250,816

Year ended December 31, 2020 (continued)	CTIVP Lazard Intl Eq Adv, Cl 2			CTIVP Loomis Sayles Gro, Cl 1			CTIVP Vty Sycamore Estb Val, Cl 3			CTIVP WF Short Duration Govt, Cl 2			DWS Alt Asset Alloc VIP, Cl B
Investment income
Dividend income	$	29,858		$	—		$	—		$	1,268,351		$	303,902
Variable account expenses		195,424			1,182,349			300,328			446,791			120,532
Investment income (loss) — net		(165,566	)		(1,182,349	)		(300,328	)		821,560			183,370

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		4,253,886			24,674,607			9,595,923			14,559,554			3,128,362
Cost of investments sold		4,559,922			13,094,443			7,290,678			14,398,011			3,365,931
Net realized gain (loss) on sales of investments		(306,036	)		11,580,164			2,305,245			161,543			(237,569	)
Distributions from capital gains		—			—			—			150,734			—
Net change in unrealized appreciation or depreciation of investments		1,231,217			24,779,449			(639,450	)		(397,428	)		404,821
Net gain (loss) on investments		925,181			36,359,613			1,665,795			(85,151	)		167,252
Net increase (decrease) in net assets resulting from operations	$	759,615		$	35,177,264		$	1,365,467		$	736,409		$	350,622

Year ended December 31, 2020 (continued)	EV VT Floating-Rate Inc, Init Cl			Fid VIP Contrafund, Serv Cl 2			Fid VIP Gro & Inc, Serv Cl 2			Fid VIP Mid Cap, Serv Cl 2			Fid VIP Overseas, Serv Cl 2
Investment income
Dividend income	$	2,942,110		$	374,366		$	1,525,994		$	1,251,531		$	98,765
Variable account expenses		820,558			4,705,870			678,501			2,918,357			405,287
Investment income (loss) — net		2,121,552			(4,331,504	)		847,493			(1,666,826	)		(306,522	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		31,546,271			72,269,043			12,957,055			57,565,071			8,955,487
Cost of investments sold		33,869,691			54,676,328			10,613,552			57,468,828			7,389,342
Net realized gain (loss) on sales of investments		(2,323,420	)		17,592,715			2,343,503			96,243			1,566,145
Distributions from capital gains		—			2,537,115			4,408,003			—			205,686
Net change in unrealized appreciation or depreciation of investments		(476,039	)		107,249,598			(3,277,623	)		51,103,278			4,529,878
Net gain (loss) on investments		(2,799,459	)		127,379,428			3,473,883			51,199,521			6,301,709
Net increase (decrease) in net assets resulting from operations	$	(677,907	)	$	123,047,924		$	4,321,376		$	49,532,695		$	5,995,187

See accompanying notes to financial statements.



16		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Operations


Year ended December 31, 2020 (continued)	Fid VIP Strategic Inc, Serv Cl 2			Frank Global Real Est, Cl 2			Frank Inc, Cl 2			Frank Mutual Shares, Cl 2			Frank Sm Cap Val, Cl 2
Investment income
Dividend income	$	4,679,355		$	2,142,504		$	3,198,331		$	1,882,999		$	1,533,612
Variable account expenses		1,549,953			568,373			572,452			653,206			958,884
Investment income (loss) — net		3,129,402			1,574,131			2,625,879			1,229,793			574,728

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		30,468,729			12,183,987			15,578,058			16,215,746			20,363,144
Cost of investments sold		30,921,239			15,408,357			17,258,757			19,197,732			26,186,925
Net realized gain (loss) on sales of investments		(452,510	)		(3,224,370	)		(1,680,699	)		(2,981,986	)		(5,823,781	)
Distributions from capital gains		1,478,235			6,882,810			45,303			2,617,879			6,522,855
Net change in unrealized appreciation or depreciation of investments		4,263,086			(11,031,725	)		(2,254,962	)		(8,026,926	)		1,134,216
Net gain (loss) on investments		5,288,811			(7,373,285	)		(3,890,358	)		(8,391,033	)		1,833,290
Net increase (decrease) in net assets resulting from operations	$	8,418,213		$	(5,799,154	)	$	(1,264,479	)	$	(7,161,240	)	$	2,408,018

Year ended December 31, 2020 (continued)	GS VIT Mid Cap Val, Inst			GS VIT Multi-Strategy Alt, Advisor			GS VIT U.S. Eq Insights, Inst			Inv Opp VI Dis Mid Cap Gro, Ser I⁽¹⁾			Invesco Opp VI Global, Ser II
Investment income
Dividend income	$	651,750		$	120,088		$	857,489		$	7,651		$	583,708
Variable account expenses		885,882			68,105			889,548			122,442			1,295,663
Investment income (loss) — net		(234,132	)		51,983			(32,059	)		(114,791	)		(711,955	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		17,787,384			1,217,386			18,992,968			1,834,217			25,761,333
Cost of investments sold		18,193,508			1,255,420			15,602,380			1,568,834			23,013,558
Net realized gain (loss) on sales of investments		(406,124	)		(38,034	)		3,390,588			265,383			2,747,775
Distributions from capital gains		1,655,551			—			4,307,873			1,594,931			4,840,538
Net change in unrealized appreciation or depreciation of investments		5,214,583			371,321			7,922,861			6,645,566			25,223,888
Net gain (loss) on investments		6,464,010			333,287			15,621,322			8,505,880			32,812,201
Net increase (decrease) in net assets resulting from operations	$	6,229,878		$	385,270		$	15,589,263		$	8,391,089		$	32,100,246

⁽¹⁾ For the period April 24, 2020 (commencement of operations) to December 31, 2020.

Year ended December 31, 2020 (continued)	Inves Opp VI Gbl Strat Inc, Ser II			Inves Opp VI Mn St Sm Cap, Ser II			Invesco VI Am Fran, Ser II			Invesco VI Bal Risk Alloc, Ser II			Invesco VI Comstock, Ser II
Investment income
Dividend income	$	10,141,172		$	304,291		$	—		$	2,571,271		$	1,910,718
Variable account expenses		1,800,655			821,293			422,803			365,127			784,658
Investment income (loss) — net		8,340,517			(517,002	)		(422,803	)		2,206,144			1,126,060

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		35,142,328			19,108,567			12,854,789			9,187,509			20,316,185
Cost of investments sold		38,234,192			19,085,617			8,631,400			10,101,529			20,363,969
Net realized gain (loss) on sales of investments		(3,091,864	)		22,950			4,223,389			(914,020	)		(47,784	)
Distributions from capital gains		—			1,213,406			3,710,351			1,717,667			2,375,745
Net change in unrealized appreciation or depreciation of investments		(3,266,082	)		14,319,863			9,470,260			(480,632	)		(7,270,810	)
Net gain (loss) on investments		(6,357,946	)		15,556,219			17,404,000			323,015			(4,942,849	)
Net increase (decrease) in net assets resulting from operations	$	1,982,571		$	15,039,217		$	16,981,197		$	2,529,159		$	(3,816,789	)

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			17

Statement of Operations


Year ended December 31, 2020 (continued)	Invesco VI Div Divd, Ser I			Invesco VI Hlth, Ser II			Invesco VI Intl Gro, Ser II			Invesco VI Tech, Ser I			Ivy VIP Asset Strategy, Cl II
Investment income
Dividend income	$	576,877		$	40,743		$	1,013,667		$	—		$	294,433
Variable account expenses		169,882			377,823			435,415			240,955			154,014
Investment income (loss) — net		406,995			(337,080	)		578,252			(240,955	)		140,419

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		5,239,881			8,003,845			10,215,548			5,396,990			2,943,407
Cost of investments sold		4,811,745			7,363,291			8,621,993			3,453,325			3,343,165
Net realized gain (loss) on sales of investments		428,136			640,554			1,593,555			1,943,665			(399,758	)
Distributions from capital gains		479,750			1,070,619			1,104,933			2,622,781			245,187
Net change in unrealized appreciation or depreciation of investments		(1,994,527	)		4,009,780			2,142,217			6,453,650			1,703,943
Net gain (loss) on investments		(1,086,641	)		5,720,953			4,840,705			11,020,096			1,549,372
Net increase (decrease) in net assets resulting from operations	$	(679,646	)	$	5,383,873		$	5,418,957		$	10,779,141		$	1,689,791

Year ended December 31, 2020 (continued)	Janus Henderson VIT Bal, Serv			Janus Henderson VIT Flex Bd, Serv			Janus Hend VIT Gbl Tech Innov, Srv			Janus Henderson VIT Overseas, Serv			Janus Henderson VIT Res, Serv
Investment income
Dividend income	$	1,281,233		$	1,398,410		$	—		$	218,493		$	116,072
Variable account expenses		846,504			570,504			269,299			152,321			528,459
Investment income (loss) — net		434,729			827,906			(269,299	)		66,172			(412,387	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		10,993,999			9,325,563			4,347,067			3,089,475			11,711,406
Cost of investments sold		10,425,171			8,963,568			2,302,987			3,595,971			8,700,232
Net realized gain (loss) on sales of investments		568,828			361,995			2,044,080			(506,496	)		3,011,174
Distributions from capital gains		1,202,891			—			2,835,965			—			4,464,610
Net change in unrealized appreciation or depreciation of investments		8,538,401			3,498,846			8,679,302			2,929,373			7,966,841
Net gain (loss) on investments		10,310,120			3,860,841			13,559,347			2,422,877			15,442,625
Net increase (decrease) in net assets resulting from operations	$	10,744,849		$	4,688,747		$	13,290,048		$	2,489,049		$	15,030,238

Year ended December 31, 2020 (continued)	Lazard Ret Global Dyn MA, Serv			MFS Mass Inv Gro Stock, Serv Cl			MFS New Dis, Serv Cl			MFS Utilities, Serv Cl			MS VIF Dis, Cl II
Investment income
Dividend income	$	111,417		$	142,959		$	—		$	3,324,734		$	—
Variable account expenses		194,591			580,251			329,031			1,441,219			998,347
Investment income (loss) — net		(83,174	)		(437,292	)		(329,031	)		1,883,515			(998,347	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		4,693,091			11,920,220			5,598,074			27,078,360			20,311,813
Cost of investments sold		4,651,388			9,714,045			4,837,255			23,231,396			13,321,115
Net realized gain (loss) on sales of investments		41,703			2,206,175			760,819			3,846,964			6,990,698
Distributions from capital gains		193,469			6,285,016			4,125,583			3,933,845			11,306,120
Net change in unrealized appreciation or depreciation of investments		(475,384	)		5,133,007			10,885,876			(4,138,857	)		73,999,481
Net gain (loss) on investments		(240,212	)		13,624,198			15,772,278			3,641,952			92,296,299
Net increase (decrease) in net assets resulting from operations	$	(323,386	)	$	13,186,906		$	15,443,247		$	5,525,467		$	91,297,952

See accompanying notes to financial statements.



18		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Operations


Year ended December 31, 2020 (continued)	MS VIF Global Real Est, Cl II			NB AMT Intl Eq, Cl S			NB AMT US Eq Index PW Strat, Cl S			PIMCO VIT All Asset, Advisor Cl			PIMCO VIT Glb Man As Alloc, Adv Cl
Investment income
Dividend income	$	843,583		$	48,438		$	35,216		$	2,786,037		$	400,297
Variable account expenses		174,709			90,334			43,207			549,415			55,983
Investment income (loss) — net		668,874			(41,896	)		(7,991	)		2,236,622			344,314

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		5,714,307			2,278,912			714,515			13,444,644			705,232
Cost of investments sold		6,314,645			1,948,206			723,692			14,488,004			723,982
Net realized gain (loss) on sales of investments		(600,338	)		330,706			(9,177	)		(1,043,360	)		(18,750	)
Distributions from capital gains		397,880			489,443			290,489			—			97,274
Net change in unrealized appreciation or depreciation of investments		(4,847,286	)		247,816			29,894			1,825,088			315,616
Net gain (loss) on investments		(5,049,744	)		1,067,965			311,206			781,728			394,140
Net increase (decrease) in net assets resulting from operations	$	(4,380,870	)	$	1,026,069		$	303,215		$	3,018,350		$	738,454

Year ended December 31, 2020 (continued)	PIMCO VIT Tot Return, Advisor Cl			Put VT Global Hlth Care, Cl IB			Put VT Intl Eq, Cl IB			Put VT Sus Leaders, Cl IB			Temp Global Bond, Cl 2
Investment income
Dividend income	$	1,069,484		$	109,322		$	169,470		$	133,736		$	2,497,417
Variable account expenses		553,128			192,853			88,293			270,127			298,822
Investment income (loss) — net		516,356			(83,531	)		81,177			(136,391	)		2,198,595

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		7,164,903			4,161,815			1,617,186			5,352,946			8,416,093
Cost of investments sold		6,907,595			3,964,118			1,531,894			3,874,402			9,646,396
Net realized gain (loss) on sales of investments		257,308			197,697			85,292			1,478,544			(1,230,303	)
Distributions from capital gains		585,136			2,060,003			—			2,800,486			—
Net change in unrealized appreciation or depreciation of investments		2,262,138			1,036,319			948,863			3,919,959			(2,986,606	)
Net gain (loss) on investments		3,104,582			3,294,019			1,034,155			8,198,989			(4,216,909	)
Net increase (decrease) in net assets resulting from operations	$	3,620,938		$	3,210,488		$	1,115,332		$	8,062,598		$	(2,018,314	)

Year ended December 31, 2020 (continued)	VanEck VIP Global Gold, Cl S			VP Aggr, Cl 2			VP Aggr, Cl 4			VP Conserv, Cl 2			VP Conserv, Cl 4
Investment income
Dividend income	$	760,721		$	—		$	—		$	—		$	—
Variable account expenses		280,688			9,313,563			4,893,640			5,608,596			4,589,294
Investment income (loss) — net		480,033			(9,313,563	)		(4,893,640	)		(5,608,596	)		(4,589,294	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		5,246,893			181,631,413			118,226,774			84,629,510			85,062,721
Cost of investments sold		4,069,114			112,372,121			59,130,996			71,409,699			66,164,877
Net realized gain (loss) on sales of investments		1,177,779			69,259,292			59,095,778			13,219,811			18,897,844
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		5,927,305			65,226,413			14,003,177			41,985,801			26,241,519
Net gain (loss) on investments		7,105,084			134,485,705			73,098,955			55,205,612			45,139,363
Net increase (decrease) in net assets resulting from operations	$	7,585,117		$	125,172,142		$	68,205,315		$	49,597,016		$	40,550,069

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			19

Statement of Operations


Year ended December 31, 2020 (continued)	VP Man Risk, Cl 2			VP Man Risk US, Cl 2			VP Man Vol Conserv, Cl 2			VP Man Vol Conserv Gro, Cl 2			VP Man Vol Gro, Cl 2
Investment income
Dividend income	$	—		$	—		$	—		$	—		$	—
Variable account expenses		1,856,768			1,991,619			6,931,269			14,375,188			103,530,816
Investment income (loss) — net		(1,856,768	)		(1,991,619	)		(6,931,269	)		(14,375,188	)		(103,530,816	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		10,689,694			7,287,786			92,309,802			128,366,041			501,831,054
Cost of investments sold		10,110,406			6,774,448			82,401,242			106,548,277			391,657,201
Net realized gain (loss) on sales of investments		579,288			513,338			9,908,560			21,817,764			110,173,853
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		15,443,264			21,972,604			54,381,078			106,918,510			1,066,020,410
Net gain (loss) on investments		16,022,552			22,485,942			64,289,638			128,736,274			1,176,194,263
Net increase (decrease) in net assets resulting from operations	$	14,165,784		$	20,494,323		$	57,358,369		$	114,361,086		$	1,072,663,447

Year ended December 31, 2020 (continued)	VP Man Vol Mod Gro, Cl 2			VP Mod, Cl 2			VP Mod, Cl 4			VP Mod Aggr, Cl 2			VP Mod Aggr, Cl 4
Investment income
Dividend income	$	—		$	—		$	—		$	—		$	—
Variable account expenses		136,425,547			68,551,916			61,937,278			29,703,960			16,895,831
Investment income (loss) — net		(136,425,547	)		(68,551,916	)		(61,937,278	)		(29,703,960	)		(16,895,831	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		889,809,949			566,122,463			937,197,687			519,990,809			380,885,972
Cost of investments sold		669,101,055			369,008,016			511,320,617			312,783,093			193,822,439
Net realized gain (loss) on sales of investments		220,708,894			197,114,447			425,877,070			207,207,716			187,063,533
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		1,131,132,003			653,906,907			355,352,336			189,341,920			43,627,484
Net gain (loss) on investments		1,351,840,897			851,021,354			781,229,406			396,549,636			230,691,017
Net increase (decrease) in net assets resulting from operations	$	1,215,415,350		$	782,469,438		$	719,292,128		$	366,845,676		$	213,795,186

Year ended December 31, 2020 (continued)	VP Mod Conserv, Cl 2			VP Mod Conserv, Cl 4			VP Ptnrs Core Eq, Cl 3			VP Ptnrs Sm Cap Val, Cl 3			VP US Flex Conserv Gro, Cl 2
Investment income
Dividend income	$	—		$	—		$	—		$	—		$	—
Variable account expenses		13,264,420			11,849,428			190,524			434,363			3,468,606
Investment income (loss) — net		(13,264,420	)		(11,849,428	)		(190,524	)		(434,363	)		(3,468,606	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		162,815,092			188,831,591			5,561,529			10,001,662			64,385,579
Cost of investments sold		121,581,406			119,579,170			2,554,035			5,981,869			59,627,564
Net realized gain (loss) on sales of investments		41,233,686			69,252,421			3,007,494			4,019,793			4,758,015
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		96,547,948			57,353,170			91,897			(2,313,978	)		20,265,765
Net gain (loss) on investments		137,781,634			126,605,591			3,099,391			1,705,815			25,023,780
Net increase (decrease) in net assets resulting from operations	$	124,517,214		$	114,756,163		$	2,908,867		$	1,271,452		$	21,555,174

See accompanying notes to financial statements.



20		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Operations


Year ended December 31, 2020 (continued)	VP US Flex Gro, Cl 2			VP US Flex Mod Gro, Cl 2			Wanger Intl			Wanger USA			WF VT Index Asset Alloc, Cl 2
Investment income
Dividend income	$	—		$	—		$	3,012,673		$	—		$	185,403
Variable account expenses		30,193,628			17,694,628			1,300,414			1,969,756			192,406
Investment income (loss) — net		(30,193,628	)		(17,694,628	)		1,712,259			(1,969,756	)		(7,003	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		153,574,646			117,757,029			32,275,420			42,834,864			3,702,836
Cost of investments sold		135,779,022			105,651,785			37,166,747			54,157,404			2,802,398
Net realized gain (loss) on sales of investments		17,795,624			12,105,244			(4,891,327	)		(11,322,540	)		900,438
Distributions from capital gains		—			—			5,376,908			24,401,278			1,776,051
Net change in unrealized appreciation or depreciation of investments		158,884,694			91,035,212			14,674,385			37,216,211			596,740
Net gain (loss) on investments		176,680,318			103,140,456			15,159,966			50,294,949			3,273,229
Net increase (decrease) in net assets resulting from operations	$	146,486,690		$	85,445,828		$	16,872,225		$	48,325,193		$	3,266,226

Year ended December 31, 2020 (continued)				WF VT Intl Eq, Cl 2			WF VT Opp, Cl 2			WF VT Sm Cap Gro, Cl 2			WA Var Global Hi Yd Bond, Cl II
Investment income
Dividend income				$	641,974		$	196,964		$	—		$	376,151
Variable account expenses					225,743			423,901			895,544			102,339
Investment income (loss) — net					416,231			(226,937	)		(895,544	)		273,812

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales					5,628,623			9,409,944			16,615,524			3,431,330
Cost of investments sold					10,419,766			8,118,831			14,705,209			3,649,434
Net realized gain (loss) on sales of investments					(4,791,143	)		1,291,113			1,910,315			(218,104	)
Distributions from capital gains					—			3,405,107			5,161,948			—
Net change in unrealized appreciation or depreciation of investments					5,036,485			3,728,676			37,770,378			435,512
Net gain (loss) on investments					245,342			8,424,896			44,842,641			217,408
Net increase (decrease) in net assets resulting from operations				$	661,573		$	8,197,959		$	43,947,097		$	491,220

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 –2020 ANNUAL REPORT			21

Statement of Changes in Net Assets


Year ended December 31, 2020	AB VPS Dyn Asset Alloc, Cl B			AB VPS Global Thematic Gro, Cl B			AB VPS Gro & Inc, Cl B			AB VPS Intl Val, Cl B			ALPS Alerian Engy Infr, Class III
Operations
Investment income (loss) — net	$	45,739		$	(38,019	)	$	324,881		$	501,928		$	402,167
Net realized gain (loss) on sales of investments		95,079			696,013			162,167			(3,275,707	)		(3,633,643	)
Distributions from capital gains		—			639,784			3,793,095			—			—
Net change in unrealized appreciation or depreciation of investments		155,267			1,150,105			(4,358,410	)		2,656,270			(5,433,337	)
Net increase (decrease) in net assets resulting from operations		296,085			2,447,883			(78,267	)		(117,509	)		(8,664,813	)

Contract transactions
Contract purchase payments		365,115			126,593			554,825			1,048,572			973,028
Net transfers⁽¹⁾		(1,157,867	)		1,539,645			(2,986,772	)		(2,557,195	)		(1,831,703	)
Transfers for policy loans		—			(654	)		23,583			83,525			(870	)
Adjustments to net assets allocated to contracts in payment period		—			—			(34,170	)		(43,803	)		(4,893	)
Contract charges		(3,018	)		(5,352	)		(51,737	)		(100,841	)		(11,238	)
Contract terminations:
Surrender benefits		(191,273	)		(689,075	)		(5,530,445	)		(7,250,506	)		(1,686,678	)
Death benefits		(520,506	)		(61,102	)		(775,211	)		(879,268	)		(390,613	)
Increase (decrease) from contract transactions		(1,507,549	)		910,055			(8,799,927	)		(9,699,516	)		(2,952,967	)
Net assets at beginning of year		11,672,587			7,015,712			82,516,148			93,275,762			33,931,595
Net assets at end of year	$	10,461,123		$	10,373,650		$	73,637,954		$	83,458,737		$	22,313,815

Accumulation unit activity
Units outstanding at beginning of year		9,012,195			3,339,395			29,990,018			60,147,867			35,763,236
Contract purchase payments		297,496			54,256			230,893			898,998			1,443,442
Net transfers⁽¹⁾		(931,206	)		514,964			(1,311,757	)		(2,105,664	)		(2,451,654	)
Transfers for policy loans		—			(251	)		9,525			62,179			(1,148	)
Contract charges		(2,385	)		(2,323	)		(21,377	)		(73,175	)		(16,622	)
Contract terminations:
Surrender benefits		(152,429	)		(290,133	)		(2,272,689	)		(5,388,316	)		(2,414,603	)
Death benefits		(441,796	)		(25,750	)		(313,605	)		(676,570	)		(597,398	)
Units outstanding at end of year		7,781,875			3,590,158			26,311,008			52,865,319			31,725,253

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



22		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	AC VP Intl, Cl II			AC VP Mid Cap Val, Cl II			AC VP Ultra, Cl II			AC VP Val, Cl II			BlackRock Global Alloc, Cl III
Operations
Investment income (loss) — net	$	(99,663	)	$	286,368		$	(393,758	)	$	1,745,261		$	201,988
Net realized gain (loss) on sales of investments		658,320			(23,876	)		2,297,012			5,727,854			(115,625	)
Distributions from capital gains		294,894			—			3,708,546			3,984,862			4,622,595
Net change in unrealized appreciation or depreciation of investments		3,867,368			(1,764,089	)		11,595,525			(15,729,083	)		8,219,101
Net increase (decrease) in net assets resulting from operations		4,720,919			(1,501,597	)		17,207,325			(4,271,106	)		12,928,059

Contract transactions
Contract purchase payments		167,458			393,669			469,973			5,340,292			2,951,505
Net transfers⁽¹⁾		776,494			(5,979,707	)		4,044,404			(15,028,088	)		(214,903	)
Transfers for policy loans		9,285			13,545			(184	)		57,088			620
Adjustments to net assets allocated to contracts in payment period		(10,471	)		(21,404	)		(172,308	)		(25,382	)		(77,340	)
Contract charges		(15,867	)		(25,636	)		(24,997	)		(85,127	)		(32,367	)
Contract terminations:
Surrender benefits		(1,631,183	)		(4,572,310	)		(3,757,770	)		(13,065,650	)		(4,086,652	)
Death benefits		(168,769	)		(671,546	)		(522,588	)		(1,958,694	)		(1,349,417	)
Increase (decrease) from contract transactions		(873,053	)		(10,863,389	)		36,530			(24,765,561	)		(2,808,554	)
Net assets at beginning of year		20,636,735			52,755,723			37,737,117			184,129,654			73,748,242
Net assets at end of year	$	24,484,601		$	40,390,737		$	54,980,972		$	155,092,987		$	83,867,747

Accumulation unit activity
Units outstanding at beginning of year		9,676,554			19,355,047			11,207,764			63,452,942			51,774,323
Contract purchase payments		78,487			160,565			117,492			2,012,360			1,958,719
Net transfers⁽¹⁾		297,445			(2,596,020	)		849,914			(6,228,262	)		(696,736	)
Transfers for policy loans		4,096			5,605			320			22,738			258
Contract charges		(7,374	)		(10,810	)		(6,463	)		(33,339	)		(22,162	)
Contract terminations:
Surrender benefits		(754,777	)		(1,851,261	)		(973,484	)		(5,317,899	)		(2,759,842	)
Death benefits		(76,089	)		(270,543	)		(138,636	)		(791,985	)		(917,873	)
Units outstanding at end of year		9,218,342			14,792,583			11,056,907			53,116,555			49,336,687

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			23

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	Calvert VP SRI Bal, Cl I			Col VP Bal, Cl 3			Col VP Commodity Strategy, Cl 2			Col VP Contrarian Core, Cl 2			Col VP Disciplined Core, Cl 3
Operations
Investment income (loss) — net	$	146,206		$	(5,246,991	)	$	736,649		$	(1,037,186	)	$	(3,186,188	)
Net realized gain (loss) on sales of investments		397,617			17,999,862			(328,675	)		4,909,433			25,160,089
Distributions from capital gains		685,309			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		1,769,023			66,676,922			(575,959	)		16,750,074			16,774,507
Net increase (decrease) in net assets resulting from operations		2,998,155			79,429,793			(167,985	)		20,622,321			38,748,408

Contract transactions
Contract purchase payments		127,862			20,807,611			218,357			3,911,642			2,320,331
Net transfers⁽¹⁾		835,028			25,735,981			60,310			322,580			(11,184,874	)
Transfers for policy loans		10,532			141,674			420			13,661			250,256
Adjustments to net assets allocated to contracts in payment period		(4,349	)		(329,240	)		—			202,060			(551,367	)
Contract charges		(16,614	)		(258,203	)		(1,080	)		(50,312	)		(338,148	)
Contract terminations:
Surrender benefits		(1,886,119	)		(32,575,975	)		(149,390	)		(6,108,173	)		(23,676,313	)
Death benefits		(176,775	)		(8,802,070	)		(47,349	)		(1,469,621	)		(4,779,515	)
Increase (decrease) from contract transactions		(1,110,435	)		4,719,778			81,268			(3,178,163	)		(37,959,630	)
Net assets at beginning of year		22,357,948			493,462,321			4,459,935			101,337,327			346,230,094
Net assets at end of year	$	24,245,668		$	577,611,892		$	4,373,218		$	118,781,485		$	347,018,872

Accumulation unit activity
Units outstanding at beginning of year		10,383,617			200,210,383			8,107,113			48,211,350			131,960,471
Contract purchase payments		58,482			8,543,520			434,547			1,826,225			927,564
Net transfers⁽¹⁾		350,293			9,955,125			45,488			146,692			(4,817,393	)
Transfers for policy loans		4,800			59,402			865			6,249			96,373
Contract charges		(7,702	)		(102,045	)		(2,269	)		(23,490	)		(140,609	)
Contract terminations:
Surrender benefits		(859,743	)		(12,790,760	)		(312,953	)		(2,778,594	)		(9,350,879	)
Death benefits		(79,671	)		(3,469,631	)		(102,580	)		(681,175	)		(1,901,128	)
Units outstanding at end of year		9,850,076			202,405,994			8,170,211			46,707,257			116,774,399

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



24		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	Col VP Divd Opp, Cl 3			Col VP Emerg Mkts Bond, Cl 2			Col VP Emer Mkts, Cl 3			Col VP Global Strategic Inc, Cl 3			Col VP Govt Money Mkt, Cl 3
Operations
Investment income (loss) — net	$	(3,515,857	)	$	300,068		$	(485,575	)	$	2,763,012		$	(959,365	)
Net realized gain (loss) on sales of investments		32,772,916			(195,421	)		4,109,792			(2,618,325	)		1,359
Distributions from capital gains		—			—			14,172,088			—			54,857
Net change in unrealized appreciation or depreciation of investments		(34,931,203	)		555,802			16,028,175			1,882,229			(1,359	)
Net increase (decrease) in net assets resulting from operations		(5,674,144	)		660,449			33,824,480			2,026,916			(904,508	)

Contract transactions
Contract purchase payments		3,324,137			490,967			1,274,308			396,742			3,606,102
Net transfers⁽¹⁾		(18,535,878	)		(673,382	)		(8,746,970	)		(508,546	)		74,759,519
Transfers for policy loans		217,480			1,737			53,601			35,512			178,206
Adjustments to net assets allocated to contracts in payment period		(324,475	)		(580	)		(63,597	)		75,500			102,249
Contract charges		(317,012	)		(4,749	)		(112,767	)		(96,749	)		(120,700	)
Contract terminations:
Surrender benefits		(34,713,829	)		(747,302	)		(11,301,159	)		(5,918,878	)		(36,190,043	)
Death benefits		(5,289,013	)		(150,750	)		(1,264,910	)		(1,451,924	)		(1,917,334	)
Increase (decrease) from contract transactions		(55,638,590	)		(1,084,059	)		(20,161,494	)		(7,468,343	)		40,417,999
Net assets at beginning of year		456,363,506			14,563,125			125,995,128			69,749,274			96,069,134
Net assets at end of year	$	395,050,772		$	14,139,515		$	139,658,114		$	64,307,847		$	135,582,625

Accumulation unit activity
Units outstanding at beginning of year		148,527,632			13,256,060			45,588,657			43,213,558			86,619,221
Contract purchase payments		1,262,397			446,243			494,232			259,724			3,307,147
Net transfers⁽¹⁾		(6,715,073	)		(743,703	)		(3,275,512	)		(292,042	)		68,939,306
Transfers for policy loans		75,820			1,616			21,076			21,505			163,858
Contract charges		(120,187	)		(4,455	)		(39,533	)		(62,950	)		(109,804	)
Contract terminations:
Surrender benefits		(12,624,313	)		(694,535	)		(4,015,738	)		(3,743,574	)		(33,451,915	)
Death benefits		(1,908,243	)		(139,487	)		(447,580	)		(919,402	)		(1,752,999	)
Units outstanding at end of year		128,498,033			12,121,739			38,325,602			38,476,819			123,714,814

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			25

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	Col VP Hi Yield Bond, Cl 3			Col VP Inc Opp, Cl 3			Col VP Inter Bond, Cl 3			Col VP Lg Cap Gro, Cl 3			Col VP Lg Cap Index, Cl 3
Operations
Investment income (loss) — net	$	7,735,589		$	3,769,333		$	5,825,005		$	(1,148,547	)	$	(4,210,806	)
Net realized gain (loss) on sales of investments		(1,049,415	)		(3,392,661	)		1,807,498			14,151,306			23,378,764
Distributions from capital gains		—			—			3,710,809			—			—
Net change in unrealized appreciation or depreciation of investments		734,120			3,570,911			23,018,128			26,435,845			50,381,983
Net increase (decrease) in net assets resulting from operations		7,420,294			3,947,583			34,361,440			39,438,604			69,549,941

Contract transactions
Contract purchase payments		888,456			605,262			3,520,305			935,171			27,783,957
Net transfers⁽¹⁾		(9,841,351	)		(4,537,767	)		37,096,658			(3,915,382	)		(918,418	)
Transfers for policy loans		58,486			25,877			81,817			66,967			(29,637	)
Adjustments to net assets allocated to contracts in payment period		(58,515	)		40,671			(227,332	)		(86,821	)		(18,529	)
Contract charges		(109,010	)		(144,940	)		(365,620	)		(107,364	)		(191,483	)
Contract terminations:
Surrender benefits		(17,058,482	)		(10,132,271	)		(29,782,157	)		(11,533,663	)		(29,612,030	)
Death benefits		(3,442,306	)		(2,203,924	)		(7,587,793	)		(1,385,699	)		(6,829,590	)
Increase (decrease) from contract transactions		(29,562,722	)		(16,347,092	)		2,735,878			(16,026,791	)		(9,815,730	)
Net assets at beginning of year		185,991,652			114,398,206			305,425,256			128,985,261			420,165,685
Net assets at end of year	$	163,849,224		$	101,998,697		$	342,522,574		$	152,397,074		$	479,899,896

Accumulation unit activity
Units outstanding at beginning of year		66,858,488			49,491,645			159,191,678			62,415,831			156,148,609
Contract purchase payments		338,474			271,382			1,795,317			389,936			10,573,923
Net transfers⁽¹⁾		(3,889,804	)		(2,192,709	)		18,925,664			(2,169,242	)		(325,835	)
Transfers for policy loans		19,935			11,072			37,441			28,361			(11,708	)
Contract charges		(40,494	)		(64,390	)		(185,382	)		(46,688	)		(70,427	)
Contract terminations:
Surrender benefits		(6,314,481	)		(4,494,062	)		(14,975,905	)		(4,974,403	)		(10,907,624	)
Death benefits		(1,259,073	)		(971,427	)		(3,838,785	)		(628,181	)		(2,449,433	)
Units outstanding at end of year		55,713,045			42,051,511			160,950,028			55,015,614			152,957,505

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



26		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	Col VP Limited Duration Cr, Cl 2			Col VP Long Govt/Cr Bond, Cl 2			Col VP Mid Cap Gro, Cl 3			Col VP Overseas Core, Cl 3			Col VP Select Lg Cap Val, Cl 3
Operations
Investment income (loss) — net	$	788,116		$	334,932		$	(773,444	)	$	329,663		$	(271,941	)
Net realized gain (loss) on sales of investments		243,518			528,124			7,820,165			62,937			2,635,701
Distributions from capital gains		—			342,519			—			729,235			—
Net change in unrealized appreciation or depreciation of investments		1,293,397			1,504,079			16,418,609			2,689,849			(1,415,599	)
Net increase (decrease) in net assets resulting from operations		2,325,031			2,709,654			23,465,330			3,811,684			948,161

Contract transactions
Contract purchase payments		5,445,134			1,138,002			627,025			690,656			294,216
Net transfers⁽¹⁾		18,205,446			9,846,754			(1,407,727	)		(3,820,401	)		(2,606,483	)
Transfers for policy loans		3,494			2,318			32,842			51,756			(13,011	)
Adjustments to net assets allocated to contracts in payment period		24,077			(16,650	)		(86,172	)		(77,576	)		(1,004	)
Contract charges		(19,754	)		(7,529	)		(51,889	)		(42,503	)		(17,999	)
Contract terminations:
Surrender benefits		(5,563,420	)		(1,609,842	)		(6,343,960	)		(5,690,046	)		(2,507,807	)
Death benefits		(932,207	)		(329,510	)		(1,086,097	)		(699,140	)		(940,714	)
Increase (decrease) from contract transactions		17,162,770			9,023,543			(8,315,978	)		(9,587,254	)		(5,792,802	)
Net assets at beginning of year		43,436,599			15,275,294			77,185,501			69,942,044			36,837,639
Net assets at end of year	$	62,924,400		$	27,008,491		$	92,334,853		$	64,166,474		$	31,992,998

Accumulation unit activity
Units outstanding at beginning of year		39,043,615			12,488,011			27,275,333			42,437,891			13,027,993
Contract purchase payments		4,751,678			824,023			209,800			464,814			118,504
Net transfers⁽¹⁾		16,092,406			7,238,062			(593,817	)		(2,597,992	)		(1,179,116	)
Transfers for policy loans		3,300			1,787			11,253			32,856			(4,420	)
Contract charges		(17,545	)		(5,546	)		(17,371	)		(28,940	)		(7,252	)
Contract terminations:
Surrender benefits		(4,938,869	)		(1,189,267	)		(2,127,713	)		(3,791,509	)		(988,449	)
Death benefits		(826,036	)		(242,736	)		(347,477	)		(459,116	)		(368,892	)
Units outstanding at end of year		54,108,549			19,114,334			24,410,008			36,058,004			10,598,368

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			27

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	Col VP Select Mid Cap Val, Cl 3			Col VP Select Sm Cap Val, Cl 3			Col VP US Govt Mtge, Cl 3			CS Commodity Return			CTIVP BR Gl Infl Prot Sec, Cl 3
Operations
Investment income (loss) — net	$	(358,842	)	$	(229,339	)	$	980,310		$	498,038		$	(242,005	)
Net realized gain (loss) on sales of investments		4,311,880			1,906,314			366,585			(3,048,951	)		(2,877,718	)
Distributions from capital gains		—			—			222,792			—			1,228,669
Net change in unrealized appreciation or depreciation of investments		(2,536,318	)		(481,560	)		853,755			2,036,750			7,141,870
Net increase (decrease) in net assets resulting from operations		1,416,720			1,195,415			2,423,442			(514,163	)		5,250,816

Contract transactions
Contract purchase payments		362,529			285,436			509,620			249,376			302,332
Net transfers⁽¹⁾		(3,894,311	)		(2,438,676	)		4,615,867			(865,472	)		(460,933	)
Transfers for policy loans		15,048			24,751			21,210			6,610			9,588
Adjustments to net assets allocated to contracts in payment period		(23,809	)		(8,280	)		(27,619	)		(1,485	)		(26,080	)
Contract charges		(30,835	)		(20,860	)		(42,357	)		(7,261	)		(172,478	)
Contract terminations:
Surrender benefits		(4,335,893	)		(2,216,070	)		(5,730,701	)		(954,302	)		(6,379,938	)
Death benefits		(588,828	)		(427,026	)		(1,653,746	)		(107,027	)		(2,364,309	)
Increase (decrease) from contract transactions		(8,496,099	)		(4,800,725	)		(2,307,726	)		(1,679,561	)		(9,091,818	)
Net assets at beginning of year		50,176,910			33,703,967			61,669,850			12,321,386			71,210,036
Net assets at end of year	$	43,097,531		$	30,098,657		$	61,785,566		$	10,127,662		$	67,369,034

Accumulation unit activity
Units outstanding at beginning of year		18,698,047			10,586,517			42,323,118			25,441,320			45,327,703
Contract purchase payments		158,570			112,763			362,386			603,202			186,085
Net transfers⁽¹⁾		(1,713,146	)		(1,033,791	)		3,294,240			(2,126,175	)		(408,496	)
Transfers for policy loans		6,346			9,759			14,165			15,707			5,188
Contract charges		(13,420	)		(7,519	)		(28,242	)		(17,248	)		(105,170	)
Contract terminations:
Surrender benefits		(1,821,428	)		(814,867	)		(3,811,183	)		(2,251,623	)		(3,901,373	)
Death benefits		(254,657	)		(169,272	)		(1,139,881	)		(242,605	)		(1,465,579	)
Units outstanding at end of year		15,060,312			8,683,590			41,014,603			21,422,578			39,638,358

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



28		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	CTIVP Lazard Intl Eq Adv, Cl 2			CTIVP Loomis Sayles Gro, Cl 1			CTIVP Vty Sycamore Estb Val, Cl 3			CTIVP WF Short Duration Govt, Cl 2			DWS Alt Asset Alloc VIP, Cl B
Operations
Investment income (loss) — net	$	(165,566	)	$	(1,182,349	)	$	(300,328	)	$	821,560		$	183,370
Net realized gain (loss) on sales of investments		(306,036	)		11,580,164			2,305,245			161,543			(237,569	)
Distributions from capital gains		—			—			—			150,734			—
Net change in unrealized appreciation or depreciation of investments		1,231,217			24,779,449			(639,450	)		(397,428	)		404,821
Net increase (decrease) in net assets resulting from operations		759,615			35,177,264			1,365,467			736,409			350,622

Contract transactions
Contract purchase payments		1,453,452			1,093,064			465,042			5,902,705			257,327
Net transfers⁽¹⁾		8,062			(6,701,859	)		(2,994,392	)		26,747,800			(1,007,235	)
Transfers for policy loans		53			31,758			526			(884	)		6,338
Adjustments to net assets allocated to contracts in payment period		(64,274	)		(124,913	)		(49,969	)		—			(1,599	)
Contract charges		(6,880	)		(111,764	)		(21,670	)		(13,805	)		(5,311	)
Contract terminations:
Surrender benefits		(775,937	)		(11,738,462	)		(3,742,417	)		(4,153,006	)		(1,000,935	)
Death benefits		(201,256	)		(1,569,526	)		(394,540	)		(419,423	)		(247,648	)
Increase (decrease) from contract transactions		413,220			(19,121,702	)		(6,737,420	)		28,063,387			(1,999,063	)
Net assets at beginning of year		20,412,856			127,745,579			40,363,529			26,242,896			13,752,774
Net assets at end of year	$	21,585,691		$	143,801,141		$	34,991,576		$	55,042,692		$	12,104,333

Accumulation unit activity
Units outstanding at beginning of year		17,058,770			72,360,435			12,437,426			26,141,606			13,010,927
Contract purchase payments		1,350,070			574,460			165,146			5,845,785			262,083
Net transfers⁽¹⁾		74,295			(3,720,186	)		(1,122,052	)		26,088,881			(1,037,879	)
Transfers for policy loans		49			16,404			578			(1,537	)		6,144
Contract charges		(6,592	)		(57,883	)		(7,523	)		(13,400	)		(5,309	)
Contract terminations:
Surrender benefits		(718,211	)		(6,050,111	)		(1,285,906	)		(4,070,091	)		(997,789	)
Death benefits		(188,878	)		(786,699	)		(136,031	)		(407,054	)		(254,326	)
Units outstanding at end of year		17,569,503			62,336,420			10,051,638			53,584,190			10,983,851

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			29

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	EV VT Floating-Rate Inc, Init Cl			Fid VIP Contrafund, Serv Cl 2			Fid VIP Gro & Inc, Serv Cl 2			Fid VIP Mid Cap, Serv Cl 2			Fid VIP Overseas, Serv Cl 2
Operations
Investment income (loss) — net	$	2,121,552		$	(4,331,504	)	$	847,493		$	(1,666,826	)	$	(306,522	)
Net realized gain (loss) on sales of investments		(2,323,420	)		17,592,715			2,343,503			96,243			1,566,145
Distributions from capital gains		—			2,537,115			4,408,003			—			205,686
Net change in unrealized appreciation or depreciation of investments		(476,039	)		107,249,598			(3,277,623	)		51,103,278			4,529,878
Net increase (decrease) in net assets resulting from operations		(677,907	)		123,047,924			4,321,376			49,532,695			5,995,187

Contract transactions
Contract purchase payments		681,273			18,195,561			535,110			8,348,024			450,815
Net transfers⁽¹⁾		(19,690,029	)		(16,567,637	)		(3,747,459	)		(24,705,049	)		(439,447	)
Transfers for policy loans		9,854			38,931			62,127			133,241			22,559
Adjustments to net assets allocated to contracts in payment period		(25,290	)		(329,413	)		62,070			(154,066	)		(13,470	)
Contract charges		(77,303	)		(236,897	)		(66,331	)		(258,103	)		(32,954	)
Contract terminations:
Surrender benefits		(9,541,880	)		(39,637,042	)		(6,937,394	)		(27,381,728	)		(4,438,602	)
Death benefits		(1,782,355	)		(6,858,111	)		(975,291	)		(4,129,008	)		(606,472	)
Increase (decrease) from contract transactions		(30,425,730	)		(45,394,608	)		(11,067,168	)		(48,146,689	)		(5,057,571	)
Net assets at beginning of year		109,951,354			456,586,140			93,498,116			363,510,079			49,486,521
Net assets at end of year	$	78,847,717		$	534,239,456		$	86,752,324		$	364,896,085		$	50,424,137

Accumulation unit activity
Units outstanding at beginning of year		75,164,886			172,295,502			31,791,830			97,978,253			24,147,251
Contract purchase payments		488,583			6,183,021			199,308			2,541,204			238,664
Net transfers⁽¹⁾		(14,322,288	)		(6,096,798	)		(1,483,020	)		(7,349,768	)		(141,410	)
Transfers for policy loans		6,894			12,671			22,496			34,774			10,933
Contract charges		(54,654	)		(81,234	)		(24,905	)		(73,205	)		(16,625	)
Contract terminations:
Surrender benefits		(6,712,012	)		(13,424,330	)		(2,562,721	)		(7,884,833	)		(2,280,375	)
Death benefits		(1,265,784	)		(2,385,954	)		(361,771	)		(1,218,602	)		(330,717	)
Units outstanding at end of year		53,305,625			156,502,878			27,581,217			84,027,823			21,627,721

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



30		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	Fid VIP Strategic Inc, Serv Cl 2			Frank Global Real Est, Cl 2			Frank Inc, Cl 2			Frank Mutual Shares, Cl 2			Frank Sm Cap Val, Cl 2
Operations
Investment income (loss) — net	$	3,129,402		$	1,574,131		$	2,625,879		$	1,229,793		$	574,728
Net realized gain (loss) on sales of investments		(452,510	)		(3,224,370	)		(1,680,699	)		(2,981,986	)		(5,823,781	)
Distributions from capital gains		1,478,235			6,882,810			45,303			2,617,879			6,522,855
Net change in unrealized appreciation or depreciation of investments		4,263,086			(11,031,725	)		(2,254,962	)		(8,026,926	)		1,134,216
Net increase (decrease) in net assets resulting from operations		8,418,213			(5,799,154	)		(1,264,479	)		(7,161,240	)		2,408,018

Contract transactions
Contract purchase payments		6,353,961			736,075			3,255,173			1,604,068			3,269,849
Net transfers⁽¹⁾		(1,692,387	)		(3,574,626	)		(7,816,670	)		(8,286,028	)		(6,814,575	)
Transfers for policy loans		18,230			40,475			8,589			41,665			38,250
Adjustments to net assets allocated to contracts in payment period		(36,187	)		(4,566	)		(11,097	)		(15,034	)		(16,262	)
Contract charges		(56,763	)		(54,049	)		(24,402	)		(41,803	)		(57,318	)
Contract terminations:
Surrender benefits		(10,948,980	)		(6,322,632	)		(3,307,757	)		(4,840,979	)		(8,573,189	)
Death benefits		(2,155,754	)		(725,341	)		(1,145,442	)		(1,355,278	)		(1,398,266	)
Increase (decrease) from contract transactions		(8,517,880	)		(9,904,664	)		(9,041,606	)		(12,893,389	)		(13,551,511	)
Net assets at beginning of year		159,517,299			80,180,854			62,606,894			89,847,898			126,595,793
Net assets at end of year	$	159,417,632		$	64,477,036		$	52,300,809		$	69,793,269		$	115,452,300

Accumulation unit activity
Units outstanding at beginning of year		135,766,832			31,458,807			46,150,160			39,527,501			32,666,716
Contract purchase payments		5,419,582			369,092			2,560,860			851,478			1,044,977
Net transfers⁽¹⁾		(2,101,439	)		(1,735,075	)		(6,428,948	)		(4,464,968	)		(2,141,017	)
Transfers for policy loans		15,313			16,438			6,780			20,453			11,689
Contract charges		(48,398	)		(23,453	)		(19,765	)		(21,993	)		(16,583	)
Contract terminations:
Surrender benefits		(9,283,834	)		(2,811,405	)		(2,631,172	)		(2,553,742	)		(2,524,401	)
Death benefits		(1,848,251	)		(290,506	)		(910,348	)		(788,382	)		(463,189	)
Units outstanding at end of year		127,919,805			26,983,898			38,727,567			32,570,347			28,578,192

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			31

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	GS VIT Mid Cap Val, Inst			GS VIT Multi-Strategy Alt, Advisor			GS VIT U.S. Eq Insights, Inst			Inv Opp VI Dis Mid Cap Gro, Ser I⁽²⁾			Invesco Opp VI Global, Ser II
Operations
Investment income (loss) — net	$	(234,132	)	$	51,983		$	(32,059	)	$	(114,791	)	$	(711,955	)
Net realized gain (loss) on sales of investments		(406,124	)		(38,034	)		3,390,588			265,383			2,747,775
Distributions from capital gains		1,655,551			—			4,307,873			1,594,931			4,840,538
Net change in unrealized appreciation or depreciation of investments		5,214,583			371,321			7,922,861			6,645,566			25,223,888
Net increase (decrease) in net assets resulting from operations		6,229,878			385,270			15,589,263			8,391,089			32,100,246

Contract transactions
Contract purchase payments		702,814			280,558			507,103			63,690			6,447,390
Net transfers⁽¹⁾		(6,234,572	)		565,391			(5,131,076	)		16,876,800			(5,908,483	)
Transfers for policy loans		61,445			—			49,895			10,359			28,540
Adjustments to net assets allocated to contracts in payment period		(85,985	)		(298	)		(85,194	)		78,519			(170,861	)
Contract charges		(107,310	)		(2,813	)		(149,437	)		(7,820	)		(73,659	)
Contract terminations:
Surrender benefits		(8,889,087	)		(303,976	)		(10,080,019	)		(1,080,256	)		(11,641,407	)
Death benefits		(1,441,516	)		(109,459	)		(1,716,975	)		(177,437	)		(1,831,629	)
Increase (decrease) from contract transactions		(15,994,211	)		429,403			(16,605,703	)		15,763,855			(13,150,109	)
Net assets at beginning of year		126,366,102			6,289,725			110,217,190			—			139,266,240
Net assets at end of year	$	116,601,769		$	7,104,398		$	109,200,750		$	24,154,944		$	158,216,377

Accumulation unit activity
Units outstanding at beginning of year		22,573,429			6,769,185			40,322,386			—			49,087,886
Contract purchase payments		146,309			310,148			186,287			51,516			2,091,900
Net transfers⁽¹⁾		(1,294,569	)		617,759			(1,989,054	)		16,873,881			(2,312,063	)
Transfers for policy loans		12,134			—			20,967			8,058			9,452
Contract charges		(22,173	)		(3,033	)		(54,479	)		(6,219	)		(25,572	)
Contract terminations:
Surrender benefits		(1,754,587	)		(329,061	)		(3,634,907	)		(837,589	)		(4,045,192	)
Death benefits		(284,126	)		(115,477	)		(609,526	)		(143,481	)		(662,092	)
Units outstanding at end of year		19,376,417			7,249,521			34,241,674			15,946,166			44,144,319

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

⁽²⁾	For the period April 24, 2020 (commencement of operations) to December 31, 2020.

See accompanying notes to financial statements.



32		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	Inves Opp VI Gbl Strat Inc, Ser II			Inves Opp VI Mn St Sm Cap, Ser II			Invesco VI Am Fran, Ser II			Invesco VI Bal Risk Alloc, Ser II			Invesco VI Comstock, Ser II
Operations
Investment income (loss) — net	$	8,340,517		$	(517,002	)	$	(422,803	)	$	2,206,144		$	1,126,060
Net realized gain (loss) on sales of investments		(3,091,864	)		22,950			4,223,389			(914,020	)		(47,784	)
Distributions from capital gains		—			1,213,406			3,710,351			1,717,667			2,375,745
Net change in unrealized appreciation or depreciation of investments		(3,266,082	)		14,319,863			9,470,260			(480,632	)		(7,270,810	)
Net increase (decrease) in net assets resulting from operations		1,982,571			15,039,217			16,981,197			2,529,159			(3,816,789	)

Contract transactions
Contract purchase payments		2,127,538			5,573,344			242,883			1,112,387			630,512
Net transfers⁽¹⁾		(11,157,409	)		(4,471,052	)		(4,620,312	)		(4,057,484	)		(5,749,475	)
Transfers for policy loans		69,888			7,971			22,301			2,072			34,194
Adjustments to net assets allocated to contracts in payment period		(7,680	)		(46,671	)		750			(23,541	)		(19,212	)
Contract charges		(222,565	)		(42,446	)		(122,851	)		(13,781	)		(194,568	)
Contract terminations:
Surrender benefits		(16,553,602	)		(10,247,548	)		(4,958,421	)		(2,947,419	)		(8,888,461	)
Death benefits		(3,882,431	)		(1,200,336	)		(543,146	)		(943,327	)		(1,148,864	)
Increase (decrease) from contract transactions		(29,626,261	)		(10,426,738	)		(9,978,796	)		(6,871,093	)		(15,335,874	)
Net assets at beginning of year		220,135,049			94,237,398			48,830,237			39,137,469			113,810,469
Net assets at end of year	$	192,491,359		$	98,849,877		$	55,832,638		$	34,795,535		$	94,657,806

Accumulation unit activity
Units outstanding at beginning of year		128,020,082			31,718,002			19,915,521			31,724,064			42,756,999
Contract purchase payments		1,333,932			1,766,783			89,500			930,501			289,076
Net transfers⁽¹⁾		(7,133,095	)		(1,599,979	)		(1,805,112	)		(3,488,636	)		(2,397,619	)
Transfers for policy loans		41,814			2,881			8,037			1,932			15,535
Contract charges		(136,659	)		(15,274	)		(44,728	)		(11,670	)		(87,852	)
Contract terminations:
Surrender benefits		(10,075,606	)		(3,645,653	)		(1,784,702	)		(2,481,059	)		(3,893,271	)
Death benefits		(2,429,064	)		(445,456	)		(198,261	)		(795,322	)		(513,059	)
Units outstanding at end of year		109,621,404			27,781,304			16,180,255			25,879,810			36,169,809

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			33

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	Invesco VI Div Divd, Ser I			Invesco VI Hlth, Ser II			Invesco VI Intl Gro, Ser II			Invesco VI Tech, Ser I			Ivy VIP Asset Strategy, Cl II
Operations
Investment income (loss) — net	$	406,995		$	(337,080	)	$	578,252		$	(240,955	)	$	140,419
Net realized gain (loss) on sales of investments		428,136			640,554			1,593,555			1,943,665			(399,758	)
Distributions from capital gains		479,750			1,070,619			1,104,933			2,622,781			245,187
Net change in unrealized appreciation or depreciation of investments		(1,994,527	)		4,009,780			2,142,217			6,453,650			1,703,943
Net increase (decrease) in net assets resulting from operations		(679,646	)		5,383,873			5,418,957			10,779,141			1,689,791

Contract transactions
Contract purchase payments		162,411			554,570			464,983			260,401			386,053
Net transfers⁽¹⁾		(2,320,661	)		2,050,765			(3,465,812	)		1,703,945			(857,754	)
Transfers for policy loans		3,826			12,514			25,221			9,007			6,009
Adjustments to net assets allocated to contracts in payment period		106,019			12,033			(15,447	)		25,151			(21,901	)
Contract charges		(12,147	)		(24,874	)		(43,609	)		(32,478	)		(6,520	)
Contract terminations:
Surrender benefits		(1,741,024	)		(4,261,148	)		(4,827,333	)		(3,072,648	)		(932,066	)
Death benefits		(387,609	)		(575,733	)		(597,410	)		(196,765	)		(344,663	)
Increase (decrease) from contract transactions		(4,189,185	)		(2,231,873	)		(8,459,407	)		(1,303,387	)		(1,770,842	)
Net assets at beginning of year		24,624,053			43,400,979			56,237,365			25,038,779			16,046,080
Net assets at end of year	$	19,755,222		$	46,552,979		$	53,196,915		$	34,514,533		$	15,965,029

Accumulation unit activity
Units outstanding at beginning of year		11,136,078			14,950,876			27,790,376			10,549,557			12,186,523
Contract purchase payments		83,631			195,195			247,854			97,572			284,401
Net transfers⁽¹⁾		(1,206,956	)		704,364			(1,809,224	)		578,585			(734,284	)
Transfers for policy loans		2,106			4,470			13,142			3,401			4,525
Contract charges		(6,225	)		(8,708	)		(23,320	)		(11,814	)		(5,101	)
Contract terminations:
Surrender benefits		(871,917	)		(1,469,556	)		(2,573,749	)		(1,109,056	)		(721,385	)
Death benefits		(196,210	)		(204,068	)		(319,553	)		(77,808	)		(258,442	)
Units outstanding at end of year		8,940,507			14,172,573			23,325,526			10,030,437			10,756,237

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



34		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	Janus Henderson VIT Bal, Serv			Janus Henderson VIT Flex Bd, Serv			Janus Hend VIT Gbl Tech Innov, Srv			Janus Henderson VIT Overseas, Serv			Janus Henderson VIT Res, Serv
Operations
Investment income (loss) — net	$	434,729		$	827,906		$	(269,299	)	$	66,172		$	(412,387	)
Net realized gain (loss) on sales of investments		568,828			361,995			2,044,080			(506,496	)		3,011,174
Distributions from capital gains		1,202,891			—			2,835,965			—			4,464,610
Net change in unrealized appreciation or depreciation of investments		8,538,401			3,498,846			8,679,302			2,929,373			7,966,841
Net increase (decrease) in net assets resulting from operations		10,744,849			4,688,747			13,290,048			2,489,049			15,030,238

Contract transactions
Contract purchase payments		6,828,431			3,698,694			190,771			137,519			2,038,733
Net transfers⁽¹⁾		22,042,851			15,138,480			925,205			(1,159,591	)		(1,801,069	)
Transfers for policy loans		11,752			183			5,780			25,950			6,233
Adjustments to net assets allocated to contracts in payment period		(6,954	)		(5,389	)		(18,306	)		(11,012	)		(21,076	)
Contract charges		(28,586	)		(17,619	)		(12,677	)		(9,882	)		(57,940	)
Contract terminations:
Surrender benefits		(6,881,512	)		(4,724,609	)		(2,683,593	)		(1,340,386	)		(4,555,502	)
Death benefits		(550,466	)		(660,229	)		(228,769	)		(162,346	)		(914,384	)
Increase (decrease) from contract transactions		21,415,516			13,429,511			(1,821,589	)		(2,519,748	)		(5,305,005	)
Net assets at beginning of year		68,252,958			49,020,351			28,362,262			20,972,535			51,488,636
Net assets at end of year	$	100,413,323		$	67,138,609		$	39,830,721		$	20,941,836		$	61,213,869

Accumulation unit activity
Units outstanding at beginning of year		56,948,710			44,424,882			13,302,067			13,664,030			20,123,797
Contract purchase payments		5,635,622			3,165,841			76,443			98,761			724,465
Net transfers⁽¹⁾		17,632,491			12,780,199			276,093			(876,686	)		(668,367	)
Transfers for policy loans		9,459			53			2,428			18,282			2,565
Contract charges		(23,544	)		(15,074	)		(4,851	)		(6,960	)		(20,958	)
Contract terminations:
Surrender benefits		(5,495,981	)		(4,038,269	)		(1,080,387	)		(927,151	)		(1,584,929	)
Death benefits		(454,254	)		(578,691	)		(97,361	)		(118,688	)		(326,474	)
Units outstanding at end of year		74,252,503			55,738,941			12,474,432			11,851,588			18,250,099

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			35

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	Lazard Ret Global Dyn MA, Serv			MFS Mass Inv Gro Stock, Serv Cl			MFS New Dis, Serv Cl			MFS Utilities, Serv Cl			MS VIF Dis, Cl II
Operations
Investment income (loss) — net	$	(83,174	)	$	(437,292	)	$	(329,031	)	$	1,883,515		$	(998,347	)
Net realized gain (loss) on sales of investments		41,703			2,206,175			760,819			3,846,964			6,990,698
Distributions from capital gains		193,469			6,285,016			4,125,583			3,933,845			11,306,120
Net change in unrealized appreciation or depreciation of investments		(475,384	)		5,133,007			10,885,876			(4,138,857	)		73,999,481
Net increase (decrease) in net assets resulting from operations		(323,386	)		13,186,906			15,443,247			5,525,467			91,297,952

Contract transactions
Contract purchase payments		345,369			425,622			228,658			2,788,854			6,050,530
Net transfers⁽¹⁾		(2,413,832	)		3,044,367			(38,424	)		(7,970,868	)		5,691,974
Transfers for policy loans		2,516			8,576			(1,153	)		22,421			6,709
Adjustments to net assets allocated to contracts in payment period		—			(17,298	)		(27,391	)		(41,867	)		(20,393	)
Contract charges		(8,582	)		(36,960	)		(25,260	)		(90,786	)		(46,135	)
Contract terminations:
Surrender benefits		(976,184	)		(5,628,875	)		(2,995,890	)		(12,070,020	)		(6,316,971	)
Death benefits		(625,333	)		(346,721	)		(298,217	)		(2,634,243	)		(912,091	)
Increase (decrease) from contract transactions		(3,676,046	)		(2,551,289	)		(3,157,677	)		(19,996,509	)		4,453,623
Net assets at beginning of year		21,229,843			66,117,462			37,250,283			169,548,186			58,529,455
Net assets at end of year	$	17,230,411		$	76,753,079		$	49,535,853		$	155,077,144		$	154,281,030

Accumulation unit activity
Units outstanding at beginning of year		14,412,340			36,776,979			11,427,944			46,750,885			18,470,391
Contract purchase payments		241,358			235,415			67,031			816,166			1,093,321
Net transfers⁽¹⁾		(1,764,146	)		1,506,118			76			(2,378,089	)		1,459,042
Transfers for policy loans		1,796			4,954			(160	)		5,679			1,107
Contract charges		(6,298	)		(20,224	)		(7,337	)		(25,991	)		(9,124	)
Contract terminations:
Surrender benefits		(690,228	)		(3,063,522	)		(868,579	)		(3,502,884	)		(1,233,999	)
Death benefits		(462,591	)		(180,119	)		(86,322	)		(770,437	)		(203,886	)
Units outstanding at end of year		11,732,231			35,259,601			10,532,653			40,895,329			19,576,852

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



36		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	MS VIF Global Real Est, Cl II			NB AMT Intl Eq, Cl S			NB AMT US Eq Index PW Strat, Cl S			PIMCO VIT All Asset, Advisor Cl			PIMCO VIT Glb Man As Alloc, Adv Cl
Operations
Investment income (loss) — net	$	668,874		$	(41,896	)	$	(7,991	)	$	2,236,622		$	344,314
Net realized gain (loss) on sales of investments		(600,338	)		330,706			(9,177	)		(1,043,360	)		(18,750	)
Distributions from capital gains		397,880			489,443			290,489			—			97,274
Net change in unrealized appreciation or depreciation of investments		(4,847,286	)		247,816			29,894			1,825,088			315,616
Net increase (decrease) in net assets resulting from operations		(4,380,870	)		1,026,069			303,215			3,018,350			738,454

Contract transactions
Contract purchase payments		221,449			75,246			264,345			971,527			157,458
Net transfers⁽¹⁾		(1,725,728	)		(523,699	)		196,327			(5,664,585	)		(153,242	)
Transfers for policy loans		10,893			1,324			207			16,020			—
Adjustments to net assets allocated to contracts in payment period		(3,808	)		(135	)		—			(91,589	)		(456	)
Contract charges		(18,063	)		(12,503	)		(1,450	)		(60,806	)		(1,417	)
Contract terminations:
Surrender benefits		(2,360,121	)		(930,676	)		(89,195	)		(4,979,061	)		(234,981	)
Death benefits		(310,185	)		(124,732	)		(189,904	)		(1,254,720	)		(57,599	)
Increase (decrease) from contract transactions		(4,185,563	)		(1,515,175	)		180,330			(11,063,214	)		(290,237	)
Net assets at beginning of year		26,812,122			11,111,854			4,285,527			66,172,622			5,298,499
Net assets at end of year	$	18,245,689		$	10,622,748		$	4,769,072		$	58,127,758		$	5,746,716

Accumulation unit activity
Units outstanding at beginning of year		16,636,100			7,923,707			4,239,670			39,327,770			4,414,886
Contract purchase payments		175,138			57,313			260,641			614,537			128,184
Net transfers⁽¹⁾		(1,329,181	)		(386,464	)		190,722			(3,673,222	)		(153,213	)
Transfers for policy loans		8,960			968			213			9,014			—
Contract charges		(14,366	)		(9,368	)		(1,446	)		(38,174	)		(1,177	)
Contract terminations:
Surrender benefits		(1,825,688	)		(690,208	)		(90,488	)		(3,122,451	)		(193,894	)
Death benefits		(243,166	)		(96,348	)		(197,896	)		(791,429	)		(46,636	)
Units outstanding at end of year		13,407,797			6,799,600			4,401,416			32,326,045			4,148,150

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			37

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	PIMCO VIT Tot Return, Advisor Cl			Put VT Global Hlth Care, Cl IB			Put VT Intl Eq, Cl IB			Put VT Sus Leaders, Cl IB			Temp Global Bond, Cl 2
Operations
Investment income (loss) — net	$	516,356		$	(83,531	)	$	81,177		$	(136,391	)	$	2,198,595
Net realized gain (loss) on sales of investments		257,308			197,697			85,292			1,478,544			(1,230,303	)
Distributions from capital gains		585,136			2,060,003			—			2,800,486			—
Net change in unrealized appreciation or depreciation of investments		2,262,138			1,036,319			948,863			3,919,959			(2,986,606	)
Net increase (decrease) in net assets resulting from operations		3,620,938			3,210,488			1,115,332			8,062,598			(2,018,314	)

Contract transactions
Contract purchase payments		6,391,960			175,133			113,188			192,082			1,087,851
Net transfers⁽¹⁾		15,426,744			68,933			(97,561	)		(1,367,497	)		(4,255,431	)
Transfers for policy loans		5,622			(348	)		4,859			6,436			12,861
Adjustments to net assets allocated to contracts in payment period		—			(11,848	)		(2,120	)		(5,780	)		—
Contract charges		(17,811	)		(17,217	)		(7,282	)		(18,319	)		(9,331	)
Contract terminations:
Surrender benefits		(2,984,140	)		(1,947,278	)		(846,427	)		(2,560,288	)		(1,583,354	)
Death benefits		(1,291,246	)		(334,857	)		(76,226	)		(129,656	)		(428,042	)
Increase (decrease) from contract transactions		17,531,129			(2,067,482	)		(911,569	)		(3,883,022	)		(5,175,446	)
Net assets at beginning of year		43,292,310			23,677,073			11,616,710			32,044,762			34,357,824
Net assets at end of year	$	64,444,377		$	24,820,079		$	11,820,473		$	36,224,338		$	27,164,064

Accumulation unit activity
Units outstanding at beginning of year		39,647,470			7,149,429			6,273,937			9,529,637			35,065,345
Contract purchase payments		5,578,845			51,846			65,897			54,922			1,178,680
Net transfers⁽¹⁾		13,467,534			(21,783	)		(75,328	)		(402,420	)		(4,494,813	)
Transfers for policy loans		4,824			(414	)		2,972			842			13,710
Contract charges		(15,531	)		(5,132	)		(4,213	)		(5,230	)		(10,055	)
Contract terminations:
Surrender benefits		(2,600,872	)		(577,887	)		(483,322	)		(716,457	)		(1,690,683	)
Death benefits		(1,140,603	)		(96,132	)		(40,005	)		(37,296	)		(457,285	)
Units outstanding at end of year		54,941,667			6,499,927			5,739,938			8,423,998			29,604,899

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



38		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	VanEck VIP Global Gold, Cl S			VP Aggr, Cl 2			VP Aggr, Cl 4			VP Conserv, Cl 2			VP Conserv, Cl 4
Operations
Investment income (loss) — net	$	480,033		$	(9,313,563	)	$	(4,893,640	)	$	(5,608,596	)	$	(4,589,294	)
Net realized gain (loss) on sales of investments		1,177,779			69,259,292			59,095,778			13,219,811			18,897,844
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		5,927,305			65,226,413			14,003,177			41,985,801			26,241,519
Net increase (decrease) in net assets resulting from operations		7,585,117			125,172,142			68,205,315			49,597,016			40,550,069

Contract transactions
Contract purchase payments		2,647,936			19,267,786			5,328,212			24,737,280			925,139
Net transfers⁽¹⁾		5,166,528			(81,916,276	)		(44,849,209	)		202,871,963			103,099,941
Transfers for policy loans		(1,383	)		193,660			25,052			3,484			47,972
Adjustments to net assets allocated to contracts in payment period		—			(199,078	)		—			68,528			—
Contract charges		(8,094	)		(6,377,815	)		(2,698,012	)		(4,051,957	)		(2,941,428	)
Contract terminations:
Surrender benefits		(1,404,874	)		(59,291,852	)		(61,446,703	)		(59,437,534	)		(54,969,507	)
Death benefits		(238,796	)		(8,346,286	)		(2,221,105	)		(14,658,749	)		(16,270,589	)
Increase (decrease) from contract transactions		6,161,317			(136,669,861	)		(105,861,765	)		149,533,015			29,891,528
Net assets at beginning of year		19,649,540			1,033,752,108			600,819,353			452,819,038			438,287,518
Net assets at end of year	$	33,395,974		$	1,022,254,389		$	563,162,903		$	651,949,069		$	508,729,115

Accumulation unit activity
Units outstanding at beginning of year		19,858,415			514,781,539			297,629,367			334,580,715			322,396,295
Contract purchase payments		2,064,389			9,760,980			2,718,746			17,976,462			658,879
Net transfers⁽¹⁾		4,041,678			(40,591,406	)		(22,252,952	)		148,269,599			76,129,887
Transfers for policy loans		(759	)		96,048			15,973			2,700			33,712
Contract charges		(6,490	)		(3,240,768	)		(1,371,406	)		(2,900,623	)		(2,110,485	)
Contract terminations:
Surrender benefits		(1,176,487	)		(29,492,775	)		(30,639,216	)		(42,500,845	)		(39,764,095	)
Death benefits		(172,097	)		(4,173,843	)		(1,153,141	)		(10,789,410	)		(11,747,349	)
Units outstanding at end of year		24,608,649			447,139,775			244,947,371			444,638,598			345,596,844

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			39

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	VP Man Risk, Cl 2			VP Man Risk US, Cl 2			VP Man Vol Conserv, Cl 2			VP Man Vol Conserv Gro, Cl 2			VP Man Vol Gro, Cl 2
Operations
Investment income (loss) — net	$	(1,856,768	)	$	(1,991,619	)	$	(6,931,269	)	$	(14,375,188	)	$	(103,530,816	)
Net realized gain (loss) on sales of investments		579,288			513,338			9,908,560			21,817,764			110,173,853
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		15,443,264			21,972,604			54,381,078			106,918,510			1,066,020,410
Net increase (decrease) in net assets resulting from operations		14,165,784			20,494,323			57,358,369			114,361,086			1,072,663,447

Contract transactions
Contract purchase payments		22,782,936			45,558,535			18,223,938			31,821,558			523,467,677
Net transfers⁽¹⁾		13,853,253			33,701,576			299,239,113			113,467,240			(73,169,773	)
Transfers for policy loans		2,930			—			9,364			(434	)		7,809
Adjustments to net assets allocated to contracts in payment period		—			(44,006	)		—			45,525			(165,883	)
Contract charges		(2,352,168	)		(2,312,595	)		(8,906,491	)		(17,866,735	)		(137,033,949	)
Contract terminations:
Surrender benefits		(4,735,353	)		(3,423,678	)		(44,804,778	)		(58,158,727	)		(344,920,813	)
Death benefits		(1,122,970	)		(1,238,381	)		(6,628,955	)		(16,561,219	)		(53,289,462	)
Increase (decrease) from contract transactions		28,428,628			72,241,451			257,132,191			52,747,208			(85,104,394	)
Net assets at beginning of year		177,905,325			171,093,697			511,640,733			1,368,389,523			10,691,503,772
Net assets at end of year	$	220,499,737		$	263,829,471		$	826,131,293		$	1,535,497,817		$	11,679,062,825

Accumulation unit activity
Units outstanding at beginning of year		159,500,047			146,324,532			430,973,358			1,086,806,802			7,648,689,892
Contract purchase payments		20,802,551			39,042,008			15,240,513			25,036,328			376,712,827
Net transfers⁽¹⁾		12,375,667			28,339,487			253,732,738			89,716,272			(63,282,595	)
Transfers for policy loans		2,642			—			7,744			(240	)		5,814
Contract charges		(2,146,932	)		(1,986,385	)		(7,340,472	)		(14,046,740	)		(98,724,787	)
Contract terminations:
Surrender benefits		(4,293,708	)		(2,938,893	)		(37,100,778	)		(45,829,606	)		(251,983,011	)
Death benefits		(1,030,220	)		(1,075,220	)		(5,581,425	)		(13,140,894	)		(38,516,036	)
Units outstanding at end of year		185,210,047			207,705,529			649,931,678			1,128,541,922			7,572,902,104

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



40		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	VP Man Vol Mod Gro, Cl 2			VP Mod, Cl 2			VP Mod, Cl 4			VP Mod Aggr, Cl 2			VP Mod Aggr, Cl 4
Operations
Investment income (loss) — net	$	(136,425,547	)	$	(68,551,916	)	$	(61,937,278	)	$	(29,703,960	)	$	(16,895,831	)
Net realized gain (loss) on sales of investments		220,708,894			197,114,447			425,877,070			207,207,716			187,063,533
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		1,131,132,003			653,906,907			355,352,336			189,341,920			43,627,484
Net increase (decrease) in net assets resulting from operations		1,215,415,350			782,469,438			719,292,128			366,845,676			213,795,186

Contract transactions
Contract purchase payments		368,530,641			240,429,733			11,403,683			56,846,011			12,194,310
Net transfers⁽¹⁾		(230,320,770	)		101,187,865			(107,264,671	)		(224,550,677	)		(110,972,501	)
Transfers for policy loans		42,781			(14,955	)		258,765			32,832			332,473
Adjustments to net assets allocated to contracts in payment period		(61,947	)		282,614			—			(185,957	)		—
Contract charges		(180,958,616	)		(61,681,615	)		(44,182,665	)		(21,547,365	)		(8,552,752	)
Contract terminations:
Surrender benefits		(526,393,876	)		(480,415,153	)		(624,364,955	)		(216,005,193	)		(235,091,139	)
Death benefits		(82,942,325	)		(85,978,278	)		(99,480,113	)		(21,642,513	)		(11,157,543	)
Increase (decrease) from contract transactions		(652,104,112	)		(286,189,789	)		(863,629,956	)		(427,052,862	)		(353,247,152	)
Net assets at beginning of year		13,928,599,705			6,996,951,914			7,014,436,089			3,240,508,459			2,029,967,364
Net assets at end of year	$	14,491,910,943		$	7,493,231,563		$	6,870,098,261		$	3,180,301,273		$	1,890,515,398

Accumulation unit activity
Units outstanding at beginning of year		9,915,419,466			4,164,097,661			4,146,579,134			1,759,401,179			1,095,298,681
Contract purchase payments		260,317,701			141,171,708			6,746,838			31,253,805			6,661,113
Net transfers⁽¹⁾		(175,349,358	)		53,809,959			(67,753,628	)		(122,277,505	)		(61,109,596	)
Transfers for policy loans		29,206			(11,041	)		150,116			10,978			181,534
Contract charges		(128,518,285	)		(36,413,688	)		(25,949,825	)		(11,749,003	)		(4,677,216	)
Contract terminations:
Surrender benefits		(377,896,923	)		(281,662,860	)		(366,172,238	)		(115,335,225	)		(127,274,003	)
Death benefits		(58,950,554	)		(51,200,547	)		(58,709,701	)		(11,753,348	)		(6,052,832	)
Units outstanding at end of year		9,435,051,253			3,989,791,192			3,634,890,696			1,529,550,881			903,027,681

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			41

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	VP Mod Conserv, Cl 2			VP Mod Conserv, Cl 4			VP Ptnrs Core Eq, Cl 3			VP Ptnrs Sm Cap Val, Cl 3			VP US Flex Conserv Gro, Cl 2
Operations
Investment income (loss) — net	$	(13,264,420	)	$	(11,849,428	)	$	(190,524	)	$	(434,363	)	$	(3,468,606	)
Net realized gain (loss) on sales of investments		41,233,686			69,252,421			3,007,494			4,019,793			4,758,015
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		96,547,948			57,353,170			91,897			(2,313,978	)		20,265,765
Net increase (decrease) in net assets resulting from operations		124,517,214			114,756,163			2,908,867			1,271,452			21,555,174

Contract transactions
Contract purchase payments		45,928,787			1,439,615			104,260			403,172			25,171,448
Net transfers⁽¹⁾		73,739,667			9,294,747			(2,485,862	)		(881,424	)		90,585,525
Transfers for policy loans		13,038			27,315			5,745			35,926			570
Adjustments to net assets allocated to contracts in payment period		12,114			—			(4,195	)		(33,343	)		(11,613	)
Contract charges		(8,555,460	)		(7,123,308	)		(45,994	)		(112,161	)		(4,246,949	)
Contract terminations:
Surrender benefits		(91,625,850	)		(112,128,537	)		(2,233,753	)		(5,152,485	)		(14,312,884	)
Death benefits		(25,273,159	)		(33,486,058	)		(396,642	)		(875,014	)		(2,097,825	)
Increase (decrease) from contract transactions		(5,760,863	)		(141,976,226	)		(5,056,441	)		(6,615,329	)		95,088,272
Net assets at beginning of year		1,285,589,309			1,287,127,634			23,860,022			63,887,745			264,361,540
Net assets at end of year	$	1,404,345,660		$	1,259,907,571		$	21,712,448		$	58,543,868		$	381,004,986

Accumulation unit activity
Units outstanding at beginning of year		853,533,291			848,431,161			11,078,113			20,084,028			216,805,167
Contract purchase payments		29,986,649			937,318			49,407			163,660			20,752,528
Net transfers⁽¹⁾		47,203,001			5,311,423			(1,168,577	)		(187,211	)		77,587,707
Transfers for policy loans		10,017			18,878			2,606			12,520			472
Contract charges		(5,576,127	)		(4,631,650	)		(21,745	)		(44,707	)		(3,490,039	)
Contract terminations:
Surrender benefits		(59,852,642	)		(72,742,025	)		(1,052,651	)		(1,910,925	)		(11,792,602	)
Death benefits		(16,908,191	)		(21,869,109	)		(188,457	)		(328,095	)		(1,702,473	)
Units outstanding at end of year		848,395,998			755,455,996			8,698,696			17,789,270			298,160,760

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



42		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	VP US Flex Gro, Cl 2			VP US Flex Mod Gro, Cl 2			Wanger Intl			Wanger USA			WF VT Index Asset Alloc, Cl 2
Operations
Investment income (loss) — net	$	(30,193,628	)	$	(17,694,628	)	$	1,712,259		$	(1,969,756	)	$	(7,003	)
Net realized gain (loss) on sales of investments		17,795,624			12,105,244			(4,891,327	)		(11,322,540	)		900,438
Distributions from capital gains		—			—			5,376,908			24,401,278			1,776,051
Net change in unrealized appreciation or depreciation of investments		158,884,694			91,035,212			14,674,385			37,216,211			596,740
Net increase (decrease) in net assets resulting from operations		146,486,690			85,445,828			16,872,225			48,325,193			3,266,226

Contract transactions
Contract purchase payments		471,817,973			216,698,875			1,400,796			1,653,608			119,672
Net transfers⁽¹⁾		41,049,702			(13,528,017	)		(13,923,839	)		(18,209,868	)		143,621
Transfers for policy loans		6,076			(36,640	)		60,351			85,818			7,475
Adjustments to net assets allocated to contracts in payment period		—			43,601			(32,761	)		(65,458	)		(47,446	)
Contract charges		(38,505,981	)		(21,468,019	)		(145,957	)		(185,679	)		(14,530	)
Contract terminations:
Surrender benefits		(72,788,363	)		(40,168,404	)		(14,711,601	)		(20,164,372	)		(2,152,763	)
Death benefits		(18,430,445	)		(9,987,993	)		(1,416,163	)		(1,932,533	)		(550,383	)
Increase (decrease) from contract transactions		383,148,962			131,553,403			(28,769,174	)		(38,818,484	)		(2,494,354	)
Net assets at beginning of year		2,862,486,622			1,718,524,570			174,504,742			253,727,561			23,398,957
Net assets at end of year	$	3,392,122,274		$	1,935,523,801		$	162,607,793		$	263,234,270		$	24,170,829

Accumulation unit activity
Units outstanding at beginning of year		2,087,385,341			1,326,347,511			50,661,842			54,642,191			8,230,163
Contract purchase payments		357,317,071			170,874,995			490,134			420,025			41,389
Net transfers⁽¹⁾		35,882,401			(11,506,833	)		(4,393,545	)		(4,248,888	)		33,814
Transfers for policy loans		4,993			(29,276	)		15,893			16,566			2,568
Contract charges		(29,025,516	)		(16,846,662	)		(46,006	)		(42,496	)		(5,113	)
Contract terminations:
Surrender benefits		(54,711,204	)		(31,659,547	)		(4,670,079	)		(4,505,438	)		(751,864	)
Death benefits		(13,732,716	)		(7,811,116	)		(444,148	)		(442,940	)		(199,531	)
Units outstanding at end of year		2,383,120,370			1,429,369,072			41,614,091			45,839,020			7,351,426

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			43

Statement of Changes in Net Assets


Year ended December 31, 2020 (continued)	WF VT Intl Eq, Cl 2			WF VT Opp, Cl 2			WF VT Sm Cap Gro, Cl 2			WA Var Global Hi Yd Bond, Cl II
Operations
Investment income (loss) — net	$	416,231		$	(226,937	)	$	(895,544	)	$	273,812
Net realized gain (loss) on sales of investments		(4,791,143	)		1,291,113			1,910,315			(218,104	)
Distributions from capital gains		—			3,405,107			5,161,948			—
Net change in unrealized appreciation or depreciation of investments		5,036,485			3,728,676			37,770,378			435,512
Net increase (decrease) in net assets resulting from operations		661,573			8,197,959			43,947,097			491,220

Contract transactions
Contract purchase payments		246,200			1,540,021			5,052,369			594,304
Net transfers⁽¹⁾		(1,396,125	)		(2,908,044	)		(2,122	)		(497,295	)
Transfers for policy loans		18,054			10,721			14,175			665
Adjustments to net assets allocated to contracts in payment period		315			5,600			6,919			—
Contract charges		(31,324	)		(28,667	)		(43,265	)		(3,691	)
Contract terminations:
Surrender benefits		(2,100,053	)		(4,896,839	)		(6,899,547	)		(726,558	)
Death benefits		(325,863	)		(641,385	)		(1,175,201	)		(152,431	)
Increase (decrease) from contract transactions		(3,588,796	)		(6,918,593	)		(3,046,672	)		(785,006	)
Net assets at beginning of year		30,399,641			49,566,452			82,574,577			11,150,817
Net assets at end of year	$	27,472,418		$	50,845,818		$	123,475,002		$	10,857,031

Accumulation unit activity
Units outstanding at beginning of year		18,782,761			14,921,035			24,616,164			9,240,322
Contract purchase payments		183,022			423,197			1,271,360			498,266
Net transfers⁽¹⁾		(928,228	)		(950,896	)		(135,330	)		(504,151	)
Transfers for policy loans		11,640			2,787			4,163			557
Contract charges		(23,725	)		(8,515	)		(11,350	)		(3,132	)
Contract terminations:
Surrender benefits		(1,475,841	)		(1,501,347	)		(1,846,207	)		(606,758	)
Death benefits		(218,802	)		(191,885	)		(315,328	)		(125,930	)
Units outstanding at end of year		16,330,827			12,694,376			23,583,472			8,499,174

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



44		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019	AB VPS Dyn Asset Alloc, Cl B			AB VPS Global Thematic Gro, Cl B			AB VPS Gro & Inc, Cl B			AB VPS Intl Val, Cl B			ALPS Alerian Engy Infr, Class III
Operations
Investment income (loss) — net	$	67,765		$	(50,727	)	$	113,047		$	(103,400	)	$	169,262
Net realized gain (loss) on sales of investments		66,288			471,688			2,102,952			(2,571,535	)		(880,228	)
Distributions from capital gains		11,305			381,164			8,533,801			—			—
Net change in unrealized appreciation or depreciation of investments		1,140,030			801,010			5,294,124			16,304,133			6,791,741
Net increase (decrease) in net assets resulting from operations		1,285,388			1,603,135			16,043,924			13,629,198			6,080,775

Contract transactions
Contract purchase payments		943,387			79,624			614,632			1,268,325			1,543,482
Net transfers⁽¹⁾		1,086,527			367,556			1,109,475			(1,975,326	)		(2,559,051	)
Transfers for policy loans		—			(473	)		(2,766	)		64,508			4,073
Adjustments to net assets allocated to contracts in payment period		—			—			5,802			(16,255	)		(6,701	)
Contract charges		(3,278	)		(4,719	)		(55,302	)		(114,282	)		(15,672	)
Contract terminations:
Surrender benefits		(342,133	)		(602,909	)		(8,413,218	)		(10,689,056	)		(2,795,718	)
Death benefits		(227,782	)		(42,591	)		(1,142,512	)		(918,887	)		(450,384	)
Increase (decrease) from contract transactions		1,456,721			(203,512	)		(7,883,889	)		(12,380,973	)		(4,279,971	)
Net assets at beginning of year		8,930,478			5,616,089			74,356,113			92,027,537			32,130,791
Net assets at end of year	$	11,672,587		$	7,015,712		$	82,516,148		$	93,275,762		$	33,931,595

Accumulation unit activity
Units outstanding at beginning of year		7,870,051			3,432,699			33,115,759			69,012,006			40,352,911
Contract purchase payments		760,157			41,871			247,008			974,250			1,673,624
Net transfers⁽¹⁾		848,212			204,092			439,441			(1,646,975	)		(2,761,968	)
Transfers for policy loans		—			(202	)		(2,134	)		46,564			4,368
Contract charges		(2,657	)		(2,474	)		(21,794	)		(74,833	)		(16,838	)
Contract terminations:
Surrender benefits		(280,038	)		(313,925	)		(3,343,838	)		(7,554,560	)		(2,999,390	)
Death benefits		(183,530	)		(22,666	)		(444,424	)		(608,585	)		(489,471	)
Units outstanding at end of year		9,012,195			3,339,395			29,990,018			60,147,867			35,763,236

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			45

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	AC VP Intl, Cl II			AC VP Mid Cap Val, Cl II			AC VP Ultra, Cl II			AC VP Val, Cl II			BlackRock Global Alloc, Cl III
Operations
Investment income (loss) — net	$	(26,016	)	$	510,990		$	(336,440	)	$	1,763,628		$	139,147
Net realized gain (loss) on sales of investments		784,573			852,567			1,518,996			7,628,204			(389,592	)
Distributions from capital gains		1,115,064			5,777,151			3,972,559			10,435,835			2,841,318
Net change in unrealized appreciation or depreciation of investments		3,047,516			5,795,534			4,986,404			20,343,262			8,525,305
Net increase (decrease) in net assets resulting from operations		4,921,137			12,936,242			10,141,519			40,170,929			11,116,178

Contract transactions
Contract purchase payments		169,512			462,188			330,369			5,285,809			3,298,557
Net transfers⁽¹⁾		(1,616,597	)		(3,716,808	)		(437,345	)		(7,851,986	)		(5,331,639	)
Transfers for policy loans		84			(5,485	)		1,390			42,140			15,450
Adjustments to net assets allocated to contracts in payment period		(12,865	)		6,291			(16,275	)		(19,875	)		(38,650	)
Contract charges		(15,003	)		(33,760	)		(23,604	)		(96,061	)		(30,606	)
Contract terminations:
Surrender benefits		(2,152,019	)		(6,557,065	)		(3,385,405	)		(16,051,454	)		(5,127,387	)
Death benefits		(205,194	)		(977,912	)		(416,952	)		(3,200,315	)		(1,490,903	)
Increase (decrease) from contract transactions		(3,832,082	)		(10,822,551	)		(3,947,822	)		(21,891,742	)		(8,705,178	)
Net assets at beginning of year		19,547,680			50,642,032			31,543,420			165,850,467			71,337,242
Net assets at end of year	$	20,636,735		$	52,755,723		$	37,737,117		$	184,129,654		$	73,748,242

Accumulation unit activity
Units outstanding at beginning of year		11,651,055			23,734,417			12,466,108			71,718,316			58,332,251
Contract purchase payments		86,814			183,134			110,897			2,078,303			2,485,556
Net transfers⁽¹⁾		(823,933	)		(1,569,139	)		(102,948	)		(2,940,313	)		(4,038,727	)
Transfers for policy loans		205			(1,537	)		618			16,536			11,777
Contract charges		(7,860	)		(13,516	)		(7,897	)		(35,420	)		(23,038	)
Contract terminations:
Surrender benefits		(1,119,144	)		(2,589,422	)		(1,119,510	)		(6,091,252	)		(3,857,114	)
Death benefits		(110,583	)		(388,890	)		(139,504	)		(1,293,228	)		(1,136,382	)
Units outstanding at end of year		9,676,554			19,355,047			11,207,764			63,452,942			51,774,323

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



46		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	Calvert VP SRI Bal, Cl I			Col VP Bal, Cl 3			Col VP Commodity Strategy, Cl 2			Col VP Contrarian Core, Cl 2			Col VP Disciplined Core, Cl 3
Operations
Investment income (loss) — net	$	145,035		$	(4,863,844	)	$	(5,165	)	$	(966,209	)	$	(3,378,960	)
Net realized gain (loss) on sales of investments		301,924			17,365,419			(120,262	)		3,782,230			23,965,037
Distributions from capital gains		737,114			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		3,034,632			76,779,641			416,163			22,431,169			49,538,100
Net increase (decrease) in net assets resulting from operations		4,218,705			89,281,216			290,736			25,247,190			70,124,177

Contract transactions
Contract purchase payments		198,500			19,747,877			165,872			4,107,693			2,648,823
Net transfers⁽¹⁾		1,585,256			4,868,202			(254,640	)		(3,959,841	)		(5,190,835	)
Transfers for policy loans		(12,436	)		40,379			(3	)		5,787			284,811
Adjustments to net assets allocated to contracts in payment period		(5,035	)		(63,053	)		—			(10,654	)		(599,460	)
Contract charges		(15,550	)		(231,154	)		(1,214	)		(43,695	)		(377,478	)
Contract terminations:
Surrender benefits		(1,837,604	)		(37,417,718	)		(213,711	)		(6,274,428	)		(29,200,299	)
Death benefits		(132,651	)		(7,510,293	)		(18,507	)		(1,041,700	)		(4,379,163	)
Increase (decrease) from contract transactions		(219,520	)		(20,565,760	)		(322,203	)		(7,216,838	)		(36,813,601	)
Net assets at beginning of year		18,358,763			424,746,865			4,491,402			83,306,975			312,919,518
Net assets at end of year	$	22,357,948		$	493,462,321		$	4,459,935		$	101,337,327		$	346,230,094

Accumulation unit activity
Units outstanding at beginning of year		10,524,717			209,029,019			8,709,552			52,094,186			147,358,581
Contract purchase payments		99,044			9,103,660			309,686			2,195,453			1,126,949
Net transfers⁽¹⁾		785,961			1,919,175			(477,971	)		(2,168,566	)		(2,196,119	)
Transfers for policy loans		(7,117	)		9,736			11			3,296			121,633
Contract charges		(7,880	)		(100,837	)		(2,262	)		(23,241	)		(167,209	)
Contract terminations:
Surrender benefits		(941,345	)		(16,371,965	)		(397,358	)		(3,331,525	)		(12,433,216	)
Death benefits		(69,763	)		(3,378,405	)		(34,545	)		(558,253	)		(1,850,148	)
Units outstanding at end of year		10,383,617			200,210,383			8,107,113			48,211,350			131,960,471

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			47

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	Col VP Divd Opp, Cl 3			Col VP Emerg Mkts Bond, Cl 2			Col VP Emer Mkts, Cl 3			Col VP Global Strategic Inc, Cl 3			Col VP Govt Money Mkt, Cl 3
Operations
Investment income (loss) — net	$	(4,221,473	)	$	540,364		$	(967,692	)	$	(667,055	)	$	839,472
Net realized gain (loss) on sales of investments		39,372,500			(80,935	)		4,408,310			(3,023,660	)		1,914
Distributions from capital gains		—			—			14,611,355			—			42,113
Net change in unrealized appreciation or depreciation of investments		57,474,511			960,472			13,651,792			10,477,065			(1,914	)
Net increase (decrease) in net assets resulting from operations		92,625,538			1,419,901			31,703,765			6,786,350			881,585

Contract transactions
Contract purchase payments		4,114,793			1,056,043			1,509,058			516,970			4,827,940
Net transfers⁽¹⁾		(12,348,115	)		932,970			(4,909,328	)		(906,103	)		2,075,069
Transfers for policy loans		218,083			449			58,780			26,810			145,058
Adjustments to net assets allocated to contracts in payment period		(420,827	)		(8,546	)		(59,249	)		(18,005	)		73,311
Contract charges		(349,200	)		(6,224	)		(119,369	)		(106,843	)		(98,075	)
Contract terminations:
Surrender benefits		(50,697,297	)		(1,524,240	)		(14,023,936	)		(8,311,694	)		(27,059,935	)
Death benefits		(7,069,280	)		(304,790	)		(1,721,958	)		(1,341,590	)		(1,660,601	)
Increase (decrease) from contract transactions		(66,551,843	)		145,662			(19,266,002	)		(10,140,455	)		(21,697,233	)
Net assets at beginning of year		430,289,811			12,997,562			113,557,365			73,103,379			116,884,782
Net assets at end of year	$	456,363,506		$	14,563,125		$	125,995,128		$	69,749,274		$	96,069,134

Accumulation unit activity
Units outstanding at beginning of year		172,205,976			13,127,644			53,483,289			49,750,961			105,979,042
Contract purchase payments		1,522,313			993,647			645,011			342,684			4,472,858
Net transfers⁽¹⁾		(4,311,026	)		847,399			(1,981,564	)		(522,189	)		2,592,490
Transfers for policy loans		74,032			375			25,796			16,822			132,332
Contract charges		(127,957	)		(5,823	)		(46,893	)		(70,357	)		(88,504	)
Contract terminations:
Surrender benefits		(18,297,284	)		(1,416,981	)		(5,780,609	)		(5,440,144	)		(24,928,732	)
Death benefits		(2,538,422	)		(290,201	)		(756,373	)		(864,219	)		(1,540,265	)
Units outstanding at end of year		148,527,632			13,256,060			45,588,657			43,213,558			86,619,221

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



48		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	Col VP Hi Yield Bond, Cl 3			Col VP Inc Opp, Cl 3			Col VP Inter Bond, Cl 3			Col VP Lg Cap Gro, Cl 3			Col VP Lg Cap Index, Cl 3
Operations
Investment income (loss) — net	$	9,175,037		$	4,775,095		$	6,599,543		$	(1,075,350	)	$	(3,749,258	)
Net realized gain (loss) on sales of investments		(138,558	)		(3,457,701	)		48,291			12,657,348			15,389,215
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		18,786,510			15,275,640			16,766,692			25,042,158			82,008,099
Net increase (decrease) in net assets resulting from operations		27,822,989			16,593,034			23,414,526			36,624,156			93,648,056

Contract transactions
Contract purchase payments		1,180,870			773,225			2,235,919			909,084			34,691,138
Net transfers⁽¹⁾		(4,946,437	)		(1,449,789	)		23,019,811			(6,348,091	)		12,168,953
Transfers for policy loans		52,101			(8,085	)		82,314			61,321			16,291
Adjustments to net assets allocated to contracts in payment period		(106,178	)		(7,635	)		(129,096	)		(53,232	)		27,608
Contract charges		(119,588	)		(162,181	)		(376,525	)		(101,145	)		(167,212	)
Contract terminations:
Surrender benefits		(22,926,556	)		(15,176,438	)		(33,824,302	)		(13,201,010	)		(24,901,804	)
Death benefits		(4,399,719	)		(2,051,024	)		(7,056,464	)		(1,608,473	)		(5,019,434	)
Increase (decrease) from contract transactions		(31,265,507	)		(18,081,927	)		(16,048,343	)		(20,341,546	)		16,815,540
Net assets at beginning of year		189,434,170			115,887,099			298,059,073			112,702,651			309,702,089
Net assets at end of year	$	185,991,652		$	114,398,206		$	305,425,256		$	128,985,261		$	420,165,685

Accumulation unit activity
Units outstanding at beginning of year		78,729,021			57,728,413			167,470,073			73,335,386			149,134,063
Contract purchase payments		456,566			357,478			1,247,833			475,296			14,105,090
Net transfers⁽¹⁾		(1,879,987	)		(674,244	)		12,722,315			(3,306,892	)		5,385,936
Transfers for policy loans		19,374			(3,849	)		43,065			33,481			8,544
Contract charges		(45,554	)		(73,767	)		(205,328	)		(55,187	)		(68,336	)
Contract terminations:
Surrender benefits		(8,763,889	)		(6,894,280	)		(18,244,860	)		(7,159,588	)		(10,314,445	)
Death benefits		(1,657,043	)		(948,106	)		(3,841,420	)		(906,665	)		(2,102,243	)
Units outstanding at end of year		66,858,488			49,491,645			159,191,678			62,415,831			156,148,609

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			49

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	Col VP Limited Duration Cr, Cl 2			Col VP Long Govt/Cr Bond, Cl 2			Col VP Mid Cap Gro, Cl 3			Col VP Overseas Core, Cl 3			Col VP Select Lg Cap Val, Cl 3
Operations
Investment income (loss) — net	$	428,119		$	195,054		$	(762,566	)	$	657,049		$	(322,489	)
Net realized gain (loss) on sales of investments		81,741			66,912			7,847,876			1,066,443			2,487,139
Distributions from capital gains		—			—			—			9,954,574			—
Net change in unrealized appreciation or depreciation of investments		1,946,943			1,783,007			14,459,577			3,273,812			5,731,160
Net increase (decrease) in net assets resulting from operations		2,456,803			2,044,973			21,544,887			14,951,878			7,895,810

Contract transactions
Contract purchase payments		3,266,776			968,339			692,832			849,207			330,401
Net transfers⁽¹⁾		5,653,455			2,427,209			(2,660,765	)		(4,010,509	)		400,987
Transfers for policy loans		(1,816	)		(3,365	)		52,419			43,235			14,666
Adjustments to net assets allocated to contracts in payment period		—			(14,855	)		(80,727	)		(82,482	)		(10,022	)
Contract charges		(18,029	)		(3,848	)		(54,341	)		(46,599	)		(19,406	)
Contract terminations:
Surrender benefits		(4,367,793	)		(1,325,137	)		(8,498,948	)		(7,491,265	)		(3,907,367	)
Death benefits		(1,339,928	)		(403,832	)		(1,368,644	)		(856,237	)		(354,784	)
Increase (decrease) from contract transactions		3,192,665			1,644,511			(11,918,174	)		(11,594,650	)		(3,545,525	)
Net assets at beginning of year		37,787,131			11,585,810			67,558,788			66,584,816			32,487,354
Net assets at end of year	$	43,436,599		$	15,275,294		$	77,185,501		$	69,942,044		$	36,837,639

Accumulation unit activity
Units outstanding at beginning of year		36,076,050			11,168,684			31,843,345			50,268,216			14,388,408
Contract purchase payments		2,948,516			833,965			271,446			564,434			129,278
Net transfers⁽¹⁾		5,277,911			2,030,881			(1,001,107	)		(2,720,298	)		161,493
Transfers for policy loans		(1,628	)		(3,136	)		20,412			26,620			5,460
Contract charges		(16,632	)		(3,372	)		(20,977	)		(31,721	)		(7,593	)
Contract terminations:
Surrender benefits		(4,024,635	)		(1,167,305	)		(3,295,631	)		(5,103,775	)		(1,514,360	)
Death benefits		(1,215,967	)		(371,706	)		(542,155	)		(565,585	)		(134,693	)
Units outstanding at end of year		39,043,615			12,488,011			27,275,333			42,437,891			13,027,993

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



50		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	Col VP Select Mid Cap Val, Cl 3			Col VP Select Sm Cap Val, Cl 3			Col VP US Govt Mtge, Cl 3			CS Commodity Return			CTIVP BR Gl Infl Prot Sec, Cl 3
Operations
Investment income (loss) — net	$	(461,807	)	$	(310,928	)	$	1,151,282		$	(6,357	)	$	1,717,779
Net realized gain (loss) on sales of investments		5,049,582			2,831,376			184,913			(2,767,603	)		(4,006,310	)
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		8,581,564			2,884,383			2,259,418			3,500,691			7,500,162
Net increase (decrease) in net assets resulting from operations		13,169,339			5,404,831			3,595,613			726,731			5,211,631

Contract transactions
Contract purchase payments		475,241			318,177			834,290			316,762			544,741
Net transfers⁽¹⁾		(2,508,033	)		(2,071,381	)		1,366,681			(715,760	)		(700,054	)
Transfers for policy loans		(3,485	)		32,390			29,943			8,303			4,667
Adjustments to net assets allocated to contracts in payment period		(41,871	)		(10,492	)		(27,075	)		(4,187	)		(29,929	)
Contract charges		(35,178	)		(26,297	)		(46,561	)		(8,578	)		(193,724	)
Contract terminations:
Surrender benefits		(6,690,971	)		(3,736,111	)		(9,028,378	)		(1,505,346	)		(9,988,385	)
Death benefits		(841,344	)		(347,254	)		(1,317,568	)		(152,136	)		(1,792,216	)
Increase (decrease) from contract transactions		(9,645,641	)		(5,840,968	)		(8,188,668	)		(2,060,942	)		(12,154,900	)
Net assets at beginning of year		46,653,212			34,140,104			66,262,905			13,655,597			78,153,305
Net assets at end of year	$	50,176,910		$	33,703,967		$	61,669,850		$	12,321,386		$	71,210,036

Accumulation unit activity
Units outstanding at beginning of year		22,628,261			12,562,554			47,865,208			29,777,685			53,141,391
Contract purchase payments		197,352			109,658			625,005			656,788			353,210
Net transfers⁽¹⁾		(1,010,233	)		(670,544	)		1,076,290			(1,521,323	)		(444,109	)
Transfers for policy loans		(1,903	)		11,204			21,364			17,192			3,098
Contract charges		(14,449	)		(8,542	)		(32,276	)		(18,048	)		(124,299	)
Contract terminations:
Surrender benefits		(2,755,408	)		(1,307,719	)		(6,282,431	)		(3,148,129	)		(6,434,788	)
Death benefits		(345,573	)		(110,094	)		(950,042	)		(322,845	)		(1,166,800	)
Units outstanding at end of year		18,698,047			10,586,517			42,323,118			25,441,320			45,327,703

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			51

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	CTIVP Lazard Intl Eq Adv, Cl 2			CTIVP Loomis Sayles Gro, Cl 1			CTIVP Vty Sycamore Estb Val, Cl 3			CTIVP WF Short Duration Govt, Cl 2			DWS Alt Asset Alloc VIP, Cl B
Operations
Investment income (loss) — net	$	291,120		$	(1,153,564	)	$	(346,664	)	$	(55,038	)	$	352,942
Net realized gain (loss) on sales of investments		(109,350	)		9,388,799			1,746,892			77,669			(119,438	)
Distributions from capital gains		94,325			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		2,345,105			25,102,980			7,300,065			535,749			1,472,994
Net increase (decrease) in net assets resulting from operations		2,621,200			33,338,215			8,700,293			558,380			1,706,498

Contract transactions
Contract purchase payments		1,994,191			1,109,624			524,274			2,167,158			380,649
Net transfers⁽¹⁾		466,599			(7,391,479	)		2,900,741			2,907,024			(11,840	)
Transfers for policy loans		180			4,662			(5,355	)		(14,229	)		(97	)
Adjustments to net assets allocated to contracts in payment period		(8,852	)		(19,238	)		(3,240	)		—			(1,662	)
Contract charges		(6,425	)		(113,412	)		(22,611	)		(5,979	)		(6,167	)
Contract terminations:
Surrender benefits		(915,231	)		(15,434,421	)		(4,185,699	)		(1,958,507	)		(1,230,436	)
Death benefits		(123,098	)		(883,844	)		(445,624	)		(263,661	)		(432,014	)
Increase (decrease) from contract transactions		1,407,364			(22,728,108	)		(1,237,514	)		2,831,806			(1,301,567	)
Net assets at beginning of year		16,384,292			117,135,472			32,900,750			22,852,710			13,347,843
Net assets at end of year	$	20,412,856		$	127,745,579		$	40,363,529		$	26,242,896		$	13,752,774

Accumulation unit activity
Units outstanding at beginning of year		15,778,271			86,650,501			12,855,538			23,286,564			14,302,459
Contract purchase payments		1,783,968			699,027			180,339			2,192,093			374,594
Net transfers⁽¹⁾		427,268			(4,643,598	)		956,513			2,909,892			(16,699	)
Transfers for policy loans		158			4,367			(2,181	)		(14,382	)		(21	)
Contract charges		(5,732	)		(71,447	)		(7,618	)		(5,970	)		(6,071	)
Contract terminations:
Surrender benefits		(814,812	)		(9,730,687	)		(1,399,515	)		(1,963,461	)		(1,210,049	)
Death benefits		(110,351	)		(547,728	)		(145,650	)		(263,130	)		(433,286	)
Units outstanding at end of year		17,058,770			72,360,435			12,437,426			26,141,606			13,010,927

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



52		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	EV VT Floating-Rate Inc, Init Cl			Fid VIP Contrafund, Serv Cl 2			Fid VIP Gro & Inc, Serv Cl 2			Fid VIP Mid Cap, Serv Cl 2			Fid VIP Overseas, Serv Cl 2
Operations
Investment income (loss) — net	$	4,363,547		$	(3,358,514	)	$	2,334,721		$	(960,953	)	$	268,954
Net realized gain (loss) on sales of investments		(741,535	)		7,794,005			3,663,868			681,304			1,529,752
Distributions from capital gains		—			50,413,609			7,994,364			41,064,934			1,822,292
Net change in unrealized appreciation or depreciation of investments		4,292,625			57,197,770			8,498,317			30,168,015			7,673,431
Net increase (decrease) in net assets resulting from operations		7,914,637			112,046,870			22,491,270			70,953,300			11,294,429

Contract transactions
Contract purchase payments		769,094			20,018,519			683,981			11,050,527			563,476
Net transfers⁽¹⁾		(23,893,884	)		(19,152,895	)		(2,760,082	)		(14,837,180	)		(2,287,785	)
Transfers for policy loans		31,358			43,518			7,613			24,037			21,667
Adjustments to net assets allocated to contracts in payment period		49,457			(97,095	)		(31,113	)		(105,169	)		13,365
Contract charges		(96,315	)		(211,350	)		(70,286	)		(271,752	)		(33,833	)
Contract terminations:
Surrender benefits		(15,073,287	)		(40,404,676	)		(10,131,506	)		(34,623,398	)		(5,442,188	)
Death benefits		(2,198,768	)		(4,587,271	)		(1,146,721	)		(3,718,521	)		(473,998	)
Increase (decrease) from contract transactions		(40,412,345	)		(44,391,250	)		(13,448,114	)		(42,481,456	)		(7,639,296	)
Net assets at beginning of year		142,449,062			388,930,520			84,454,960			335,038,235			45,831,388
Net assets at end of year	$	109,951,354		$	456,586,140		$	93,498,116		$	363,510,079		$	49,486,521

Accumulation unit activity
Units outstanding at beginning of year		103,408,237			190,555,430			36,966,348			109,797,081			28,283,691
Contract purchase payments		540,258			8,408,974			261,990			3,489,953			317,921
Net transfers⁽¹⁾		(16,690,436	)		(7,924,509	)		(1,080,545	)		(4,132,592	)		(1,225,667	)
Transfers for policy loans		22,561			19,025			3,001			4,094			10,579
Contract charges		(67,227	)		(88,112	)		(26,990	)		(74,421	)		(18,012	)
Contract terminations:
Surrender benefits		(10,491,975	)		(16,751,077	)		(3,890,163	)		(9,928,328	)		(2,956,670	)
Death benefits		(1,556,532	)		(1,924,229	)		(441,811	)		(1,177,534	)		(264,591	)
Units outstanding at end of year		75,164,886			172,295,502			31,791,830			97,978,253			24,147,251

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			53

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	Fid VIP Strategic Inc, Serv Cl 2			Frank Global Real Est, Cl 2			Frank Inc, Cl 2			Frank Mutual Shares, Cl 2			Frank Sm Cap Val, Cl 2
Operations
Investment income (loss) — net	$	3,408,335		$	1,425,564		$	2,524,109		$	749,882		$	125,750
Net realized gain (loss) on sales of investments		15,788			(935,182	)		(103,925	)		461,820			(1,542,939	)
Distributions from capital gains		1,148,354			1,675,632			953,868			8,514,965			19,792,140
Net change in unrealized appreciation or depreciation of investments		7,890,765			13,358,454			4,505,507			7,295,493			7,950,440
Net increase (decrease) in net assets resulting from operations		12,463,242			15,524,468			7,879,559			17,022,160			26,325,391

Contract transactions
Contract purchase payments		8,878,228			899,196			4,256,488			2,622,932			5,115,922
Net transfers⁽¹⁾		26,447,162			(1,968,677	)		3,588,460			(3,967,609	)		(1,633,381	)
Transfers for policy loans		(5,636	)		40,246			(12,013	)		26,458			(1,381	)
Adjustments to net assets allocated to contracts in payment period		(42,517	)		(61,100	)		(26,166	)		47,603			33,780
Contract charges		(49,325	)		(61,948	)		(24,917	)		(48,489	)		(60,839	)
Contract terminations:
Surrender benefits		(11,379,559	)		(9,260,211	)		(4,737,315	)		(8,475,831	)		(9,920,262	)
Death benefits		(1,839,031	)		(1,028,497	)		(1,067,638	)		(1,336,126	)		(1,149,046	)
Increase (decrease) from contract transactions		22,009,322			(11,440,991	)		1,976,899			(11,131,062	)		(7,615,207	)
Net assets at beginning of year		125,044,735			76,097,377			52,750,436			83,956,800			107,885,609
Net assets at end of year	$	159,517,299		$	80,180,854		$	62,606,894		$	89,847,898		$	126,595,793

Accumulation unit activity
Units outstanding at beginning of year		116,492,414			36,255,849			44,619,762			44,892,039			34,466,032
Contract purchase payments		7,798,208			398,754			3,284,227			1,284,173			1,598,187
Net transfers⁽¹⁾		23,101,714			(710,597	)		2,757,748			(1,933,011	)		(316,287	)
Transfers for policy loans		(4,357	)		12,246			(9,360	)		12,104			(2,487	)
Contract charges		(43,260	)		(24,207	)		(19,292	)		(22,669	)		(16,227	)
Contract terminations:
Surrender benefits		(9,959,842	)		(4,009,309	)		(3,648,235	)		(4,028,837	)		(2,760,089	)
Death benefits		(1,618,045	)		(463,929	)		(834,690	)		(676,298	)		(302,413	)
Units outstanding at end of year		135,766,832			31,458,807			46,150,160			39,527,501			32,666,716

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



54		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	GS VIT Mid Cap Val, Inst			GS VIT Multi-Strategy Alt, Advisor			GS VIT U.S. Eq Insights, Inst			Invesco Opp VI Global, Ser II			Inves Opp VI Gbl Strat Inc, Ser II
Operations
Investment income (loss) — net	$	(113,719	)	$	97,477		$	368,041		$	(448,729	)	$	5,711,127
Net realized gain (loss) on sales of investments		773,476			(41,697	)		3,158,886			1,798,066			(2,044,428	)
Distributions from capital gains		4,463,050			—			3,858,302			18,861,844			—
Net change in unrealized appreciation or depreciation of investments		27,289,166			351,645			16,386,962			13,512,547			17,611,558
Net increase (decrease) in net assets resulting from operations		32,411,973			407,425			23,772,191			33,723,728			21,278,257

Contract transactions
Contract purchase payments		798,092			863,299			663,085			4,862,662			3,377,274
Net transfers⁽¹⁾		(5,077,484	)		(38,629	)		(5,370,019	)		(940,712	)		(9,552,932	)
Transfers for policy loans		22,074			—			8,921			(6,984	)		95,171
Adjustments to net assets allocated to contracts in payment period		(32,884	)		(279	)		(75,555	)		(3,558	)		152,983
Contract charges		(121,510	)		(2,052	)		(160,782	)		(65,087	)		(246,986	)
Contract terminations:
Surrender benefits		(12,544,846	)		(178,417	)		(12,531,723	)		(11,550,871	)		(26,169,022	)
Death benefits		(1,714,318	)		(155,945	)		(1,281,079	)		(1,292,280	)		(3,671,728	)
Increase (decrease) from contract transactions		(18,670,876	)		487,977			(18,747,152	)		(8,996,830	)		(36,015,240	)
Net assets at beginning of year		112,625,005			5,394,323			105,192,151			114,539,342			234,872,032
Net assets at end of year	$	126,366,102		$	6,289,725		$	110,217,190		$	139,266,240		$	220,135,049

Accumulation unit activity
Units outstanding at beginning of year		26,237,327			6,232,928			47,779,115			52,504,772			149,770,120
Contract purchase payments		161,820			950,486			262,137			1,963,265			2,094,370
Net transfers⁽¹⁾		(1,001,199	)		(45,119	)		(2,135,708	)		(402,373	)		(5,794,156	)
Transfers for policy loans		4,740			—			3,701			(3,037	)		56,807
Contract charges		(24,088	)		(2,253	)		(63,805	)		(24,976	)		(147,909	)
Contract terminations:
Surrender benefits		(2,457,547	)		(194,295	)		(5,005,200	)		(4,433,480	)		(15,725,387	)
Death benefits		(347,624	)		(172,562	)		(517,854	)		(516,285	)		(2,233,763	)
Units outstanding at end of year		22,573,429			6,769,185			40,322,386			49,087,886			128,020,082

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			55

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	Inves Opp VI Mn St Sm Cap, Ser II			Invesco VI Am Fran, Ser II			Invesco VI Bal Risk Alloc, Ser II			Invesco VI Comstock, Ser II			Invesco VI Div Divd, Ser I
Operations
Investment income (loss) — net	$	(913,009	)	$	(410,876	)	$	(413,694	)	$	889,484		$	465,935
Net realized gain (loss) on sales of investments		(65,421	)		2,761,184			(762,038	)		3,565,899			982,372
Distributions from capital gains		8,709,257			6,771,128			—			14,564,455			1,250,676
Net change in unrealized appreciation or depreciation of investments		12,340,520			4,957,297			6,124,842			5,180,457			2,429,370
Net increase (decrease) in net assets resulting from operations		20,071,347			14,078,733			4,949,110			24,200,295			5,128,353

Contract transactions
Contract purchase payments		3,669,781			260,326			2,327,638			831,142			179,615
Net transfers⁽¹⁾		(5,463,554	)		(2,374,575	)		(2,240,049	)		(4,150,213	)		(836,355	)
Transfers for policy loans		363			12,286			7,822			17,044			(2,448	)
Adjustments to net assets allocated to contracts in payment period		(8,791	)		(1,470	)		(23,909	)		25,640			(1,987	)
Contract charges		(43,004	)		(130,043	)		(14,193	)		(222,703	)		(16,142	)
Contract terminations:
Surrender benefits		(7,640,168	)		(5,155,148	)		(2,996,097	)		(13,515,962	)		(2,639,592	)
Death benefits		(941,535	)		(540,705	)		(640,969	)		(1,930,814	)		(314,880	)
Increase (decrease) from contract transactions		(10,426,908	)		(7,929,329	)		(3,579,757	)		(18,945,866	)		(3,631,789	)
Net assets at beginning of year		84,592,959			42,680,833			37,768,116			108,556,040			23,127,489
Net assets at end of year	$	94,237,398		$	48,830,237		$	39,137,469		$	113,810,469		$	24,624,053

Accumulation unit activity
Units outstanding at beginning of year		35,518,289			23,543,322			34,792,291			50,584,292			12,965,379
Contract purchase payments		1,331,748			120,104			2,004,045			346,875			88,783
Net transfers⁽¹⁾		(5,943,304	)		(1,076,555	)		(1,938,181	)		(1,682,072	)		(444,911	)
Transfers for policy loans		1,023			5,663			6,826			7,968			(1,217	)
Contract charges		(15,332	)		(59,699	)		(12,106	)		(89,941	)		(7,963	)
Contract terminations:
Surrender benefits		1,172,534			(2,365,045	)		(2,557,683	)		(5,593,936	)		(1,306,039	)
Death benefits		(346,956	)		(252,269	)		(571,128	)		(816,187	)		(157,954	)
Units outstanding at end of year		31,718,002			19,915,521			31,724,064			42,756,999			11,136,078

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



56		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	Invesco VI Hlth, Ser II			Invesco VI Intl Gro, Ser II			Invesco VI Tech, Ser I			Ivy VIP Asset Strategy, Cl II			Janus Henderson VIT Bal, Serv
Operations
Investment income (loss) — net	$	(378,321	)	$	195,368		$	(204,174	)	$	163,925		$	373,828
Net realized gain (loss) on sales of investments		(260,909	)		2,339,645			1,378,697			(387,963	)		192,878
Distributions from capital gains		1,021,722			3,538,698			2,015,564			622,343			1,211,476
Net change in unrealized appreciation or depreciation of investments		10,662,567			7,365,769			3,805,621			2,452,896			7,189,369
Net increase (decrease) in net assets resulting from operations		11,045,059			13,439,480			6,995,708			2,851,201			8,967,551

Contract transactions
Contract purchase payments		516,922			631,308			191,269			752,650			10,883,595
Net transfers⁽¹⁾		(2,432,966	)		(3,753,096	)		(751,578	)		(542,960	)		18,645,938
Transfers for policy loans		7,160			13,323			2,442			(2,640	)		(10,917	)
Adjustments to net assets allocated to contracts in payment period		(13,354	)		(15,511	)		4,253			(81,160	)		8,481
Contract charges		(25,462	)		(49,143	)		(29,617	)		(6,211	)		(16,894	)
Contract terminations:
Surrender benefits		(4,620,304	)		(6,662,679	)		(2,436,312	)		(1,303,970	)		(1,807,756	)
Death benefits		(429,609	)		(781,506	)		(201,178	)		(224,656	)		(256,469	)
Increase (decrease) from contract transactions		(6,997,613	)		(10,617,304	)		(3,220,721	)		(1,408,947	)		27,445,978
Net assets at beginning of year		39,353,533			53,415,189			21,263,792			14,603,826			31,839,429
Net assets at end of year	$	43,400,979		$	56,237,365		$	25,038,779		$	16,046,080		$	68,252,958

Accumulation unit activity
Units outstanding at beginning of year		17,734,750			33,586,261			12,085,092			13,310,240			32,122,826
Contract purchase payments		208,494			345,092			88,699			623,119			9,814,305
Net transfers⁽¹⁾		(965,649	)		(2,047,453	)		(351,373	)		(465,306	)		16,892,402
Transfers for policy loans		3,393			7,947			1,121			(2,251	)		(9,587	)
Contract charges		(10,266	)		(27,257	)		(13,995	)		(5,148	)		(15,299	)
Contract terminations:
Surrender benefits		(1,846,751	)		(3,653,532	)		(1,161,538	)		(1,081,442	)		(1,617,673	)
Death benefits		(173,095	)		(420,682	)		(98,449	)		(192,689	)		(238,264	)
Units outstanding at end of year		14,950,876			27,790,376			10,549,557			12,186,523			56,948,710

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			57

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	Janus Henderson VIT Flex Bd, Serv			Janus Hend VIT Gbl Tech Innov, Srv			Janus Henderson VIT Overseas, Serv			Janus Henderson VIT Res, Serv			Lazard Ret Global Dyn MA, Serv
Operations
Investment income (loss) — net	$	843,225		$	(221,007	)	$	195,806		$	(326,661	)	$	(211,410	)
Net realized gain (loss) on sales of investments		(39,559	)		2,077,118			(668,096	)		2,176,519			43,884
Distributions from capital gains		—			1,922,558			—			5,104,724			27,936
Net change in unrealized appreciation or depreciation of investments		2,677,494			5,537,878			5,083,409			6,795,542			3,247,692
Net increase (decrease) in net assets resulting from operations		3,481,160			9,316,547			4,611,119			13,750,124			3,108,102

Contract transactions
Contract purchase payments		2,747,224			219,021			268,868			2,544,911			729,449
Net transfers⁽¹⁾		5,436,152			(228,692	)		(1,108,720	)		(1,231,020	)		(395,422	)
Transfers for policy loans		1,727			5,142			6,069			3,339			4,060
Adjustments to net assets allocated to contracts in payment period		(5,191	)		(86,647	)		(8,813	)		14,952			—
Contract charges		(13,353	)		(11,853	)		(11,292	)		(60,060	)		(8,296	)
Contract terminations:
Surrender benefits		(4,035,591	)		(2,930,729	)		(2,106,583	)		(5,280,425	)		(1,312,132	)
Death benefits		(498,428	)		(361,571	)		(165,368	)		(319,854	)		(141,206	)
Increase (decrease) from contract transactions		3,632,540			(3,395,329	)		(3,125,839	)		(4,328,157	)		(1,123,547	)
Net assets at beginning of year		41,906,651			22,441,044			19,487,255			42,066,669			19,245,288
Net assets at end of year	$	49,020,351		$	28,362,262		$	20,972,535		$	51,488,636		$	21,229,843

Accumulation unit activity
Units outstanding at beginning of year		41,077,354			15,070,042			15,915,396			21,976,193			15,222,283
Contract purchase payments		2,549,134			117,547			197,388			1,107,373			524,698
Net transfers⁽¹⁾		5,025,045			(95,796	)		(790,135	)		(521,547	)		(283,962	)
Transfers for policy loans		1,593			3,013			4,953			1,716			2,899
Contract charges		(12,435	)		(6,217	)		(8,274	)		(26,343	)		(5,954	)
Contract terminations:
Surrender benefits		(3,749,744	)		(1,589,925	)		(1,534,559	)		(2,271,139	)		(944,009	)
Death benefits		(466,065	)		(196,597	)		(120,739	)		(142,456	)		(103,615	)
Units outstanding at end of year		44,424,882			13,302,067			13,664,030			20,123,797			14,412,340

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



58		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	MFS Mass Inv Gro Stock, Serv Cl			MFS New Dis, Serv Cl			MFS Utilities, Serv Cl			MS VIF Dis, Cl II			MS VIF Global Real Est, Cl II
Operations
Investment income (loss) — net	$	(344,323	)	$	(295,892	)	$	4,627,847		$	(548,730	)	$	479,559
Net realized gain (loss) on sales of investments		1,670,038			826,908			4,664,441			765,714			884,591
Distributions from capital gains		4,828,435			6,788,324			491,272			8,130,098			1,393,301
Net change in unrealized appreciation or depreciation of investments		13,398,468			3,995,868			24,491,774			7,336,155			1,732,463
Net increase (decrease) in net assets resulting from operations		19,552,618			11,315,208			34,275,334			15,683,237			4,489,914

Contract transactions
Contract purchase payments		448,676			229,777			5,495,835			4,391,325			273,275
Net transfers⁽¹⁾		395,904			452,348			75,628			4,114,438			(1,534,088	)
Transfers for policy loans		10,427			13,866			37,526			(9,389	)		(10,997	)
Adjustments to net assets allocated to contracts in payment period		(69,752	)		9,539			(20,171	)		(8,034	)		(4,789	)
Contract charges		(33,965	)		(23,437	)		(94,512	)		(26,555	)		(23,902	)
Contract terminations:
Surrender benefits		(7,200,820	)		(3,426,369	)		(17,578,666	)		(4,770,078	)		(3,856,306	)
Death benefits		(755,659	)		(521,854	)		(3,657,758	)		(482,870	)		(355,019	)
Increase (decrease) from contract transactions		(7,205,189	)		(3,266,130	)		(15,742,118	)		3,208,837			(5,511,826	)
Net assets at beginning of year		53,770,033			29,201,205			151,014,970			39,637,381			27,834,034
Net assets at end of year	$	66,117,462		$	37,250,283		$	169,548,186		$	58,529,455		$	26,812,122

Accumulation unit activity
Units outstanding at beginning of year		41,338,981			12,559,626			51,316,915			17,284,369			20,200,107
Contract purchase payments		286,922			79,078			1,638,904			1,468,235			176,861
Net transfers⁽¹⁾		189,161			156,654			104,702			1,448,989			(997,508	)
Transfers for policy loans		6,685			4,929			9,821			(2,865	)		(6,964	)
Contract charges		(21,558	)		(8,080	)		(27,400	)		(8,769	)		(15,442	)
Contract terminations:
Surrender benefits		(4,554,741	)		(1,178,476	)		(5,205,102	)		(1,557,362	)		(2,486,428	)
Death benefits		(468,471	)		(185,787	)		(1,086,955	)		(162,206	)		(234,526	)
Units outstanding at end of year		36,776,979			11,427,944			46,750,885			18,470,391			16,636,100

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			59

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	NB AMT Intl Eq, Cl S			NB AMT US Eq Index PW Strat, Cl S			PIMCO VIT All Asset, Advisor Cl			PIMCO VIT Glb Man As Alloc, Adv Cl			PIMCO VIT Tot Return, Advisor Cl
Operations
Investment income (loss) — net	$	(87,340	)	$	(35,012	)	$	1,237,225		$	51,037		$	663,697
Net realized gain (loss) on sales of investments		403,564			(11,309	)		(483,614	)		5,838			(5,753	)
Distributions from capital gains		447,172			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		1,852,742			548,506			6,219,903			657,372			1,612,147
Net increase (decrease) in net assets resulting from operations		2,616,138			502,185			6,973,514			714,247			2,270,091

Contract transactions
Contract purchase payments		106,087			403,413			1,006,501			261,744			4,037,681
Net transfers⁽¹⁾		(602,367	)		(47,773	)		(3,413,798	)		147,103			10,080,471
Transfers for policy loans		369			(632	)		20,470			1,314			(5,015	)
Adjustments to net assets allocated to contracts in payment period		(132	)		—			52,929			3,160			—
Contract charges		(14,301	)		(1,427	)		(68,519	)		(1,394	)		(11,000	)
Contract terminations:
Surrender benefits		(1,706,241	)		(108,951	)		(7,377,681	)		(325,441	)		(2,383,698	)
Death benefits		(64,257	)		(47,713	)		(1,351,364	)		(55,156	)		(1,130,908	)
Increase (decrease) from contract transactions		(2,280,842	)		196,917			(11,131,462	)		31,330			10,587,531
Net assets at beginning of year		10,776,558			3,586,425			70,330,570			4,552,922			30,434,688
Net assets at end of year	$	11,111,854		$	4,285,527		$	66,172,622		$	5,298,499		$	43,292,310

Accumulation unit activity
Units outstanding at beginning of year		9,711,952			4,045,003			46,371,945			4,395,447			29,874,494
Contract purchase payments		84,478			417,874			639,348			228,267			3,784,272
Net transfers⁽¹⁾		(472,455	)		(57,314	)		(2,151,467	)		126,951			9,297,606
Transfers for policy loans		337			(663	)		12,983			1,155			(4,493	)
Contract charges		(11,246	)		(1,510	)		(42,620	)		(1,234	)		(10,283	)
Contract terminations:
Surrender benefits		(1,337,870	)		(114,254	)		(4,576,628	)		(286,200	)		(2,229,687	)
Death benefits		(51,489	)		(49,466	)		(925,791	)		(49,500	)		(1,064,439	)
Units outstanding at end of year		7,923,707			4,239,670			39,327,770			4,414,886			39,647,470

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



60		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	Put VT Global Hlth Care, Cl IB			Put VT Intl Eq, Cl IB			Put VT Sus Leaders, Cl IB			Temp Global Bond, Cl 2			VanEck VIP Global Gold, Cl S
Operations
Investment income (loss) — net	$	(196,862	)	$	65,394		$	(121,477	)	$	2,258,061		$	(167,362	)
Net realized gain (loss) on sales of investments		(201,868	)		51,439			1,140,412			(423,461	)		79,354
Distributions from capital gains		1,106,658			21,033			4,322,056			—			—
Net change in unrealized appreciation or depreciation of investments		5,102,761			2,330,403			3,513,778			(1,505,645	)		5,098,257
Net increase (decrease) in net assets resulting from operations		5,810,689			2,468,269			8,854,769			328,955			5,010,249

Contract transactions
Contract purchase payments		195,805			123,787			251,561			1,694,578			3,383,810
Net transfers⁽¹⁾		(1,935,567	)		(709,651	)		(436,127	)		(544,823	)		(75,277	)
Transfers for policy loans		11,362			35,104			(12,754	)		(14,724	)		2,820
Adjustments to net assets allocated to contracts in payment period		1,852			833			8,059			—			5
Contract charges		(16,819	)		(7,636	)		(19,139	)		(10,265	)		(5,556	)
Contract terminations:
Surrender benefits		(2,532,350	)		(1,147,794	)		(2,477,741	)		(2,770,903	)		(910,217	)
Death benefits		(322,894	)		(91,939	)		(152,692	)		(685,505	)		(167,331	)
Increase (decrease) from contract transactions		(4,598,611	)		(1,797,296	)		(2,838,833	)		(2,331,642	)		2,228,254
Net assets at beginning of year		22,464,995			10,945,737			26,028,826			36,360,511			12,411,037
Net assets at end of year	$	23,677,073		$	11,616,710		$	32,044,762		$	34,357,824		$	19,649,540

Accumulation unit activity
Units outstanding at beginning of year		8,767,014			7,342,240			10,469,712			37,431,186			17,187,511
Contract purchase payments		68,841			73,068			84,543			1,726,502			3,953,456
Net transfers⁽¹⁾		(678,643	)		(424,404	)		(141,311	)		(567,025	)		(2,799	)
Transfers for policy loans		3,956			20,967			(3,696	)		(14,904	)		3,639
Contract charges		(5,954	)		(4,528	)		(6,395	)		(10,416	)		(6,651	)
Contract terminations:
Surrender benefits		(890,268	)		(678,702	)		(822,371	)		(2,800,829	)		(1,078,730	)
Death benefits		(115,517	)		(54,704	)		(50,845	)		(699,169	)		(198,011	)
Units outstanding at end of year		7,149,429			6,273,937			9,529,637			35,065,345			19,858,415

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			61

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	VP Aggr, Cl 2			VP Aggr, Cl 4			VP Conserv, Cl 2			VP Conserv, Cl 4			VP Man Risk, Cl 2
Operations
Investment income (loss) — net	$	(10,100,893	)	$	(5,747,960	)	$	(4,328,534	)	$	(4,316,300	)	$	(1,390,709	)
Net realized gain (loss) on sales of investments		62,348,145			63,873,181			10,915,841			19,489,054			207,618
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		138,307,180			58,371,754			30,709,319			25,907,320			19,091,039
Net increase (decrease) in net assets resulting from operations		190,554,432			116,496,975			37,296,626			41,080,074			17,907,948

Contract transactions
Contract purchase payments		27,905,740			6,103,246			18,747,940			980,377			34,194,997
Net transfers⁽¹⁾		(85,290,010	)		(37,527,818	)		74,999,267			41,878,039			38,413,178
Transfers for policy loans		(73,321	)		(15,410	)		(43,472	)		(29,363	)		1,261
Adjustments to net assets allocated to contracts in payment period		(193,514	)		—			(82,480	)		—			—
Contract charges		(7,294,139	)		(3,135,037	)		(2,828,530	)		(2,643,951	)		(1,596,281	)
Contract terminations:
Surrender benefits		(66,989,844	)		(88,025,019	)		(49,267,555	)		(72,379,833	)		(3,397,461	)
Death benefits		(8,526,894	)		(2,474,139	)		(13,059,276	)		(16,618,442	)		(598,670	)
Increase (decrease) from contract transactions		(140,461,982	)		(125,074,177	)		28,465,894			(48,813,173	)		67,017,024
Net assets at beginning of year		983,659,658			609,396,555			387,056,518			446,020,617			92,980,353
Net assets at end of year	$	1,033,752,108		$	600,819,353		$	452,819,038		$	438,287,518		$	177,905,325

Accumulation unit activity
Units outstanding at beginning of year		589,593,461			364,027,587			313,974,267			359,816,381			95,804,308
Contract purchase payments		15,045,237			3,263,928			14,206,799			750,497			32,314,615
Net transfers⁽¹⁾		(45,538,250	)		(19,834,371	)		56,360,313			31,455,174			36,650,586
Transfers for policy loans		(40,968	)		(6,222	)		(33,054	)		(20,748	)		1,141
Contract charges		(3,905,417	)		(1,674,546	)		(2,147,236	)		(2,007,441	)		(1,502,737	)
Contract terminations:
Surrender benefits		(35,797,249	)		(46,819,264	)		(37,632,075	)		(54,890,422	)		(3,202,295	)
Death benefits		(4,575,275	)		(1,327,745	)		(10,148,299	)		(12,707,146	)		(565,571	)
Units outstanding at end of year		514,781,539			297,629,367			334,580,715			322,396,295			159,500,047

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



62		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	VP Man Risk US, Cl 2			VP Man Vol Conserv, Cl 2			VP Man Vol Conserv Gro, Cl 2			VP Man Vol Gro, Cl 2			VP Man Vol Mod Gro, Cl 2
Operations
Investment income (loss) — net	$	(1,208,651	)	$	(4,514,964	)	$	(13,032,704	)	$	(99,981,949	)	$	(136,084,629	)
Net realized gain (loss) on sales of investments		288,034			4,816,082			11,722,233			103,822,423			162,234,391
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		18,690,035			43,487,955			152,589,543			1,559,840,189			1,828,736,377
Net increase (decrease) in net assets resulting from operations		17,769,418			43,789,073			151,279,072			1,563,680,663			1,854,886,139

Contract transactions
Contract purchase payments		59,361,577			22,347,339			50,496,204			811,117,177			548,764,291
Net transfers⁽¹⁾		26,041,417			111,650,561			79,709,510			(285,313,418	)		(250,569,937	)
Transfers for policy loans		—			2,988			(35,498	)		(30,787	)		(77,801	)
Adjustments to net assets allocated to contracts in payment period		308,993			—			(96,395	)		(183,714	)		300,970
Contract charges		(1,139,846	)		(5,686,087	)		(15,737,245	)		(126,985,571	)		(176,193,177	)
Contract terminations:
Surrender benefits		(2,727,123	)		(34,538,874	)		(49,796,375	)		(393,242,279	)		(515,962,734	)
Death benefits		(655,498	)		(3,111,858	)		(13,534,506	)		(38,727,292	)		(79,878,168	)
Increase (decrease) from contract transactions		81,189,520			90,664,069			51,005,695			(33,365,884	)		(473,616,556	)
Net assets at beginning of year		72,134,759			377,187,591			1,166,104,756			9,161,188,993			12,547,330,122
Net assets at end of year	$	171,093,697		$	511,640,733		$	1,368,389,523		$	10,691,503,772		$	13,928,599,705

Accumulation unit activity
Units outstanding at beginning of year		72,407,966			352,073,356			1,045,271,928			7,690,166,452			10,282,670,322
Contract purchase payments		54,205,698			19,594,431			42,030,513			609,970,301			407,110,936
Net transfers⁽¹⁾		23,803,713			97,291,836			65,524,483			(220,209,214	)		(190,560,543	)
Transfers for policy loans		—			2,490			(29,723	)		(22,141	)		(58,670	)
Contract charges		(1,031,773	)		(4,972,020	)		(13,050,155	)		(96,284,723	)		(131,980,932	)
Contract terminations:
Surrender benefits		(2,478,780	)		(30,275,159	)		(41,599,670	)		(305,218,300	)		(391,615,042	)
Death benefits		(582,292	)		(2,741,576	)		(11,340,574	)		(29,712,483	)		(60,146,605	)
Units outstanding at end of year		146,324,532			430,973,358			1,086,806,802			7,648,689,892			9,915,419,466

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			63

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	VP Mod, Cl 2			VP Mod, Cl 4			VP Mod Aggr, Cl 2			VP Mod Aggr, Cl 4			VP Mod Conserv, Cl 2
Operations
Investment income (loss) — net	$	(67,478,690	)	$	(67,664,530	)	$	(32,149,980	)	$	(19,956,039	)	$	(12,640,106	)
Net realized gain (loss) on sales of investments		154,517,089			466,267,875			186,872,702			248,354,113			32,511,139
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		839,108,596			608,176,295			370,818,198			124,674,399			120,770,235
Net increase (decrease) in net assets resulting from operations		926,146,995			1,006,779,640			525,540,920			353,072,473			140,641,268

Contract transactions
Contract purchase payments		299,906,783			13,267,927			82,870,244			14,693,977			50,085,080
Net transfers⁽¹⁾		185,184,157			(34,798,379	)		(241,216,280	)		(139,039,670	)		84,534,551
Transfers for policy loans		19,003			280,640			108,351			270,116			47,115
Adjustments to net assets allocated to contracts in payment period		118,292			—			(291,740	)		—			(111,053	)
Contract charges		(58,818,448	)		(48,052,065	)		(24,467,292	)		(10,857,362	)		(8,046,306	)
Contract terminations:
Surrender benefits		(527,135,791	)		(864,644,772	)		(234,252,960	)		(362,233,938	)		(100,572,171	)
Death benefits		(81,319,548	)		(94,744,474	)		(22,908,315	)		(13,940,390	)		(29,654,282	)
Increase (decrease) from contract transactions		(182,045,552	)		(1,028,691,123	)		(440,157,992	)		(511,107,267	)		(3,717,066	)
Net assets at beginning of year		6,252,850,471			7,036,347,572			3,155,125,531			2,188,002,158			1,148,665,107
Net assets at end of year	$	6,996,951,914		$	7,014,436,089		$	3,240,508,459		$	2,029,967,364		$	1,285,589,309

Accumulation unit activity
Units outstanding at beginning of year		4,279,588,931			4,786,697,083			2,013,547,844			1,388,678,433			857,276,495
Contract purchase payments		187,260,711			8,288,359			48,100,583			8,456,719			34,701,401
Net transfers⁽¹⁾		115,836,364			(21,887,288	)		(139,665,455	)		(80,172,028	)		57,848,811
Transfers for policy loans		16,186			172,888			64,514			154,388			33,734
Contract charges		(36,781,208	)		(29,943,563	)		(14,112,491	)		(6,249,172	)		(5,552,667	)
Contract terminations:
Surrender benefits		(330,333,469	)		(537,508,967	)		(135,411,668	)		(207,516,021	)		(69,860,012	)
Death benefits		(51,489,854	)		(59,239,378	)		(13,122,148	)		(8,053,638	)		(20,914,471	)
Units outstanding at end of year		4,164,097,661			4,146,579,134			1,759,401,179			1,095,298,681			853,533,291

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



64		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	VP Mod Conserv, Cl 4			VP Ptnrs Core Eq, Cl 3			VP Ptnrs Sm Cap Val, Cl 3			VP US Flex Conserv Gro, Cl 2			VP US Flex Gro, Cl 2
Operations
Investment income (loss) — net	$	(12,700,276	)	$	(221,586	)	$	(565,348	)	$	(1,947,185	)	$	(22,420,297	)
Net realized gain (loss) on sales of investments		72,229,320			2,783,964			4,930,008			1,136,823			3,571,635
Distributions from capital gains		—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments		94,120,497			2,858,824			6,637,844			23,805,305			391,266,379
Net increase (decrease) in net assets resulting from operations		153,649,541			5,421,202			11,002,504			22,994,943			372,417,717

Contract transactions
Contract purchase payments		1,923,332			136,663			496,858			39,495,487			619,681,288
Net transfers⁽¹⁾		29,542,054			(1,546,803	)		(990,109	)		82,891,906			349,000,749
Transfers for policy loans		44,022			(4,630	)		22,384			(2,515	)		(2,429	)
Adjustments to net assets allocated to contracts in payment period		—			(3,971	)		(40,645	)		(11,375	)		—
Contract charges		(7,551,370	)		(52,229	)		(130,401	)		(2,092,762	)		(26,136,874	)
Contract terminations:
Surrender benefits		(158,701,945	)		(2,979,202	)		(7,085,045	)		(6,370,739	)		(59,952,262	)
Death benefits		(36,414,677	)		(256,859	)		(750,885	)		(719,693	)		(9,041,135	)
Increase (decrease) from contract transactions		(171,158,584	)		(4,707,031	)		(8,477,843	)		113,190,309			873,549,337
Net assets at beginning of year		1,304,636,677			23,145,851			61,363,084			128,176,288			1,616,519,568
Net assets at end of year	$	1,287,127,634		$	23,860,022		$	63,887,745		$	264,361,540		$	2,862,486,622

Accumulation unit activity
Units outstanding at beginning of year		966,530,813			13,453,677			22,960,816			119,444,348			1,403,048,953
Contract purchase payments		1,328,701			69,430			168,894			33,974,703			483,176,721
Net transfers⁽¹⁾		20,035,204			(777,983	)		(335,686	)		71,292,866			275,310,194
Transfers for policy loans		30,026			(2,086	)		7,165			(2,152	)		(1,596	)
Contract charges		(5,192,372	)		(26,482	)		(44,314	)		(1,796,286	)		(20,370,872	)
Contract terminations:
Surrender benefits		(109,064,962	)		(1,505,479	)		(2,425,344	)		(5,500,276	)		(46,772,432	)
Death benefits		(25,236,249	)		(132,964	)		(247,503	)		(608,036	)		(7,005,627	)
Units outstanding at end of year		848,431,161			11,078,113			20,084,028			216,805,167			2,087,385,341

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			65

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	VP US Flex Mod Gro, Cl 2			Wanger Intl			Wanger USA			WF VT Index Asset Alloc, Cl 2			WF VT Intl Eq, Cl 2
Operations
Investment income (loss) — net	$	(14,260,310	)	$	(173,026	)	$	(1,556,015	)	$	56,782		$	843,853
Net realized gain (loss) on sales of investments		3,102,548			(4,122,215	)		(8,642,320	)		1,083,171			(3,123,209	)
Distributions from capital gains		—			15,537,036			43,932,389			1,527,036			12,494,091
Net change in unrealized appreciation or depreciation of investments		216,991,953			31,451,422			30,693,484			1,518,956			(6,130,603	)
Net increase (decrease) in net assets resulting from operations		205,834,191			42,693,217			64,427,538			4,185,945			4,084,132

Contract transactions
Contract purchase payments		293,721,579			1,732,832			2,067,249			142,334			346,001
Net transfers⁽¹⁾		199,675,579			(9,418,219	)		(10,954,306	)		(690,362	)		23,712
Transfers for policy loans		6,050			59,024			5,191			9,175			12,328
Adjustments to net assets allocated to contracts in payment period		309,473			(58,471	)		(90,687	)		(44,305	)		36,670
Contract charges		(16,322,568	)		(157,366	)		(196,450	)		(15,489	)		(35,844	)
Contract terminations:
Surrender benefits		(33,542,489	)		(19,662,719	)		(26,062,722	)		(2,676,579	)		(3,393,015	)
Death benefits		(6,109,831	)		(1,667,630	)		(2,932,278	)		(104,427	)		(314,231	)
Increase (decrease) from contract transactions		437,737,793			(29,172,549	)		(38,164,003	)		(3,379,653	)		(3,324,379	)
Net assets at beginning of year		1,074,952,586			160,984,074			227,464,026			22,592,665			29,639,888
Net assets at end of year	$	1,718,524,570		$	174,504,742		$	253,727,561		$	23,398,957		$	30,399,641

Accumulation unit activity
Units outstanding at beginning of year		965,849,737			60,391,044			63,796,293			9,481,485			20,982,474
Contract purchase payments		240,483,103			617,349			527,245			53,909			236,575
Net transfers⁽¹⁾		165,894,153			(3,173,414	)		(2,560,310	)		(241,703	)		46,225
Transfers for policy loans		5,651			15,311			2,461			3,515			8,568
Contract charges		(13,358,502	)		(51,151	)		(46,409	)		(6,020	)		(25,249	)
Contract terminations:
Surrender benefits		(27,521,361	)		(6,588,167	)		(6,361,598	)		(1,021,095	)		(2,249,315	)
Death benefits		(5,005,270	)		(549,130	)		(715,491	)		(39,928	)		(216,517	)
Units outstanding at end of year		1,326,347,511			50,661,842			54,642,191			8,230,163			18,782,761

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



66		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2019 (continued)	WF VT Opp, Cl 2			WF VT Sm Cap Gro, Cl 2			WA Var Global Hi Yd Bond, Cl II
Operations
Investment income (loss) — net	$	(322,496	)	$	(811,149	)	$	429,495
Net realized gain (loss) on sales of investments		1,457,544			1,162,651			(52,524	)
Distributions from capital gains		5,465,698			13,428,346			—
Net change in unrealized appreciation or depreciation of investments		6,039,488			3,019,890			777,342
Net increase (decrease) in net assets resulting from operations		12,640,234			16,799,738			1,154,313

Contract transactions
Contract purchase payments		1,030,512			3,851,485			778,163
Net transfers⁽¹⁾		(3,055,715	)		(1,577,219	)		1,057,294
Transfers for policy loans		14,530			(8,976	)		583
Adjustments to net assets allocated to contracts in payment period		(57,475	)		17,907			(901	)
Contract charges		(29,153	)		(37,167	)		(3,250	)
Contract terminations:
Surrender benefits		(4,971,877	)		(8,143,991	)		(512,824	)
Death benefits		(294,672	)		(887,860	)		(192,973	)
Increase (decrease) from contract transactions		(7,363,850	)		(6,785,821	)		1,126,092
Net assets at beginning of year		44,290,068			72,560,660			8,870,412
Net assets at end of year	$	49,566,452		$	82,574,577		$	11,150,817

Accumulation unit activity
Units outstanding at beginning of year		17,378,084			26,760,578			8,317,671
Contract purchase payments		352,333			1,228,995			668,004
Net transfers⁽¹⁾		(1,047,890	)		(481,149	)		864,290
Transfers for policy loans		5,502			(4,078	)		496
Contract charges		(9,444	)		(11,620	)		(2,799	)
Contract terminations:
Surrender benefits		(1,659,184	)		(2,585,764	)		(440,082	)
Death benefits		(98,366	)		(290,798	)		(167,258	)
Units outstanding at end of year		14,921,035			24,616,164			9,240,322

⁽¹⁾	Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account.

See accompanying notes to financial statements.



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			67

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 RiverSource^® Retirement Advisor Advantage Variable Annuity – Band 3 (RAVA Advantage Band 3) contracts issued by RiverSource Life.

The Account is comprised of various divisions. Each division invests exclusively in shares of the following funds or portfolios (collectively, the Funds), which are registered under the 1940 Act as open-end management investment companies. The name of each Fund offered through RAVA Advantage Band 3 contracts and the corresponding division name are provided below. There are various other divisions offered in the Account that are not available under RAVA Advantage Band 3 contracts. Each division is comprised of subaccounts. Individual variable annuity accounts invest in subaccounts. For each division, the financial statements are comprised of a statement of assets and liabilities as of December 31, 2020, a related statement of operations for the year then ended and statements of changes in net assets for each of the two years in the period then ended, all presented to reflect a full twelve month period except as noted below. These financial statements are of the Divisions of the Account offered through RAVA Advantage Band 3.


Division		Fund
AB VPS Dyn Asset Alloc, Cl B		AB VPS Dynamic Asset Allocation Portfolio (Class B)
AB VPS Global Thematic Gro, Cl B		AB VPS Global Thematic Growth Portfolio (Class B)
AB VPS Gro & Inc, Cl B		AB VPS Growth and Income Portfolio (Class B)
AB VPS Intl Val, Cl B		AB VPS International Value Portfolio (Class B)
ALPS Alerian Engy Infr, Class III		ALPS/Alerian Energy Infrastructure Portfolio: Class III
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^®, Class II
AC VP Val, Cl II		American Century VP Value, Class II
BlackRock Global Alloc, Cl III		BlackRock Global Allocation V.I. Fund (Class III)
Calvert VP SRI Bal, Cl I		Calvert VP SRI Balanced Portfolio – Class I
Col VP Bal, Cl 3		Columbia Variable Portfolio – Balanced Fund (Class 3)
Col VP Commodity Strategy, Cl 2		Columbia Variable Portfolio – Commodity Strategy Fund (Class 2)
Col VP Contrarian Core, Cl 2		Columbia Variable Portfolio – Contrarian Core Fund (Class 2)
Col VP Disciplined Core, Cl 3		Columbia Variable Portfolio – Disciplined Core Fund (Class 3)
Col VP Divd Opp, Cl 3		Columbia Variable Portfolio – Dividend Opportunity Fund (Class 3)
Col VP Emerg Mkts Bond, Cl 2		Columbia Variable Portfolio – Emerging Markets Bond Fund (Class 2)
Col VP Emer Mkts, Cl 3		Columbia Variable Portfolio – Emerging Markets Fund (Class 3)
Col VP Global Strategic Inc, Cl 3		Columbia Variable Portfolio – Global Strategic Income Fund (Class 3)
Col VP Govt Money Mkt, Cl 3		Columbia Variable Portfolio – Government Money Market Fund (Class 3)
Col VP Hi Yield Bond, Cl 3		Columbia Variable Portfolio – High Yield Bond Fund (Class 3)
Col VP Inc Opp, Cl 3		Columbia Variable Portfolio – Income Opportunities Fund (Class 3)
Col VP Inter Bond, Cl 3		Columbia Variable Portfolio – Intermediate Bond Fund (Class 3)
Col VP Lg Cap Gro, Cl 3		Columbia Variable Portfolio – Large Cap Growth Fund (Class 3)
Col VP Lg Cap Index, Cl 3		Columbia Variable Portfolio – Large Cap Index Fund (Class 3)
Col VP Limited Duration Cr, Cl 2		Columbia Variable Portfolio – Limited Duration Credit Fund (Class 2)
Col VP Long Govt/Cr Bond, Cl 2		Columbia Variable Portfolio – Long Government/Credit Bond Fund (Class 2)
Col VP Mid Cap Gro, Cl 3		Columbia Variable Portfolio – Mid Cap Growth Fund (Class 3)
Col VP Overseas Core, Cl 3		Columbia Variable Portfolio – Overseas Core Fund (Class 3)
Col VP Select Lg Cap Val, Cl 3		Columbia Variable Portfolio – Select Large Cap Value Fund (Class 3)
Col VP Select Mid Cap Val, Cl 3		Columbia Variable Portfolio – Select Mid Cap Value Fund (Class 3)
Col VP Select Sm Cap Val, Cl 3		Columbia Variable Portfolio – Select Small Cap Value Fund (Class 3)
Col VP US Govt Mtge, Cl 3		Columbia Variable Portfolio – U.S. Government Mortgage Fund (Class 3)
CS Commodity Return		Credit Suisse Trust – Commodity Return Strategy Portfolio
CTIVP BR Gl Infl Prot Sec, Cl 3		CTIVP^® – BlackRock Global Inflation-Protected Securities Fund (Class 3)
CTIVP Lazard Intl Eq Adv, Cl 2		CTIVP^® – Lazard International Equity Advantage Fund (Class 2)⁽¹⁾
CTIVP Loomis Sayles Gro, Cl 1		CTIVP^® – Loomis Sayles Growth Fund (Class 1)
CTIVP Vty Sycamore Estb Val, Cl 3		CTIVP^® – Victory Sycamore Established Value Fund (Class 3)
CTIVP WF Short Duration Govt, Cl 2		CTIVP^® – Wells Fargo Short Duration Government Fund (Class 2)
DWS Alt Asset Alloc VIP, Cl B		DWS Alternative Asset Allocation VIP, Class B
EV VT Floating-Rate Inc, Init Cl		Eaton Vance VT Floating-Rate Income Fund – Initial Class
Fid VIP Contrafund, Serv Cl 2		Fidelity^® VIP Contrafund^SM Portfolio Service Class 2



68		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT


Division		Fund
Fid VIP Gro & Inc, Serv Cl 2		Fidelity^® VIP Growth & Income Portfolio Service Class 2
Fid VIP Mid Cap, Serv Cl 2		Fidelity^® VIP Mid Cap Portfolio Service Class 2
Fid VIP Overseas, Serv Cl 2		Fidelity^® VIP Overseas Portfolio Service Class 2
Fid VIP Strategic Inc, Serv Cl 2		Fidelity^® VIP Strategic Income Portfolio Service Class 2
Frank Global Real Est, Cl 2		Franklin Global Real Estate VIP Fund – Class 2
Frank Inc, Cl 2		Franklin Income VIP Fund – Class 2
Frank Mutual Shares, Cl 2		Franklin Mutual Shares VIP Fund – Class 2
Frank Sm Cap Val, Cl 2		Franklin Small Cap Value VIP Fund – Class 2
GS VIT Mid Cap Val, Inst		Goldman Sachs VIT Mid Cap Value Fund – Institutional Shares
GS VIT Multi-Strategy Alt, Advisor		Goldman Sachs VIT Multi-Strategy Alternatives Portfolio – Advisor Shares
GS VIT U.S. Eq Insights, Inst		Goldman Sachs VIT U.S. Equity Insights Fund – Institutional Shares
Inv Opp VI Dis Mid Cap Gro, Ser I		Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund, Series I Shares⁽²⁾ (effective on or about April 30, 2021, this Fund will be renamed to Invesco V.I. Discovery Mid Cap Growth Fund, Series I Shares)
Invesco Opp VI Global, Ser II		Invesco Oppenheimer V.I. Global Fund, Series II Shares (effective on or about April 30, 2021, this Fund will be renamed to Invesco V.I. Global Fund, Series II Shares)
Inves Opp VI Gbl Strat Inc, Ser II		Invesco Oppenheimer V.I. Global Strategic Income Fund, Series II Shares (effective on or about April 30, 2021, this Fund will be renamed to Invesco V.I. Global Strategic Income Fund, Series II Shares)
Inves Opp VI Mn St Sm Cap, Ser II		Invesco Oppenheimer V.I. Main Street Small Cap Fund^®, Series II Shares (effective on or about April 30, 2021, this Fund will be renamed to Invesco V.I. Main Street Small Cap Fund^®, Series II Shares)
Invesco VI Am Fran, Ser II		Invesco V.I. American Franchise Fund, Series II Shares
Invesco VI Bal Risk Alloc, Ser II		Invesco V.I. Balanced-Risk Allocation Fund, Series II Shares
Invesco VI Comstock, Ser II		Invesco V.I. Comstock Fund, Series II Shares
Invesco VI Div Divd, Ser I		Invesco V.I. Diversified Dividend Fund, Series I Shares
Invesco VI Hlth, Ser II		Invesco V.I. Health Care Fund, Series II Shares
Invesco VI Intl Gro, Ser II		Invesco V.I. International Growth Fund, Series II Shares
Invesco VI Tech, Ser I		Invesco V.I. Technology Fund, Series I Shares
Ivy VIP Asset Strategy, Cl II		Ivy VIP Asset Strategy, Class II
Janus Henderson VIT Bal, Serv		Janus Henderson VIT Balanced Portfolio: Service Shares
Janus Henderson VIT Flex Bd, Serv		Janus Henderson VIT Flexible Bond Portfolio: Service Shares
Janus Hend VIT Gbl Tech Innov, Srv		Janus Henderson VIT Global Technology and Innovation Portfolio: Service Shares (previously Janus Henderson VIT Global Technology Portfolio: Service Shares)
Janus Henderson VIT Overseas, Serv		Janus Henderson VIT Overseas Portfolio: Service Shares
Janus Henderson VIT Res, Serv		Janus Henderson VIT Research Portfolio: Service Shares
Lazard Ret Global Dyn MA, Serv		Lazard Retirement Global Dynamic Multi-Asset Portfolio – Service Shares
MFS Mass Inv Gro Stock, Serv Cl		MFS^® Massachusetts Investors Growth Stock Portfolio – Service Class
MFS New Dis, Serv Cl		MFS^® New Discovery Series – Service Class
MFS Utilities, Serv Cl		MFS^® Utilities Series – Service Class
MS VIF Dis, Cl II		Morgan Stanley VIF Discovery Portfolio, Class II Shares
MS VIF Global Real Est, Cl II		Morgan Stanley VIF Global Real Estate Portfolio, Class II Shares
NB AMT Intl Eq, Cl S		Neuberger Berman AMT International Equity Portfolio (Class S)
NB AMT US Eq Index PW Strat, Cl S		Neuberger Berman AMT U.S. Equity Index PutWrite Strategy Portfolio (Class S)
PIMCO VIT All Asset, Advisor Cl		PIMCO VIT All Asset Portfolio, Advisor Class
PIMCO VIT Glb Man As Alloc, Adv Cl		PIMCO VIT Global Managed Asset Allocation Portfolio, Advisor Class
PIMCO VIT Tot Return, Advisor Cl		PIMCO VIT Total Return Portfolio, Advisor Class
Put VT Global Hlth Care, Cl IB		Putnam VT Global Health Care Fund – Class IB Shares
Put VT Intl Eq, Cl IB		Putnam VT International Equity Fund – Class IB Shares
Put VT Sus Leaders, Cl IB		Putnam VT Sustainable Leaders Fund – Class IB Shares
Temp Global Bond, Cl 2		Templeton Global Bond VIP Fund – Class 2
VanEck VIP Global Gold, Cl S		VanEck VIP Global Gold Fund (Class S Shares)
VP Aggr, Cl 2		Variable Portfolio – Aggressive Portfolio (Class 2)
VP Aggr, Cl 4		Variable Portfolio – Aggressive Portfolio (Class 4)
VP Conserv, Cl 2		Variable Portfolio – Conservative Portfolio (Class 2)
VP Conserv, Cl 4		Variable Portfolio – Conservative Portfolio (Class 4)
VP Man Risk, Cl 2		Variable Portfolio – Managed Risk Fund (Class 2)
VP Man Risk US, Cl 2		Variable Portfolio – Managed Risk U.S. Fund (Class 2)
VP Man Vol Conserv, Cl 2		Variable Portfolio – Managed Volatility Conservative Fund (Class 2)
VP Man Vol Conserv Gro, Cl 2		Variable Portfolio – Managed Volatility Conservative Growth Fund (Class 2)
VP Man Vol Gro, Cl 2		Variable Portfolio – Managed Volatility Growth Fund (Class 2)
VP Man Vol Mod Gro, Cl 2		Variable Portfolio – Managed Volatility Moderate Growth Fund (Class 2)
VP Mod, Cl 2		Variable Portfolio – Moderate Portfolio (Class 2)



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			69


Division		Fund
VP Mod, Cl 4		Variable Portfolio – Moderate Portfolio (Class 4)
VP Mod Aggr, Cl 2		Variable Portfolio – Moderately Aggressive Portfolio (Class 2)
VP Mod Aggr, Cl 4		Variable Portfolio – Moderately Aggressive Portfolio (Class 4)
VP Mod Conserv, Cl 2		Variable Portfolio – Moderately Conservative Portfolio (Class 2)
VP Mod Conserv, Cl 4		Variable Portfolio – Moderately Conservative Portfolio (Class 4)
VP Ptnrs Core Eq, Cl 3		Variable Portfolio – Partners Core Equity Fund (Class 3)
VP Ptnrs Sm Cap Val, Cl 3		Variable Portfolio – Partners Small Cap Value Fund (Class 3)
VP US Flex Conserv Gro, Cl 2		Variable Portfolio – U.S. Flexible Conservative Growth Fund (Class 2)
VP US Flex Gro, Cl 2		Variable Portfolio – U.S. Flexible Growth Fund (Class 2)
VP US Flex Mod Gro, Cl 2		Variable Portfolio – U.S. Flexible Moderate Growth Fund (Class 2)
Wanger Intl		Wanger International
Wanger USA		Wanger USA
WF VT Index Asset Alloc, Cl 2		Wells Fargo VT Index Asset Allocation Fund – Class 2
WF VT Intl Eq, Cl 2		Wells Fargo VT International Equity Fund – Class 2
WF VT Opp, Cl 2		Wells Fargo VT Opportunity Fund – Class 2
WF VT Sm Cap Gro, Cl 2		Wells Fargo VT Small Cap Growth Fund – Class 2
WA Var Global Hi Yd Bond, Cl II		Western Asset Variable Global High Yield Bond Portfolio – Class II

⁽¹⁾	CTIVP^® – Lazard International Equity Advantage Fund (Class 2) is scheduled to liquidate on or about April 23, 2021.

⁽²⁾	For the period April 24, 2020 (commencement of operations) to December 31, 2020.

The assets of each division of the Account are not chargeable with liabilities arising out of the business conducted by any other segregated asset account or by RiverSource Life.

RiverSource Life serves as issuer of the contract.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Investments in the Funds

Investment transactions are accounted for on the date the shares are purchased and sold. Realized gains and losses on the sales of investments are computed using the average cost method. Income from dividends and gains from realized capital gain distributions are reinvested in additional shares of the Funds and are recorded as income by the divisions on the ex-dividend date.

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

The Account categorizes its fair value measurements according to a three-level hierarchy. This hierarchy prioritizes the inputs used by the Account to value investment securities. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.

Level 2 – Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The Funds in the Accounts have been measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and are therefore not categorized in the fair value hierarchy. There were no transfers between levels in the period ended December 31, 2020.

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 3.5% or 5% based on the annuitant’s election, or 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



70		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

Account for federal income taxes. RiverSource Life will review periodically the status of this policy. In the event of changes in the tax law, a charge may be made in future years for any federal income taxes that would be attributable to the contracts.

Subsequent Events

Management has evaluated Account related events and transactions that occurred through the date the financial statements were issued. Management noted there were no items requiring adjustments or additional disclosures in the Account’s financial statements.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates.

Recent Accounting Pronouncement

Accounting Standards Update 2018-13 Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2018-13 Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for the timing of transfers between levels. The standard is effective for annual periods beginning after December 15, 2019 and interim periods within those fiscal years. The Account adopted the standard on January 1, 2020. There was no impact of the standard to the Account’s financials condition or results of operations.

3. VARIABLE ACCOUNT EXPENSES

For RAVA Advantage Band 3 contracts, RiverSource Life deducts a daily mortality and expense risk fee equal, on an annual basis, to 0.55% of the average daily net assets of each subaccount.

4. CONTRACT CHARGES

RiverSource Life deducts a contract administrative charge of $30 per year on the contract anniversary. This charge reimburses RiverSource Life for expenses incurred in establishing and maintaining the annuity records. Certain products may waive this charge based upon the underlying contract value.

Optional riders are available on this product and if selected, the related fees are deducted annually from the contract value on the contract anniversary.

5. SURRENDER CHARGES

There is no charge if you surrender all or part of your contract during the accumulation phase.

6. RELATED PARTY TRANSACTIONS

RiverSource Life is a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial).

The following table reflects fees paid by certain affiliated funds to Ameriprise Financial and its affiliates.


Fee Agreement:		Fees Paid To:
Management Agreement		Columbia Management Investment Advisers, LLC
Shareholder Services Agreement		Columbia Management Investment Services Corp.
Plan and Agreement of Distribution		Columbia Management Investment Distributors, Inc.
Investment Advisory Agreement		Columbia Wanger Asset Management, LLC
Administrative Services Agreement		Columbia Wanger Asset Management, LLC



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			71

7. INVESTMENT TRANSACTIONS

The divisions’ purchases of Funds’ shares, including reinvestment of dividend distributions, for the year ended December 31, 2020 were as follows:


Division	Purchases
AB VPS Dyn Asset Alloc, Cl B	$	1,020,610
AB VPS Global Thematic Gro, Cl B		4,105,616
AB VPS Gro & Inc, Cl B		7,952,631
AB VPS Intl Val, Cl B		3,927,875
ALPS Alerian Engy Infr, Class III		4,850,112
AC VP Intl, Cl II		2,158,567
AC VP Mid Cap Val, Cl II		1,940,463
AC VP Ultra, Cl II		12,078,123
AC VP Val, Cl II		14,543,648
BlackRock Global Alloc, Cl III		13,027,724
Calvert VP SRI Bal, Cl I		2,632,186
Col VP Bal, Cl 3		51,998,963
Col VP Commodity Strategy, Cl 2		1,773,000
Col VP Contrarian Core, Cl 2		10,598,229
Col VP Disciplined Core, Cl 3		2,308,137
Col VP Divd Opp, Cl 3		3,827,261
Col VP Emerg Mkts Bond, Cl 2		2,629,278
Col VP Emer Mkts, Cl 3		17,513,678
Col VP Global Strategic Inc, Cl 3		6,775,897
Col VP Govt Money Mkt, Cl 3		95,545,636
Col VP Hi Yield Bond, Cl 3		13,150,786
Col VP Inc Opp, Cl 3		9,011,085
Col VP Inter Bond, Cl 3		51,959,590
Col VP Lg Cap Gro, Cl 3		6,422,505
Col VP Lg Cap Index, Cl 3		43,855,700
Col VP Limited Duration Cr, Cl 2		30,225,998
Col VP Long Govt/Cr Bond, Cl 2		14,915,128
Col VP Mid Cap Gro, Cl 3		4,403,084
Col VP Overseas Core, Cl 3		2,509,734
Col VP Select Lg Cap Val, Cl 3		3,933,775
Col VP Select Mid Cap Val, Cl 3		1,030,338
Col VP Select Sm Cap Val, Cl 3		1,039,082
Col VP US Govt Mtge, Cl 3		8,554,511
CS Commodity Return		1,315,341
CTIVP BR Gl Infl Prot Sec, Cl 3		8,021,494
CTIVP Lazard Intl Eq Adv, Cl 2		4,501,540
CTIVP Loomis Sayles Gro, Cl 1		4,370,556
CTIVP Vty Sycamore Estb Val, Cl 3		2,558,175
CTIVP WF Short Duration Govt, Cl 2		43,595,235
DWS Alt Asset Alloc VIP, Cl B		1,312,669
EV VT Floating-Rate Inc, Init Cl		3,242,093
Fid VIP Contrafund, Serv Cl 2		25,080,046
Fid VIP Gro & Inc, Serv Cl 2		7,145,383
Fid VIP Mid Cap, Serv Cl 2		7,751,556
Fid VIP Overseas, Serv Cl 2		3,797,080
Fid VIP Strategic Inc, Serv Cl 2		26,558,486
Frank Global Real Est, Cl 2		10,736,264
Frank Inc, Cl 2		9,207,634
Frank Mutual Shares, Cl 2		7,170,029
Frank Sm Cap Val, Cl 2		13,909,216
GS VIT Mid Cap Val, Inst		3,214,592
GS VIT Multi-Strategy Alt, Advisor		1,698,772
GS VIT U.S. Eq Insights, Inst		6,663,079
Inv Opp VI Dis Mid Cap Gro, Ser I		19,078,212
Invesco Opp VI Global, Ser II		16,739,807
Inves Opp VI Gbl Strat Inc, Ser II		13,856,584
Inves Opp VI Mn St Sm Cap, Ser II		9,378,233


Division	Purchases
Invesco VI Am Fran, Ser II	$	6,163,541
Invesco VI Bal Risk Alloc, Ser II		6,240,227
Invesco VI Comstock, Ser II		8,482,116
Invesco VI Div Divd, Ser I		1,937,441
Invesco VI Hlth, Ser II		6,505,511
Invesco VI Intl Gro, Ser II		3,439,326
Invesco VI Tech, Ser I		6,475,429
Ivy VIP Asset Strategy, Cl II		1,558,171
Janus Henderson VIT Bal, Serv		34,047,135
Janus Henderson VIT Flex Bd, Serv		23,582,980
Janus Hend VIT Gbl Tech Innov, Srv		5,092,144
Janus Henderson VIT Overseas, Serv		635,899
Janus Henderson VIT Res, Serv		10,458,624
Lazard Ret Global Dyn MA, Serv		1,127,340
MFS Mass Inv Gro Stock, Serv Cl		15,216,655
MFS New Dis, Serv Cl		6,236,949
MFS Utilities, Serv Cl		12,899,211
MS VIF Dis, Cl II		35,073,209
MS VIF Global Real Est, Cl II		2,595,498
NB AMT Intl Eq, Cl S		1,211,284
NB AMT US Eq Index PW Strat, Cl S		1,177,343
PIMCO VIT All Asset, Advisor Cl		4,618,052
PIMCO VIT Glb Man As Alloc, Adv Cl		856,583
PIMCO VIT Tot Return, Advisor Cl		25,797,524
Put VT Global Hlth Care, Cl IB		4,070,805
Put VT Intl Eq, Cl IB		786,794
Put VT Sus Leaders, Cl IB		4,134,019
Temp Global Bond, Cl 2		5,439,242
VanEck VIP Global Gold, Cl S		11,888,243
VP Aggr, Cl 2		35,647,989
VP Aggr, Cl 4		7,471,369
VP Conserv, Cl 2		228,553,929
VP Conserv, Cl 4		110,364,955
VP Man Risk, Cl 2		37,261,554
VP Man Risk US, Cl 2		77,537,618
VP Man Vol Conserv, Cl 2		342,510,724
VP Man Vol Conserv Gro, Cl 2		166,738,061
VP Man Vol Gro, Cl 2		313,195,844
VP Man Vol Mod Gro, Cl 2		101,280,290
VP Mod, Cl 2		211,380,758
VP Mod, Cl 4		11,630,453
VP Mod Aggr, Cl 2		63,233,987
VP Mod Aggr, Cl 4		10,742,989
VP Mod Conserv, Cl 2		143,789,809
VP Mod Conserv, Cl 4		35,005,937
VP Ptnrs Core Eq, Cl 3		314,564
VP Ptnrs Sm Cap Val, Cl 3		2,951,970
VP US Flex Conserv Gro, Cl 2		156,005,245
VP US Flex Gro, Cl 2		506,529,980
VP US Flex Mod Gro, Cl 2		231,615,804
Wanger Intl		10,595,413
Wanger USA		26,447,902
WF VT Index Asset Alloc, Cl 2		2,977,530
WF VT Intl Eq, Cl 2		2,456,058
WF VT Opp, Cl 2		5,669,521
WF VT Sm Cap Gro, Cl 2		17,835,256
WA Var Global Hi Yd Bond, Cl II		2,920,136



72		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

8. FINANCIAL HIGHLIGHTS

The table below shows certain financial information regarding the divisions.


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾			Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
AB VPS Dyn Asset Alloc, Cl B
2020		7,782		$1.40	to	$1.26		$10,461		1.52	%		0.55	%	to	1.90	%		4.29	%	to	2.89	%
2019		9,012		$1.34	to	$1.23		$11,673		1.80	%		0.55	%	to	1.90	%		14.61	%	to	13.07	%
2018		7,870		$1.17	to	$1.08		$8,930		1.54	%		0.55	%	to	1.90	%		(7.86	%)	to	(9.10	%)
2017		7,130		$1.27	to	$1.19		$8,841		1.80	%		0.55	%	to	1.90	%		13.70	%	to	12.17	%
2016		6,933		$1.12	to	$1.06		$7,612		0.59	%		0.55	%	to	1.90	%		2.80	%	to	1.43	%
AB VPS Global Thematic Gro, Cl B
2020		3,590		$3.05	to	$2.71		$10,374		0.42	%		0.55	%	to	1.45	%		38.32	%	to	37.08	%
2019		3,339		$2.20	to	$1.97		$7,016		0.17	%		0.55	%	to	1.45	%		29.07	%	to	27.91	%
2018		3,433		$1.71	to	$1.54		$5,616		—			0.55	%	to	1.45	%		(10.48	%)	to	(11.29	%)
2017		4,683		$1.91	to	$1.74		$8,645		0.28	%		0.55	%	to	1.45	%		35.55	%	to	34.34	%
2016		4,682		$1.41	to	$1.29		$6,365		—			0.55	%	to	1.45	%		(1.42	%)	to	(2.30	%)
AB VPS Gro & Inc, Cl B
2020		26,311		$2.99	to	$2.35		$73,638		1.34	%		0.55	%	to	1.45	%		1.91	%	to	1.00	%
2019		29,990		$2.94	to	$2.33		$82,516		1.02	%		0.55	%	to	1.45	%		22.93	%	to	21.83	%
2018		33,116		$2.39	to	$1.91		$74,356		0.73	%		0.55	%	to	1.45	%		(6.36	%)	to	(7.21	%)
2017		36,558		$2.55	to	$2.06		$87,981		1.25	%		0.55	%	to	1.45	%		17.95	%	to	16.89	%
2016		43,394		$2.16	to	$1.76		$88,721		0.82	%		0.55	%	to	1.45	%		10.46	%	to	9.48	%
AB VPS Intl Val, Cl B
2020		52,865		$2.01	to	$0.86		$83,459		1.53	%		0.55	%	to	1.45	%		1.65	%	to	0.74	%
2019		60,148		$1.98	to	$0.86		$93,276		0.77	%		0.55	%	to	1.45	%		16.15	%	to	15.11	%
2018		69,012		$1.70	to	$0.74		$92,028		1.06	%		0.55	%	to	1.45	%		(23.40	%)	to	(24.09	%)
2017		78,291		$2.23	to	$0.98		$136,442		1.91	%		0.55	%	to	1.45	%		24.41	%	to	23.30	%
2016		90,606		$1.79	to	$0.79		$127,863		1.04	%		0.55	%	to	1.45	%		(1.34	%)	to	(2.22	%)
ALPS Alerian Engy Infr, Class III
2020		31,725		$0.73	to	$0.66		$22,314		2.78	%		0.55	%	to	1.90	%		(25.54	%)	to	(26.54	%)
2019		35,763		$0.98	to	$0.89		$33,932		1.50	%		0.55	%	to	1.90	%		19.75	%	to	18.15	%
2018		40,353		$0.82	to	$0.76		$32,131		1.69	%		0.55	%	to	1.90	%		(19.40	%)	to	(20.49	%)
2017		46,826		$1.01	to	$0.95		$46,485		1.84	%		0.55	%	to	1.90	%		(1.38	%)	to	(2.70	%)
2016		48,709		$1.03	to	$0.98		$49,295		2.28	%		0.55	%	to	1.90	%		40.03	%	to	38.16	%
AC VP Intl, Cl II
2020		9,218		$2.74	to	$2.81		$24,485		0.38	%		0.55	%	to	1.20	%		24.97	%	to	24.15	%
2019		9,677		$2.19	to	$2.26		$20,637		0.75	%		0.55	%	to	1.20	%		27.44	%	to	26.61	%
2018		11,651		$1.72	to	$1.79		$19,548		1.13	%		0.55	%	to	1.20	%		(15.76	%)	to	(16.31	%)
2017		12,767		$2.04	to	$2.13		$25,480		0.76	%		0.55	%	to	1.20	%		30.22	%	to	29.38	%
2016		14,614		$1.57	to	$1.65		$22,462		0.95	%		0.55	%	to	1.20	%		(6.07	%)	to	(6.68	%)
AC VP Mid Cap Val, Cl II
2020		14,793		$2.61	to	$2.85		$40,391		1.63	%		0.55	%	to	1.45	%		0.56	%	to	(0.35	%)
2019		19,355		$2.59	to	$2.86		$52,756		1.91	%		0.55	%	to	1.45	%		28.29	%	to	27.14	%
2018		23,734		$2.02	to	$2.25		$50,642		1.25	%		0.55	%	to	1.45	%		(13.44	%)	to	(14.22	%)
2017		29,035		$2.34	to	$2.62		$71,937		1.40	%		0.55	%	to	1.45	%		10.86	%	to	9.87	%
2016		30,815		$2.11	to	$2.39		$69,235		1.58	%		0.55	%	to	1.45	%		22.05	%	to	20.96	%
AC VP Ultra, Cl II
2020		11,057		$5.16	to	$4.74		$54,981		—			0.55	%	to	1.45	%		48.73	%	to	47.40	%
2019		11,208		$3.47	to	$3.22		$37,737		—			0.55	%	to	1.45	%		33.72	%	to	32.53	%
2018		12,466		$2.60	to	$2.43		$31,543		0.11	%		0.55	%	to	1.45	%		0.04	%	to	(0.86	%)
2017		11,436		$2.60	to	$2.45		$29,024		0.24	%		0.55	%	to	1.45	%		31.28	%	to	30.11	%
2016		13,236		$1.98	to	$1.88		$25,606		0.20	%		0.55	%	to	1.45	%		3.78	%	to	2.85	%
AC VP Val, Cl II
2020		53,117		$3.48	to	$1.92		$155,093		2.14	%		0.55	%	to	1.90	%		0.28	%	to	(1.06	%)
2019		63,453		$3.47	to	$1.94		$184,130		1.96	%		0.55	%	to	1.90	%		26.23	%	to	24.53	%
2018		71,718		$2.75	to	$1.56		$165,850		1.49	%		0.55	%	to	1.90	%		(9.78	%)	to	(10.99	%)
2017		81,490		$3.05	to	$1.75		$210,213		1.50	%		0.55	%	to	1.90	%		7.98	%	to	6.54	%
2016		92,076		$2.82	to	$1.65		$221,303		1.60	%		0.55	%	to	1.90	%		19.62	%	to	18.01	%



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			73


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾			Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
BlackRock Global Alloc, Cl III
2020		49,337		$1.77	to	$1.57		$83,868		1.34	%		0.55	%	to	1.90	%		20.05	%	to	18.43	%
2019		51,774		$1.47	to	$1.33		$73,748		1.25	%		0.55	%	to	1.90	%		17.11	%	to	15.55	%
2018		58,332		$1.26	to	$1.15		$71,337		0.83	%		0.55	%	to	1.90	%		(8.09	%)	to	(9.32	%)
2017		62,869		$1.37	to	$1.27		$84,099		1.30	%		0.55	%	to	1.90	%		13.09	%	to	11.58	%
2016		64,910		$1.21	to	$1.14		$77,157		1.20	%		0.55	%	to	1.90	%		3.24	%	to	1.86	%
Calvert VP SRI Bal, Cl I
2020		9,850		$2.56	to	$2.57		$24,246		1.51	%		0.55	%	to	1.20	%		14.63	%	to	13.88	%
2019		10,384		$2.24	to	$2.26		$22,358		1.56	%		0.55	%	to	1.20	%		23.72	%	to	22.92	%
2018		10,525		$1.81	to	$1.83		$18,359		1.74	%		0.55	%	to	1.20	%		(3.20	%)	to	(3.84	%)
2017		11,496		$1.87	to	$1.91		$20,774		1.99	%		0.55	%	to	1.20	%		11.38	%	to	10.66	%
2016		12,996		$1.68	to	$1.72		$21,154		1.79	%		0.55	%	to	1.20	%		7.27	%	to	6.57	%
Col VP Bal, Cl 3
2020		202,406		$3.03	to	$2.00		$577,612		—			0.55	%	to	1.90	%		16.94	%	to	15.37	%
2019		200,210		$2.59	to	$1.73		$493,462		—			0.55	%	to	1.90	%		22.11	%	to	20.47	%
2018		209,029		$2.13	to	$1.44		$424,747		—			0.55	%	to	1.90	%		(6.41	%)	to	(7.67	%)
2017		221,556		$2.27	to	$1.56		$485,154		—			0.55	%	to	1.90	%		13.89	%	to	12.37	%
2016		214,583		$1.99	to	$1.39		$418,875		—			0.55	%	to	1.90	%		5.82	%	to	4.41	%
Col VP Commodity Strategy, Cl 2
2020		8,170		$0.56	to	$0.50		$4,373		20.03	%		0.55	%	to	1.90	%		(2.09	%)	to	(3.40	%)
2019		8,107		$0.57	to	$0.52		$4,460		0.93	%		0.55	%	to	1.90	%		7.19	%	to	5.75	%
2018		8,710		$0.53	to	$0.49		$4,491		—			0.55	%	to	1.90	%		(14.64	%)	to	(15.79	%)
2017		7,268		$0.62	to	$0.58		$4,412		5.58	%		0.55	%	to	1.90	%		1.15	%	to	(0.20	%)
2016		5,510		$0.61	to	$0.58		$3,324		—			0.55	%	to	1.90	%		11.75	%	to	10.26	%
Col VP Contrarian Core, Cl 2
2020		46,707		$2.63	to	$2.37		$118,781		—			0.55	%	to	1.90	%		21.33	%	to	19.71	%
2019		48,211		$2.17	to	$1.98		$101,337		—			0.55	%	to	1.90	%		32.08	%	to	30.31	%
2018		52,094		$1.64	to	$1.52		$83,307		—			0.55	%	to	1.90	%		(9.64	%)	to	(10.86	%)
2017		57,727		$1.82	to	$1.70		$102,614		—			0.55	%	to	1.90	%		20.82	%	to	19.21	%
2016		52,933		$1.50	to	$1.43		$78,269		—			0.55	%	to	1.90	%		7.82	%	to	6.37	%
Col VP Disciplined Core, Cl 3
2020		116,774		$2.65	to	$2.77		$347,019		—			0.55	%	to	1.45	%		13.36	%	to	12.34	%
2019		131,960		$2.34	to	$2.47		$346,230		—			0.55	%	to	1.45	%		23.95	%	to	22.84	%
2018		147,359		$1.89	to	$2.01		$312,920		—			0.55	%	to	1.45	%		(4.27	%)	to	(5.13	%)
2017		166,607		$1.97	to	$2.12		$369,908		—			0.55	%	to	1.45	%		23.54	%	to	22.44	%
2016		191,848		$1.60	to	$1.73		$344,384		—			0.55	%	to	1.45	%		7.35	%	to	6.38	%
Col VP Divd Opp, Cl 3
2020		128,498		$3.63	to	$1.97		$395,051		—			0.55	%	to	1.45	%		0.47	%	to	(0.43	%)
2019		148,528		$3.62	to	$1.98		$456,364		—			0.55	%	to	1.45	%		23.24	%	to	22.14	%
2018		172,206		$2.93	to	$1.62		$430,290		—			0.55	%	to	1.45	%		(6.39	%)	to	(7.23	%)
2017		206,320		$3.13	to	$1.75		$552,055		—			0.55	%	to	1.45	%		13.65	%	to	12.64	%
2016		246,769		$2.76	to	$1.55		$581,936		—			0.55	%	to	1.45	%		12.90	%	to	11.88	%
Col VP Emerg Mkts Bond, Cl 2
2020		12,122		$1.21	to	$1.09		$14,140		3.23	%		0.55	%	to	1.90	%		6.58	%	to	5.14	%
2019		13,256		$1.13	to	$1.03		$14,563		4.87	%		0.55	%	to	1.90	%		11.47	%	to	9.98	%
2018		13,128		$1.01	to	$0.94		$12,998		4.32	%		0.55	%	to	1.90	%		(7.89	%)	to	(9.13	%)
2017		13,655		$1.10	to	$1.03		$14,750		4.45	%		0.55	%	to	1.90	%		11.08	%	to	9.59	%
2016		9,543		$0.99	to	$0.94		$9,334		2.39	%		0.55	%	to	1.90	%		10.47	%	to	8.99	%
Col VP Emer Mkts, Cl 3
2020		38,326		$4.59	to	$2.57		$139,658		0.56	%		0.55	%	to	1.45	%		32.63	%	to	31.44	%
2019		45,589		$3.46	to	$1.96		$125,995		0.18	%		0.55	%	to	1.45	%		30.71	%	to	29.54	%
2018		53,483		$2.65	to	$1.51		$113,557		0.45	%		0.55	%	to	1.45	%		(22.01	%)	to	(22.71	%)
2017		60,139		$3.40	to	$1.95		$164,139		0.09	%		0.55	%	to	1.45	%		46.25	%	to	44.95	%
2016		66,944		$2.32	to	$1.35		$125,958		0.11	%		0.55	%	to	1.45	%		4.39	%	to	3.46	%



74		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾			Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
Col VP Global Strategic Inc, Cl 3
2020		38,477		$1.92	to	$1.22		$64,308		5.22	%		0.55	%	to	1.45	%		4.11	%	to	3.17	%
2019		43,214		$1.85	to	$1.18		$69,749		—			0.55	%	to	1.45	%		10.30	%	to	9.31	%
2018		49,751		$1.67	to	$1.08		$73,103		4.33	%		0.55	%	to	1.45	%		(5.86	%)	to	(6.71	%)
2017		59,884		$1.78	to	$1.16		$93,743		—			0.55	%	to	1.45	%		5.19	%	to	4.25	%
2016		71,304		$1.69	to	$1.11		$106,327		—			0.55	%	to	1.45	%		(1.77	%)	to	(2.65	%)
Col VP Govt Money Mkt, Cl 3
2020		123,715		$1.21	to	$0.93		$135,583		0.18	%		0.55	%	to	1.45	%		(0.27	%)	to	(1.16	%)
2019		86,619		$1.22	to	$0.94		$96,069		1.73	%		0.55	%	to	1.45	%		1.21	%	to	0.30	%
2018		105,979		$1.20	to	$0.93		$116,885		1.36	%		0.55	%	to	1.45	%		0.83	%	to	(0.08	%)
2017		109,560		$1.19	to	$0.93		$120,109		0.29	%		0.55	%	to	1.45	%		(0.25	%)	to	(1.14	%)
2016		139,734		$1.19	to	$0.94		$153,262		0.01	%		0.55	%	to	1.45	%		(0.54	%)	to	(1.42	%)
Col VP Hi Yield Bond, Cl 3
2020		55,713		$3.25	to	$2.21		$163,849		5.64	%		0.55	%	to	1.45	%		5.96	%	to	5.01	%
2019		66,858		$3.07	to	$2.10		$185,992		5.75	%		0.55	%	to	1.45	%		16.08	%	to	15.04	%
2018		78,729		$2.64	to	$1.83		$189,434		5.46	%		0.55	%	to	1.45	%		(4.53	%)	to	(5.39	%)
2017		100,651		$2.77	to	$1.93		$253,612		5.36	%		0.55	%	to	1.45	%		5.83	%	to	4.88	%
2016		118,309		$2.62	to	$1.84		$283,326		6.00	%		0.55	%	to	1.45	%		11.11	%	to	10.11	%
Col VP Inc Opp, Cl 3
2020		42,052		$2.61	to	$2.14		$101,999		4.60	%		0.55	%	to	1.45	%		5.16	%	to	4.21	%
2019		49,492		$2.49	to	$2.05		$114,398		4.99	%		0.55	%	to	1.45	%		15.59	%	to	14.56	%
2018		57,728		$2.15	to	$1.79		$115,887		4.80	%		0.55	%	to	1.45	%		(4.39	%)	to	(5.25	%)
2017		76,235		$2.25	to	$1.89		$160,428		6.04	%		0.55	%	to	1.45	%		5.80	%	to	4.86	%
2016		91,441		$2.13	to	$1.80		$182,316		12.20	%		0.55	%	to	1.45	%		10.25	%	to	9.26	%
Col VP Inter Bond, Cl 3
2020		160,950		$2.43	to	$1.65		$342,523		2.75	%		0.55	%	to	1.45	%		11.83	%	to	10.83	%
2019		159,192		$2.17	to	$1.49		$305,425		3.11	%		0.55	%	to	1.45	%		8.52	%	to	7.55	%
2018		167,470		$2.00	to	$1.38		$298,059		2.22	%		0.55	%	to	1.45	%		(0.29	%)	to	(1.19	%)
2017		203,734		$2.01	to	$1.40		$364,529		2.67	%		0.55	%	to	1.45	%		3.17	%	to	2.24	%
2016		237,642		$1.95	to	$1.37		$413,783		1.66	%		0.55	%	to	1.45	%		3.97	%	to	3.03	%
Col VP Lg Cap Gro, Cl 3
2020		55,016		$2.67	to	$3.63		$152,397		—			0.55	%	to	1.45	%		33.83	%	to	32.63	%
2019		62,416		$2.00	to	$2.74		$128,985		—			0.55	%	to	1.45	%		35.02	%	to	33.80	%
2018		73,335		$1.48	to	$2.05		$112,703		—			0.55	%	to	1.45	%		(4.62	%)	to	(5.48	%)
2017		84,182		$1.55	to	$2.17		$135,480		—			0.55	%	to	1.45	%		27.25	%	to	26.11	%
2016		97,951		$1.22	to	$1.72		$124,429		—			0.55	%	to	1.45	%		0.62	%	to	(0.29	%)
Col VP Lg Cap Index, Cl 3
2020		152,958		$3.13	to	$2.62		$479,900		—			0.55	%	to	1.90	%		17.25	%	to	15.68	%
2019		156,149		$2.67	to	$2.27		$420,166		—			0.55	%	to	1.90	%		30.23	%	to	28.49	%
2018		149,134		$2.05	to	$1.76		$309,702		—			0.55	%	to	1.90	%		(5.34	%)	to	(6.62	%)
2017		142,086		$2.16	to	$1.89		$313,622		—			0.55	%	to	1.90	%		20.62	%	to	19.01	%
2016		131,933		$1.79	to	$1.59		$241,925		—			0.55	%	to	1.90	%		10.90	%	to	9.41	%
Col VP Limited Duration Cr, Cl 2
2020		54,109		$1.09	to	$1.06		$62,924		2.54	%		0.55	%	to	1.90	%		4.99	%	to	3.58	%
2019		39,044		$1.04	to	$1.02		$43,437		2.09	%		0.55	%	to	1.90	%		6.88	%	to	5.44	%
2018		36,076		$0.97	to	$0.97		$37,787		1.64	%		0.55	%	to	1.90	%		(0.57	%)	to	(1.90	%)
2017		30,588		$0.98	to	$0.99		$32,256		2.06	%		0.55	%	to	1.90	%		1.25	%	to	(0.10	%)
2016		27,833		$0.96	to	$0.99		$29,208		3.66	%		0.55	%	to	1.90	%		4.71	%	to	3.30	%
Col VP Long Govt/Cr Bond, Cl 2
2020		19,114		$1.46	to	$1.31		$27,008		2.51	%		0.55	%	to	1.90	%		16.43	%	to	14.87	%
2019		12,488		$1.25	to	$1.14		$15,275		2.52	%		0.55	%	to	1.90	%		18.77	%	to	17.17	%
2018		11,169		$1.05	to	$0.98		$11,586		3.20	%		0.55	%	to	1.90	%		(5.90	%)	to	(7.17	%)
2017		13,756		$1.12	to	$1.05		$15,180		3.16	%		0.55	%	to	1.90	%		10.39	%	to	8.91	%
2016		16,070		$1.01	to	$0.96		$16,134		1.76	%		0.55	%	to	1.90	%		2.22	%	to	0.85	%



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			75


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾			Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
Col VP Mid Cap Gro, Cl 3
2020		24,410		$4.57	to	$3.38		$92,335		—			0.55	%	to	1.45	%		34.49	%	to	33.29	%
2019		27,275		$3.40	to	$2.54		$77,186		—			0.55	%	to	1.45	%		34.28	%	to	33.08	%
2018		31,843		$2.53	to	$1.91		$67,559		—			0.55	%	to	1.45	%		(5.38	%)	to	(6.23	%)
2017		35,762		$2.68	to	$2.03		$80,801		—			0.55	%	to	1.45	%		22.12	%	to	21.03	%
2016		40,449		$2.19	to	$1.68		$75,222		—			0.55	%	to	1.45	%		1.60	%	to	0.69	%
Col VP Overseas Core, Cl 3
2020		36,058		$1.69	to	$1.54		$64,166		1.56	%		0.55	%	to	1.45	%		8.33	%	to	7.36	%
2019		42,438		$1.56	to	$1.43		$69,942		1.96	%		0.55	%	to	1.45	%		24.63	%	to	23.52	%
2018		50,268		$1.25	to	$1.16		$66,585		2.69	%		0.55	%	to	1.45	%		(17.16	%)	to	(17.91	%)
2017		59,162		$1.51	to	$1.41		$94,655		1.98	%		0.55	%	to	1.45	%		26.67	%	to	25.54	%
2016		70,244		$1.20	to	$1.12		$88,734		1.55	%		0.55	%	to	1.45	%		(6.62	%)	to	(7.46	%)
Col VP Select Lg Cap Val, Cl 3
2020		10,598		$3.34	to	$2.53		$31,993		—			0.55	%	to	1.45	%		6.37	%	to	5.41	%
2019		13,028		$3.14	to	$2.40		$36,838		—			0.55	%	to	1.45	%		25.85	%	to	24.72	%
2018		14,388		$2.50	to	$1.92		$32,487		—			0.55	%	to	1.45	%		(12.79	%)	to	(13.58	%)
2017		15,242		$2.87	to	$2.23		$39,807		—			0.55	%	to	1.45	%		20.14	%	to	19.07	%
2016		15,367		$2.38	to	$1.87		$33,622		—			0.55	%	to	1.45	%		19.16	%	to	18.09	%
Col VP Select Mid Cap Val, Cl 3
2020		15,060		$3.34	to	$2.34		$43,098		—			0.55	%	to	1.45	%		6.82	%	to	5.86	%
2019		18,698		$3.13	to	$2.21		$50,177		—			0.55	%	to	1.45	%		30.70	%	to	29.53	%
2018		22,628		$2.39	to	$1.71		$46,653		—			0.55	%	to	1.45	%		(13.88	%)	to	(14.66	%)
2017		27,611		$2.78	to	$2.00		$66,373		—			0.55	%	to	1.45	%		12.77	%	to	11.76	%
2016		34,278		$2.46	to	$1.79		$73,343		—			0.55	%	to	1.45	%		13.38	%	to	12.36	%
Col VP Select Sm Cap Val, Cl 3
2020		8,684		$4.04	to	$2.18		$30,099		—			0.55	%	to	1.45	%		8.46	%	to	7.48	%
2019		10,587		$3.73	to	$2.03		$33,704		—			0.55	%	to	1.45	%		16.94	%	to	15.89	%
2018		12,563		$3.19	to	$1.75		$34,140		—			0.55	%	to	1.45	%		(13.18	%)	to	(13.96	%)
2017		14,554		$3.67	to	$2.04		$45,595		—			0.55	%	to	1.45	%		11.58	%	to	10.59	%
2016		17,393		$3.29	to	$1.84		$49,321		—			0.55	%	to	1.45	%		13.21	%	to	12.19	%
Col VP US Govt Mtge, Cl 3
2020		41,015		$1.72	to	$1.22		$61,786		2.50	%		0.55	%	to	1.45	%		4.38	%	to	3.44	%
2019		42,323		$1.65	to	$1.18		$61,670		2.69	%		0.55	%	to	1.45	%		6.03	%	to	5.08	%
2018		47,865		$1.55	to	$1.12		$66,263		2.72	%		0.55	%	to	1.45	%		1.16	%	to	0.24	%
2017		59,588		$1.54	to	$1.12		$81,742		2.77	%		0.55	%	to	1.45	%		2.65	%	to	1.73	%
2016		73,667		$1.50	to	$1.10		$98,322		2.77	%		0.55	%	to	1.45	%		2.02	%	to	1.10	%
CS Commodity Return
2020		21,423		$0.49	to	$0.45		$10,128		5.96	%		0.55	%	to	1.45	%		(2.02	%)	to	(2.90	%)
2019		25,441		$0.50	to	$0.47		$12,321		0.87	%		0.55	%	to	1.45	%		6.11	%	to	5.16	%
2018		29,778		$0.47	to	$0.44		$13,656		2.60	%		0.55	%	to	1.45	%		(12.14	%)	to	(12.94	%)
2017		35,795		$0.54	to	$0.51		$18,741		9.03	%		0.55	%	to	1.45	%		0.96	%	to	0.06	%
2016		41,885		$0.53	to	$0.51		$21,831		—			0.55	%	to	1.45	%		11.41	%	to	10.41	%
CTIVP BR Gl Infl Prot Sec, Cl 3
2020		39,638		$1.80	to	$1.55		$67,369		0.56	%		0.55	%	to	1.45	%		8.52	%	to	7.54	%
2019		45,328		$1.66	to	$1.44		$71,210		3.16	%		0.55	%	to	1.45	%		7.22	%	to	6.26	%
2018		53,141		$1.55	to	$1.35		$78,153		—			0.55	%	to	1.45	%		(1.06	%)	to	(1.95	%)
2017		60,599		$1.56	to	$1.38		$90,400		2.29	%		0.55	%	to	1.45	%		1.98	%	to	1.07	%
2016		68,397		$1.53	to	$1.36		$100,365		—			0.55	%	to	1.45	%		7.90	%	to	6.93	%
CTIVP Lazard Intl Eq Adv, Cl 2
2020		17,570		$1.27	to	$1.15		$21,586		0.16	%		0.55	%	to	1.90	%		3.60	%	to	2.22	%
2019		17,059		$1.23	to	$1.12		$20,413		2.58	%		0.55	%	to	1.90	%		15.95	%	to	14.39	%
2018		15,778		$1.06	to	$0.98		$16,384		1.99	%		0.55	%	to	1.90	%		(16.67	%)	to	(17.80	%)
2017		12,629		$1.27	to	$1.20		$15,772		1.14	%		0.55	%	to	1.90	%		22.97	%	to	21.32	%
2016		5,026		$1.04	to	$0.99		$5,115		1.88	%		0.55	%	to	1.90	%		3.30	%	to	1.92	%
CTIVP Loomis Sayles Gro, Cl 1
2020		62,336		$2.34	to	$2.24		$143,801		—			0.55	%	to	1.45	%		31.21	%	to	30.04	%
2019		72,360		$1.78	to	$1.73		$127,746		—			0.55	%	to	1.45	%		31.03	%	to	29.86	%
2018		86,651		$1.36	to	$1.33		$117,135		—			0.55	%	to	1.45	%		(2.93	%)	to	(3.81	%)
2017		101,978		$1.40	to	$1.38		$142,510		—			0.55	%	to	1.45	%		32.30	%	to	31.12	%
2016		120,408		$1.06	to	$1.05		$127,611		—			0.55	%	to	1.45	%		5.14	%⁽⁵⁾	to	4.51	%⁽⁵⁾



76		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾			Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
CTIVP Vty Sycamore Estb Val, Cl 3
2020		10,052		$3.88	to	$2.90		$34,992		—			0.55	%	to	1.45	%		7.31	%	to	6.35	%
2019		12,437		$3.62	to	$2.73		$40,364		—			0.55	%	to	1.45	%		27.31	%	to	26.17	%
2018		12,856		$2.84	to	$2.16		$32,901		—			0.55	%	to	1.45	%		(10.59	%)	to	(11.40	%)
2017		12,502		$3.18	to	$2.44		$35,853		—			0.55	%	to	1.45	%		15.09	%	to	14.07	%
2016		11,633		$2.76	to	$2.14		$29,150		—			0.55	%	to	1.45	%		19.97	%	to	18.90	%
CTIVP WF Short Duration Govt, Cl 2
2020		53,584		$1.06	to	$0.94		$55,043		2.88	%		0.55	%	to	1.90	%		2.82	%	to	1.44	%
2019		26,142		$1.03	to	$0.92		$26,243		0.80	%		0.55	%	to	1.90	%		2.77	%	to	1.39	%
2018		23,287		$1.00	to	$0.91		$22,853		0.96	%		0.55	%	to	1.90	%		0.25	%	to	(1.10	%)
2017		19,668		$1.00	to	$0.92		$19,336		0.71	%		0.55	%	to	1.90	%		(0.10	%)	to	(1.44	%)
2016		19,199		$1.00	to	$0.93		$19,002		0.71	%		0.55	%	to	1.90	%		0.24	%	to	(1.11	%)
DWS Alt Asset Alloc VIP, Cl B
2020		10,984		$1.14	to	$1.02		$12,104		2.51	%		0.55	%	to	1.90	%		4.74	%	to	3.34	%
2019		13,011		$1.09	to	$0.98		$13,753		3.56	%		0.55	%	to	1.90	%		13.72	%	to	12.20	%
2018		14,302		$0.96	to	$0.88		$13,348		1.94	%		0.55	%	to	1.90	%		(9.85	%)	to	(11.07	%)
2017		18,141		$1.07	to	$0.99		$18,872		2.08	%		0.55	%	to	1.90	%		6.43	%	to	5.00	%
2016		21,291		$1.00	to	$0.94		$20,911		2.00	%		0.55	%	to	1.90	%		4.42	%	to	3.02	%
EV VT Floating-Rate Inc, Init Cl
2020		53,306		$1.56	to	$1.36		$78,848		3.33	%		0.55	%	to	1.45	%		1.41	%	to	0.53	%
2019		75,165		$1.54	to	$1.36		$109,951		4.32	%		0.55	%	to	1.45	%		6.49	%	to	5.54	%
2018		103,408		$1.44	to	$1.29		$142,449		3.75	%		0.55	%	to	1.45	%		(0.62	%)	to	(1.52	%)
2017		106,635		$1.45	to	$1.31		$148,477		3.26	%		0.55	%	to	1.45	%		2.85	%	to	1.93	%
2016		127,509		$1.41	to	$1.28		$173,277		3.49	%		0.55	%	to	1.45	%		8.35	%	to	7.38	%
Fid VIP Contrafund, Serv Cl 2
2020		156,503		$3.53	to	$2.67		$534,239		0.08	%		0.55	%	to	1.90	%		29.52	%	to	27.78	%
2019		172,296		$2.73	to	$2.09		$456,586		0.21	%		0.55	%	to	1.90	%		30.56	%	to	28.81	%
2018		190,555		$2.09	to	$1.62		$388,931		0.43	%		0.55	%	to	1.90	%		(7.16	%)	to	(8.41	%)
2017		208,759		$2.25	to	$1.77		$461,169		0.77	%		0.55	%	to	1.90	%		20.92	%	to	19.31	%
2016		234,428		$1.86	to	$1.48		$430,384		0.59	%		0.55	%	to	1.90	%		7.14	%	to	5.71	%
Fid VIP Gro & Inc, Serv Cl 2
2020		27,581		$3.28	to	$3.01		$86,752		1.91	%		0.55	%	to	1.20	%		7.00	%	to	6.31	%
2019		31,792		$3.07	to	$2.83		$93,498		3.45	%		0.55	%	to	1.20	%		28.97	%	to	28.13	%
2018		36,966		$2.38	to	$2.21		$84,455		0.20	%		0.55	%	to	1.20	%		(9.69	%)	to	(10.28	%)
2017		43,626		$2.63	to	$2.47		$110,621		1.06	%		0.55	%	to	1.20	%		15.97	%	to	15.22	%
2016		51,809		$2.27	to	$2.14		$113,580		1.51	%		0.55	%	to	1.20	%		15.18	%	to	14.43	%
Fid VIP Mid Cap, Serv Cl 2
2020		84,028		$5.83	to	$2.04		$364,896		0.40	%		0.55	%	to	1.90	%		17.22	%	to	15.65	%
2019		97,978		$4.97	to	$1.76		$363,510		0.66	%		0.55	%	to	1.90	%		22.50	%	to	20.86	%
2018		109,797		$4.06	to	$1.46		$335,038		0.39	%		0.55	%	to	1.90	%		(15.24	%)	to	(16.39	%)
2017		122,202		$4.79	to	$1.75		$444,591		0.48	%		0.55	%	to	1.90	%		19.88	%	to	18.27	%
2016		137,442		$4.00	to	$1.48		$422,842		0.30	%		0.55	%	to	1.90	%		11.31	%	to	9.82	%
Fid VIP Overseas, Serv Cl 2
2020		21,628		$2.71	to	$1.67		$50,424		0.22	%		0.55	%	to	1.45	%		14.70	%	to	13.67	%
2019		24,147		$2.36	to	$1.47		$49,487		1.45	%		0.55	%	to	1.45	%		26.80	%	to	25.67	%
2018		28,284		$1.86	to	$1.17		$45,831		1.24	%		0.55	%	to	1.45	%		(15.53	%)	to	(16.29	%)
2017		32,285		$2.20	to	$1.39		$61,971		1.18	%		0.55	%	to	1.45	%		29.28	%	to	28.12	%
2016		36,676		$1.71	to	$1.09		$54,726		1.15	%		0.55	%	to	1.45	%		(5.79	%)	to	(6.63	%)
Fid VIP Strategic Inc, Serv Cl 2
2020		127,920		$1.29	to	$1.16		$159,418		3.05	%		0.55	%	to	1.90	%		6.57	%	to	5.14	%
2019		135,767		$1.21	to	$1.10		$159,517		3.40	%		0.55	%	to	1.90	%		10.05	%	to	8.57	%
2018		116,492		$1.10	to	$1.02		$125,045		3.67	%		0.55	%	to	1.90	%		(3.36	%)	to	(4.66	%)
2017		104,865		$1.14	to	$1.07		$117,160		3.66	%		0.55	%	to	1.90	%		6.96	%	to	5.53	%
2016		70,066		$1.06	to	$1.01		$73,346		3.90	%		0.55	%	to	1.90	%		7.43	%	to	5.99	%
Frank Global Real Est, Cl 2
2020		26,984		$3.40	to	$1.10		$64,477		3.29	%		0.55	%	to	1.45	%		(5.91	%)	to	(6.75	%)
2019		31,459		$3.61	to	$1.18		$80,181		2.64	%		0.55	%	to	1.45	%		21.70	%	to	20.61	%
2018		36,256		$2.96	to	$0.98		$76,097		2.62	%		0.55	%	to	1.45	%		(7.29	%)	to	(8.12	%)
2017		44,547		$3.20	to	$1.06		$100,096		3.10	%		0.55	%	to	1.45	%		9.87	%	to	8.89	%
2016		54,384		$2.91	to	$0.98		$111,334		1.21	%		0.55	%	to	1.45	%		(0.01	%)	to	(0.90	%)



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			77


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾			Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
Frank Inc, Cl 2
2020		38,728		$1.40	to	$1.27		$52,301		5.97	%		0.55	%	to	1.90	%		0.14	%	to	(1.21	%)
2019		46,150		$1.40	to	$1.28		$62,607		5.35	%		0.55	%	to	1.90	%		15.42	%	to	13.87	%
2018		44,620		$1.22	to	$1.12		$52,750		4.72	%		0.55	%	to	1.90	%		(4.83	%)	to	(6.12	%)
2017		46,996		$1.28	to	$1.20		$58,671		4.15	%		0.55	%	to	1.90	%		9.07	%	to	7.62	%
2016		46,983		$1.17	to	$1.11		$54,094		4.99	%		0.55	%	to	1.90	%		13.40	%	to	11.89	%
Frank Mutual Shares, Cl 2
2020		32,570		$2.54	to	$1.56		$69,793		2.71	%		0.55	%	to	1.90	%		(5.56	%)	to	(6.83	%)
2019		39,528		$2.69	to	$1.67		$89,848		1.80	%		0.55	%	to	1.90	%		21.90	%	to	20.26	%
2018		44,892		$2.20	to	$1.39		$83,957		2.30	%		0.55	%	to	1.90	%		(9.57	%)	to	(10.79	%)
2017		53,333		$2.44	to	$1.56		$110,669		2.23	%		0.55	%	to	1.90	%		7.75	%	to	6.31	%
2016		60,700		$2.26	to	$1.47		$117,427		1.98	%		0.55	%	to	1.90	%		15.42	%	to	13.88	%
Frank Sm Cap Val, Cl 2
2020		28,578		$6.02	to	$1.94		$115,452		1.50	%		0.55	%	to	1.90	%		4.61	%	to	3.22	%
2019		32,667		$5.75	to	$1.88		$126,596		1.05	%		0.55	%	to	1.90	%		25.66	%	to	23.97	%
2018		34,466		$4.58	to	$1.51		$107,886		0.88	%		0.55	%	to	1.90	%		(13.36	%)	to	(14.53	%)
2017		38,047		$5.28	to	$1.77		$138,461		0.52	%		0.55	%	to	1.90	%		10.05	%	to	8.57	%
2016		42,895		$4.80	to	$1.63		$143,884		0.82	%		0.55	%	to	1.90	%		29.47	%	to	27.73	%
GS VIT Mid Cap Val, Inst
2020		19,376		$6.64	to	$4.31		$116,602		0.62	%		0.55	%	to	1.20	%		7.81	%	to	7.11	%
2019		22,573		$6.16	to	$4.02		$126,366		0.77	%		0.55	%	to	1.20	%		30.81	%	to	29.96	%
2018		26,237		$4.71	to	$3.09		$112,625		1.25	%		0.55	%	to	1.20	%		(10.95	%)	to	(11.53	%)
2017		30,996		$5.29	to	$3.50		$149,798		0.70	%		0.55	%	to	1.20	%		10.46	%	to	9.75	%
2016		37,325		$4.79	to	$3.19		$164,127		1.29	%		0.55	%	to	1.20	%		12.91	%	to	12.18	%
GS VIT Multi-Strategy Alt, Advisor
2020		7,250		$1.01	to	$0.93		$7,104		1.83	%		0.55	%	to	1.90	%		5.99	%	to	4.57	%
2019		6,769		$0.95	to	$0.88		$6,290		2.68	%		0.55	%	to	1.90	%		8.01	%	to	6.55	%
2018		6,233		$0.88	to	$0.83		$5,394		2.36	%		0.55	%	to	1.90	%		(7.61	%)	to	(8.86	%)
2017		5,549		$0.96	to	$0.91		$5,223		2.13	%		0.55	%	to	1.90	%		4.57	%	to	3.17	%
2016		5,049		$0.91	to	$0.88		$4,563		0.78	%		0.55	%	to	1.90	%		(0.27	%)	to	(1.61	%)
GS VIT U.S. Eq Insights, Inst
2020		34,242		$3.34	to	$2.81		$109,201		0.84	%		0.55	%	to	1.45	%		16.90	%	to	15.86	%
2019		40,322		$2.86	to	$2.43		$110,217		1.21	%		0.55	%	to	1.45	%		24.52	%	to	23.41	%
2018		47,779		$2.30	to	$1.97		$105,192		1.19	%		0.55	%	to	1.45	%		(6.71	%)	to	(7.55	%)
2017		52,854		$2.46	to	$2.13		$125,064		1.34	%		0.55	%	to	1.45	%		23.39	%	to	22.29	%
2016		61,378		$2.00	to	$1.74		$118,004		1.25	%		0.55	%	to	1.45	%		10.13	%	to	9.14	%
Inv Opp VI Dis Mid Cap Gro, Ser I
2020		15,946		$1.51	to	$1.50		$24,155		0.05	%		0.55	%	to	1.20	%		51.03	%⁽⁸⁾	to	50.36	%⁽⁸⁾
Invesco Opp VI Global, Ser II
2020		44,144		$4.25	to	$2.45		$158,216		0.44	%		0.55	%	to	1.90	%		26.64	%	to	24.94	%
2019		49,088		$3.36	to	$1.96		$139,266		0.64	%		0.55	%	to	1.90	%		30.73	%	to	28.98	%
2018		52,505		$2.57	to	$1.52		$114,539		0.75	%		0.55	%	to	1.90	%		(13.87	%)	to	(15.03	%)
2017		51,073		$2.98	to	$1.79		$130,695		0.73	%		0.55	%	to	1.90	%		35.57	%	to	33.77	%
2016		51,397		$2.20	to	$1.34		$97,849		0.78	%		0.55	%	to	1.90	%		(0.70	%)	to	(2.03	%)
Inves Opp VI Gbl Strat Inc, Ser II
2020		109,621		$1.91	to	$1.03		$192,491		5.23	%		0.55	%	to	1.90	%		2.43	%	to	1.06	%
2019		128,020		$1.86	to	$1.02		$220,135		3.41	%		0.55	%	to	1.90	%		10.00	%	to	8.52	%
2018		149,770		$1.69	to	$0.94		$234,872		4.57	%		0.55	%	to	1.90	%		(5.07	%)	to	(6.35	%)
2017		184,653		$1.78	to	$1.00		$306,521		1.99	%		0.55	%	to	1.90	%		5.46	%	to	4.05	%
2016		217,796		$1.69	to	$0.97		$344,745		4.63	%		0.55	%	to	1.90	%		5.68	%	to	4.27	%
Inves Opp VI Mn St Sm Cap, Ser II
2020		27,781		$4.20	to	$2.35		$98,850		0.37	%		0.55	%	to	1.90	%		18.98	%	to	17.38	%
2019		31,718		$3.53	to	$2.00		$94,237		—			0.55	%	to	1.90	%		25.44	%	to	23.76	%
2018		35,518		$2.81	to	$1.62		$84,593		0.06	%		0.55	%	to	1.90	%		(11.03	%)	to	(12.23	%)
2017		37,837		$3.16	to	$1.84		$101,756		0.65	%		0.55	%	to	1.90	%		13.29	%	to	11.77	%
2016		38,137		$2.79	to	$1.65		$91,572		0.25	%		0.55	%	to	1.90	%		17.03	%	to	15.46	%



78		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾			Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
Invesco VI Am Fran, Ser II
2020		16,180		$3.55	to	$3.28		$55,833		—			0.55	%	to	1.45	%		41.22	%	to	39.95	%
2019		19,916		$2.51	to	$2.34		$48,830		—			0.55	%	to	1.45	%		35.68	%	to	34.46	%
2018		23,543		$1.85	to	$1.74		$42,681		—			0.55	%	to	1.45	%		(4.42	%)	to	(5.28	%)
2017		26,875		$1.94	to	$1.84		$51,141		—			0.55	%	to	1.45	%		26.33	%	to	25.21	%
2016		31,728		$1.53	to	$1.47		$47,938		—			0.55	%	to	1.45	%		1.46	%	to	0.55	%
Invesco VI Bal Risk Alloc, Ser II
2020		25,880		$1.38	to	$1.25		$34,796		7.46	%		0.55	%	to	1.90	%		9.39	%	to	7.92	%
2019		31,724		$1.27	to	$1.16		$39,137		—			0.55	%	to	1.90	%		14.25	%	to	12.72	%
2018		34,792		$1.11	to	$1.02		$37,768		1.26	%		0.55	%	to	1.90	%		(7.23	%)	to	(8.49	%)
2017		39,964		$1.19	to	$1.12		$46,895		3.79	%		0.55	%	to	1.90	%		9.23	%	to	7.77	%
2016		39,732		$1.09	to	$1.04		$42,960		0.20	%		0.55	%	to	1.90	%		10.91	%	to	9.42	%
Invesco VI Comstock, Ser II
2020		36,170		$2.86	to	$2.07		$94,658		2.13	%		0.55	%	to	1.45	%		(1.63	%)	to	(2.51	%)
2019		42,757		$2.91	to	$2.12		$113,810		1.67	%		0.55	%	to	1.45	%		24.26	%	to	23.14	%
2018		50,584		$2.34	to	$1.72		$108,556		1.40	%		0.55	%	to	1.45	%		(12.85	%)	to	(13.64	%)
2017		58,649		$2.69	to	$2.00		$144,815		1.92	%		0.55	%	to	1.45	%		16.93	%	to	15.89	%
2016		71,705		$2.30	to	$1.72		$151,865		1.28	%		0.55	%	to	1.45	%		16.35	%	to	15.31	%
Invesco VI Div Divd, Ser I
2020		8,941		$2.26	to	$2.13		$19,755		2.93	%		0.55	%	to	1.20	%		(0.41	%)	to	(1.05	%)
2019		11,136		$2.27	to	$2.15		$24,624		2.84	%		0.55	%	to	1.20	%		24.40	%	to	23.60	%
2018		12,965		$1.83	to	$1.74		$23,127		2.23	%		0.55	%	to	1.20	%		(8.08	%)	to	(8.68	%)
2017		17,668		$1.99	to	$1.90		$34,394		1.63	%		0.55	%	to	1.20	%		7.98	%	to	7.28	%
2016		20,872		$1.84	to	$1.77		$37,763		1.39	%		0.55	%	to	1.20	%		14.18	%	to	13.45	%
Invesco VI Hlth, Ser II
2020		14,173		$3.37	to	$3.13		$46,553		0.10	%		0.55	%	to	1.45	%		13.57	%	to	12.56	%
2019		14,951		$2.96	to	$2.78		$43,401		—			0.55	%	to	1.45	%		31.46	%	to	30.28	%
2018		17,735		$2.26	to	$2.13		$39,354		—			0.55	%	to	1.45	%		0.06	%	to	(0.84	%)
2017		20,032		$2.25	to	$2.15		$44,570		0.08	%		0.55	%	to	1.45	%		14.92	%	to	13.89	%
2016		24,438		$1.96	to	$1.89		$47,482		—			0.55	%	to	1.45	%		(12.17	%)	to	(12.95	%)
Invesco VI Intl Gro, Ser II
2020		23,326		$2.49	to	$1.94		$53,197		2.08	%		0.55	%	to	1.45	%		13.11	%	to	12.10	%
2019		27,790		$2.20	to	$1.73		$56,237		1.25	%		0.55	%	to	1.45	%		27.54	%	to	26.39	%
2018		33,586		$1.72	to	$1.37		$53,415		1.70	%		0.55	%	to	1.45	%		(15.67	%)	to	(16.43	%)
2017		41,420		$2.04	to	$1.64		$78,374		1.24	%		0.55	%	to	1.45	%		22.06	%	to	20.96	%
2016		49,469		$1.67	to	$1.36		$77,046		1.14	%		0.55	%	to	1.45	%		(1.24	%)	to	(2.12	%)
Invesco VI Tech, Ser I
2020		10,030		$3.55	to	$3.67		$34,515		—			0.55	%	to	1.20	%		45.31	%	to	44.37	%
2019		10,550		$2.44	to	$2.55		$25,039		—			0.55	%	to	1.20	%		35.14	%	to	34.26	%
2018		12,085		$1.81	to	$1.90		$21,264		—			0.55	%	to	1.20	%		(1.00	%)	to	(1.65	%)
2017		12,714		$1.82	to	$1.93		$22,625		—			0.55	%	to	1.20	%		34.39	%	to	33.52	%
2016		14,718		$1.36	to	$1.44		$19,521		—			0.55	%	to	1.20	%		(1.30	%)	to	(1.94	%)
Ivy VIP Asset Strategy, Cl II
2020		10,756		$1.52	to	$1.37		$15,965		2.00	%		0.55	%	to	1.90	%		13.25	%	to	11.73	%
2019		12,187		$1.34	to	$1.23		$16,046		2.12	%		0.55	%	to	1.90	%		21.11	%	to	19.48	%
2018		13,310		$1.11	to	$1.03		$14,604		1.83	%		0.55	%	to	1.90	%		(5.96	%)	to	(7.23	%)
2017		13,785		$1.18	to	$1.11		$16,130		1.48	%		0.55	%	to	1.90	%		17.63	%	to	16.05	%
2016		18,669		$1.00	to	$0.95		$18,610		0.59	%		0.55	%	to	1.90	%		(3.10	%)	to	(4.40	%)
Janus Henderson VIT Bal, Serv
2020		74,253		$1.37	to	$1.32		$100,413		1.60	%		0.55	%	to	1.90	%		13.40	%	to	11.88	%
2019		56,949		$1.21	to	$1.18		$68,253		1.82	%		0.55	%	to	1.90	%		21.60	%	to	19.98	%
2018		32,123		$0.99	to	$0.98		$31,839		1.50	%		0.55	%	to	1.90	%		(0.67	%)⁽⁷⁾	to	(1.58	%)⁽⁷⁾
Janus Henderson VIT Flex Bd, Serv
2020		55,739		$1.25	to	$1.12		$67,139		2.47	%		0.55	%	to	1.90	%		9.65	%	to	8.18	%
2019		44,425		$1.14	to	$1.04		$49,020		2.88	%		0.55	%	to	1.90	%		8.68	%	to	7.22	%
2018		41,077		$1.05	to	$0.97		$41,907		2.59	%		0.55	%	to	1.90	%		(1.83	%)	to	(3.15	%)
2017		48,174		$1.07	to	$1.00		$50,335		2.46	%		0.55	%	to	1.90	%		2.79	%	to	1.41	%
2016		52,385		$1.04	to	$0.99		$53,508		2.53	%		0.55	%	to	1.90	%		1.66	%	to	0.30	%



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			79


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾			Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
Janus Hend VIT Gbl Tech Innov, Srv
2020		12,474		$3.28	to	$7.38		$39,831		—			0.55	%	to	1.20	%		49.90	%	to	48.93	%
2019		13,302		$2.19	to	$4.96		$28,362		—			0.55	%	to	1.20	%		44.03	%	to	43.09	%
2018		15,070		$1.52	to	$3.46		$22,441		—			0.55	%	to	1.20	%		0.35	%	to	(0.30	%)
2017		16,362		$1.51	to	$3.47		$24,230		—			0.55	%	to	1.20	%		44.12	%	to	43.19	%
2016		18,360		$1.05	to	$2.43		$18,891		0.09	%		0.55	%	to	1.20	%		13.23	%	to	12.50	%
Janus Henderson VIT Overseas, Serv
2020		11,852		$1.84	to	$2.86		$20,942		1.20	%		0.55	%	to	1.20	%		15.39	%	to	14.64	%
2019		13,664		$1.60	to	$2.50		$20,973		1.82	%		0.55	%	to	1.20	%		26.01	%	to	25.20	%
2018		15,915		$1.27	to	$2.00		$19,487		1.64	%		0.55	%	to	1.20	%		(15.60	%)	to	(16.16	%)
2017		17,974		$1.50	to	$2.38		$26,123		1.58	%		0.55	%	to	1.20	%		30.09	%	to	29.25	%
2016		20,913		$1.15	to	$1.84		$23,412		4.67	%		0.55	%	to	1.20	%		(7.22	%)	to	(7.82	%)
Janus Henderson VIT Res, Serv
2020		18,250		$3.54	to	$2.96		$61,214		0.22	%		0.55	%	to	1.90	%		31.85	%	to	30.08	%
2019		20,124		$2.68	to	$2.27		$51,489		0.31	%		0.55	%	to	1.90	%		34.48	%	to	32.68	%
2018		21,976		$2.00	to	$1.71		$42,067		0.36	%		0.55	%	to	1.90	%		(3.37	%)	to	(4.68	%)
2017		24,074		$2.07	to	$1.80		$47,967		0.24	%		0.55	%	to	1.90	%		26.86	%	to	25.16	%
2016		28,456		$1.63	to	$1.44		$44,874		0.38	%		0.55	%	to	1.90	%		(0.27	%)	to	(1.61	%)
Lazard Ret Global Dyn MA, Serv
2020		11,732		$1.53	to	$1.38		$17,230		0.61	%		0.55	%	to	1.90	%		0.26	%	to	(1.09	%)
2019		14,412		$1.53	to	$1.39		$21,230		0.05	%		0.55	%	to	1.90	%		17.14	%	to	15.57	%
2018		15,222		$1.30	to	$1.21		$19,245		1.38	%		0.55	%	to	1.90	%		(7.08	%)	to	(8.34	%)
2017		12,337		$1.40	to	$1.32		$16,905		—			0.55	%	to	1.90	%		19.87	%	to	18.27	%
2016		12,934		$1.17	to	$1.11		$14,857		0.21	%		0.55	%	to	1.90	%		2.74	%	to	1.36	%
MFS Mass Inv Gro Stock, Serv Cl
2020		35,260		$2.22	to	$2.10		$76,753		0.22	%		0.55	%	to	1.45	%		21.53	%	to	20.44	%
2019		36,777		$1.82	to	$1.75		$66,117		0.34	%		0.55	%	to	1.45	%		38.82	%	to	37.58	%
2018		41,339		$1.31	to	$1.27		$53,770		0.33	%		0.55	%	to	1.45	%		0.02	%	to	(0.88	%)
2017		48,413		$1.31	to	$1.28		$63,174		0.41	%		0.55	%	to	1.45	%		27.40	%	to	26.26	%
2016		58,861		$1.03	to	$1.01		$60,486		0.38	%		0.55	%	to	1.45	%		5.26	%	to	4.32	%
MFS New Dis, Serv Cl
2020		10,533		$4.91	to	$5.15		$49,536		—			0.55	%	to	1.20	%		44.78	%	to	43.85	%
2019		11,428		$3.39	to	$3.58		$37,250		—			0.55	%	to	1.20	%		40.50	%	to	39.59	%
2018		12,560		$2.41	to	$2.56		$29,201		—			0.55	%	to	1.20	%		(2.26	%)	to	(2.90	%)
2017		14,310		$2.47	to	$2.64		$34,090		—			0.55	%	to	1.20	%		25.64	%	to	24.83	%
2016		16,734		$1.97	to	$2.11		$31,851		—			0.55	%	to	1.20	%		8.20	%	to	7.50	%
MFS Utilities, Serv Cl
2020		40,895		$4.69	to	$1.79		$155,077		2.21	%		0.55	%	to	1.90	%		5.04	%	to	3.63	%
2019		46,751		$4.46	to	$1.73		$169,548		3.78	%		0.55	%	to	1.90	%		24.12	%	to	22.45	%
2018		51,317		$3.59	to	$1.41		$151,015		0.83	%		0.55	%	to	1.90	%		0.26	%	to	(1.09	%)
2017		61,196		$3.59	to	$1.43		$180,143		4.10	%		0.55	%	to	1.90	%		13.87	%	to	12.35	%
2016		70,057		$3.15	to	$1.27		$182,085		3.65	%		0.55	%	to	1.90	%		10.63	%	to	9.15	%
MS VIF Dis, Cl II
2020		19,577		$8.13	to	$5.14		$154,281		—			0.55	%	to	1.90	%		150.66	%	to	147.31	%
2019		18,470		$3.24	to	$2.08		$58,529		—			0.55	%	to	1.90	%		39.20	%	to	37.33	%
2018		17,284		$2.33	to	$1.51		$39,637		—			0.55	%	to	1.90	%		9.92	%	to	8.43	%
2017		14,475		$2.12	to	$1.40		$30,403		—			0.55	%	to	1.90	%		37.84	%	to	36.00	%
2016		16,090		$1.54	to	$1.03		$24,689		—			0.55	%	to	1.90	%		(9.34	%)	to	(10.56	%)
MS VIF Global Real Est, Cl II
2020		13,408		$1.41	to	$1.29		$18,246		4.39	%		0.55	%	to	1.45	%		(15.32	%)	to	(16.08	%)
2019		16,636		$1.66	to	$1.54		$26,812		2.61	%		0.55	%	to	1.45	%		17.41	%	to	16.35	%
2018		20,200		$1.41	to	$1.32		$27,834		3.10	%		0.55	%	to	1.45	%		(8.71	%)	to	(9.53	%)
2017		25,820		$1.55	to	$1.46		$39,104		2.41	%		0.55	%	to	1.45	%		9.11	%	to	8.13	%
2016		32,431		$1.42	to	$1.35		$45,178		1.36	%		0.55	%	to	1.45	%		2.56	%	to	1.64	%
NB AMT Intl Eq, Cl S
2020		6,800		$1.57	to	$1.55		$10,623		0.50	%		0.55	%	to	1.45	%		11.95	%	to	10.95	%
2019		7,924		$1.40	to	$1.40		$11,112		0.15	%		0.55	%	to	1.45	%		26.98	%	to	25.85	%
2018		9,712		$1.10	to	$1.11		$10,777		0.15	%		0.55	%	to	1.45	%		(17.41	%)	to	(18.15	%)
2017		11,254		$1.34	to	$1.36		$15,150		0.65	%		0.55	%	to	1.45	%		26.07	%	to	24.94	%
2016		12,747		$1.06	to	$1.08		$13,664		0.62	%		0.55	%	to	1.45	%		(2.35	%)	to	(3.23	%)



80		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾			Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
NB AMT US Eq Index PW Strat, Cl S
2020		4,401		$1.12	to	$1.02		$4,769		0.86	%		0.55	%	to	1.90	%		7.67	%	to	6.22	%
2019		4,240		$1.04	to	$0.96		$4,286		0.16	%		0.55	%	to	1.90	%		14.63	%	to	13.09	%
2018		4,045		$0.91	to	$0.85		$3,586		—			0.55	%	to	1.90	%		(7.30	%)	to	(8.54	%)
2017		3,417		$0.98	to	$0.93		$3,281		—			0.55	%	to	1.90	%		6.10	%	to	4.68	%
2016		3,376		$0.92	to	$0.89		$3,072		—			0.55	%	to	1.90	%		(1.19	%)	to	(2.51	%)
PIMCO VIT All Asset, Advisor Cl
2020		32,326		$1.88	to	$1.23		$58,128		4.85	%		0.55	%	to	1.90	%		7.32	%	to	5.88	%
2019		39,328		$1.75	to	$1.16		$66,173		2.77	%		0.55	%	to	1.90	%		11.13	%	to	9.64	%
2018		46,372		$1.58	to	$1.06		$70,331		2.95	%		0.55	%	to	1.90	%		(5.97	%)	to	(7.23	%)
2017		56,360		$1.68	to	$1.14		$91,337		4.43	%		0.55	%	to	1.90	%		12.76	%	to	11.25	%
2016		64,890		$1.49	to	$1.02		$93,646		2.43	%		0.55	%	to	1.90	%		12.29	%	to	10.77	%
PIMCO VIT Glb Man As Alloc, Adv Cl
2020		4,148		$1.45	to	$1.29		$5,747		7.83	%		0.55	%	to	1.90	%		16.08	%	to	14.51	%
2019		4,415		$1.25	to	$1.13		$5,298		2.12	%		0.55	%	to	1.90	%		16.32	%	to	14.77	%
2018		4,395		$1.08	to	$0.98		$4,553		1.59	%		0.55	%	to	1.90	%		(6.13	%)	to	(7.40	%)
2017		4,421		$1.15	to	$1.06		$4,914		2.16	%		0.55	%	to	1.90	%		13.37	%	to	11.85	%
2016		4,276		$1.01	to	$0.95		$4,210		2.34	%		0.55	%	to	1.90	%		3.35	%	to	1.98	%
PIMCO VIT Tot Return, Advisor Cl
2020		54,942		$1.22	to	$1.10		$64,444		1.99	%		0.55	%	to	1.90	%		7.94	%	to	6.50	%
2019		39,647		$1.13	to	$1.03		$43,292		2.89	%		0.55	%	to	1.90	%		7.65	%	to	6.21	%
2018		29,874		$1.05	to	$0.97		$30,435		2.43	%		0.55	%	to	1.90	%		(1.18	%)	to	(2.51	%)
2017		28,808		$1.06	to	$0.99		$29,845		1.92	%		0.55	%	to	1.90	%		4.24	%	to	2.84	%
2016		18,986		$1.02	to	$0.97		$18,973		1.98	%		0.55	%	to	1.90	%		2.01	%	to	0.65	%
Put VT Global Hlth Care, Cl IB
2020		6,500		$4.01	to	$3.69		$24,820		0.48	%		0.55	%	to	1.20	%		15.64	%	to	14.89	%
2019		7,149		$3.47	to	$3.21		$23,677		—			0.55	%	to	1.20	%		29.58	%	to	28.74	%
2018		8,767		$2.68	to	$2.49		$22,465		0.99	%		0.55	%	to	1.20	%		(1.14	%)	to	(1.79	%)
2017		9,934		$2.71	to	$2.54		$25,818		0.53	%		0.55	%	to	1.20	%		14.67	%	to	13.93	%
2016		11,746		$2.36	to	$2.23		$26,703		—			0.55	%	to	1.20	%		(11.84	%)	to	(12.41	%)
Put VT Intl Eq, Cl IB
2020		5,740		$2.16	to	$2.09		$11,820		1.62	%		0.55	%	to	1.20	%		11.48	%	to	10.76	%
2019		6,274		$1.93	to	$1.89		$11,617		1.43	%		0.55	%	to	1.20	%		24.47	%	to	23.66	%
2018		7,342		$1.55	to	$1.53		$10,946		1.42	%		0.55	%	to	1.20	%		(19.56	%)	to	(20.08	%)
2017		8,597		$1.93	to	$1.91		$15,980		2.24	%		0.55	%	to	1.20	%		25.89	%	to	25.07	%
2016		9,846		$1.53	to	$1.53		$14,585		3.53	%		0.55	%	to	1.20	%		(2.99	%)	to	(3.61	%)
Put VT Sus Leaders, Cl IB
2020		8,424		$4.42	to	$4.13		$36,224		0.42	%		0.55	%	to	1.20	%		28.19	%	to	27.36	%
2019		9,530		$3.45	to	$3.24		$32,045		0.45	%		0.55	%	to	1.20	%		35.61	%	to	34.73	%
2018		10,470		$2.54	to	$2.41		$26,029		—			0.55	%	to	1.20	%		(2.07	%)	to	(2.71	%)
2017		11,436		$2.60	to	$2.48		$29,120		0.63	%		0.55	%	to	1.20	%		28.52	%	to	27.69	%
2016		12,838		$2.02	to	$1.94		$25,512		0.72	%		0.55	%	to	1.20	%		7.20	%	to	6.51	%
Temp Global Bond, Cl 2
2020		29,605		$0.95	to	$0.86		$27,164		8.50	%		0.55	%	to	1.90	%		(5.80	%)	to	(7.07	%)
2019		35,065		$1.01	to	$0.92		$34,358		7.17	%		0.55	%	to	1.90	%		1.45	%	to	0.09	%
2018		37,431		$1.00	to	$0.92		$36,361		—			0.55	%	to	1.90	%		1.38	%	to	0.01	%
2017		37,623		$0.98	to	$0.92		$36,206		—			0.55	%	to	1.90	%		1.37	%	to	0.02	%
2016		33,736		$0.97	to	$0.92		$32,181		—			0.55	%	to	1.90	%		2.38	%	to	1.00	%
VanEck VIP Global Gold, Cl S
2020		24,609		$1.41	to	$1.27		$33,396		2.86	%		0.55	%	to	1.90	%		37.87	%	to	36.02	%
2019		19,858		$1.02	to	$0.94		$19,650		—			0.55	%	to	1.90	%		37.99	%	to	36.14	%
2018		17,188		$0.74	to	$0.69		$12,411		3.11	%		0.55	%	to	1.90	%		(16.16	%)	to	(17.30	%)
2017		14,742		$0.88	to	$0.83		$12,758		4.45	%		0.55	%	to	1.90	%		11.02	%	to	9.53	%
2016		14,214		$0.80	to	$0.76		$11,190		0.32	%		0.55	%	to	1.90	%		47.13	%	to	45.16	%
VP Aggr, Cl 2
2020		447,140		$2.39	to	$1.79		$1,022,254		—			0.55	%	to	1.90	%		14.36	%	to	12.82	%
2019		514,782		$2.09	to	$1.58		$1,033,752		—			0.55	%	to	1.90	%		20.92	%	to	19.30	%
2018		589,593		$1.73	to	$1.33		$983,660		—			0.55	%	to	1.90	%		(9.09	%)	to	(10.31	%)
2017		645,382		$1.90	to	$1.48		$1,188,161		—			0.55	%	to	1.90	%		18.26	%	to	16.68	%
2016		694,293		$1.61	to	$1.27		$1,085,154		—			0.55	%	to	1.90	%		5.33	%	to	3.92	%



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			81


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾		Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
VP Aggr, Cl 4
2020		244,947		$2.39	to	$2.17		$563,163		—		0.55	%	to	1.45	%		14.33	%	to	13.30	%
2019		297,629		$2.09	to	$1.92		$600,819		—		0.55	%	to	1.45	%		21.01	%	to	19.93	%
2018		364,028		$1.73	to	$1.60		$609,397		—		0.55	%	to	1.45	%		(9.12	%)	to	(9.94	%)
2017		438,155		$1.90	to	$1.77		$810,257		—		0.55	%	to	1.45	%		18.22	%	to	17.17	%
2016		554,043		$1.61	to	$1.51		$870,142		—		0.55	%	to	1.45	%		5.39	%	to	4.44	%
VP Conserv, Cl 2
2020		444,639		$1.54	to	$1.23		$651,949		—		0.55	%	to	1.90	%		8.70	%	to	7.25	%
2019		334,581		$1.42	to	$1.15		$452,819		—		0.55	%	to	1.90	%		10.14	%	to	8.67	%
2018		313,974		$1.29	to	$1.06		$387,057		—		0.55	%	to	1.90	%		(3.49	%)	to	(4.79	%)
2017		364,115		$1.33	to	$1.11		$466,977		—		0.55	%	to	1.90	%		6.83	%	to	5.40	%
2016		420,989		$1.25	to	$1.05		$507,922		—		0.55	%	to	1.90	%		2.87	%	to	1.49	%
VP Conserv, Cl 4
2020		345,597		$1.54	to	$1.40		$508,729		—		0.55	%	to	1.45	%		8.64	%	to	7.66	%
2019		322,396		$1.42	to	$1.30		$438,288		—		0.55	%	to	1.45	%		10.14	%	to	9.15	%
2018		359,816		$1.29	to	$1.19		$446,021		—		0.55	%	to	1.45	%		(3.41	%)	to	(4.29	%)
2017		438,966		$1.33	to	$1.24		$565,866		—		0.55	%	to	1.45	%		6.75	%	to	5.80	%
2016		557,147		$1.25	to	$1.17		$675,846		—		0.55	%	to	1.45	%		2.87	%	to	1.95	%
VP Man Risk, Cl 2
2020		185,210		$1.21	to	$1.16		$220,500		—		0.55	%	to	1.90	%		7.20	%	to	5.76	%
2019		159,500		$1.13	to	$1.09		$177,905		—		0.55	%	to	1.90	%		15.42	%	to	13.87	%
2018		95,804		$0.98	to	$0.96		$92,980		—		0.55	%	to	1.90	%		(5.82	%)	to	(7.09	%)
2017		16,502		$1.04	to	$1.03		$17,080		—		0.55	%	to	1.90	%		3.53	%⁽⁶⁾	to	3.14	%⁽⁶⁾
VP Man Risk US, Cl 2
2020		207,706		$1.29	to	$1.23		$263,829		—		0.55	%	to	1.90	%		9.19	%	to	7.72	%
2019		146,325		$1.18	to	$1.14		$171,094		—		0.55	%	to	1.90	%		17.67	%	to	16.09	%
2018		72,408		$1.00	to	$0.98		$72,135		—		0.55	%	to	1.90	%		(4.07	%)	to	(5.36	%)
2017		10,227		$1.04	to	$1.04		$10,666		—		0.55	%	to	1.90	%		4.33	%⁽⁶⁾	to	3.94	%⁽⁶⁾
VP Man Vol Conserv, Cl 2
2020		649,932		$1.30	to	$1.19		$826,131		—		0.55	%	to	1.90	%		7.53	%	to	6.09	%
2019		430,973		$1.21	to	$1.12		$511,641		—		0.55	%	to	1.90	%		11.30	%	to	9.81	%
2018		352,073		$1.09	to	$1.02		$377,188		—		0.55	%	to	1.90	%		(3.12	%)	to	(4.42	%)
2017		371,569		$1.12	to	$1.07		$412,801		—		0.55	%	to	1.90	%		7.30	%	to	5.86	%
2016		375,994		$1.05	to	$1.01		$390,968		—		0.55	%	to	1.90	%		2.49	%	to	1.12	%
VP Man Vol Conserv Gro, Cl 2
2020		1,128,542		$1.37	to	$1.27		$1,535,498		—		0.55	%	to	1.90	%		8.55	%	to	7.10	%
2019		1,086,807		$1.26	to	$1.19		$1,368,390		—		0.55	%	to	1.90	%		13.37	%	to	11.85	%
2018		1,045,272		$1.11	to	$1.06		$1,166,105		—		0.55	%	to	1.90	%		(4.83	%)	to	(6.11	%)
2017		1,090,668		$1.17	to	$1.13		$1,283,320		—		0.55	%	to	1.90	%		10.58	%	to	9.11	%
2016		1,147,613		$1.05	to	$1.04		$1,225,828		—		0.55	%	to	1.90	%		2.60	%	to	1.23	%
VP Man Vol Gro, Cl 2
2020		7,572,902		$1.48	to	$1.45		$11,679,063		—		0.55	%	to	1.90	%		10.69	%	to	9.20	%
2019		7,648,690		$1.34	to	$1.33		$10,691,504		—		0.55	%	to	1.90	%		17.61	%	to	16.03	%
2018		7,690,166		$1.14	to	$1.15		$9,161,189		—		0.55	%	to	1.90	%		(8.24	%)	to	(9.48	%)
2017		7,241,065		$1.24	to	$1.27		$9,417,648		—		0.55	%	to	1.90	%		16.84	%	to	15.28	%
2016		6,861,703		$1.06	to	$1.10		$7,649,392		—		0.55	%	to	1.90	%		2.80	%	to	1.42	%
VP Man Vol Mod Gro, Cl 2
2020		9,435,051		$1.43	to	$1.45		$14,491,911		—		0.55	%	to	1.90	%		9.77	%	to	8.30	%
2019		9,915,419		$1.31	to	$1.34		$13,928,600		—		0.55	%	to	1.90	%		15.53	%	to	13.98	%
2018		10,282,670		$1.13	to	$1.18		$12,547,330		—		0.55	%	to	1.90	%		(6.37	%)	to	(7.63	%)
2017		10,233,494		$1.21	to	$1.27		$13,380,654		—		0.55	%	to	1.90	%		13.72	%	to	12.20	%
2016		10,167,228		$1.06	to	$1.14		$11,730,363		—		0.55	%	to	1.90	%		2.85	%	to	1.47	%
VP Mod, Cl 2
2020		3,989,791		$1.97	to	$1.50		$7,493,232		—		0.55	%	to	1.90	%		12.25	%	to	10.74	%
2019		4,164,098		$1.75	to	$1.36		$6,996,952		—		0.55	%	to	1.90	%		15.50	%	to	13.95	%
2018		4,279,589		$1.52	to	$1.19		$6,252,850		—		0.55	%	to	1.90	%		(6.09	%)	to	(7.36	%)
2017		4,525,857		$1.62	to	$1.29		$7,073,183		—		0.55	%	to	1.90	%		12.60	%	to	11.10	%
2016		4,720,820		$1.44	to	$1.16		$6,581,507		—		0.55	%	to	1.90	%		4.06	%	to	2.67	%



82		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾			Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
VP Mod, Cl 4
2020		3,634,891		$1.97	to	$1.79		$6,870,098		—			0.55	%	to	1.45	%		12.17	%	to	11.17	%
2019		4,146,579		$1.76	to	$1.61		$7,014,436		—			0.55	%	to	1.45	%		15.54	%	to	14.50	%
2018		4,786,697		$1.52	to	$1.41		$7,036,348		—			0.55	%	to	1.45	%		(6.09	%)	to	(6.93	%)
2017		5,535,497		$1.62	to	$1.51		$8,698,841		—			0.55	%	to	1.45	%		12.59	%	to	11.58	%
2016		6,377,730		$1.44	to	$1.35		$8,937,621		—			0.55	%	to	1.45	%		4.06	%	to	3.12	%
VP Mod Aggr, Cl 2
2020		1,529,551		$2.18	to	$1.64		$3,180,301		—			0.55	%	to	1.90	%		13.41	%	to	11.89	%
2019		1,759,401		$1.92	to	$1.46		$3,240,508		—			0.55	%	to	1.90	%		18.06	%	to	16.48	%
2018		2,013,548		$1.63	to	$1.26		$3,155,126		—			0.55	%	to	1.90	%		(7.55	%)	to	(8.79	%)
2017		2,232,170		$1.76	to	$1.38		$3,799,415		—			0.55	%	to	1.90	%		15.51	%	to	13.97	%
2016		2,427,281		$1.52	to	$1.21		$3,592,456		—			0.55	%	to	1.90	%		4.69	%	to	3.29	%
VP Mod Aggr, Cl 4
2020		903,028		$2.18	to	$1.98		$1,890,515		—			0.55	%	to	1.45	%		13.39	%	to	12.37	%
2019		1,095,299		$1.92	to	$1.76		$2,029,967		—			0.55	%	to	1.45	%		18.10	%	to	17.04	%
2018		1,388,678		$1.63	to	$1.50		$2,188,002		—			0.55	%	to	1.45	%		(7.59	%)	to	(8.42	%)
2017		1,694,432		$1.76	to	$1.64		$2,900,251		—			0.55	%	to	1.45	%		15.56	%	to	14.52	%
2016		2,083,794		$1.52	to	$1.43		$3,098,935		—			0.55	%	to	1.45	%		4.68	%	to	3.75	%
VP Mod Conserv, Cl 2
2020		848,396		$1.74	to	$1.36		$1,404,346		—			0.55	%	to	1.90	%		10.40	%	to	8.92	%
2019		853,533		$1.58	to	$1.25		$1,285,589		—			0.55	%	to	1.90	%		12.89	%	to	11.38	%
2018		857,276		$1.40	to	$1.12		$1,148,665		—			0.55	%	to	1.90	%		(4.65	%)	to	(5.94	%)
2017		951,569		$1.46	to	$1.19		$1,344,016		—			0.55	%	to	1.90	%		9.41	%	to	7.94	%
2016		1,050,146		$1.34	to	$1.10		$1,362,169		—			0.55	%	to	1.90	%		3.40	%	to	2.01	%
VP Mod Conserv, Cl 4
2020		755,456		$1.74	to	$1.58		$1,259,908		—			0.55	%	to	1.45	%		10.38	%	to	9.39	%
2019		848,431		$1.58	to	$1.45		$1,287,128		—			0.55	%	to	1.45	%		12.87	%	to	11.86	%
2018		966,531		$1.40	to	$1.29		$1,304,637		—			0.55	%	to	1.45	%		(4.58	%)	to	(5.44	%)
2017		1,166,069		$1.47	to	$1.37		$1,656,917		—			0.55	%	to	1.45	%		9.31	%	to	8.34	%
2016		1,410,424		$1.34	to	$1.26		$1,841,117		—			0.55	%	to	1.45	%		3.47	%	to	2.54	%
VP Ptnrs Core Eq, Cl 3
2020		8,699		$2.61	to	$2.34		$21,712		—			0.55	%	to	1.45	%		16.20	%	to	15.16	%
2019		11,078		$2.25	to	$2.03		$23,860		—			0.55	%	to	1.45	%		25.69	%	to	24.56	%
2018		13,454		$1.79	to	$1.63		$23,146		—			0.55	%	to	1.45	%		(8.59	%)	to	(9.41	%)
2017		17,029		$1.95	to	$1.80		$32,189		—			0.55	%	to	1.45	%		19.62	%	to	18.55	%
2016		20,722		$1.63	to	$1.52		$32,885		—			0.55	%	to	1.45	%		9.09	%	to	8.11	%
VP Ptnrs Sm Cap Val, Cl 3
2020		17,789		$3.85	to	$1.98		$58,544		—			0.55	%	to	1.45	%		3.55	%	to	2.62	%
2019		20,084		$3.72	to	$1.93		$63,888		—			0.55	%	to	1.45	%		19.00	%	to	17.93	%
2018		22,961		$3.13	to	$1.63		$61,363		—			0.55	%	to	1.45	%		(14.07	%)	to	(14.85	%)
2017		26,821		$3.64	to	$1.92		$83,615		—			0.55	%	to	1.45	%		6.44	%	to	5.49	%
2016		32,428		$3.42	to	$1.82		$95,187		—			0.55	%	to	1.45	%		24.85	%	to	23.73	%
VP US Flex Conserv Gro, Cl 2⁽⁹⁾
2020		298,161		$1.21	to	$1.23		$381,005		—			0.55	%	to	1.90	%		5.29	%	to	3.88	%
2019		216,805		$1.15	to	$1.19		$264,362		—			0.55	%	to	1.90	%		14.23	%	to	12.70	%
2018		119,444		$1.00	to	$1.05		$128,176		—			0.55	%	to	1.90	%		(3.03	%)	to	(4.33	%)
2017		69,286		$1.04	to	$1.10		$77,087		—			0.55	%	to	1.90	%		3.43	%⁽⁶⁾	to	9.62	%
VP US Flex Gro, Cl 2⁽⁹⁾
2020		2,383,120		$1.27	to	$1.37		$3,392,122		—			0.55	%	to	1.90	%		4.23	%	to	2.83	%
2019		2,087,385		$1.21	to	$1.33		$2,862,487		—			0.55	%	to	1.90	%		19.54	%	to	17.94	%
2018		1,403,049		$1.02	to	$1.13		$1,616,520		—			0.55	%	to	1.90	%		(4.45	%)	to	(5.73	%)
2017		782,503		$1.06	to	$1.20		$948,181		—			0.55	%	to	1.90	%		6.17	%⁽⁶⁾	to	16.23	%
VP US Flex Mod Gro, Cl 2⁽⁹⁾
2020		1,429,369		$1.24	to	$1.30		$1,935,524		—			0.55	%	to	1.90	%		4.95	%	to	3.54	%
2019		1,326,348		$1.18	to	$1.26		$1,718,525		—			0.55	%	to	1.90	%		16.93	%	to	15.36	%
2018		965,850		$1.01	to	$1.09		$1,074,953		—			0.55	%	to	1.90	%		(3.77	%)	to	(5.06	%)
2017		581,575		$1.05	to	$1.15		$675,916		—			0.55	%	to	1.90	%		4.93	%⁽⁶⁾	to	13.02	%
Wanger Intl
2020		41,614		$4.93	to	$2.33		$162,608		2.05	%		0.55	%	to	1.45	%		13.74	%	to	12.72	%
2019		50,662		$4.33	to	$2.07		$174,505		0.79	%		0.55	%	to	1.45	%		29.28	%	to	28.12	%
2018		60,391		$3.35	to	$1.61		$160,984		2.02	%		0.55	%	to	1.45	%		(18.15	%)	to	(18.89	%)
2017		68,564		$4.09	to	$1.99		$224,311		1.20	%		0.55	%	to	1.45	%		32.19	%	to	31.01	%
2016		78,620		$3.10	to	$1.52		$195,758		1.13	%		0.55	%	to	1.45	%		(1.95	%)	to	(2.83	%)



RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT			83


	At December 31								For the year ended December 31
	Units (000s)		Accumulation unit value lowest to highest⁽¹⁾				Net assets (000s)		Investment income ratio⁽²⁾			Expense ratio lowest to highest⁽³⁾						Total return lowest to highest⁽¹⁾⁽⁴⁾
Wanger USA
2020		45,839		$6.97	to	$3.45		$263,234		—			0.55	%	to	1.45	%		23.55	%	to	22.44	%
2019		54,642		$5.64	to	$2.82		$253,728		0.26	%		0.55	%	to	1.45	%		30.38	%	to	29.21	%
2018		63,796		$4.33	to	$2.18		$227,464		0.09	%		0.55	%	to	1.45	%		(2.00	%)	to	(2.89	%)
2017		73,900		$4.42	to	$2.25		$269,824		—			0.55	%	to	1.45	%		18.93	%	to	17.86	%
2016		87,712		$3.71	to	$1.91		$269,942		—			0.55	%	to	1.45	%		13.07	%	to	12.05	%
WF VT Index Asset Alloc, Cl 2
2020		7,351		$3.38	to	$3.15		$24,171		0.82	%		0.55	%	to	1.20	%		15.94	%	to	15.20	%
2019		8,230		$2.92	to	$2.74		$23,399		1.09	%		0.55	%	to	1.20	%		19.50	%	to	18.72	%
2018		9,481		$2.44	to	$2.30		$22,593		0.97	%		0.55	%	to	1.20	%		(3.44	%)	to	(4.07	%)
2017		11,067		$2.53	to	$2.40		$27,343		0.74	%		0.55	%	to	1.20	%		11.64	%	to	10.91	%
2016		12,593		$2.26	to	$2.17		$27,911		0.89	%		0.55	%	to	1.20	%		7.09	%	to	6.39	%
WF VT Intl Eq, Cl 2
2020		16,331		$1.98	to	$1.26		$27,472		2.58	%		0.55	%	to	1.45	%		4.35	%	to	3.42	%
2019		18,783		$1.89	to	$1.22		$30,400		3.69	%		0.55	%	to	1.45	%		14.85	%	to	13.82	%
2018		20,982		$1.65	to	$1.07		$29,640		11.24	%		0.55	%	to	1.45	%		(17.73	%)	to	(18.48	%)
2017		23,601		$2.00	to	$1.31		$40,675		2.82	%		0.55	%	to	1.45	%		23.66	%	to	22.55	%
2016		24,730		$1.62	to	$1.07		$34,690		2.82	%		0.55	%	to	1.45	%		2.73	%	to	1.81	%
WF VT Opp, Cl 2
2020		12,694		$4.54	to	$2.42		$50,846		0.44	%		0.55	%	to	1.90	%		20.34	%	to	18.73	%
2019		14,921		$3.77	to	$2.04		$49,566		0.28	%		0.55	%	to	1.90	%		30.74	%	to	28.99	%
2018		17,378		$2.88	to	$1.58		$44,290		0.18	%		0.55	%	to	1.90	%		(7.66	%)	to	(8.90	%)
2017		20,487		$3.12	to	$1.73		$56,740		0.68	%		0.55	%	to	1.90	%		19.78	%	to	18.18	%
2016		23,575		$2.61	to	$1.47		$54,889		2.04	%		0.55	%	to	1.90	%		11.61	%	to	10.12	%
WF VT Sm Cap Gro, Cl 2
2020		23,583		$5.69	to	$3.10		$123,475		—			0.55	%	to	1.90	%		56.92	%	to	54.82	%
2019		24,616		$3.63	to	$2.00		$82,575		—			0.55	%	to	1.90	%		24.14	%	to	22.48	%
2018		26,761		$2.92	to	$1.63		$72,561		—			0.55	%	to	1.90	%		0.75	%	to	(0.61	%)
2017		25,824		$2.90	to	$1.64		$69,947		—			0.55	%	to	1.90	%		25.17	%	to	23.50	%
2016		28,341		$2.32	to	$1.33		$61,652		—			0.55	%	to	1.90	%		7.16	%	to	5.73	%
WA Var Global Hi Yd Bond, Cl II
2020		8,499		$1.33	to	$1.19		$10,857		3.76	%		0.55	%	to	1.90	%		6.53	%	to	5.11	%
2019		9,240		$1.24	to	$1.14		$11,151		5.39	%		0.55	%	to	1.90	%		13.39	%	to	11.86	%
2018		8,318		$1.10	to	$1.02		$8,870		4.55	%		0.55	%	to	1.90	%		(4.69	%)	to	(5.98	%)
2017		9,079		$1.15	to	$1.08		$10,224		5.77	%		0.55	%	to	1.90	%		7.83	%	to	6.39	%
2016		6,019		$1.07	to	$1.02		$6,315		5.94	%		0.55	%	to	1.90	%		14.73	%	to	13.20	%

⁽¹⁾

The accumulation unit values and total returns are presented as a range of values based on the variable annuity contracts with the lowest and highest expense ratios.

⁽²⁾

These amounts represent the dividends, excluding distributions of capital gains, received by the division from the underlying fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude variable account expenses that result in direct reductions in the unit values. The recognition of investment income by the division is affected by the timing of the declaration of dividends by the underlying fund in which the division invests. These ratios are annualized for periods less than one year.

⁽³⁾

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.

⁽⁴⁾

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 values based on the subaccounts representing the lowest and highest expense ratios, some individual subaccount total returns are not within the ranges presented due to the introduction of new subaccounts during the year and other market factors.

⁽⁵⁾

New subaccount operations commenced on April 29, 2016.

⁽⁶⁾

New subaccount operations commenced on September 18, 2017.

⁽⁷⁾

New subaccount operations commenced on April 27, 2018.

⁽⁸⁾

New subaccount operations commenced on April 24, 2020.

⁽⁹⁾

Effective Sept. 18, 2017, the Fund option became available under RAVA.



84		RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY – BAND 3 – 2020 ANNUAL REPORT

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF DIRECTORS AND SHAREHOLDER OF

RIVERSOURCE LIFE INSURANCE COMPANY

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of RiverSource Life Insurance Company and its subsidiaries (the “Company”) as of December 31, 2020 and 2019, and the related consolidated statements of income, of comprehensive income, of shareholder’s equity and of cash flows for each of the three years in the period ended December 31, 2020, including the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Valuation of the reserves for long term care policies

As described in Note 2 and Note 10 to the consolidated financial statements, the total reserves for long term care policies was $5,722 million as of December 31, 2020, which is included in policyholder account balances, future policy benefits and claims on the consolidated balance sheet. Liabilities for estimates of benefits that will become payable on future claims on long term

F-1

care policies are based on a gross premium valuation reflecting management’s current best estimate assumptions. Management utilizes best estimate assumptions as of the date the policy is issued with provisions for the risk of adverse deviation, as appropriate. After the liabilities are initially established, management performs premium deficiency tests, using current best estimate assumptions. If a premium deficiency is recognized, the assumptions as of the date of the loss recognition are locked in and used in subsequent periods. In 2020, the Company recognized a premium deficiency and losses of $141 million that were recorded through benefits, claims, losses and settlement expenses, which were based on management’s best estimate assumptions included expected premium rate increases, benefit reductions, morbidity rates, policy persistency and interest rates earned on assets supporting the liability.

The principal considerations for our determination that performing procedures relating to the valuation of the reserves for long term care policies is a critical audit matter are the significant judgment by management when developing the estimate of the long term care reserves, which in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence relating to the current best estimate assumptions related to expected premium rate increases, benefit reductions, morbidity rates and interest rates earned on assets supporting the liability. Also, the audit effort included the involvement of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the Company’s valuation of reserves for long term care policies, including controls over management’s development of the current best estimate assumptions. These procedures also included, among others, evaluating and testing management’s process for developing the estimate of the long term care reserves, testing the completeness and accuracy of underlying data used by management and testing that assumptions are accurately reflected in the models. Evaluating and testing management’s process also included the involvement of professionals with specialized skill and knowledge to assist in (i) evaluating the reasonableness of the current best estimate assumptions related to expected premium rate increases, benefit reductions, morbidity rates and interest rates earned on assets supporting the liability, and (ii) evaluating the appropriateness of management’s models.

Valuation of the embedded derivatives in certain variable annuity riders

As described in Note 2, Note 10, Note 11, and Note 13 to the consolidated financial statements, management values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. As there is no active market for the transfer of these embedded derivatives, such internal valuation models estimate fair value by discounting expected cash flows. As of December 31, 2020, the net embedded derivative liability in certain variable annuity riders was $2,316 million, and is included in policyholder account balances, future policy benefits and claims on the consolidated balance sheet. Management’s discounted cash flow model for estimating fair value includes observable capital market assumptions and incorporates significant unobservable inputs related to implied volatility, non-performance risk and contractholder behavior assumptions that include margins for risk, all of which management believes a market participant would expect.

The principal considerations for our determination that performing procedures relating to the valuation of the embedded derivatives in certain variable annuity riders is a critical audit matter are the significant judgment by management to estimate the fair value of the embedded derivatives in certain variable annuity riders; this in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence obtained related to the significant unobservable inputs related to implied volatility, nonperformance risk and contractholder behavior assumptions that include margins for risk and the audit effort involved the use of professionals with specialized skill and knowledge.

F-2

Company’s estimate of the fair value of embedded derivatives in certain variable annuity riders, including controls over the significant unobservable inputs. These procedures also included, among others, evaluating and testing management’s process for developing the fair value estimate. Testing management’s process included evaluating the reasonableness of the significant unobservable inputs related to implied volatility, non-performance risk and contractholder behavior assumptions that include margins for risk, and testing the completeness and accuracy of underlying data used by management in the development of the significant unobservable inputs. Professionals with specialized skill and knowledge were used to assist in (i) evaluating the reasonableness of certain significant unobservable inputs related to implied volatility, non-performance risk and contractholder behavior assumptions that include margins for risk, and (ii) evaluating the appropriateness of management’s models.

Valuation of certain guarantees on variable annuity and certain life insurance policies accounted for as insurance liabilities

As described in Note 2, Note 10 and Note 11 to the consolidated financial statements, the Company issues universal life, variable universal life and variable annuity policies that have product features that are accounted for as insurance liabilities. As disclosed by management, the liability for these policies, which is included in policyholder account balances, future policy benefits and claims on the consolidated balance sheet, is determined using actuarial models to estimate the present value of the projected benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments. Significant assumptions used by management in projecting the present value of future benefits and assessments include customer asset value growth rates, mortality, persistency, and investment margins, and additionally for variable annuity policies, benefit utilization.

The principal considerations for our determination that performing procedures relating to the valuation of certain guarantees on variable annuity and certain life insurance policies accounted for as insurance liabilities is a critical audit matter are the significant judgment by management when developing the estimate of certain guarantees on variable annuity and certain life insurance policies accounted for as insurance liabilities, which in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence relating to the significant assumptions related to customer asset value growth rates, persistency, investment margins, and , for variable annuity policies, benefit utilization. Also, the audit effort included the involvement of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the Company’s valuation of certain guarantees on variable annuity and certain life insurance policies accounted for as insurance liabilities, including controls over management’s development of the significant assumptions. These procedures also included, among others, evaluating and testing management’s process for developing the estimate of certain guarantees on variable annuity and certain life insurance policies accounted for as insurance liabilities, testing the completeness and accuracy of underlying data used by management and testing that assumptions are accurately reflected in the models. Evaluating and testing management’s process also included the involvement of professionals with specialized skill and knowledge to assist in (i) evaluating the reasonableness of the significant assumptions related to customer asset value growth rates, persistency, benefit utilization and investment margins, and (ii) evaluating the appropriateness of management’s models.

/s/ PricewaterhouseCoopers LLP

Minneapolis, Minnesota

February 24, 2021

We have served as the Company’s auditor since 2010.

F-3

RiverSource Life Insurance Company

CONSOLIDATED BALANCE SHEETS

(in millions, except share amounts)


December 31,	2020			2019
Assets
Investments:
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2020, $20,260; 2019, $19,111, net of allowance for credit losses: 2020, $10⁽¹⁾)	$	22,855		$	20,902
Mortgage loans, at amortized cost (net of allowance for credit losses: 2020, $28; 2019, $17)		2,574			2,655
Policy loans		846			867
Other investments (net of allowance for credit losses: 2020, $7; 2019, $4)		701			734
Total investments		26,976			25,158
Investments of consolidated investment entities, at fair value		1,918			—
Cash and cash equivalents		3,191			1,275
Cash of consolidated investment entities, at fair value		94			—
Reinsurance recoverables (Net of allowance for credit losses: 2020, $8⁽¹⁾)		3,409			3,198
Other receivables		1,613			1,713
Receivables of consolidated investment entities, at fair value		16			—
Accrued investment income		172			169
Deferred acquisition costs		2,508			2,673
Other assets		6,969			5,332
Other assets of consolidated investment entities, at fair value		2			—
Separate account assets		87,556			82,425
Total assets	$	134,424		$	121,943

Liabilities and Shareholder’s Equity
Liabilities:
Policyholder account balances, future policy benefits and claims	$	33,986		$	30,504
Short-term borrowings		200			201
Debt of consolidated investment entities, at fair value		1,913			—
Line of credit with Ameriprise Financial, Inc.		—			50
Long-term debt		500			—
Other liabilities		6,887			5,427
Other liabilities of consolidated investment entities, at fair value		69			—
Separate account liabilities		87,556			82,425
Total liabilities		131,111			118,607
Shareholder’s equity:
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding		3			3
Additional paid-in capital		2,466			2,466
Retained earnings (deficit)		(76	)		293
Accumulated other comprehensive income, net of tax		920			574
Total shareholder’s equity		3,313			3,336
Total liabilities and shareholder’s equity	$	134,424		$	121,943

⁽¹⁾	Prior to January 1, 2020, the allowance for credit losses is not applicable to Available-for-Sale securities and Reinsurance recoverables. See Notes 2, 3, 6 and 7 for more information

See Notes to Consolidated Financial Statements.

F-4

RiverSource Life Insurance Company

CONSOLIDATED STATEMENTS OF INCOME

(in millions)


Years Ended December 31,	2020			2019			2018
Revenues
Premiums	$	341		$	397		$	396
Net investment income		869			917			1,023
Policy and contract charges		2,094			2,042			2,081
Other revenues		482			464			411
Net realized investment gains (losses)		(10	)		(2	)		10
Total revenues		3,776			3,818			3,921

Benefits and expenses
Benefits, claims, losses and settlement expenses		1,805			1,804			1,373
Interest credited to fixed accounts		644			669			674
Amortization of deferred acquisition costs		264			133			255
Interest and debt expense		5			—			—
Other insurance and operating expenses		665			685			679
Total benefits and expenses		3,383			3,291			2,981
Pretax income (loss)		393			527			940
Income tax provision (benefit)		(45	)		(60	)		35
Net income	$	438		$	587		$	905

See Notes to Consolidated Financial Statements.

F-5

RiverSource Life Insurance Company

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)


Years Ended December 31,	2020		2019		2018

Net income	$	438	$	587	$	905
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities		346		529		(412	)
Net unrealized gains (losses) on derivatives		—		—		1
Total other comprehensive income (loss), net of tax		346		529		(411	)
Total comprehensive income	$	784	$	1,116	$	494

See Notes to Consolidated Financial Statements.

F-6

RiverSource Life Insurance Company

CONSOLIDATED STATEMENTS OF SHAREHOLDER’S EQUITY

(in millions)


	Common Shares		Additional Paid-In Capital		Retained Earnings (Deficit)			Accumulated Other Comprehensive Income (Loss)			Total
Balances at January 1, 2018	$	3	$	2,466	$	903		$	456		$	3,828
Comprehensive income:
Net income		—		—		905			—			905
Other comprehensive income (loss), net of tax		—		—		—			(411	)		(411	)

Total comprehensive income												494
Cash dividends to Ameriprise Financial, Inc.		—		—		(750	)		—			(750	)

Balances at December 31, 2018		3		2,466		1,058			45			3,572
Cumulative effect of adoption of premium amortization on purchased callable debt securities guidance		—		—		(2	)		—			(2	)
Comprehensive income:
Net income		—		—		587			—			587
Other comprehensive income (loss), net of tax		—		—		—			529			529

Total comprehensive income												1,116
Cash dividends to Ameriprise Financial, Inc.		—		—		(1,350	)		—			(1,350	)

Balances at December 31, 2019		3		2,466		293			574		$	3,336
Cumulative effect of adoption of current expected credit losses guidance		—		—		(7	)		—			(7	)
Comprehensive income:
Net income		—		—		438			—			438
Other comprehensive income (loss), net of tax		—		—		—			346			346

Total comprehensive income												784
Cash dividends to Ameriprise Financial, Inc.		—		—		(800	)		—			(800	)
Balances at December 31, 2020	$	3	$	2,466	$	(76	)	$	920		$	3,313

See Notes to Consolidated Financial Statements.

F-7

RiverSource Life Insurance Company

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)


Years Ended December 31,	2020			2019			2018
Cash Flows from Operating Activities
Net income	$	438		$	587		$	905
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net		(22	)		(22	)		37
Deferred income tax (benefit) expense		(278	)		(278	)		(3	)
Contractholder and policyholder charges, non-cash		(385	)		(380	)		(368	)
Loss from equity method investments		73			99			64
Net realized investment (gains) losses		(12	)		(15	)		(10	)
Impairments and provision for loan losses		22			17			—
Net losses (gains) of consolidated investment entities		(2	)		—			—
Changes in operating assets and liabilities:
Deferred acquisition costs		48			(106	)		1
Policyholder account balances, future policy benefits and claims, net		3,441			751			906
Derivatives, net of collateral		(134	)		333			(170	)
Reinsurance recoverables		(166	)		(90	)		(212	)
Other receivables		62			19			14
Accrued investment income		(3	)		26			16
Current income tax expense (benefit)		378			2			(120	)
Other, net		79			23			119
Net cash provided by (used in) operating activities		3,539			966			1,179

Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales		102			232			56
Maturities, sinking fund payments and calls		2,813			2,250			2,635
Purchases		(4,069	)		(1,772	)		(3,049	)
Proceeds from sales, maturities and repayments of mortgage loans		207			223			280
Funding of mortgage loans		(135	)		(331	)		(208	)
Proceeds from sales and collections of other investments		123			129			137
Purchase of other investments		(184	)		(164	)		(217	)
Proceeds from sales, maturities and repayments of investments by consolidated investment entities		46			—			—
Purchase of investments by consolidated investment entities		(57	)		—			—
Purchase of equipment and software		(10	)		(10	)		(8	)
Change in policy loans, net		21			(6	)		(16	)
Cash paid for deposit receivable		(4	)		(349	)		—
Cash received for deposit receivable		93			98			—
Advance on line of credit to Ameriprise Financial, Inc.		(702	)		—			(273	)
Repayment from Ameriprise Financial, Inc. on line of credit		702			—			273
Cash paid for written options with deferred premiums		(338	)		(243	)		(131	)
Cash received from written options with deferred premiums		133			170			130
Net cash impact of consolidating consolidated investment entities		83			—			—
Other, net		2			42			(15	)
Net cash provided by (used in) investing activities		(1,174	)		269			(406	)

Cash Flows from Financing Activities
Policyholder account balances:
Deposits and other additions	$	1,649		$	2,152		$	1,933
Net transfers from (to) separate accounts		(125	)		(86	)		(75	)
Surrenders and other benefits		(1,357	)		(1,728	)		(1,904	)
Proceeds from line of credit with Ameriprise Financial, Inc.		186			73			10
Repayments to Ameriprise Financial, Inc. on line of credit		(236	)		(23	)		(10	)
Proceeds from long-term debt with Ameriprise Financial, Inc.		500			—			—
Cash received for purchased options with deferred premiums		40			206			254
Cash paid for purchased options with deferred premiums		(211	)		(289	)		(208	)
Repayments of debt by consolidated investment entities		(1	)		—			—
Cash dividends to Ameriprise Financial, Inc.		(800	)		(1,350	)		(750	)
Net cash provided by (used in) financing activities		(355	)		(1,045	)		(750	)
Net increase (decrease) in cash and cash equivalents		2,010			190			23
Cash and cash equivalents at beginning of period		1,275			1,085			1,062
Cash and cash equivalents at end of period	$	3,285		$	1,275		$	1,085

Supplemental Disclosures:
Income taxes paid (received), net	$	(143	)	$	215		$	158
Interest paid on borrowings		2			5			4
Non-cash investing activity:
Partnership commitments not yet remitted		—			4			1
Investments transferred in connection with fixed annuity reinsurance transaction		—			1,265			—

See Notes to Consolidated Financial Statements.

F-8

RiverSource Life Insurance Company

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. NATURE OF BUSINESS AND BASIS OF PRESENTATION

RiverSource Life Insurance Company is a stock life insurance company with one wholly owned stock life insurance company 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 domiciled and holds a Certificate of Authority in New York. RiverSource Life of NY issues insurance and annuity products.

RiverSource Life Insurance Company also wholly owns RiverSource Tax Advantaged Investments, Inc. (“RTA”). RTA is a stock company domiciled in Delaware and is a limited partner in affordable housing partnership investments.

On November 1, 2020, Columbia Cent CLO Advisors, LLC (“Columbia Cent”) began operating as a wholly owned subsidiary of RiverSource Life Insurance Company. See Note 5 for further discussion.

The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company, companies in which it directly or indirectly has a controlling financial interest and variable interest entities (“VIEs”) in which it is the primary beneficiary (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation.

The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) which vary in certain respects from reporting practices prescribed or permitted by state insurance regulatory authorities as described in Note 15.

The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. No subsequent events or transactions were identified.

The Company’s principal products are variable annuities, structured variable annuities, universal life (“UL”) insurance, including indexed universal life (“IUL”) and variable universal life (“VUL”) insurance, which are issued primarily to individuals. Waiver of premium and accidental death benefit riders are generally available with UL products, in addition to other benefit riders. Variable annuity contract purchasers can choose to add optional benefit riders to their contracts, such as guaranteed minimum death benefit (“GMDB”), guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum accumulation benefit (“GMAB”) riders. In 2020, the Company began offering structured variable annuities which give contractholders the option to allocate a portion of their account value to an indexed account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices.

The Company also offers immediate annuities, traditional life insurance and disability income (“DI”) insurance. In 2020, the Company discontinued sales of fixed deferred annuities.

The Company’s business is sold through the advisor network of Ameriprise Financial Services, LLC (“AFS”), a subsidiary of Ameriprise Financial. RiverSource Distributors, Inc., a subsidiary of Ameriprise Financial, serves as the principal underwriter and distributor of variable annuity and life insurance products issued by the Company.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company adopted accounting standard, Financial Instruments — Credit Losses — Measurement of Credit Losses on Financial Instruments, on January 1, 2020. The significant accounting policies for Available-for-Sale Securities, Financing Receivables, and Reinsurance were updated as a result of adopting the new accounting standard.

Principles of Consolidation

A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities.

Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for using the measurement alternative method when the Company owns less than a 20% voting interest and does not exercise significant influence. Under the measurement alternative, the investment is recorded at the cost basis, less impairments, if any, plus or minus observable price changes of identical or similar investments of the same issuer.

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A VIE is consolidated by the reporting entity that determines it has both:

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the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and

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the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE.

All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIEs economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role.

In determining whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis.

The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement.

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, deferred acquisition costs (“DAC”) and the corresponding recognition of DAC amortization, valuation of derivative instruments and hedging activities, litigation reserves, future policy benefits and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ.

Investments

Available-for-Sale Securities

Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (“AOCI”), net of impacts to DAC, deferred sales inducement costs (“DSIC”), unearned revenue, benefit reserves, reinsurance recoverables and income taxes which is consistent with prior periods before January 1, 2020. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Income upon disposition of the securities.

Available-for-Sale securities are impaired when the fair value of an investment is less than its amortized cost. When an Available-for-Sale security is impaired, the Company first assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, the Company recognizes an impairment by reducing the book value of the security for the difference between the investment’s amortized cost and its fair value with a corresponding charge to earnings. Subsequent increases in the fair value of Available-for-Sale securities that occur in periods after a write-down has occurred are recorded as unrealized gains in other comprehensive income (“OCI”), while subsequent decreases in fair value would continue to be recorded as reductions of book value with a charge to earnings.

For securities that do not meet the above criteria, the Company determines whether the decrease in fair value is due to a credit loss or due to other factors. The amount of impairment due to credit-related factors, if any, is recognized as an allowance for credit losses with a related charge to net realized investment gains (losses). The allowance for credit losses is limited to the amount by which the security’s amortized cost basis exceeds its fair value. The amount of the impairment related to other factors is recognized in OCI which is consistent with prior periods before January 1, 2020.

Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are due to credit-related factors include: (i) the extent to which the market value is below amortized cost; (ii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iii) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors.

If through subsequent evaluation there is a sustained increase in cash flows expected, both the allowance and related charge to earnings may be reversed to reflect the increase in expected principal and interest payments. However, for Available-for-Sale securities that recognized an impairment prior to January 1, 2020 by reducing the book value of the security, the difference between the new amortized cost basis and the improved cash flows expected to be collected is accreted as interest income.

In order to determine the amount of the credit loss component for corporate debt securities, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of

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the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. When assessing potential credit-related impairments for structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers credit-related factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections.

Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for Available-for-Sale securities. Accrued interest on Available-for-sale securities is recorded as earned in accrued investment income on the Consolidated Balance Sheets. Available-for-Sale securities are placed on nonaccrual status when the accrued balance becomes 90 days past due or earlier based on management’s evaluation of the facts and circumstances of each security under review. At this time all previously accrued interest is reversed through net investment income.

Other Investments

Other investments primarily reflect the Company’s interests in affordable housing partnerships and syndicated loans. Affordable housing partnerships are accounted for under the equity method.

Financing Receivables

Financing receivables are comprised of commercial loans, policy loans, and deposit receivables.

Commercial Loans

Commercial loans include commercial mortgage loans and syndicated loans and are recorded at amortized cost less the allowance for loan losses. Commercial mortgage loans are recorded within mortgage loans and syndicated loans are recorded within other investments on the Consolidated Balance Sheets. Commercial mortgage loans are loans on commercial properties that are originated by the Company. Syndicated loans represent the Company’s investment in loan syndications originated by unrelated third parties.

Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on commercial mortgage loans and syndicated loans is recorded in net investment income on the Consolidated Statements of Income.

Policy Loans

Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses.

Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on policy loans is recorded in accrued investment income on the Consolidated Statements of Income.

Deposit Receivable

For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability related to insurance risk in accordance with applicable accounting standards. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Reinsurance deposits made are included in receivables. As amounts are received, consistent with the underlying contracts, the deposit receivable is adjusted. The deposit receivable is accreted using the interest method and the accretion is reported in other revenues.

See Note 7 for additional information on financing receivables.

Allowance for Credit Losses

The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected over the asset’s expected life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions. Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. Estimates of expected credit losses consider both historical charge-off and recovery experience as well as current economic conditions and management’s expectation of future charge-off and recovery levels. Expected losses related to risks other than credit risk are excluded from the allowance for credit losses. The allowance for credit losses is measured and recorded upon initial recognition of the loan, regardless of whether it is originated or purchased. The methods and information used to develop the allowance for credit losses for each class of financing receivable are discussed below.

Commercial Loans

The allowance for credit losses for commercial mortgage loans and syndicated loans utilizes a probability of default and loss severity approach to estimate lifetime expected credit losses. Actual historical default and loss severity data for each type of commercial loan is adjusted for current conditions and reasonable and supportable forecasts of future economic conditions to develop the probability of default and loss severity assumptions that are applied to the amortized cost basis of the loans over the

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expected life of each portfolio. The allowance for credit losses on commercial mortgage loans and syndicated loans is recorded through provisions charged to net realized investment gains (losses) and is reduced/increased by net charge-offs/recoveries.

Management determines the adequacy of the allowance for credit losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios and occupancy rates, along with reasonable and supportable forecasts of economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. While the Company may attribute portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses expected over the life of the loan portfolio.

Deposit receivable

The allowance for credit losses is calculated on an individual reinsurer basis. The deposit receivable is collateralized by an underlying trust arrangement. Management evaluates the terms of the reinsurance and trust agreements, the nature of the underlying assets, and the potential for changes in the collateral value when considering the need for an allowance for credit losses.

Nonaccrual Loans

Commercial mortgage loans and syndicated loans are placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for commercial mortgage loans and syndicated loans.

Restructured Loans

A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Modifications to loan terms do not automatically result in troubled debt restructurings (“TDRs”). Per the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus, modifications made on a good faith basis in response to the coronavirus disease 2019 (“COVID-19”) pandemic to borrowers who were not more than 30 days past due as of December 31, 2019, such as payment deferrals, extensions of repayment terms, fee waivers, or delays in payment that are not significant to the unpaid principal value of the loan, are not considered TDRs. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status.

Charge-off and Foreclosure

Charge-offs are recorded when the Company concludes that all or a portion of the commercial mortgage loan or syndicated loan is uncollectible. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. Factors used by the Company to determine whether all amounts due on syndicated loans will be collected, include but are not limited to the borrower’s financial condition, industry outlook, and internal risk ratings based on rating agency data and internal analyst expectations.

If it is determined that foreclosure on a commercial mortgage loan is probable and the fair value is less than the current loan balance, expected credit losses are measured as the difference between the amortized cost basis of the asset and fair value less estimated selling costs. Upon foreclosure, the commercial mortgage loan and related allowance are reversed, and the foreclosed property is recorded as real estate owned in other assets.

Cash and Cash Equivalents

Cash equivalents include highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less.

Reinsurance

The Company cedes insurance risk to other insurers under reinsurance agreements.

Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, long term care (“LTC”) and DI, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. UL and VUL reinsurance premiums are reported as a reduction of policy and contract charges. In addition, for UL and VUL

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insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is classified as an asset or contra asset and amortized over the estimated life of the policies in proportion to the estimated gross profits (“EGPs”) and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of policy and contract charges. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses.

Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within reinsurance recoverables, net of the allowance for credit losses. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. The allowance for credit losses related to reinsurance recoverable is based on applying observable industry data including insurer ratings, default and loss severity data to the Company’s reinsurance recoverable balances. Management evaluates the results of the calculation and considers differences between the industry data and the Company’s data. Such differences include the fact that the Company has no actual history of losses and the fact that industry data may contain non-life insurers. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change given the long-term nature of these receivables. In addition, the Company has a reinsurance protection agreement that provides credit protections for its reinsured long term care business. The allowance for credit losses on reinsurance recoverable is recorded through provisions charged to benefits, claims, losses and settlement expenses on the Consolidated Statements of Income.

The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within policyholder account balances, future policy benefits and claims.

See Note 9 for additional information on reinsurance.

Land, Buildings, Equipment and Software

Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three to 39 years.

As of December 31, 2020 and 2019, land, buildings, equipment and software were $124 million and $129 million, respectively, net of accumulated depreciation of $202 million and $189 million, respectively. Depreciation and amortization expense for the years ended December 31, 2020, 2019 and 2018 was $14 million, $16 million and $15 million, respectively.

Derivative Instruments and Hedging Activities

Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”) or (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”).

Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also documents its risk management objectives and strategies for entering into the hedge transactions. The Company 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, the Company will discontinue the application of hedge accounting.

For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Income based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Income with the corresponding change in the hedged asset or liability.

For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. 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.

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For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in AOCI 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 in current period 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 AOCI is reclassified to earnings over the period that the hedged item impacts earnings. For 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 AOCI are recognized in earnings immediately.

The equity component of indexed annuity, structured variable annuity and IUL obligations are considered embedded derivatives. Additionally, certain annuities contain GMAB and GMWB provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives.

See Note 13 for information regarding the Company’s fair value measurement of derivative instruments and Note 17 for the impact of derivatives on the Consolidated Statements of Income.

Deferred Acquisition Costs

The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to AFS advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are 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.

The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin, variable annuity benefit utilization and maintenance expense levels each quarter and, when assessed independently, each could impact the Company’s DAC balances.

The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year.

Non-Traditional Long-Duration Products

For non-traditional long-duration products (including variable, structured variable and fixed deferred annuity contracts, UL and VUL insurance products), DAC are amortized based on projections of EGPs over amortization periods equal to the approximate life of the business.

EGPs vary based on persistency rates (assumptions at which contractholders and policyholders are expected to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited to contractholder and policyholder accounts) and are management’s best estimates. Management regularly monitors financial market conditions and actual contractholder and policyholder behavior experience and compares them to its assumptions. These assumptions are updated whenever it appears that earlier estimates should be revised. When assumptions are changed, the percentage of EGPs 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. At each balance sheet date, the DAC balance is adjusted for the effect that would result from the realization of unrealized gains (losses) on securities impacting EGPs, with the related change recognized through AOCI.

The client asset value growth rates are the rates at which variable annuity and VUL insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance.

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DAC amortization expense recorded in a period when client asset value growth rates exceed management’s near-term estimate will typically be less than in a period when growth rates fall short of management’s near-term estimate.

Traditional Long-Duration Products

For traditional long-duration products (including traditional life and DI insurance products), DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium paying period. The assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities.

For traditional life and DI insurance products, the assumptions provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. 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 the Consolidated Statements of Income.

Deferred Sales Inducement Costs

Sales inducement costs 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. DSIC is recorded in other assets and amortization of DSIC is recorded in benefits, claims, losses and settlement expenses.

Separate Account Assets and Liabilities

Separate account assets represent funds held for the benefit of and separate account liabilities represent the obligation to the variable annuity contractholders and variable life insurance policyholders who have a contractual right to receive the benefits of their contract or policy and bear the related investment risk. Gains and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Income. Separate account assets are recorded at fair value and separate account liabilities are equal to the assets recognized.

Policyholder Account Balances, Future Policy Benefits and Claims

The Company establishes reserves to cover the benefits associated with non-traditional and traditional long-duration products. Non-traditional long-duration products include variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products include term life, whole life, DI and LTC insurance products.

Guarantees accounted for as insurance liabilities include GMDB, gain gross-up (“GGU”), guaranteed minimum income benefit (“GMIB”) and the life contingent benefits associated with GMWB. In addition, UL and VUL policies with product features that result in profits followed by losses are accounted for as insurance liabilities.

Guarantees accounted for as embedded derivatives include GMAB and the non-life contingent benefits associated with GMWB. In addition, the portion of structured variable annuities, indexed annuities and IUL policies allocated to the indexed account is accounted for as an embedded derivative.

Changes in future policy benefits and claims are reflected in earnings in the period adjustments are made. Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverables.

Non-Traditional Long-Duration Products

The liabilities for non-traditional long-duration products include fixed account values on variable and fixed annuities and UL and VUL policies, liabilities for guaranteed benefits associated with variable annuities and embedded derivatives for variable and structured variable annuities, indexed annuities and IUL products.

Liabilities for fixed account values on variable, structured variable and fixed deferred annuities and UL and VUL policies are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges.

A portion of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 11 for information regarding the liability for contracts with secondary guarantees.

Liabilities for fixed deferred indexed annuity, structured variable annuity and IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options.

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The GMDB and GGU 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 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 life based on expected assessments.

The liability for the life contingent benefits associated with GMWB provisions is determined by estimating the expected value of benefits that are contingent upon survival after the account value is equal to zero and recognizing the benefits over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees).

In determining the liabilities for GMDB, GGU, GMIB and the life contingent benefits associated with GMWB, the Company 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, benefit utilization and investment margins and are consistent with those used for DAC valuation for the same contracts. As with DAC, unless the Company’s management identifies a significant deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year.

See Note 11 for information regarding variable annuity guarantees.

Liabilities for fixed annuities in a benefit or payout status utilize assumptions established as of the date the payout phase is initiated. The liabilities are the present value of future estimated payments reduced for mortality (which is based on industry mortality tables with modifications based on the Company’s experience) and discounted with interest rates.

Embedded Derivatives

The fair value of embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions fluctuate based on equity, interest rate and credit markets and the estimate of the Company’s nonperformance risk, which can cause these embedded derivatives to be either an asset or a liability. The fair value of embedded derivatives related to structured varaible annuities, indexed annuities and IUL fluctuate based on equity markets and interest rates and the estimate of the Company’s nonperformance risk and is a liability. See Note 13 for information regarding the fair value measurement of embedded derivatives.

Traditional Long-Duration Products

The liabilities for traditional long-duration products include 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 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 unpaid amounts are calculated using anticipated claim continuance rates based on established industry tables, adjusted as appropriate for the Company’s experience. The discount rates used to calculate present values are based on average interest rates earned on assets supporting the liability for unpaid amounts.

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 and DI insurance policies are based on the net level premium and LTC policies are based on a gross premium valuation reflecting management’s current best estimate assumptions. Net level premium includes anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Gross premium valuation includes expected premium rate increases, benefit reductions, 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 the Company’s experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors.

For term life, whole life, DI and LTC policies, the Company utilizes best estimate assumptions as of the date the policy is issued with provisions for the risk of adverse deviation, as appropriate. After the liabilities are initially established, management performs premium deficiency tests using current best estimate assumptions without provisions for adverse deviation annually in the third quarter of each year unless management identifies a material deviation over the course of quarterly monitoring. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves net of any

F-16

RiverSource Life Insurance Company

DAC balance), the existing net reserves are adjusted by first reducing the DAC balance by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than the DAC balance, then the net reserves are increased by the excess through a charge to current period earnings. If a premium deficiency is recognized, the assumptions as of the date of the loss recognition are locked in and used in subsequent periods. The assumptions for LTC insurance products are management’s best estimate as of the date of loss recognition and thus no longer provide for adverse deviations in experience.

See Note 10 for information regarding the liabilities for traditional long-duration products.

Unearned Revenue Liability

The Company’s UL and VUL policies require payment of fees or other policyholder assessments in advance for services to be provided in future periods. These charges are deferred as unearned revenue and amortized using EGPs, similar to DAC. The unearned revenue liability is recorded in other liabilities and the amortization is recorded in policy and contract charges.

Income Taxes

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

The Company’s taxable income is included in the consolidated federal income tax return of Ameriprise Financial. The Company provides for income taxes on a separate return basis, except that, under an agreement between Ameriprise Financial and the Company, tax benefits are recognized for losses to the extent they can be used in the consolidated return. It is the policy of Ameriprise Financial that it will reimburse its subsidiaries for any tax benefits recorded.

The Company’s provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items.

In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes.

The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and reduce the likelihood of the establishment of a valuation allowance with respect to such assets. See Note 19 for additional information on the Company’s valuation allowance.

Changes in tax rates and tax law are accounted for in the period of enactment. Deferred tax assets and liabilities are adjusted for the effect of a change in tax laws or rates and the effect is included in net income.

Revenue Recognition

Premiums on traditional life, DI and LTC insurance products and immediate annuities with a life contingent feature are net of reinsurance ceded and are recognized as revenue when due.

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 so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and updated future payment assumptions and a catch-up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively.

Mortality and expense risk fees are based on a percentage of the fair value of assets held in the Company’s separate accounts and recognized when assessed. Variable annuity guaranteed benefit rider charges, cost of insurance charges on UL and VUL insurance and contract charges (net of reinsurance premiums and cost of reinsurance for UL insurance products) and surrender charges on annuities and UL and VUL insurance are recognized as revenue when assessed.

Realized gains and losses on the sale of securities, other than equity method investments, are recognized using the specific identification method, on a trade date basis.

Fees received under marketing support and distribution services arrangements are recognized as revenue when earned.

See Note 4 for further discussion of accounting policies on revenue from contracts with customers.

F-17

RiverSource Life Insurance Company

3. RECENT ACCOUNTING PRONOUNCEMENTS

Adoption of New Accounting Standards

Fair Value Measurement — Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement

In August 2018, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to disclosures for fair value measurements. The update eliminates the following disclosures: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy of timing of transfers between levels of the fair value hierarchy, and (3) the valuation processes for Level 3 fair value measurements. The new disclosures include changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements of instruments held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs and how the weighted average was calculated. The new disclosures are required on a prospective basis; all other provisions should be applied retrospectively. The update is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for the entire standard or only the provisions to eliminate or modify disclosure requirements. The Company early adopted the provisions of the standard to eliminate or modify disclosure requirements in the fourth quarter of 2018. The Company adopted the provisions of the standard to include new disclosures on January 1, 2020. The update does not have an impact on the Company’s consolidated financial condition or results of operations. See Note 12 for additional disclosures on fair value measurements.

Intangibles — Goodwill and Other — Internal-Use Software — Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

In August 2018, the FASB updated the accounting standards related to customer’s accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is a service contract. The update requires implementation costs for a CCA to be evaluated for capitalization using the same approach as implementation costs associated with internal-use software. The update also addresses presentation, measurement and impairment of capitalized implementation costs in a CCA that is a service contract. The update requires new disclosures on the nature of hosting arrangements that are service contracts, significant judgements made when applying the guidance and quantitative disclosures, including amounts capitalized, amortized and impaired. The update is effective for interim and annual periods beginning after December 15, 2019, and can be applied either prospectively or retrospectively. The Company adopted the standard using a prospective approach on January 1, 2020. The adoption did not have an impact on the Company’s consolidated financial condition or results of operations.

Financial Instruments — Credit Losses — Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments. The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset. At adoption, the initial estimate of the expected credit losses will be recorded through retained earnings and subsequent changes in the estimate will be reported in current period earnings and recorded through an allowance for credit losses on the balance sheet. The credit loss model for Available-for-Sale debt securities did not change; however, the credit loss calculation and subsequent recoveries are required to be recorded through an allowance. The standard is effective for interim and annual periods beginning after December 15, 2019. A modified retrospective cumulative adjustment to retained earnings should be recorded as of the first reporting period in which the guidance is effective for loans, receivables, and other financial instruments subject to the new expected credit loss model. Prospective adoption is required for establishing an allowance related to Available-for-Sale debt securities, certain beneficial interests, and financial assets purchased with a more-than-insignificant amount of credit deterioration since origination. The Company adopted the standard on January 1, 2020. The adoption of this update did not have a material impact on the Company’s consolidated financial condition or results of operations.

Leases — Recognition of Lease Assets and Liabilities on Balance Sheet

In February 2016, the FASB updated the accounting standards for leases. The update was issued to increase transparency and comparability for the accounting of lease transactions. The standard requires most lease transactions for lessees to be recorded on the balance sheet as lease assets and lease liabilities and both quantitative and qualitative disclosures about leasing arrangements. The standard was effective for interim and annual periods beginning after December 15, 2018. Entities had the option to adopt the standard using a modified retrospective approach at either the beginning of the earliest period presented or as of the date of adoption. The Company adopted the standard using a modified retrospective approach as of January 1, 2019. The Company also elected the package of practical expedients permitted under the transition guidance within the accounting standard that allows entities to carryforward their historical lease classification and to not reassess contracts for embedded leases among other things. The adoption did not have a material impact on the Company’s consolidated financial condition or results of operations.

Income Statement — Reporting Comprehensive Income — Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

In February 2018, the FASB updated the accounting standards related to the presentation of tax effects stranded in AOCI. The update allows a reclassification from AOCI to retained earnings for tax effects stranded in AOCI resulting from the Tax Act. The

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RiverSource Life Insurance Company

election of the update was optional. The update was effective for fiscal years beginning after December 15, 2018. Entities could record the impacts either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company adopted the standard on January 1, 2019 and elected not to reclassify the stranded tax effects in AOCI.

Derivatives and Hedging — Targeted Improvements to Accounting for Hedging Activities

In August 2017, the FASB updated the accounting standards to amend the hedge accounting recognition and presentation requirements. The objectives of the update are to better align the financial reporting of hedging relationships to the economic results of an entity’s risk management activities and simplify the application of the hedge accounting guidance. The update also adds new disclosures and amends existing disclosure requirements. The standard was effective for interim and annual periods beginning after December 15, 2018, and was required to be applied on a modified retrospective basis. The Company adopted the standard on January 1, 2019. The adoption did not have an impact on the Company’s consolidated financial condition or results of operations.

Receivables — Nonrefundable Fees and Other Costs — Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB updated the accounting standards to shorten the amortization period for certain purchased callable debt securities held at a premium. Under previous guidance, premiums were generally amortized over the contractual life of the security. The amendments require the premium to be amortized to the earliest call date. The update applies to securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. The standard was effective for interim and annual periods beginning after December 15, 2018, and was required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted the standard on January 1, 2019. The adoption did not have a material impact on the Company’s consolidated financial condition or results of operations.

In October 2020, the FASB issued amendments clarifying that, at each reporting date if a security contains additional future call dates, an entity must reevaluate whether the amortized cost basis exceeds the amount repayable by the issuer at the next call date. If so, the excess should be amortized to the next call date. The update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted. All entities should apply this update on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The Company currently accounts for the additional call dates in accordance with this amendment.

Future Adoption of New Accounting Standards

Reference Rate Reform — Expedients for Contract Modifications

In March 2020, the FASB updated the accounting standards to provide optional expedients and exceptions for applying GAAP to contracts, hedging or other transactions that are affected by reference rate reform (i.e., the elimination of LIBOR). The following expedients are provided for modified contracts whose reference rate is changed: (1) receivables and debt contracts are accounted for prospectively by adjusting the effective interest rate, (2) leases are accounted for as a continuation of the existing contracts with no reassessments of the lease classification and discount rate or remeasurements of lease payments that otherwise would be required, and (3) an entity is not required to reassess its original conclusion about whether that contract contains an embedded derivative that is clearly and closely related to the economic characteristics and risks of the host contract. When elected, the optional expedients for contract modifications must be applied consistently for all eligible contracts or eligible transactions. In January 2021, FASB updated the standard to allow an entity to elect to apply the treatment under the original guidance to derivative instruments that use an interest rate that for margining, discounting or contract price alignment that will be modified due to reference rate reform but did not qualify under the original guidance The adoption of the standard is not expected to have an impact on the Company’s consolidated results of operations and financial condition.

Income Taxes — Simplifying the Accounting for Income Taxes

In December 2019, the FASB updated the accounting standards to simplify the accounting for income taxes. The update eliminates certain exceptions to: (1) accounting principles related to intraperiod tax allocation to be applied on a prospective basis, (2) deferred tax liabilities related to outside basis differences to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption, and (3) year-to-date losses in interim periods to be applied on a prospective basis. The update also amends existing guidance related to situations when an entity receives: (1) a step-up in the tax basis of goodwill to be applied on a prospective basis, (2) an allocation of income tax expense when members of a consolidated tax filing group issue separate financial statements to be applied on a retrospective basis for all periods presented, (3) interim recognition of enactment of tax laws or rate changes to be applied on a prospective basis, and (4) franchise taxes and other taxes partially based on income to be applied on a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The standard is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The adoption of the standard is not expected to have an impact on the Company’s consolidated financial condition or results of operations.

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RiverSource Life Insurance Company

Financial Services — Insurance — Targeted Improvements to the Accounting for Long-Duration Contracts

In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts. The guidance revises key elements of the measurement models and disclosure requirements for long-duration insurance contracts issued by insurers and reinsurers.

The guidance establishes a significant new category of benefit features called market risk benefits that protect the contractholder from other-than-nominal capital market risk and expose the insurer to that risk. Insurers will have to measure market risk benefits at fair value. Market risk benefits include variable annuity guaranteed benefits (i.e. guaranteed minimum death, withdrawal, withdrawal for life, accumulation and income benefits). The portion of the change in fair value attributable to a change in the instrument-specific credit risk of market risk benefits in a liability position will be recorded in OCI.

Significant changes also relate to the measurement of the liability for future policy benefits for nonparticipating traditional long-duration insurance contracts and immediate annuities with a life contingent feature include the following:

•

Insurers will be required to review and update the cash flow assumptions used to measure the liability for future policy benefits rather than using assumptions locked in at contract inception. The review of assumptions to measure the liability for all future policy benefits will be required annually at the same time each year, or more frequently if suggested by experience. The effect of updating assumptions will be measured on a retrospective catch-up basis and presented separate from the ongoing policyholder benefit expense in the statement of operations in the period the update is made. This new unlocking process will be required for the Company’s term and whole life insurance, disability income, long term care insurance and immediate annuities with a life contingent feature.

•

The discount rate used to measure the liability for future policy benefits will be standardized. The current requirement to use a discount rate reflecting expected investment yields will change to an upper-medium grade (low credit risk) fixed income corporate instrument yield (generally interpreted as an “A” rating) reflecting the duration characteristics of the liability. Entities will be required to update the discount rate at each reporting date with the effect of discount rate changes reflected in OCI.

•

The current premium deficiency test is being replaced with a net premium ratio cap of 100%. If the net premium ratio (i.e. the ratio of the present value of total expected benefits and related expenses to the present value of total expected premiums) exceeds 100%, insurers are required to recognize a loss in the statement of operations in the period. Contracts from different issue years will no longer be permitted to be grouped to determine contracts in a loss position.

In addition, the update requires DAC and DSIC relating to all long-duration contracts and most investment contracts to be amortized on a straight-line basis over the expected life of the contract independent of profit emergence. Under the new guidance, interest will not accrue to the deferred balance and DAC and DSIC will not be subject to an impairment test.

The update requires significant additional disclosures, including disaggregated rollforwards of the liability for future policy benefits, policyholder account balances, market risk benefits, DAC and DSIC, as well as qualitative and quantitative information about expected cash flows, estimates and assumptions. On November 5, 2020, the FASB released an updated ASU to defer the effective date of the standard to interim and annual periods beginning after December 15, 2022, and interim periods within those years. The standard should be applied to the liability for future policy benefits and DAC and DSIC on a modified retrospective basis and applied to market risk benefits on a retrospective basis with the option to apply full retrospective transition if certain criteria are met. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition, results of operations and disclosures.

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RiverSource Life Insurance Company

4. REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table presents disaggregated revenue from contracts with customers and a reconciliation to total revenues reported on the Consolidated Statements of Income.


	Years Ended December 31,
(in millions)	2020		2019		2018
Policy and contract charges
Affiliated (from Columbia Management Investment Distributors, Inc.)	$	173	$	170	$	170
Unaffiliated		14		14		16
Total		187		184		186
Other revenues
Administrative fees
Affiliated (from Columbia Management Investment Services, Corp.)		44		43		44
Unaffiliated		18		20		22
		62		63		66
Other fees
Affiliated (from Columbia Management Investment Advisers, LLC (“CMIA”) and Columbia Wanger Asset Management, LLC)		351		344		336
Unaffiliated		4		4		3
		355		348		339
Total		417		411		405
Total revenue from contracts with customers		604		595		591
Revenue from other sources ⁽¹⁾		3,172		3,223		3,330
Total revenues	$	3,776	$	3,818	$	3,921

⁽¹⁾	Amounts primarily consist of revenue associated with insurance and annuity products or financial instruments.

The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers.

Policy and contract charges

The Company earns revenue for providing distribution-related services to affiliated and unaffiliated mutual funds that are available as underlying investments in its variable annuity and variable life insurance products. The performance obligation is satisfied at the time the mutual fund is distributed. Revenue is recognized over the time the mutual fund is held in the variable product and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund. The revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control, including market volatility and how long the fund(s) remain in the insurance policy or annuity contract. The revenue will not be recognized until it is probable that a significant reversal will not occur. These fees are accrued and collected on a monthly basis.

Other revenues

Administrative fees

The Company earns revenue for providing customer support, contract servicing and administrative services for affiliated and unaffiliated mutual funds that are available as underlying instruments in its variable annuity and variable life insurance products. The transfer agent and administration revenue is earned daily based on a fixed rate applied, as a percentage, to assets under management. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis.

Other fees

The Company earns revenue for providing affiliated and unaffiliated partners an opportunity to educate the financial advisors of its affiliate, AFS, that sell the Company’s products as well as product and marketing personnel to support the offer, sale and servicing of funds within the Company’s variable annuity and variable life insurance products. These payments allow the parties to train and support the advisors, explain the features of their products, and distribute marketing and educational materials. The affiliated revenue is earned based on a rate, updated at least annually, which is applied, as a percentage, to the market value of assets invested. The unaffiliated revenue is earned based on a fixed rate applied, as a percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis.

Receivables

Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue. Receivables related to revenues from contracts with customers were $57 million and $55 million as of December 31, 2020 and 2019, respectively.

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RiverSource Life Insurance Company

5. VARIABLE INTEREST ENTITIES

On November 1, 2020, the Company purchased investments in the subordinated notes of five consolidated collateralized loan obligations (“CLOs”) from an affiliate.

The Company provides asset management services to investment entities which are considered to be VIEs, such as CLOs, which are sponsored by the Company. In addition, the Company invests in structured investments other than CLOs and certain affordable housing partnerships which are considered VIEs. The Company consolidates the CLOs if the Company is deemed to be the primary beneficiary. The Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its initial investment and existing future funding commitments, and the Company has not provided any support to these entities. The Company has unfunded commitments related to consolidated CLOs of $13 million as of December 31, 2020. See Note 20 for information on future funding commitments of other VIEs.

See Note 2 for further discussion of the Company’s accounting policy on consolidation.

CLOs

CLOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds. Multiple tranches of debt securities are issued by a CLO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CLOs are non-recourse to the Company. The CLO’s debt holders have recourse only to the assets of the CLO. The assets of the CLOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CLO’s collateral pool. The Company earns management fees from the CLOs based on the value of the CLO’s collateral pool and, in certain instances, may also receive incentive fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company has invested in a portion of the unrated, junior subordinated notes of certain CLOs. The Company consolidates certain CLOs where it is the primary beneficiary and has the power to direct the activities that most significantly impact the economic performance of the CLO.

Affordable Housing Partnerships and Other Real Estate Partnerships

The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships.

A majority of the limited partnerships are VIEs. The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in other investments and was $200 million and $270 million as of December 31, 2020 and 2019, respectively. The Company had a $9 million and $15 million liability recorded as of December 31, 2020 and 2019, respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the funding commitments.

Structured Investments

The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, commercial and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company’s maximum exposure to loss as a result of its investment in these structured investments is limited to its amortized cost. See Note 6 for additional information on these structured investments.

Fair Value of Assets and Liabilities

The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 13 for the definition of the three levels of the fair value hierarchy.

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RiverSource Life Insurance Company

The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:


	December 31, 2020
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Investments:
Corporate debt securities	$	—	$	8	$	—	$	8
Common stocks		—		1		—		1
Syndicated loans		—		1,817		92		1,909
Total investments		—		1,826		92		1,918
Receivables		—		16		—		16
Other assets		—		—		2		2
Total assets at fair value	$	—	$	1,842	$	94	$	1,936
Liabilities
Debt ⁽¹⁾	$	—	$	1,913	$	—	$	1,913
Other liabilities		—		69		—		69
Total liabilities at fair value	$	—	$	1,982	$	—	$	1,982

⁽¹⁾	The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.0 billion as of December 31, 2020.

The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:


(in millions)	Syndicated Loans			Other Assets
Balance, January 1, 2020	$	—		$	—
Purchases		—			2
Sales		(2	)		—
Transfers into Level 3		15			—
Transfers out of Level 3		(70	)		—
Consolidation of consolidated investment entities		149			—
Balance, December 31, 2020	$	92		$	2
Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2020	$	—		$	—

Securities and loans transferred from Level 3 primarily represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets. Securities and loans transferred to Level 3 represent assets with fair values that are now based on a single non-binding broker quote.

All Level 3 measurements as of December 31, 2020 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.

Determination of Fair Value

Assets

Investments

The fair value of syndicated loans obtained from third-party pricing services using a market approach with observable inputs is classified as Level 2. The fair value of syndicated loans obtained from third-party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. The underlying inputs used in non-binding broker quotes are not readily available to the Company. See Note 13 for a description of the Company’s determination of the fair value of corporate debt securities, common stocks and other investments.

Receivables

For receivables of the consolidated CLOs, the carrying value approximates fair value as the nature of these assets has historically been short term and the receivables have been collectible. The fair value of these receivables is classified as Level 2.

Liabilities

Debt

The fair value of the CLOs’ assets, typically syndicated bank loans, is more observable than the fair value of the CLOs’ debt tranches for which market activity is limited and less transparent. As a result, the fair value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets and is classified as Level 2.

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RiverSource Life Insurance Company

Other Liabilities

Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CLOs. The carrying value approximates fair value as the nature of these liabilities has historically been short term. The fair value of these liabilities is classified as Level 2.

Fair Value Option

The Company has elected the fair value option for the financial assets and liabilities of the consolidated CLOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs.

The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected:


(in millions)	December 31, 2020
Syndicated loans
Unpaid principal balance	$	1,990
Excess unpaid principal over fair value		(81	)
Fair value	$	1,909
Fair value of loans more than 90 days past due	$	5
Fair value of loans in nonaccrual status		19
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both		24
Debt
Unpaid principal balance	$	2,069
Excess unpaid principal over fair value		(156	)
Carrying value ⁽¹⁾	$	1,913

⁽¹⁾	The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.0 billion as of December 31, 2020.

Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in net investment income. Gains and losses related to changes in the fair value of investments are recorded in net investment income and gains and losses on sales of investments are recorded in net realized investment gains (losses). Interest expense on debt is recorded in interest and debt expense with gains and losses related to changes in the fair value of debt recorded in net investment income.

Total net gains (losses) recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected were $2 million for the year ended December 31, 2020.

Debt of the consolidated investment entities and the stated interest rates were as follows:



	Carrying Value		Weighted Average Interest Rate
(in millions)	December 31, 2020		December 31, 2020
Debt of consolidated CLOs due 2025-2031	$	1,913		2.1	%

The debt of the consolidated CLOs has both fixed and floating interest rates, which range from 0.0% to 8.9%. The interest rates on the debt of CLOs are weighted average rates based on the outstanding principal and contractual interest rates.

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RiverSource Life Insurance Company

6. INVESTMENTS

Available-for-Sale securities distributed by type were as follows:


	December 31, 2020
Description of Securities (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses			Fair Value

Fixed maturities:
Corporate debt securities	$	10,982	$	1,903	$	(2	)	$	(10	)	$	12,873
Residential mortgage backed securities		2,888		115		(1	)		—			3,002
Commercial mortgage backed securities		3,935		235		(4	)		—			4,166
State and municipal obligations		1,050		295		(1	)		—			1,344
Asset backed securities		1,168		45		(1	)		—			1,212
Foreign government bonds and obligations		236		22		(1	)		—			257
U.S. government and agency obligations		1		—		—			—			1
Total	$	20,260	$	2,615	$	(10	)	$	(10	)	$	22,855


	December 31, 2019
Description of Securities (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value

Fixed maturities:
Corporate debt securities	$	10,188	$	1,336	$	(2	)	$	11,522
Residential mortgage backed securities		3,039		73		(4	)		3,108
Commercial mortgage backed securities		3,526		95		(3	)		3,618
State and municipal obligations		1,071		237		(2	)		1,306
Asset backed securities		1,036		45		(1	)		1,080
Foreign government bonds and obligations		250		19		(2	)		267
U.S. government and agency obligations		1		—		—			1
Total	$	19,111	$	1,805	$	(14	)	$	20,902

In March 2020, the Company purchased $368 million of investments at fair value, primarily agency residential mortgage back securities, from Ameriprise Financial.

As of both December 31, 2020 and 2019, accrued interest of $158 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in accrued investment income on the Consolidated Balance Sheets.

As of December 31, 2020 and 2019, investment securities with a fair value of $2.9 billion and $1.9 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $454 million and $576 million, respectively, may be sold, pledged or rehypothecated by the counterparty.

As of December 31, 2020 and 2019, fixed maturity securities comprised approximately 85% and 83%, respectively, of the Company’s total investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. As of December 31, 2020 and 2019, approximately $553 million and $615 million, respectively, of securities were internally rated by CMIA, an affiliate of the Company, using criteria similar to those used by NRSROs.

F-25

RiverSource Life Insurance Company

A summary of fixed maturity securities by rating was as follows:


	December 31, 2020							December 31, 2019
Ratings (in millions, except percentages)	Amortized Cost		Fair Value		Percent of Total Fair Value			Amortized Cost		Fair Value		Percent of Total Fair Value
AAA	$	7,323	$	7,698		34	%	$	6,771	$	6,950		33	%
AA		1,036		1,266		6			1,176		1,374		7
A		2,663		3,235		14			2,695		3,157		15
BBB		7,770		9,026		39			7,709		8,626		41
Below investment grade		1,468		1,630		7			760		795		4
Total fixed maturities	$	20,260	$	22,855		100	%	$	19,111	$	20,902		100	%

As of December 31, 2020 and 2019, approximately 37% and 39%, respectively, of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. The Company had holdings of $372 million in Ameriprise Advisor Financing, LLC (“AAF”), an affiliate of the Company, which was greater than 10% of total equity as of December 31, 2020. The Company had holdings of $380 million in AAF, which was greater than 10% of total equity as of December 31, 2019. There were no other holdings of any other issuer greater than 10% of total equity as of both December 31, 2020 and 2019.

The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position:


	December 31, 2020
(in millions, except number of securities)	Less than 12 months							12 months or more							Total
Description of Securities	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses
Corporate debt securities		26	$	228	$	(1	)		1	$	12	$	(1	)		27	$	240	$	(2	)
Residential mortgage backed securities		11		47		(1	)		7		14		—			18		61		(1	)
Commercial mortgage backed securities		12		179		(3	)		7		60		(1	)		19		239		(4	)
State and municipal obligations		2		4		—			1		4		(1	)		3		8		(1	)
Asset backed securities		4		65		—			2		36		(1	)		6		101		(1	)
Foreign government bonds and obligations		1		3		—			7		8		(1	)		8		11		(1	)
Total		56	$	526	$	(5	)		25	$	134	$	(5	)		81	$	660	$	(10	)

	December 31, 2019
(in millions, except number of securities)	Less than 12 months							12 months or more							Total
Description of Securities	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses
Corporate debt securities		15	$	64	$	—			7	$	90	$	(2	)		22	$	154	$	(2	)
Residential mortgage backed securities		29		571		(1	)		20		298		(3	)		49		869		(4	)
Commercial mortgage backed securities		18		310		(1	)		7		82		(2	)		25		392		(3	)
State and municipal obligations		5		23		—			3		54		(2	)		8		77		(2	)
Asset backed securities		10		111		(1	)		6		54		—			16		165		(1	)
Foreign government bonds and obligations		1		—		—			10		15		(2	)		11		15		(2	)
Total		78	$	1,079	$	(3	)		53	$	593	$	(11	)		131	$	1,672	$	(14	)

As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities during the twelve months ended December 31, 2020 is primarily attributable to lower interest rates as well as credit spread tightening. Consistent with the accounting policy described in Note 2, the Company did not recognize any of the total unrealized losses in earnings because it was determined that such losses were due to non-credit factors. The Company does not intend to sell these securities and does not believe that it is more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of December 31, 2020, 83% of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.

The following table presents a rollforward of the allowance for credit losses on Available-for-Sale securities:


(in millions)	Corporate Debt Securities
Balance, January 1, 2020 ⁽¹⁾	$	—
Additions for which credit losses were not previously recognized		13
Additional increases (decreases) on securities that had an allowance recorded in a previous period		(3	)
Balance, December 31, 2020	$	10

F-26

RiverSource Life Insurance Company

⁽¹⁾

Prior to January 1, 2020, credit losses on Available-for-Sale securities were not recorded in an allowance but were recorded as a reduction of the book value of the security if the security was other-than-temporarily impaired. There is no adoption impact due to the prospective transition for Available-for-Sale securities.

Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains (losses) were as follows:


	Years Ended December 31,
(in millions)	2020			2019			2018
Gross realized investment gains	$	17		$	29		$	16
Gross realized investment losses		(2	)		(14	)		(7	)
Credit losses		(10	)		(17	)		—
Total	$	5		$	(2	)	$	9

Credit losses for the twelve months ended December 31, 2020 primarily related to recording an allowance for credit losses on certain corporate debt securities, primarily in the oil and gas industry. Other-than-temporary impairments for the year ended December 31, 2019 related to corporate debt securities.

See Note 18 for a rollforward of net unrealized investment gains (losses) included in AOCI.

Available-for-Sale securities by contractual maturity as of December 31, 2020 were as follows:


(in millions)	Amortized Cost		Fair Value
Due within one year	$	596	$	602
Due after one year through five years		4,373		4,697
Due after five years through 10 years		2,900		3,206
Due after 10 years		4,400		5,970
		12,269		14,475
Residential mortgage backed securities		2,888		3,002
Commercial mortgage backed securities		3,935		4,166
Asset backed securities		1,168		1,212
Total	$	20,260	$	22,855

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities were not included in the maturities distribution.

The following is a summary of net investment income:


	Years Ended December 31,
(in millions)	2020			2019			2018
Fixed maturities	$	777		$	848		$	919
Mortgage loans		115			119			117
Other investments		(3	)		(26	)		11
		889			941			1,047
Less: investment expenses		20			24			24
Total	$	869		$	917		$	1,023

Net realized investment gains (losses) are summarized as follows:


	Years Ended December 31,
(in millions)	2020			2019			2018
Fixed maturities	$	5		$	(2	)	$	9
Mortgage loans		(10	)		—			1
Other investments		(5	)		—			—
Total	$	(10	)	$	(2	)	$	10

7. FINANCING RECEIVABLES

Financing receivables are comprised of commercial mortgage loans, consumer loans, and the deposit receivable. See Note 2 for information regarding the Company’s accounting policies related to financing receivables and the allowance for credit losses.

F-27

RiverSource Life Insurance Company

Allowance for Credit Losses

The following tables present a rollforward of the allowance for credit losses for the year ended December 31, 2020


(in millions)	Commercial Loans
Balance, December 31, 2019 ⁽¹⁾	$	20
Cumulative effect of adoption of current expected credit losses guidance		3
Balance, January 1, 2020		23
Provisions		12
Balance, December 31, 2020	$	35

⁽¹⁾	Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset.


	Commercial Loans
(in millions)	2019		2018
Balance at January 1	$	20	$	22
Charge-offs		—		(2	)
Balance at December 31	$	20	$	20

As of December 31, 2020 and 2019 , accrued interest on commercial loans was $14 million and $11 million and is recorded in accrued investment income on the Consolidated Balance Sheets and excluded from the amortized cost basis of commercial loans.

Purchases and Sales

During the years ended December 31, 2020, 2019 and 2018, the Company purchased $140 million, $121 million and $137 million, respectively, of syndicated loans and sold $13 million, $43 million and $44 million, respectively, of syndicated loans.

The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.

Credit Quality Information

Nonperforming loans were $7 million and $9 million as of December 31, 2020 and 2019, respectively. All other loans were considered to be performing.

Commercial Mortgage Loans

The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both December 31, 2020 and 2019. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. Total commercial mortgage loan modifications in 2020 due to the COVID-19 pandemic consisted of 88 loans with a total unpaid balance of $360 million. Modifications primarily consisted of short-term forbearance and interest only payments. As of December 31, 2020, there was one loan with interest only payments with an unpaid balance of $10 million. All other loans returned to their normal payment schedules. Total commercial mortgage loans past due were nil as of both December 31, 2020 and 2019, respectively.

The table below presents the amortized cost basis of commercial mortgage loans as of December 31, 2020 by year of origination and loan-to-value ratio:


Loan-to-Value Ratio	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
> 100%	$	—	$	—	$	2	$	—	$	—	$	10	$	12
80% - 100%		15		16		9		3		7		15		65
60% - 80%		85		152		27		29		46		141		480
40% - 60%		20		50		74		147		111		543		945
< 40%		7		22		69		88		58		856		1,100
Total	$	127	$	240	$	181	$	267	$	222	$	1,565	$	2,602

Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type.

F-28

RiverSource Life Insurance Company

In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:


	Loans				Percentage
	December 31, 2020		December 31, 2019		December 31, 2020			December 31, 2019
	(in millions)
South Atlantic	$	663	$	705		25	%		26	%
Pacific		784		792		30			30
Mountain		234		237		10			9
West North Central		192		207		7			8
East North Central		250		232		10			9
Middle Atlantic		165		167		6			6
West South Central		156		169		6			6
New England		47		47		2			2
East South Central		111		116		4			4

		2,602		2,672		100	%		100	%

Less: allowance for loan losses		28		17

Total	$	2,574	$	2,655

Concentrations of credit risk of commercial mortgage loans by property type were as follows:


	Loans				Percentage
	December 31, 2020		December 31, 2019		December 31, 2020			December 31, 2019
	(in millions)
Retail	$	843	$	891		32	%		33	%
Office		358		404		14			15
Apartments		680		660		26			25
Industrial		401		404		16			15
Mixed use		76		66		3			3
Hotel		49		51		2			2
Other		195		196		7			7

		2,602		2,672		100	%		100	%

Less: allowance for loan losses		28		17

Total	$	2,574	$	2,655

Syndicated Loans

The recorded investment in syndicated loans as of December 31, 2020 and 2019 was $446 million and $395 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. Total syndicated loans past due were $2 million and $1 million as of December 31, 2020 and 2019, respectively. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality.

The table below presents the amortized cost basis of syndicated loans as of December 31, 2020 by origination year and internal risk rating:


Internal Risk Rating	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
Risk 5	$	—	$	—	$	—	$	—	$	—	$	2	$	2
Risk 4		—		—		3		7		—		7		17
Risk 3		—		7		6		19		10		18		60
Risk 2		23		42		45		51		10		32		203
Risk 1		14		25		35		43		17		30		164
Total	$	37	$	74	$	89	$	120	$	37	$	89	$	446

Policy Loans

Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses.

F-29

RiverSource Life Insurance Company

Deposit Receivable

The deposit receivable was $1.4 billion and $1.5 billion as of December 31, 2020 and 2019, respectively. The deposit receivable is fully collateralized by the fair value of the assets held in a trust. Based on management’s evaluation of the nature of the underlying assets and the potential for changes in the collateral value, the Company did not have an allowance for credit losses for the deposit receivable as of both December 31, 2020 and 2019.

Troubled Debt Restructurings

The recorded investment in restructured loans was not material as of both December 31, 2020 and 2019. Troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the years ended December 31, 2020, 2019 and 2018. There are no material commitments to lend additional funds to borrowers whose loans have been restructured.

8. DEFERRED ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS

Management updates market-related inputs on a quarterly basis and implements model changes related to the living benefit valuation. In addition, management conducts its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC for the year ended December 31, 2020 primarily reflected updates to interest rate assumptions, partially offset by a favorable impact from lower surrenders on annuity contracts with a withdrawal benefit. The impact of unlocking to DAC for the year ended December 31, 2019 primarily reflected updated mortality assumptions on UL and VUL insurance products and lower surrender rate assumptions on variable annuities, partially offset by an unfavorable impact from updates to assumptions on utilization of guaranteed withdrawal benefits. The impact of unlocking to DAC for the year ended December 31, 2018 primarily reflected improved persistency and mortality on UL and VUL insurance products and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation.

The balances of and changes in DAC were as follows:


(in millions)	2020			2019			2018
Balance at January 1	$	2,673		$	2,742		$	2,639
Capitalization of acquisition costs		216			239			254
Amortization		(164	)		(119	)		(288	)
Amortization, impact of valuation assumptions review		(100	)		(14	)		33
Impact of change in net unrealized (gains) losses on securities		(117	)		(175	)		104
Balance at December 31	$	2,508		$	2,673		$	2,742

The balances of and changes in DSIC, which is included in other assets, were as follows:


(in millions)	2020			2019			2018
Balance at January 1	$	216		$	249		$	273
Capitalization of sales inducement costs		1			1			2
Amortization		(13	)		(15	)		(42	)
Amortization, impact of valuation assumptions review		(16	)		—			—
Impact of change in net unrealized (gains) losses on securities		(1	)		(19	)		16
Balance at December 31	$	187		$	216		$	249

9. REINSURANCE

The Company reinsures a portion of the insurance risks associated with its traditional life, DI and LTC insurance products through reinsurance agreements with unaffiliated reinsurance companies. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders.

The Company generally reinsures 90% of the death benefit liability for new term life insurance policies beginning in 2001 (RiverSource Life of NY began in 2002) and new individual UL and VUL insurance policies beginning in 2002 (2003 for RiverSource Life of NY). Policies issued prior to these dates are not subject to these same reinsurance levels.

However, for IUL policies issued after September 1, 2013 and VUL policies issued after January 1, 2014, the Company generally reinsures 50% of the death benefit liability. Similarly, the Company reinsures 50% of the death benefit and morbidity liabilities related to its UL product with LTC benefits.

The maximum amount of life insurance risk the Company will retain is $10 million on a single life and $10 million on any flexible premium survivorship life policy; however, reinsurance agreements are in place such that retaining more than $1.5 million of insurance risk on a single life or a flexible premium survivorship life policy is very unusual. Risk on UL and VUL policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy.

F-30

RiverSource Life Insurance Company

The Company also has life insurance and fixed annuity risk previously assumed under reinsurance arrangements with unaffiliated insurance companies.

For existing LTC policies, the Company has continued ceding 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. (“Genworth”) and retains the remaining risk. For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only. Under these agreements, the Company has the right, but never the obligation, to recapture some, or all, of the risk ceded to Genworth.

Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states starting in 2007 (2010 for RiverSource Life of NY) and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold on other policy forms introduced prior to 2007 (2010 for RiverSource Life of NY). The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions.

As of December 31, 2020 and 2019, traditional life and UL insurance policies in force were $195.7 billion and $195.1 billion, respectively, of which $143.6 billion and $142.8 billion as of December 31, 2020 and 2019 were reinsured at the respective year ends.

The effect of reinsurance on premiums for traditional long-duration products was as follows:


	Years Ended December 31,
(in millions)	2020			2019			2018
Direct premiums	$	565		$	621		$	621
Reinsurance ceded		(224	)		(224	)		(225	)
Net premiums	$	341		$	397		$	396

Policy and contract charges are presented on the Consolidated Statements of Income net of $140 million, $132 million and $126 million of reinsurance ceded for non-traditional long-duration products for the years ended December 31, 2020, 2019 and 2018, respectively.

The amount of claims recovered through reinsurance on all contracts was $400 million, $377 million and $331 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Reinsurance recoverables include approximately $2.7 billion and $2.5 billion related to LTC risk ceded to Genworth as of December 31, 2020 and 2019, respectively.

Policyholder account balances, future policy benefits and claims include $440 million and $466 million related to previously assumed reinsurance arrangements as of December 31, 2020 and 2019, respectively.

10. POLICYHOLDER ACCOUNT BALANCES, FUTURE POLICY BENEFITS AND CLAIMS AND SEPARATE ACCOUNT LIABILITIES

Policyholder account balances, future policy benefits and claims consisted of the following:


	December 31,
(in millions)	2020		2019
Policyholder account balances
Fixed annuities ⁽¹⁾	$	8,531	$	8,909
Variable annuity fixed sub-accounts		5,104		5,103
UL/VUL insurance		3,122		3,110
IUL insurance		2,269		2,025
Structured variable annuities		1,371		—
Other life insurance		605		646
Total policyholder account balances		21,002		19,793
Future policy benefits
Variable annuity GMWB		3,049		1,462
Variable annuity GMAB ⁽²⁾		1		(39	)
Other annuity liabilities		211		139
Fixed annuity life contingent liabilities		1,370		1,444
Life and DI insurance		1,187		1,212
LTC insurance		5,722		5,302
UL/VUL and other life insurance additional liabilities		1,259		1,033
Total future policy benefits		12,799		10,553
Policy claims and other policyholders’ funds		185		158
Total policyholder account balances, future policy benefits and claims	$	33,986	$	30,504

⁽¹⁾	Includes fixed deferred annuities, non-life contingent fixed payout annuities and fixed deferred indexed annuity host contracts.

⁽²⁾	Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2020 and 2019 reported as a contra liability.

F-31

RiverSource Life Insurance Company

Fixed Annuities

Fixed annuities include deferred, payout and fixed deferred indexed annuity contracts. In 2020, the Company discontinued sales of fixed deferred and fixed deferred indexed annuities.

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. 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 2.27% to 9.38% as of December 31, 2020, depending on year of issue, with an average rate of approximately 3.7%. The Company generally invests the proceeds from the annuity contracts in fixed rate securities.

The Company’s equity indexed annuity (“EIA”) product is a single premium fixed deferred annuity. The Company discontinued new sales of EIAs in 2007. The contract was issued with an initial term of seven years and interest earnings are linked to the performance of 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. The Company generally invests the proceeds from the annuity contracts in fixed rate securities and hedges the equity risk with derivative instruments.

The Company’s fixed index annuity product is a fixed annuity that includes an indexed account. The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap). The Company previously offered S&P 500^® Index and MSCI^® EAFE Index account options. Both options offered two crediting durations, one-year and two-year. The contractholder could allocate all or a portion of the policy value to a fixed or indexed account. The portion of the policy allocated to the indexed account is accounted for as an embedded derivative. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with derivative instruments. The contractholder could choose to add a GMWB for life rider for an additional fee.

See Note 17 for additional information regarding the Company’s derivative instruments used to hedge the risk related to indexed annuities.

Variable Annuities

Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders.

Most of the variable annuity contracts currently issued by the Company contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. The Company previously offered contracts with GMIB provisions. See Note 2 and Note 11 for additional information regarding the Company’s variable annuity guarantees. The Company does not currently hedge its risk under the GGU and GMIB provisions. See Note 13 and Note 17 for additional information regarding the Company’s derivative instruments used to hedge risks related to GMWB, GMAB and GMDB provisions.

Structured Variable Annuities

In 2020, the Company began offering structured variable annuities which gives contractholders the option to allocate a portion of their account value to an indexed account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices.

Insurance Liabilities

UL/VUL is the largest group of insurance policies written by the Company. Purchasers of UL accumulate cash value that increases by a fixed interest rate. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders.

IUL is a UL policy that includes an indexed account. The rate of credited interest above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap and floor). The Company offers an S&P 500^® Index account option and a blended multi-index account option comprised of the S&P 500 Index, the MSCI^® EAFE Index and the MSCI EM Index. Both options offer two crediting durations, one-year and two-year. The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account. The portion of the policy allocated to the indexed account is accounted for as an embedded derivative at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with derivative instruments. See Note 17 for additional information regarding the Company’s derivative instruments used to hedge the risk related to IUL.

The Company also offers term life insurance as well as DI products. The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years.

Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims and unpaid reported claims.

F-32

RiverSource Life Insurance Company

The liability for estimates of benefits that will become payable on future claims on term life, whole life and DI policies is based on the net level premium and LTC policies is based on a gross premium valuation reflecting management’s current best estimate assumptions. Both include the anticipated interest rates earned on assets supporting the liability. Anticipated interest rates for term and whole life ranged from 2.25% to 10% as of December 31, 2020. Anticipated interest rates for DI policies ranged from 2.25% to 7.5% as of December 31, 2020 and for LTC policies ranged from 5% to 5.7% as of December 31, 2020.

The liability for unpaid reported claims on DI and LTC policies includes an estimate of the present value of obligations for continuing benefit payments. The discount rates used to calculate present values are based on average interest rates earned on assets supporting the liability for unpaid amounts and were 4.5% and 6% for DI and LTC claims, respectively, as of December 31, 2020.

Portions of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the policy. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the policy. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

Separate Account Liabilities

Separate account liabilities consisted of the following:


	December 31,
(in millions)	2020		2019
Variable annuity	$	79,299	$	74,965
VUL insurance		8,226		7,429
Other insurance		31		31
Total	$	87,556	$	82,425

11. VARIABLE ANNUITY AND INSURANCE GUARANTEES

The majority of the variable annuity contracts offered by the Company contain GMDB provisions. The Company also offers variable annuities with GGU, GMWB and GMAB provisions. The Company previously offered contracts containing GMIB provisions. See Note 2 and Note 10 for additional information regarding the Company’s variable annuity guarantees.

The GMDB and GGU provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has the following primary GMDB provisions:

•

Return of premium — provides purchase payments minus adjusted partial surrenders.

•

Reset — provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered.

•

Ratchet — provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders.

The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund 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 or by a benefit credit if the contract includes this provision.

The Company has GMWB riders in force, which contain one or more of the following provisions:

•

Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount.

•

Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”).

•

Withdrawals at a specified rate per year for joint contractholders while either is alive.

•

Withdrawals based on performance of the contract.

•

Withdrawals based on the age withdrawals begin.

•

Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken.

Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or a specified percentage 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.

F-33

RiverSource Life Insurance Company

Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities:


	December 31, 2020								December 31, 2019
Variable Annuity Guarantees by Benefit Type⁽¹⁾ (in millions, except age)	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age		Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age
GMDB:
Return of premium	$	66,874	$	64,932	$	5		68	$	62,909	$	60,967	$	5		67
Five/six-year reset		8,116		5,386		6		68		7,983		5,263		7		67
One-year ratchet		6,094		5,763		8		71		5,935		5,600		7		70
Five-year ratchet		1,436		1,381		—		67		1,396		1,340		—		66
Other		1,261		1,243		45		73		1,192		1,174		65		73
Total — GMDB	$	83,781	$	78,705	$	64		68	$	79,415	$	74,344	$	84		67
GGU death benefit	$	1,183	$	1,126	$	162		71	$	1,115	$	1,063	$	133		71
GMIB	$	187	$	173	$	6		71	$	186	$	172	$	6		70
GMWB:
GMWB	$	1,972	$	1,967	$	1		74	$	1,999	$	1,993	$	1		73
GMWB for life		50,142		50,057		185		69		46,799		46,691		272		68
Total — GMWB	$	52,114	$	52,024	$	186		69	$	48,798	$	48,684	$	273		68
GMAB	$	2,291	$	2,291	$	—		61	$	2,528	$	2,524	$	—		60

⁽¹⁾	Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table.

The net amount at risk for GMDB, GGU and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero.

The following table provides information related to insurance guarantees for which the Company has established additional liabilities:


	December 31, 2020				December 31, 2019
(in millions, except age)	Net Amount at Risk		Weighted Average Attained Age		Net Amount at Risk		Weighted Average Attained Age
UL secondary guarantees	$	6,587		67	$	6,550		67

The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder account balance.

Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows:


(in millions)	GMDB & GGU			GMIB			GMWB⁽¹⁾		GMAB⁽¹⁾			UL
Balance at January 1, 2018	$	17		$	6		$	463	$	(80	)	$	489
Incurred claims		8			2			412		61			201
Paid claims		(6	)		—			—		—			(31	)
Balance at December 31, 2018		19			8			875		(19	)		659
Incurred claims		2			(1	)		587		(20	)		141
Paid claims		(5	)		—			—		—			(42	)
Balance at December 31, 2019		16			7			1,462		(39	)		758
Incurred claims		15			—			1,587		40			209
Paid claims		(7	)		(1	)		—		—			(51	)
Balance at December 31, 2020	$	24		$	6		$	3,049	$	1		$	916

⁽¹⁾	The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims.

The liabilities for guaranteed benefits are supported by general account assets.

F-34

RiverSource Life Insurance Company

The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:


	December 31,
(in millions)	2020		2019
Mutual funds:
Equity	$	45,947	$	44,739
Bond		26,073		23,374
Other		6,911		6,471
Total mutual funds	$	78,931	$	74,584

No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2020, 2019 and 2018.

12. DEBT

Short-Term Borrowings

RiverSource Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Des Moines which provides access to collateralized borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities to collateralize its obligation under these borrowings. The fair value of the securities pledged is recorded in investments and was $1.2 billion and $840 million as of December 31, 2020 and 2019, respectively. The amount of the Company’s liability including accrued interest was $200 million and $201 million as of December 31, 2020 and 2019, respectively. The remaining maturity of outstanding FHLB advances was less than three months as of December 31, 2020 and less than two months as of December 31, 2019. The weighted average annualized interest rate on the FHLB advances held as of December 31, 2020 and 2019 was 0.4% and 1.8%, respectively.

Lines of Credit

RiverSource Life Insurance Company, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under the line of credit may not exceed 3% of RiverSource Life Insurance Company’s statutory admitted assets (excluding separate accounts) as of the prior year end. The interest rate for any borrowing under the agreement is established by reference to London Inter-Bank Offered Rate (“LIBOR”) for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. Amounts borrowed may be repaid at any time with no prepayment penalty. The amounts outstanding on this line of credit were nil and $50 million as of December 31, 2020 and 2019, respectively.

RiverSource Life of NY, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under the line of credit may not exceed the lesser of $25 million or 3% of RiverSource Life of NY’s statutory admitted assets (excluding separate accounts) as of the prior year end. The interest rate for any borrowing is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period. Amounts borrowed may be repaid at any time with no prepayment penalty. There were no amounts outstanding on this line of credit as of both December 31, 2020 and 2019.

RTA, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender not to exceed $100 million. The interest rate for any borrowing is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. This line of credit is automatically renewed annually with Ameriprise Financial. There were no amounts outstanding on this revolving credit agreement as of both December 31, 2020 and 2019.

Long-Term Debt

On December 23, 2020, the Company issued a $500 million unsecured 3.5% surplus note due December 31, 2050 to Ameriprise Financial. The surplus note is subordinate in right of payment to the prior payment in full of the Company’s obligations to policyholders, claimants and beneficiaries and all other creditors. No payment of principal or interest shall be made without the prior approval of the Minnesota Department of Commerce and such payments shall be made only from RiverSource Life Insurance Company’s statutory surplus. Interest payments are due semiannually in arrears on June 30 and December 31, commencing on June 30, 2021. Subject to the preceding conditions, the Company may prepay all or a portion of the principal at any time. The outstanding balance was $500 million as of December 31, 2020 and is recorded in Long-term debt on the Consolidated Balance Sheets.

13. FAIR VALUES OF ASSETS AND LIABILITIES

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale.

F-35

RiverSource Life Insurance Company

Valuation Hierarchy

The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

Level 1

Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.

Level 2

Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.

Level 3

Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis:


	December 31, 2020
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Available-for-Sale securities:
Corporate debt securities	$	—	$	12,107	$	766	$	12,873
Residential mortgage backed securities		—		2,993		9		3,002
Commercial mortgage backed securities		—		4,166		—		4,166
Asset backed securities		—		817		395		1,212
State and municipal obligations		—		1,344		—		1,344
Foreign government bonds and obligations		—		257		—		257
U.S. government and agency obligations		1		—		—		1
Total Available-for-Sale securities:		1		21,684		1,170		22,855
Cash equivalents		2,419		713		—		3,132
Other assets:
Interest rate derivative contracts		1		1,754		—		1,755
Equity derivative contracts		406		3,578		—		3,984
Foreign exchange derivative contracts		1		17		—		18
Credit derivative contracts		—		1		—		1
Total other assets		408		5,350		—		5,758
Separate account assets at net asset value (“NAV”)								87,556	⁽¹⁾
Total assets at fair value	$	2,828	$	27,747	$	1,170	$	119,301

Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives	$	—	$	3	$	49	$	52
IUL embedded derivatives		—		—		935		935
GMWB and GMAB embedded derivatives		—		—		2,316		2,316	⁽²⁾
Structured variable annuities		—		—		70		70
Total policyholder account balances, future policy benefits and claims		—		3		3,370		3,373	⁽³⁾
Other liabilities:
Interest rate derivative contracts		—		734		—		734
Equity derivative contracts		182		3,329		—		3,511
Foreign exchange derivative contracts		2		—		—		2
Credit derivative contracts		—		1		—		1
Total other liabilities		184		4,064		—		4,248
Total liabilities at fair value	$	184	$	4,067	$	3,370	$	7,621

F-36

RiverSource Life Insurance Company


	December 31, 2019
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Available-for-Sale securities:
Corporate debt securities	$	—	$	10,787	$	735	$	11,522
Residential mortgage backed securities		—		3,091		17		3,108
Commercial mortgage backed securities		—		3,618		—		3,618
Asset backed securities		—		691		389		1,080
State and municipal obligations		—		1,306		—		1,306
Foreign government bonds and obligations		—		267		—		267
U.S. government and agency obligations		1		—		—		1
Total Available-for-Sale securities:		1		19,760		1,141		20,902
Cash equivalents		—		1,256		—		1,256
Other assets:
Interest rate derivative contracts		—		1,451		—		1,451
Equity derivative contracts		162		2,650		—		2,812
Foreign exchange derivative contracts		1		15		—		16
Credit derivative contracts		—		4		—		4
Total other assets		163		4,120		—		4,283
Separate account assets at NAV								82,425	⁽¹⁾
Total assets at fair value	$	164	$	25,136	$	1,141	$	108,866

Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives	$	—	$	3	$	43	$	46
IUL embedded derivatives		—		—		881		881
GMWB and GMAB embedded derivatives		—		—		763		763	⁽⁴⁾
Total policyholder account balances, future policy benefits and claims		—		3		1,687		1,690	⁽⁵⁾
Other liabilities:
Interest rate derivative contracts		—		418		—		418
Equity derivative contracts		36		3,018		—		3,054
Foreign exchange derivative contracts		1		5		—		6
Total other liabilities		37		3,441		—		3,478
Total liabilities at fair value	$	37	$	3,444	$	1,687	$	5,168

⁽¹⁾	Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

⁽²⁾	The fair value of the GMWB and GMAB embedded derivatives included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2020.

⁽³⁾	The Company’s adjustment for nonperformance risk resulted in a $727 million cumulative decrease to the embedded derivatives as of December 31, 2020.

⁽⁴⁾	The fair value of the GMWB and GMAB embedded derivatives included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2019.

⁽⁵⁾	The Company’s adjustment for nonperformance risk resulted in a $502 million cumulative decrease to the embedded derivatives as of December 31, 2019.

The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis:


	Available-for-Sale Securities
(in millions)	Corporate Debt Securities			Residential Mortgage Backed Securities			Asset Backed Securities			Total
Balance, January 1, 2020	$	735		$	17		$	389		$	1,141
Total gains (losses) included in:
Other comprehensive income (loss)		15			1			(2	)		14
Purchases		62			39			—			101
Settlements		(46	)		—			(6	)		(52	)
Transfers into Level 3		—			—			14			14
Transfers out of Level 3		—			(48	)		—			(48	)
Balance, December 31, 2020	$	766		$	9		$	395		$	1,170
Changes in unrealized gains (losses) relating to assets held at December 31, 2020	$	(1	)	$	—		$	—		$	(1	)⁽¹⁾
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2020	$	15		$	1		$	(2	)	$	14

F-37

RiverSource Life Insurance Company


	Policyholder Account Balances, Future Policy Benefits and Claims
(in millions)	Fixed Deferred Indexed Annuity Embedded Derivatives			IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives			Structured Variable Annuity Embedded Derivatives			Total
Balance, January 1, 2020	$	43		$	881		$	763		$	—		$	1,687
Total (gains) losses included in:
Net income		4	⁽²⁾		76	⁽²⁾		1,152	⁽³⁾		91	⁽³⁾		1,323
Issues		3			61			362			(21	)		405
Settlements		(1	)		(83	)		39			—			(45	)
Balance, December 31, 2020	$	49		$	935		$	2,316		$	70		$	3,370
Changes in unrealized (gains) losses relating to liabilities held at December 31, 2020	$	—		$	76	⁽²⁾	$	1,206	⁽³⁾	$	—		$	1,282


	Available-for-Sale Securities
(in millions)	Corporate Debt Securities			Residential Mortgage Backed Securities			Asset Backed Securities		Total
Balance, January 1, 2019	$	871		$	64		$	374	$	1,309
Total gains (losses) included in:
Net income		(1	)		—			—		(1	⁾⁽¹⁾
Other comprehensive income (loss)		30			—			5		35
Purchases		55			27			—		82
Settlements		(220	)		(3	)		—		(223	)
Transfers into Level 3		—			—			10		10
Transfers out of Level 3		—			(71	)		—		(71	)
Balance, December 31, 2019	$	735		$	17		$	389	$	1,141
Changes in unrealized gains (losses) relating to assets held at December 31, 2019	$	(1	)	$	—		$	—	$	(1	)⁽¹⁾


	Policyholder Account Balances, Future Policy Benefits and Claims
(in millions)	Fixed Deferred Indexed Annuity Embedded Derivatives			IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives			Total
Balance, January 1, 2019	$	14		$	628		$	328		$	970
Total (gains) losses included in:
Net income		8	⁽²⁾		209	⁽²⁾		80	⁽³⁾		297
Issues		21			113			361			495
Settlements		—			(69	)		(6	)		(75	)
Balance, December 31, 2019	$	43		$	881		$	763		$	1,687
Changes in unrealized (gains) losses relating to liabilities held at December 31, 2019	$	—		$	209	⁽²⁾	$	82	⁽³⁾	$	291


	Available-for-Sale Securities
(in millions)	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total			Other Derivative Contracts
Balance, January 1, 2018	$	1,072		$	87		$	—		$	—		$	1,159			—
Total gains (losses) included in:
Net income		(1	)		—			—			—			(1	)⁽¹⁾		(3	)⁽³⁾
Other comprehensive income (loss)		(26	)		1			—			3			(22	)		—
Purchases		15			—			12			381			408			3
Settlements		(189	)		(6	)		—			—			(195	)		—
Transfers out of Level 3		—			(18	)		(12	)		(10	)		(40	)		—
Balance, December 31, 2018	$	871		$	64		$	—		$	374		$	1,309		$	—
Changes in unrealized gains (losses) relating to assets held at December 31, 2018	$	(1	)	$	—		$	—		$	—		$	(1	)⁽¹⁾	$	—

F-38

RiverSource Life Insurance Company


	Policyholder Account Balances, Future Policy Benefits and Claims
(in millions)	Fixed Deferred Indexed Annuity Embedded Derivatives			IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives			Total
Balance, January 1, 2018	$	—		$	601		$	(49	)	$	552
Total (gains) losses included in:
Net income		(3	)⁽²⁾		(9	)⁽²⁾		49	⁽³⁾		37
Issues		17			90			350			457
Settlements		—			(54	)		(22	)		(76	)
Balance, December 31, 2018	$	14		$	628		$	328		$	970
Changes in unrealized (gains) losses relating to liabilities held at December 31, 2018	$	—		$	(9	)⁽²⁾	$	47	⁽³⁾	$	38

⁽¹⁾	Included in net investment income in the Consolidated Statements of Income.

⁽²⁾	Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽³⁾	Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $196 million, $(190) million and $281 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the years ended December 31, 2020, 2019 and 2018, respectively.

Securities transferred from Level 3 primarily represent securities with fair values that are obtained from a third-party pricing service with observable inputs.

The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:


	December 31, 2020
	Fair Value		Valuation Technique	Unobservable Input	Range						Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	766	Discounted cash flow	Yield/spread to U.S. Treasuries ⁽¹⁾		1.0	%	–	3.3	%		1.5	%
Asset backed securities	$	395	Discounted cash flow	Annual default rate		5.3	%					5.3	%
				Loss severity		25.0	%					25.0	%
				Yield/spread to swap rates ⁽²⁾		250 bps		–	400 bps			259 bps
IUL embedded derivatives	$	935	Discounted cash flow	Nonperformance risk ⁽³⁾		65 bps						65 bps
Fixed deferred indexed annuity embedded derivatives	$	49	Discounted cash flow	Surrender rate ⁽⁴⁾		0.0	%	–	50.0	%		1.2	%
				Nonperformance risk ⁽³⁾		65 bps						65 bps
GMWB and GMAB embedded derivatives	$	2,316	Discounted cash flow	Utilization of guaranteed withdrawals ^{(5) (6)}		0.0	%	–	48.0	%		10.6	%
				Surrender rate ⁽⁴⁾		0.1	%	–	73.5	%		3.8	%
				Market volatility ^{(7) (8)}		4.3	%	–	17.1	%		11.0	%
				Nonperformance risk ⁽³⁾		65 bps						65 bps
Structured variable annuity embedded derivatives	$	70	Discounted cash flow	Surrender rate ⁽⁴⁾		0.8	%	–	40.0	%		0.9	%
				Nonperformance risk ⁽³⁾		65 bps						65 bps

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RiverSource Life Insurance Company


	December 31, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range						Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	735	Discounted cash flow	Yield/spread to U.S. Treasuries		0.8	%	–	2.8	%		1.3	%
Asset backed securities	$	389	Discounted cash flow	Annual default rate		3.5	%
				Loss severity		25.0	%
				Yield/spread to swap rates		120 bps		–	170 bps			123 bps
IUL embedded derivatives	$	881	Discounted cash flow	Nonperformance risk ⁽³⁾		65 bps
Fixed deferred indexed annuity embedded derivatives	$	43	Discounted cash flow	Surrender rate		0.0	%	–	50.0	%
				Nonperformance risk ⁽³⁾		65 bps
GMWB and GMAB embedded derivatives	$	763	Discounted cash flow	Utilization of guaranteed withdrawals ⁽⁵⁾		0.0	%	–	36.0	%
				Surrender rate		0.1	%	–	73.5	%
				Market volatility ⁽⁷⁾		3.7	%	–	15.9	%
				Nonperformance risk ⁽³⁾		65 bps

⁽¹⁾	The weighted average for the spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.

⁽²⁾	The weighted average for the spread to swap rates for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its spread to swap divided by the aggregate balances of the tranches.

⁽³⁾	The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.

⁽⁴⁾	The weighted average surrender rate is weighted based on the benefit base of each contract and represents the average assumption in the current year including the effect of a dynamic surrender formula.

⁽⁵⁾	The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.

⁽⁶⁾	The weighted average utilization rate represents the average assumption for the current year, weighting each policy evenly. The calculation excludes policies that have already started taking withdrawals.

⁽⁷⁾	Market volatility is implied volatility of fund of funds and managed volatility funds.

⁽⁸⁾	The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit.

Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.

Uncertainty of Fair Value Measurements

Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would have resulted in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in the annual default rate used in the fair value measurement of Level 3 asset backed securities in isolation, generally, would have resulted in a significantly lower (higher) fair value measurement and significant increases (decreases) in loss severity in isolation would have resulted in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in the yield/spread to swap rates in isolation would have resulted in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value.

Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would have resulted in a significantly higher (lower) liability value.

Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution channel and whether the value of the guaranteed benefit exceeds the contract accumulation value.

Determination of Fair Value

The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs.

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RiverSource Life Insurance Company

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy.

Assets

Cash Equivalents

Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. U.S. Treasuries are also classified as Level 1. The Company’s remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization.

Available-for-Sale Securities

When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third-party pricing services, non-binding broker quotes, or other model-based valuation techniques.

Level 1 securities primarily include U.S. Treasuries.

Level 2 securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, state and municipal obligations, asset backed securities and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third-party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes.

Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. The fair value of affiliated asset backed securities is determined using a discounted cash flow model. Inputs used to determine the expected cash flows include assumptions about discount rates and default, prepayment and recovery rates of the underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the investment in the affiliated asset backed securities is classified as Level 3.

In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third-party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third-party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise.

Separate Account Assets

The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy.

Other Assets

Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of December 31, 2020 and 2019. See Note 16 and Note 17 for further information on the credit risk of derivative instruments and related collateral.

Liabilities

Policyholder Account Balances, Future Policy Benefits and Claims

There is no active market for the transfer of the Company’s embedded derivatives attributable to the provisions of certain variable annuity riders, fixed deferred indexed annuity, structured variable annuity and IUL products.

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RiverSource Life Insurance Company

The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value as the present value of future expected benefit payments less the present value of future expected rider fees attributable to the embedded derivative feature. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions that include margins for risk, all of which the Company believes a market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims.

The Company uses a discounted cash flow model to determine the fair value of the embedded derivatives associated with the provisions of its equity index annuity product. The projected cash flows generated by this model are based on significant observable inputs related to interest rates, volatilities and equity index levels and, therefore, are classified as Level 2.

The Company uses discounted cash flow models including Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its fixed deferred indexed annuity, structured variable annuity and IUL products. The structured variable annuity product is a limited flexible purchase payment annuity that offers 45 different indexed account options providing equity market exposure and a fixed account. Each indexed account includes a protection option (a buffer or a floor). If the index has a negative return, contractholder losses will be reduced by buffer or limited to a floor. The portion allocated to an indexed account is accounted for as an embedded derivative. The fair value of fixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the significant unobservable estimate of the Company’s nonperformance risk. Given the significance of the nonperformance risk assumption to the fair value, the fixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives are classified as Level 3.

The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims.

Other Liabilities

Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of December 31, 2020 and 2019. See Note 16 and Note 17 for further information on the credit risk of derivative instruments and related collateral.

Fair Value on a Nonrecurring Basis

The Company assesses its investment in affordable housing partnerships for impairment. The investments that are determined to be impaired are written down to their fair value. The Company uses a discounted cash flow model to measure the fair value of these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company and discount rates based on market condition and the financial strength of the syndicator (general partner). The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $101 million and $158 million as of December 31, 2020 and 2019, respectively, and is classified as Level 3 in the fair value hierarchy.

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RiverSource Life Insurance Company

Asset and Liabilities Not Reported at Fair Value

The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value.


	December 31, 2020
	Carrying Value		Fair Value
(in millions)	Carrying Value		Level 1		Level 2		Level 3		Total
Financial Assets
Mortgage loans, net	$	2,574	$	—	$	—	$	2,724	$	2,724
Policy loans		846		—		846		—		846	⁽¹⁾
Other investments		457		—		417		40		457
Other receivables		1,430		—		—		1,732		1,732

Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	9,990	$	—	$	—	$	11,686	$	11,686
Short-term borrowings		200		—		200		—		200
Long-term debt		500		—		509		—		509
Other liabilities		12		—		—		11		11
Separate account liabilities — investment contracts		351		—		351		—		351

	December 31, 2019
	Carrying Value		Fair Value
(in millions)	Carrying Value		Level 1		Level 2		Level 3		Total
Financial Assets
Mortgage loans, net	$	2,655	$	—	$	—	$	2,707	$	2,707
Policy loans		867		—		867		—		867	⁽¹⁾
Other investments		410		—		376		34		410
Other receivables		1,514		—		—		1,648		1,648

Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	9,110	$	—	$	—	$	10,061	$	10,061
Short-term borrowings		201		—		201		—		201
Line of credit with Ameriprise Financial		50		—		—		50		50
Other liabilities		22		—		—		21		21
Separate account liabilities — investment contracts		340		—		340		—		340

⁽¹⁾

During the third quarter of 2020, management changed the fair value methodology for policy loans from estimating future expected cash flows and discounting the cash flows at a rate based on the U.S. Treasury curve to using the carrying value as an approximation of fair value as the policy loans are fully collateralized by the cash surrender value of the underlying policies. As a result, policy loans were reclassified from Level 3 to Level 2 in the valuation hierarchy. For comparability and consistency purposes, prior period amounts were revised to reflect the current methodology and classification.

Other investments include syndicated loans and the Company’s membership in the FHLB. Other receivables include the deposit receivable. See Note 7 for additional information on mortgage loans, policy loans, syndicated loans and the deposit receivable.

Policyholder account balances, future policy benefits and claims includes fixed annuities in deferral status, non-life contingent fixed annuities in payout status, indexed and structured variable annuity host contracts, and the fixed portion of a small number of variable annuity contracts classified as investment contracts. See Note 10 for additional information on these liabilities. Short-term borrowings include FHLB borrowings. Long-term debt includes the surplus note with Ameriprise Financial. See Note 12 for further information on short-term borrowings and long-term debt. Other liabilities include future funding commitments to affordable housing partnerships and other real estate partnerships. Separate account liabilities are related to certain annuity products that are classified as investment contracts.

14. RELATED PARTY TRANSACTIONS

Revenues

See Note 4 for information about revenues from contracts with customers earned by the Company from related party transactions with affiliates.

The Company is the lessor of one real estate property which it leases to Ameriprise Financial under an operating lease that expires November 30, 2029. The Company earned $5 million in rental income for each of the years ended December 31, 2020, 2019 and 2018, which is reflected in Other revenues on the Company’s Consolidated Statements of Income. The Company expects to earn $5 million in each year of the five year period ended December 31, 2025 and a total of $19 million thereafter.

Expenses

Charges by Ameriprise Financial and affiliated companies to the Company for use of joint facilities, technology support, marketing services and other services aggregated $358 million, $370 million and $365 million for the years ended

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RiverSource Life Insurance Company

December 31, 2020, 2019 and 2018, respectively. Certain of these costs are included in DAC. Expenses allocated to the Company may not be reflective of expenses that would have been incurred by the Company on a stand-alone basis.

Income taxes

The Company’s taxable income is included in the consolidated federal income tax return of Ameriprise Financial. The net amount due (to) from Ameriprise Financial for federal income taxes was $(297) million and $85 million as of December 31, 2020 and 2019, respectively, which is reflected in Other, net within operating activities on the Consolidated Statements of Cash Flows.

Investments

The Company invests in AA and A rated asset backed securities issued by AAF, an affiliate of the Company. The asset backed securities are collateralized by a portfolio of loans issued to advisors affiliated with AFS, an affiliated broker dealer. As of December 31, 2020 and 2019, the fair value of these asset backed securities was $372 million and $380 million, respectively, and is reported in Investments: Available-for-Sale Fixed Maturities on the Company’s Consolidated Balance Sheets. For both the years ended December 31, 2020 and December 31 2019, interest income from these asset backed securities was $14 million and is reported in Net investment income on the Company’s Consolidated Statements of Income.

Lines of Credit

RiverSource Life Insurance Company, as the lender, has a revolving credit agreement with Ameriprise Financial as the borrower. This line of credit is not to exceed 3% of RiverSource Life Insurance Company’s statutory admitted assets as of the prior year end. The interest rate for any borrowing is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. In the event of default, an additional 1% interest will accrue during such period of default. There were no amounts outstanding on this revolving credit agreement as of both December 31, 2020 and 2019. See Note 12 for information about additional lines of credit with an affiliate.

Long-Term Debt

See Note 12 for information about a surplus note to an affiliate.

Dividends or distributions

Cash dividends or distributions paid and received by RiverSource Life Insurance Company were as follows:


	Years Ended December 31,
(in millions)	2020		2019		2018
Paid to Ameriprise Financial	$	800	$	1,350	$	750
Received from RiverSource Life of NY		—		43		48
Received from RTA		95		100		45
Received from RiverSource REO 1, LLC ⁽¹⁾		—		—		2

⁽¹⁾	RiverSource REO 1, LLC is a wholly owned subsidiary of RiverSource Life Insurance Company which holds foreclosed mortgage loans and real estate.

For dividends and other distributions from the life insurance companies, advance notification was provided to state insurance regulators prior to payments. See Note 15 for additional information.

15. REGULATORY REQUIREMENTS

The National Association of Insurance Commissioners (“NAIC”) defines Risk-Based Capital (“RBC”) requirements for insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. These requirements apply to the Company. The Company has met its minimum RBC requirements.

Insurance companies are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of their respective states of domicile, which vary materially from GAAP. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. The more significant differences from GAAP include charging policy acquisition costs to expense as incurred, establishing annuity and insurance reserves using different actuarial methods and assumptions, classifying surplus notes as a component of statutory surplus rather than debt, valuing investments on a different basis and excluding certain assets from the balance sheet by charging them directly to surplus, such as a portion of the net deferred income tax assets.

RiverSource Life Insurance Company received approval from the Minnesota Department of Commerce to apply a permitted statutory accounting practice, effective July 1, 2017 through June 30, 2019, for certain derivative instruments used to economically hedge the interest rate exposure of certain variable annuity products that do not qualify for statutory hedge accounting. The permitted practice was intended to mitigate the impact to statutory surplus from the misalignment between variable annuity statutory reserves, which are not carried at fair value, and the fair value of derivatives used to economically hedge the interest rate exposure of non-life contingent living benefit guarantees.

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RiverSource Life Insurance Company

The permitted practice allowed RiverSource Life Insurance Company to defer a portion of the change in fair value, net investment income and realized gains or losses generated from designated derivatives to the extent the amounts do not offset the current period interest-rate related change in the variable annuity statutory reserve liability. The deferred amount could be amortized over ten years using the straight-line method with the ability to accelerate amortization at management’s discretion. As of June 30, 2019, RiverSource Life Insurance Company elected to accelerate amortization of the net deferred amount associated with its permitted practice.

State insurance statutes contain limitations as to the amount of dividends and other distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life Insurance Company, payments 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 $1.3 billion and $326 million as of December 31, 2020 and 2019, 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 capital and surplus was $4.8 billion and $2.9 billion as of December 31, 2020 and 2019, respectively.

Statutory net gain from operations and net income (loss) for RiverSource Life Insurance Company are summarized as follows:


	Years Ended December 31,
(in millions)	2020		2019		2018
Statutory net gain from operations	$	1,393	$	1,505	$	1,686
Statutory net income (loss)		1,582		786		1,628

Government debt securities of $4 million as of both December 31, 2020 and 2019 were on deposit with various states as required by law.

16. OFFSETTING ASSETS AND LIABILITIES

Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments and repurchase agreements are subject to master netting and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets.

The following tables present the gross and net information about the Company’s assets subject to master netting arrangements:


	December 31, 2020
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
(in millions)	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount

Derivatives:
OTC	$	5,391	$	—	$	5,391	$	(3,801	)	$	(1,243	)	$	(315	)	$	32
OTC cleared		58		—		58		(25	)		—			—			33
Exchange-traded		309		—		309		(90	)		(165	)		—			54
Total derivatives	$	5,758	$	—	$	5,758	$	(3,916	)	$	(1,408	)	$	(315	)	$	119

	December 31, 2019
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
(in millions)	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount

Derivatives:
OTC	$	4,181	$	—	$	4,181	$	(2,886	)	$	(1,214	)	$	(73	)	$	8
OTC cleared		21		—		21		(21	)		—			—			—
Exchange-traded		81		—		81		(5	)		—			—			76
Total derivatives	$	4,283	$	—	$	4,283	$	(2,912	)	$	(1,214	)	$	(73	)	$	84

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RiverSource Life Insurance Company

⁽¹⁾	Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.

The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements:


	December 31, 2020
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
(in millions)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount

Derivatives:
OTC	$	4,129	$	—	$	4,129	$	(3,801	)	$	(1	)	$	(327	)	$	—
OTC cleared		25		—		25		(25	)		—			—			—
Exchange-traded		94		—		94		(90	)		—			—			4
Total derivatives		4,248		—		4,248		(3,916	)		(1	)		(327	)		4
Repurchase agreements		—		—		—		—			—			—			—
Total	$	4,248	$	—	$	4,248	$	(3,916	)	$	(1	)	$	(327	)	$	4

	December 31, 2019
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
(in millions)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount

Derivatives:
OTC	$	3,426	$	—	$	3,426	$	(2,886	)	$	—		$	(540	)	$	—
OTC cleared		41		—		41		(21	)		—			—			20
Exchange-traded		11		—		11		(5	)		—			—			6
Total derivatives		3,478		—		3,478		(2,912	)		—			(540	)		26
Repurchase agreements		—		—		—		—			—			—			—
Total	$	3,478	$	—	$	3,478	$	(2,912	)	$	—		$	(540	)	$	26

⁽¹⁾	Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.

In the tables above, the amount of assets or liabilities presented are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables.

When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral.

Freestanding derivative instruments are reflected in other assets and other liabilities. Cash collateral pledged by the Company is reflected in other assets and cash collateral accepted by the Company is reflected in other liabilities. Repurchase agreements are reflected in short-term borrowings. See Note 17 for additional disclosures related to the Company’s derivative instruments and Note 12 for additional disclosures related to the Company’s repurchase agreements.

17. DERIVATIVES AND HEDGING ACTIVITIES

Derivative instruments enable the Company 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. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations.

Certain of the Company’s freestanding derivative instruments are subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 16 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral.

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RiverSource Life Insurance Company

The Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:


	December 31, 2020						December 31, 2019
	Notional		Gross Fair Value				Notional		Gross Fair Value
(in millions)	Notional		Assets⁽¹⁾		Liabilities⁽²⁾⁽³⁾		Notional		Assets⁽¹⁾		Liabilities⁽²⁾⁽³⁾
Derivatives not designated as hedging instruments
Interest rate contracts	$	77,925	$	1,755	$	734	$	57,950	$	1,451	$	418
Equity contracts		55,993		3,984		3,511		60,596		2,812		3,054
Credit contracts		2,269		1		1		1,386		4		—
Foreign exchange contracts		3,124		18		2		3,251		16		6
Total non-designated hedges		139,311		5,758		4,248		123,183		4,283		3,478
Embedded derivatives
GMWB and GMAB ⁽⁴⁾		N/A		—		2,316		N/A		—		763
IUL		N/A		—		935		N/A		—		881
Indexed annuities		N/A		—		52		N/A		—		46
Structured variable annuity		N/A		—		70		N/A		—		—
Total embedded derivatives		N/A		—		3,373		N/A		—		1,690
Total derivatives	$	139,311	$	5,758	$	7,621	$	123,183	$	4,283	$	5,168

N/A	Not applicable.

⁽¹⁾	The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets.

⁽²⁾

The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and fixed deferred indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets.

⁽³⁾

The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $3.7 billion and $2.3 billion as of December 31, 2020 and 2019, respectively. See Note 16 for additional information related to master netting arrangements and cash collateral.

⁽⁴⁾

The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2020 included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2019 included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position.

See Note 13 for additional information regarding the Company’s fair value measurement of derivative instruments.

As of December 31, 2020 and 2019, investment securities with a fair value of $325 million and $84 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $325 million and $84 million, respectively, may be sold, pledged or rehypothecated by the Company. As of both December 31, 2020 and 2019, the Company had sold, pledged, or rehypothecated none of these securities. In addition, as of both December 31, 2020 and 2019, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

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RiverSource Life Insurance Company

The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income:


(in millions)	Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses
Year Ended December 31, 2020
Interest rate contracts	$	—		$	1,633
Equity contracts		55			(744	)
Credit contracts		—			(106	)
Foreign exchange contracts		—			(8	)
Other contracts		—			—
GMWB and GMAB embedded derivatives		—			(1,553	)
IUL embedded derivatives		7			—
Fixed deferred indexed annuities embedded derivatives		(4	)		—
Structured indexed annuities embedded derivatives		—			(91	)
Total gain (loss)	$	58		$	(869	)

Year Ended December 31, 2019
Interest rate contracts	$	—		$	1,100
Equity contracts		117			(1,501	)
Credit contracts		—			(73	)
Foreign exchange contracts		—			(30	)
Other contracts		—			—
GMWB and GMAB embedded derivatives		—			(435	)
IUL embedded derivatives		(140	)		—
Fixed deferred indexed annuities embedded derivatives		(8	)		—
Total gain (loss)	$	(31	)	$	(939	)

Year Ended December 31, 2018
Interest rate contracts	$	—		$	(312	)
Equity contracts		(49	)		306
Credit contracts		—			7
Foreign exchange contracts		—			1
Other contracts		—			(4	)
GMWB and GMAB embedded derivatives		—			(377	)
IUL embedded derivatives		63			—
Fixed deferred indexed annuities embedded derivatives		3			—
Total gain (loss)	$	17		$	(379	)

The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company.

Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively.The indexed portion of structured variable annuities and the GMAB and non-life contingent GMWB provisions are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. The Company economically hedges the aggregate exposure related to the indexed portion of structured variable annuities and the GMAB and non-life contingent GMWB provisions using options, swaptions, swaps and futures The deferred premium associated with certain of the above options and swaptions is paid or

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RiverSource Life Insurance Company

received semiannually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of December 31, 2020:


(in millions)	Premiums Payable		Premiums Receivable
2021	$	153	$	106
2022		207		205
2023		51		43
2024		141		26
2025		126		7
2026-2028		254		—
Total	$	932	$	387

Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received.

The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company may use a combination of futures, options, swaps and swaptions. Certain of the macro hedge derivatives may contain settlement provisions linked to both equity returns and interest rates. The Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates, if any, are shown in other contracts in the tables above.

Fixed deferred indexed annuity, structured variable annuity and IUL products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to fixed deferred indexed annuity, structured variable annuity and IUL products will positively or negatively impact earnings over the life of these products. The equity component of fixed deferred indexed annuity, structured variable annuity and IUL product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts.

Cash Flow Hedges

During the years ended December 31, 2020 and 2019, the Company held no derivatives that were designated as cash flow hedges. During the years ended December 31, 2020, 2019 and 2018, no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the years ended December 31, 2020, 2019 and 2018, amounts recognized in earnings on derivative transactions that were ineffective were not material. See Note 18 for a summary of net unrealized gains (losses) included in AOCI related to previously designated cash flow hedges.

Credit Risk

Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting and collateral arrangements whenever practical. See Note 16 for additional information on the Company’s credit exposure related to derivative assets.

Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s financial strength rating (or based on the debt rating of the Company’s parent, Ameriprise Financial). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company does not maintain a specific financial strength rating or Ameriprise Financial’s debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. As of December 31, 2020 and 2019, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $324 million and $189 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2020 and 2019 was $324 million and $189 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of both December 31, 2020 and 2019 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been nil.

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RiverSource Life Insurance Company

18. SHAREHOLDER’S EQUITY

The following tables provide the amounts related to each component of OCI:


	Years Ended December 31, 2020
(in millions)	Pretax			Income Tax Benefit (Expense)			Net of Tax
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) on securities arising during the period ⁽¹⁾	$	811		$	(170	)	$	641
Reclassification of net (gains) losses on securities included in net income ⁽²⁾		5			(1	)		4
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables		(379	)		80			(299	)
Net unrealized gains (losses) on securities		437			(91	)		346
Total other comprehensive income (loss)	$	437		$	(91	)	$	346

	Years Ended December 31, 2019
(in millions)	Pretax			Income Tax Benefit (Expense)			Net of Tax
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) on securities arising during the period ⁽¹⁾	$	1,360		$	(289	)	$	1,071
Reclassification of net (gains) losses on securities included in net income⁽²⁾		2			—			2
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables		(688	)		144			(544	)
Net unrealized gains (losses) on securities		674			(145	)		529
Total other comprehensive income (loss)	$	674		$	(145	)	$	529

	Years Ended December 31, 2018
(in millions)	Pretax			Income Tax Benefit (Expense)			Net of Tax
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) on securities arising during the period ⁽¹⁾	$	(952	)	$	203		$	(749	)
Reclassification of net (gains) losses on securities included in net income ⁽²⁾		(9	)		2			(7	)
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables		435			(91	)		344
Net unrealized gains (losses) on securities		(526	)		114			(412	)
Net unrealized gains (losses) on derivatives:
Reclassification of net (gains) losses on derivatives included in net income⁽³⁾		1			—			1
Net unrealized gains (losses) on derivatives		1			—			1
Total other comprehensive income (loss)	$	(525	)	$	114		$	(411	)

⁽¹⁾	Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period.

⁽²⁾	Reclassification amounts are recorded in net realized investment gains (losses).

⁽³⁾	Reclassification amounts are recorded in net investment income.

Other comprehensive income (loss) related to net unrealized gains (losses) on securities includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.

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RiverSource Life Insurance Company

The following table presents the changes in the balances of each component of AOCI, net of tax:


(in millions)	Net Unrealized Gains (Losses) on Securities			Net Unrealized Gains (Losses) on Derivatives			Other			Total
Balance, January 1, 2018	$	458		$	(1	)	$	(1	)	$	456
OCI before reclassifications		(405	)		—			—			(405	)
Amounts reclassified from AOCI		(7	)		1			—			(6	)
Total OCI		(412	)		1			—			(411	)
Balance, December 31, 2018		46	⁽¹⁾		—			(1	)		45
OCI before reclassifications		527			—			—			527
Amounts reclassified from AOCI		2			—			—			2
Total OCI		529			—			—			529
Balance, December 31, 2019		575	⁽¹⁾		—			(1	)		574
OCI before reclassifications		342			—			—			342
Amounts reclassified from AOCI		4			—			—			4
Total OCI		346			—			—			346
Balance, December 31, 2020	$	921	⁽¹⁾	$	—		$	(1	)	$	920

⁽¹⁾

Includes nil of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of each December 31, 2020, 2019 and 2018.

19. INCOME TAXES

The components of income tax provision were as follows:


	Years Ended December 31,
(in millions)	2020			2019			2018
Current income tax
Federal	$	233		$	210		$	35
State		—			8			3
Total current income tax		233			218			38
Deferred income tax
Federal		(277	)		(271	)		(1	)
State		(1	)		(7	)		(2	)
Total deferred income tax		(278	)		(278	)		(3	)
Total income tax provision	$	(45	)	$	(60	)	$	35

On December 22, 2017, the Tax Act was signed into law. In 2018, the Company finalized its accounting related to the Tax Act and determined no adjustments were necessary.

The principal reasons that the aggregate income tax provision is different from that computed by using the U.S. statutory rate of 21% were as follows:


	Years Ended December 31,
	2020			2019			2018
Tax at U.S. statutory rate		21.0	%		21.0	%		21.0	%
Changes in taxes resulting from:
Low income housing tax credits		(20.1	)		(15.3	)		(8.5	)
Dividend received deduction		(9.7	)		(7.6	)		(4.2	)
Foreign tax credit, net of addback		(1.9	)		(9.5	)		(2.8	)
Audit adjustments		—			(1.4	)		—
Uncertain tax positions		—			1.8			—
Impact of Tax Act		—			—			(1.1	)
Taxes applicable to prior years		—			—			(1.1	)
Other, net		(0.8	)		(0.4	)		0.4
Income tax provision		(11.5	)%		(11.4	)%		3.7	%

The decrease in the Company’s effective tax rate for the year ended December 31, 2019 compared to 2018 is primarily due to the lower pre-tax income relative to tax preferred items.

Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. Deferred income tax assets and liabilities are measured at the statutory rate of 21%

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RiverSource Life Insurance Company

as of both December 31, 2020 and 2019. The significant components of the Company’s deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows:


	December 31,
(in millions)	2020		2019
Deferred income tax assets
Liabilities for policyholder account balances, future policy benefits and claims	$	1,617	$	940
Investment related		—		210
Other		13		12
Gross deferred income tax assets		1,630		1,162
Less: valuation allowance		11		11
Total deferred income tax assets		1,619		1,151
Deferred income tax liabilities
Deferred acquisition costs		424		446
Net unrealized gains on Available-for-Sale securities		274		182
Investment related		216		—
Deferred sales inducement costs		44		50
Other		12		13
Gross deferred income tax liabilities		970		691
Net deferred income tax assets	$	649	$	460

Included in the Company’s deferred income tax assets are tax benefits primarily related to state net operating losses of $9 million, net of federal benefit, which will expire beginning December 31, 2021. Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize certain state net operating losses of $9 million and state deferred tax assets of $2 million; therefore, a valuation allowance of $11 million has been established.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows:


(in millions)	2020			2019			2018
Balance at January 1	$	39		$	19		$	14
Additions based on tax positions related to the current year		1			1			5
Reductions based on tax positions related to the current year		(1	)		—			—
Additions for tax positions of prior years		—			34			1
Reductions for tax positions of prior years		—			(4	)		(1	)
Audit settlements		—			(11	)		—
Reductions due to lapse of statute of limitations		(1	)		—			—
Balance at December 31	$	38		$	39		$	19

If recognized, approximately $20 million, $17 million and $8 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2020, 2019 and 2018, respectively, would affect the effective tax rate.

It is reasonably possible that the total amount of unrecognized tax benefits will change in the next 12 months. The Company estimates that the total amount of gross unrecognized tax benefits may decrease by approximately $11 million in the next 12 months primarily due to Internal Revenue Service (“IRS”) settlements.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized nil, a net increase of $1 million and nil in interest and penalties for the years ended December 31, 2020, 2019 and 2018, respectively. The Company had a payables of $2 million related to accrued interest and penalties as of both December 31, 2020 and 2019.

The Company files income tax returns as part of its inclusion in the consolidated federal income tax returns of Ameriprise Financial in the U.S. federal jurisdiction and various state jurisdictions. The federal statute of limitations are closed on years through 2015, except for one issue for 2014 and 2015 which was claimed on amended returns. The IRS is currently auditing Ameriprise Financial’s U.S. income tax returns for 2016, 2017 and 2018. Ameriprise Financial’s or the Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 2010 through 2019.

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RiverSource Life Insurance Company

20. COMMITMENTS, GUARANTEES AND CONTINGENCIES

Commitments

The following table presents the Company’s funding commitments as of December 31:


(in millions)	2020		2019
Commercial mortgage loans	$	18	$	59
Affordable housing and other real estate partnerships		12		22
Total funding commitments	$	30	$	81

Guarantees

The Company’s annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2020, these guarantees range from 1% to 5%.

Contingencies

Insurance companies have been the subject of increasing regulatory, legislative and judicial scrutiny. Numerous state and federal regulatory agencies have commenced examinations and other inquiries of insurance companies regarding sales and marketing practices (including sales to older consumers and disclosure practices), claims handling, and unclaimed property and escheatment practices and procedures. The Company has cooperated and will continue to cooperate with the applicable regulators.

The Company 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. The Company believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory investigation, examination or proceeding that is likely to have a material adverse effect on its consolidated financial condition, results of operations or liquidity. Notwithstanding the foregoing, it is possible that the outcome of any current or future legal, arbitration or regulatory proceeding could have a material impact on results of operations in any particular reporting period as the proceedings are resolved.

Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the insurance industry generally.

Guaranty Fund Assessments

RiverSource Life Insurance Company and RiverSource Life of NY are required by law to be a member of the guaranty fund association in every state where they are licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations.

The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated.

The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. As of both December 31, 2020 and 2019, the estimated liability was $12 million. As of both December 31, 2020 and 2019, the related premium tax asset was $10 million. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known.

F-53